RFID: 'You know you want it'

While 2003 was the year that saw the emergence of RFID, with household names such as WalMart jumping on the bandwagon, several retailers got cold feet and ditched the technology. Not so this year, say analysts – big business is crying out for the technology and, more importantly, the tide of public opinion is set to turn – as companies lure consumers with cold, hard cash.

Despite high street retailers including Marks & Spencer and Tesco trialling the contentious technology and then ditching it due to the reaction from the public, a report from Forrester Research has found that consumers wouldn't mind being tracked with the radio tags if it meant cheaper shopping.

The survey of US consumers found that, when questioned, people admitted they wouldn't mind giving up certain information about themselves via RFID, including location, if it saved them time or money – with over half of consumers saying they'd be happy to be tracked in a supermarket if they were given money-off coupons for their groceries.

Some information is not for sale, however, according to consumers – not even for 20p off black bin bags. As soon as the data requested takes on a more personal tone, not even grocery vouchers would get them to turn canary, the research found.

Nevertheless, the trend towards take-up of the technology and shifting consumer attitudes will be music to the ears of companies across the Atlantic, who, according to a separate report from analyst group IDC, entitled US RFID for the Retail Supply Chain Spending Forecasr and Analysis 2003-2008, will be increasing their RFID spending from $91.5m last year to $1bn in 2008, spurred on by falling hardware prices and better understanding.

Even if RFID isn't commonplace currently, retailers should accept they'll be deploying it soon enough.

Christopher Boone, the programme manager of US vertical industry research at IDC, said: "Although many suppliers and distributors are currently unfamiliar with RFID technology, they will soon need to comply at some level with customer demands for RFID tagging of cases and pallets."

Who will actually be signing up to use the technology is unclear – the Forrester Research report, The X Internet and Consumer Privacy, also surveyed a number of companies globally about whether they would be happy to collect detailed information on their shoppers. Eighty per cent replied in the negative, with nearly half citing fear of invading consumers' privacy as the main deterrent.

Altruists? Not quite. Almost the same number said they wouldn't collect the data because it would cost too much.