RFID in Fashion Retail: From Inventory Control to Circular Economy

  • Published: July 30, 2025
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RFID technology embedded in fashion garments enabling inventory control and circular economy benefits
Fashion garment with E-Thread™ RFID by Primo1D: permanent, embedded traceability from retail to recycling. Source: Primo1D

Fashion retail is changing fast. Inventory accuracy, loss prevention, resale authentication, rental tracking, recycling efficiency, and upcoming regulations like the Digital Product Passport (DPP) are redefining what “good operations” look like. The common denominator to solve all of these at once: UHF RFID embedded directly into the garment.

Primo1D’s E-Thread™ RAIN UHF RFID technology weaves the tag into the textile itself—discreet, permanent, tamper-proof. What began as a technology to count stock faster in stores now powers end-to-end product transparency and enables circular business models from rental to second-hand and recycling.

Why embedded RFID changes the game

Traditional labels and stickers fall off, get swapped, or don’t survive multiple lifecycles. E-Thread™ is sewn under overlock stitching, creating a persistent digital identity for every item—ready to be read at any point in its lifecycle, from manufacturing to end-of-life sorting.

What brands and retailers gain:

  • Real-time, item-level visibility across production, stores, resale, rental, and recycling

  • Fewer stock discrepancies & faster replenishment thanks to mass-reading capabilities

  • Authentication and condition tracking for second-hand and recommerce channels

  • Automated rental workflows with loss prevention built-in

  • Accurate, automated sorting for recycling via composition data stored in the product’s identity

  • Seamless DPP compliance with a secure, updatable data backbone

Inventory, solved: Efficiency at retail & logistics scale

Manual barcode scans are slow, error-prone, and expensive. RFID enables simultaneous scanning of entire stacks or racks, cutting counting time dramatically and boosting on-shelf availability, revenue, and customer satisfaction.

With E-Thread™ embedded, every item stays traceable—no relabeling, no lost identity—delivering long-term value beyond store inventory: from logistics to post-sale services.

Resale is exploding — RFID makes it trustworthy and scalable

The second-hand market is projected to grow +24% by 2030. To win here, brands need authentication, provenance, and instant product data access. E-Thread™ ensures each garment carries its verifiable, immutable identity, enabling:

  • Instant authenticity checks

  • Automated updates to product condition & ownership

  • Full transparency for consumers (materials, care instructions, sustainability impact)

And with DPP requirements approaching, RFID-equipped garments will become the standard for compliant, high-trust recommerce.

Rental, returns & loss prevention — automated

Rental platforms thrive on speed and control. RFID-embedded garments allow operators to:

  • Scan multiple items instantly at check-out/check-in

  • Track wear cycles, repairs, and maintenance

  • Prevent losses—because E-Thread™ can’t be removed without damaging the product

Result: faster turnaround, fewer write-offs, higher profitability.

Closing the loop: RFID-powered recycling

One of the biggest blockers to textile recycling is knowing what’s in the fabric. Care labels don’t survive; databases don’t always match reality. E-Thread™ puts the truth in the textile:

  • Automated, accurate sorting by composition

  • Higher-quality recycling streams

  • Lower operational costs and waste

RFID turns “circular fashion” from aspiration to operational reality.

Compliance-ready with the Digital Product Passport

DPP will require granular, up-to-date product information across the lifecycle. Embedded RFID gives every item a secure, queryable data handle—making compliance practical, scalable, and automated.

6 ways Primo1D’s E-Thread delivers ROI

  1. Cuts counting time & boosts stock accuracy

  2. Reduces shrinkage and losses

  3. Authenticates & streamlines resale

  4. Automates rental workflows and maintenance

  5. Enables efficient, composition-based recycling

  6. Prepares brands for DPP and future regulation

From inventory to circular economy, RFID is the connective tissue. Primo1D’s E-Thread™ lets brands and retailers operate faster, prove sustainability, and stay compliant—while unlocking new business models across the product lifecycle.

Get in contact to learn how E-Thread™ can transform your retail operations and power your circular strategy.


Contact and Company information

Valériane Henry
Released by
Primo1D
Contact:
Valériane Henry

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