NFC (Near Field Communication) 

NFC (Near Field Communication) is a wireless technology based on RFID (Radio Frequency Identification) that enables contactless communication between a reader and a tag.

A tag is a small electronic component that enables wireless connectivity to physical objects, such as consumer packaged goods, including food, beverages, household products, and more.

Adding an NFC tag to the object connects the object itself to the digital world.

The implementation of NFC enables consumer goods brands to track their products around the world, to ensure quality and safety, and to create a direct two-way communication channel with consumers through their smartphone, which is used as an NFC reader.

How NFC Technology Works

Several advanced functions are built into the NFC tag itself, including a unique identifier (UID) and user memory, which enables the company to embed useful information for clients, such as a web link with product information.

For example, the web address of the company can be configured in the NFC tag itself, and the buyer by simply “touching” the NFC-enabled cardboard package with his smartphone (bringing the mobile phone and the tags in the immediate vicinity to enable the reading of the tags), can find out much more information about the product he wants to buy or has already bought.

In addition to the security it provides, NFC technology offers many other advantages for brands that offer “consumer Packaged goods” (CPG), since the same NFC tag can be used for several use cases.

Traceability

The company can use NFC technology to confirm that the goods or the product equipped with an NFC tag followed the entire flow of the supply chain as expected.

This is possible thanks to the NFC readers in warehouses that can track each item individually.

The product can be geolocated by anyone using an NFC reader or a mobile phone compatible with NFC anywhere and throughout the entire chain, from production to store.

By setting up several control points down the supply chain, inventory management can be improved, and the status of each marked item can be easily identified and updated from the stock supplier side.

Communication channel between brands and their consumers

NFC tags can easily be configured with personalized content (product composition, origin, etc.) that consumers can access by simply touching the tag with their smartphone.

The so-called “Tap & Link” approach enables the brand to create a unique and direct relationship with the consumer by sharing information about the product, but also about the brand itself.

NFC tags can make smarter consumer packaged goods (CPG) and promote consumer engagement.

Advantages for companies:

Create a direct digital relationship with consumers

Collecting valuable information from clients (tracking how much content was accessible on NFC tags and what consumers are looking for)

You inform consumers about discounts and other good deals

Benefits for buyers:

Product information and recycling tips

One-touch access to e-commerce sites

Related or similar product information

Program for registration and customer loyalty

Warnings for the expiry date of the product and other information to reduce waste, through a special mobile application.

Finally, it would be worth mentioning that the consumer packaged goods industry is a highly competitive market, with a large number of players and “very sensitive to price consumers”, who are becoming concerned about their health and lifestyle and at the same time want to help in environmental protection.

Digital technologies offer new opportunities for companies to create direct communication with clients.

Making product packaging smarter using NFC technology is a means for these CPG companies to encourage consumer engagement and stand out from the competition.