RFID stands for Radio Frequency Identification. When used on clothing, RFID tags are small electronic devices that can be embedded in garment labels or attached to clothing items. These tags use radio waves to wirelessly transmit information about the product to RFID readers.

For clothing retailers, RFID technology offers several benefits:

1. Inventory management: Allows for quick and accurate tracking of stock levels

2. Loss prevention: Helps reduce theft by enabling better item tracking

3. Supply chain efficiency: Improves logistics by tracking items from manufacturing to sale

4. Faster checkout: Enables quicker scanning of multiple items at once

5. Improved customer experience: Can provide more accurate product availability information

The RFID tags on clothing typically store data like the item's SKU number, size, color, and price. This allows retailers to efficiently manage their inventory and streamline operations. However, it's important to note that these tags are generally deactivated at the point of sale to address privacy concerns.