Tags track Japanese shoppers

The wandering path taken by a browsing shopper inside a store in Japan may soon be mined for retail insights through a radio frequency identification (RFID) tracking system.

By placing tag readers on the shelves of bookstores, the new system allows booksellers to gain information such as the range of books a shopper has browsed, how many times a particular title was picked up and even the length of time spent flipping through each book, Japan's Nikkei Electronic News reported.

The architecture of this RFID system - demonstrated at the Tokyo International Book Fair 2003 -- is based on specifications laid down by Auto-ID Center, an RFID research organisation led by the Massachusetts Institute of Technology.

Server computer maker Sun Microsystems worked on the database component of the project, while printing and packaging experts Dai Nippon Printing and communications company NTT are responsible for designing applications and security technologies, the report said. RFID chips for this project are supplied by Dutch chipmaker Philips Semiconductor.

The ability to track a consumer's in-store behaviour holds immense business potential for store owners, as it allows them to do things like charging higher premiums for high-traffic locations or tweaking product placement to spur movement of less-popular products.

However, such business benefits also toe the ethical line as it could be seen as a violation of consumer privacy, one of the greatest concerns surrounding the deployment of RFID technology.

Privacy groups around the world have vehemently protested against the use of radio frequency tags, fearing they could allow marketers to obtain invaluable information on a host of consumer preferences. Philips has announced that it has added a "kill command" to allow the disabling of chips after the checkout counter.

Besides monitoring consumer behaviour, Sun and its Japan-based partners also showcased more conventional applications of radio frequency tags. For example, the system also promises improved stock control and movement through a RFID-based supply chain management system linking book publishers, distribution agents and book stores.

The trio will be developing more applications for this system before marketing them to the publishing market. In addition, they also plan to enlist the help of chipmakers in their marketing efforts, the report said.