Retail and hospitality are integral in re-inventing Singapore, turning it into a vibrant and global city, and boosting its attractiveness as a premier tourism and business destination.

Infocomm will be the enabling technology, with the focus on developing RFID (radio frequency ID) applications in the retail supply chain and in hotels and tour companies.

Imagine the mirror in a dressing room of a department store. As the shopper tries out a blouse, the scanner attached to the mirror reads the RFID tag on the collar. It then retrieves data from the server on sizes and colours available for that particular blouse. The information is displayed on the mirror which the shopper can see, even as she is checking herself out with the new blouse. The smart mirror also informs her about matching skirts and other accessories, and the counters they are found.

The mirror’s intelligence comes from a combination of specially-designed antennas with an integrated RFID reader to read the RFID tag on the apparel. It will also have a voice-enabled display panel so that it can talk to the shopper.

This is part of an innovative project being developed by Republic Polytechnic students, with help from Japanese technology vendor NEC.

RFID or Radio Frequency Identification is among the latest technologies that can be adopted by retailers, not only for inventory control, but to enhance the shopping experience of customers, as in the case of the intelligent mirror.

Creative uses of RFID in retail

The government has embarked on a concerted effort to promote adoption of RFID technologies to industry, according to Mr Png Cheong Boon, Deputy Chief Executive of SPRING Singapore. He was speaking at the opening of the Republic Polytechnic-NEC RFID@NEC Competency Centre in January 2008.

According to Mr Png, in 2004, the Infocomm Development Authority launched a $10 million initiative to boost the development and adoption of RFID. Last year, A*STAR launched the National RFID Centre which serves as a national focal point for promoting the adoption of RFID, he said.

Other retail projects using RFID include the development of an RFID-enabled shopping cart that will enable retailers to understand better the buying behaviour of shoppers, as well as to reach out to customers more effectively through real-time in-store advertising and promotions.

This $2.5 million project by MediaCart Asia, a local retail marketing company, is supported by SPRING’s Technology Innovation Programme, and A*STAR’s Exploit Technologies, Institute of Microelectronics, SIMTECH and National RFID Centre, said Mr Png.

RFID applications in the hotel

RFID technology is also being applied to provide a powerful competitive advantage in the hotels and among tour operators. The related technologies are already permeating customer services, information management and hotel design, and enabling businesses to create alternatives to existing products and services.

RFID tags, for instance, will enable mass customisation of customer services, and hotel and leisure operators, and offer targeted preferential treatment, loyalty perks or other loyalty rewards to important customers during the service delivery process.

Other creative use of technology include equipping hotels with VoIP-enabled (Voice over Internet Protocol) telephony, digital signage solutions and security features.

Infocomm technologies in tourism, hospitality and retail

In tourism, hospitality and retail, IDA's programmes focus on improving the experience of visitors to Singapore, and enhancing the competitiveness of the vendors through infocomm.

The goal is for visitors to enjoy personalised and seamless experience; and for the companies in the sector to be closely linked by technology, sharing data and information seamlessly.

IDA has identified three key programmes: Digital Concierge, Technology Adoption Programme, and the Retail eSCM Ecosystem

Digital Concierge

This personalised information service allows a visitor to access tourism-related content and services though their mobile device and other channels, such as the Internet kiosk or interactive television.

Each visitor will have their own "personal concierge", with access to information anywhere, any time. The location-based services will include recommendations on activities, food and shopping.

Technology Adoption Programme

Assistance will be given to companies to adopt infocomm for better productivity. The programme encourages greater use of ICT, through education, skills development and incentives. Solutions and models will be developed for companies based on their level of technology adoption and needs.

Retail supply chain ecosystem

In August 2003, IDA, together with SPRING Singapore and the Singapore Article Number Council, began planning an eSCM Ecosystem for the retail sector. This plan was to develop infrastructure components such as B2B data standards and electronic product catalogue as a common reference to make electronic procurements pervasive in the fast moving consumer goods (FMCG) industry.

Having put in place the foundation of the ecosystem, IDA's focus will be to build collaborative relationships within the retail sector.

In response to IDA's call for collaboration in August 2004 for deeper supply chain integration efforts among the retail supply chain partners, several retailers have adopted CPFR (Collaborative Planning, Forecasting and Replenishment) for more accurate management of inventory levels, and RFID technology for tracking of physical goods across their supply chains.

Key strategies and technologies

Looking ahead, innovations together with best business practices will be among the key strategies that IDA is working with retail industry leaders. The aim is to develop collaborative retail hubs that will become more cost-efficient and responsive in meeting customers' demands and changes in the marketplace.

Target audiences will include retail operators and suppliers, technology companies specialising in retail, and industry associations

Figures and facts

Singapore posted an estimated $13.8 billion in tourism receipts for the whole of 2007, an 11.3% increase over 2006. This exceeded the target of $13.6 billion for 2007.

In 2007, Singapore welcomed 10.3 million visitors, an increase of 5.4% over 2006. This is the highest annual visitor arrivals recorded for the tourism sector.

As Singapore gears up to host more international events (the F1 Grand Prix 2008, the inaugural Youth Olympics Games in 2010, etc) and building more tourist attractions such as the upcoming integrated resorts, the hospitality sector is expected to augment their existing and new facilities.

The timely and creative adoption of ICT will be key in boosting hospitality and retail service standards, and coping with the influx of tourists and higher occupancy levels arising from such events.

Retail therefore plays an integral role in enhancing Singapore’s attractiveness as a premier business and tourist destination, as pointed out by Mr Lee Yi Shyan, Minister of Trade for Trade and Industry.

At the launch of the National Retail Scholarship in May 2007, the minister said in 2005, the retail industry’s 18,500 establishments generated some $21 billion in operating receipts and employed some 92,500 workers.

“With the optimistic economic outlook, and the expected boost to tourism from projects such as the IRs and the Formula-One race, the growth potential for retail is tremendous,” Mr Lee added.

– Francis Chin