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News & Events

Blog: News & Events

The Latest Trend in Cosmetics? Smart Packaging.


In the past, using radio-frequency identification (RFID) to manage cosmetics and fragrance inventory has been difficult. This is due to the fact that cosmetic products are generally too small in size to be tagged properly and they frequently contain liquid or metal materials in their package design that can negatively affect the RFID technology.

New developments in RFID technology have resulted in smaller, more sensitive tags along with new packaging materials that assist brands and retailers with overcoming previous challenges to help properly manage products on shelves and in cosmetics departments. These new technologies not only address interference from liquid and metal elements, but they can also be customized to suit packaging dimensions, performance and brand requirements, which allows cosmetic manufacturers with remarkable insight into their inventory levels without having to sacrifice their branding or package design. As a result, the cosmetic industry can utilize the same RFID inventory management benefits which are currently used in the apparel industry.

Smart packaging benefits for the cosmetic industry:

RFID technology in smart packaging provide retailers a with a distinct competitive advantage. As more cosmetic companies use this technology, brands may start to see even more benefits than originally expected. Benefit of RFID smart packaging include:

  • Inventory management: Brands and retailers will have the ability to accurately track inventory levels of small cosmetics and monitor these products through the supply chain. This helps to eliminate out-of-stock issues, effectively service customers and reduce inventory shrinkage in stores.
  • Impedes counterfeiting: An estimated 10% of all counterfeit products available across all categories are in the cosmetic industry, which results in hefty profit losses. Fake products can not only damage a brand, but they can also be extremely harmful to consumers.
  • Strengthens brand loyalty: Unique and innovative customer experiences help to build brand recognition ultimately help increase brand loyalty.
  • Metrics & Reporting: RFID management system implementation provides real-time analytics to help brands access product and customer data throughout the supply chain.

As more cosmetic and beauty brands begin generating accurate data about their customers’ purchases, the more those brands can provide products suited meet their consumers’ specific wants and needs. Accurate inventory visibility with smaller items helps to save retailers both time and money by optimizing the supply chain. This also helps to save time for the sales associates, which allows them focus on providing customer service. Ultimately these changes help to build brand loyalty and establish consumer trust for cosmetic brands and retailers. 

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