Avery Dennison(US:AVY)2020-12-15 16:13RFID Market Growth and Adoption - The RFID market is experiencing significant growth, with apparel leading the way due to its role in enabling omni-channel retailing[5] - The company's RFID revenue platform, including Smartrac, generates over $500 million and is targeted to grow by 15-20%, contributing approximately 1 percentage point to the company's annual growth[5] - The company has a greater than 50% share in the apparel segment of the UHF RFID market[5] - The company has produced over 30 billion inlays to date[12] Expansion Beyond Apparel - Promising early-stage developments are occurring in markets outside of apparel, including food, beauty, logistics, and aviation[5] - These non-apparel sectors require provenance, transparency, inventory accuracy, convenience, and labor efficiency (food), inventory accuracy and consumer experience (beauty), and pallet tracking, case tracking, parcel sorting, and last-mile optimization (logistics)[9] Competitive Advantages - The company possesses an industry-leading solution development team that supports customers from business case development to complete solution implementation[11] - The company has over 1750 patents and applications worldwide[12] - The company has 7 global manufacturing sites and operational excellence[12] Impact of COVID-19 - While COVID-19 initially created headwinds in Q2 due to retail apparel exposure, the pandemic is now driving the need for better visibility, efficiency, and traceability, creating long-term tailwinds[5]