I'm guessing what they are using is 3M reflective material. One of my motorcycle riding suits has a strip across the entire back. Whenever I come across another rider that has something similar I swear I can see the reflection for a good 1/3 mile. the material really does an excellent job reflecting.
Now as far as not understanding the product, this could be a great solution to those that want to be aid in being visible without having to carry spare batteries and/dispose of old ones. However I would saw that probably the best way to use the product is in conjuction with blinkies, not as a subsitute. If one extra car saw you that might not have then it's worth it.