The demand for electronic shelf labels (ESLs) is gaining momentum globally, as retailers increasingly struggle to effectively match online pricing, digitise their physical stores, meet new order fulfillment models, and streamline the shopping experience.
According to a new report from ABI Research, ESLs will hit the mass market and generate more than $4bn in global revenues by 2022, helped by a domino effect caused by several big box retail deployments over the next two years.
ABI Research noted that with multi-colour graphic display prices falling, in-aisle promotion barriers are disappearing and many major grocery chains in the US and UK expected to roll out ESLs over the next three years. Germany continues to see a lot of activity with trials suggesting a strong pipeline of opportunity across the continent. Asia also represents huge opportunity, with the global industry watching to see if market incumbents can expand into these two markets despite increasing competition from local players.
The report added that while Amazon Go and its global effect on the retail technology market landscape is clear, the role that dynamic pricing plays in Amazon’s model remains less apparent. ABI expects online pricing to become omnichannel pricing, meaning in-store dynamic pricing will soon become a reality with ESLs playing a predominant role. In collaboration with BLE and NFC technologies, ESLs can track purchases as customers shop, allowing retailers to build apps that eliminate the need for queues and checkout processes entirely.
It also noted that ESLs provide retailers with a significant ROI by streamlining paper/staff costs, reducing the risk of human error, cutting back on waste, and improving price perception – all of which can positively affect retailers’ bottom lines by as much as 5%.
- The key appeal will be in terms of dynamic in-store pricing i.e. think flexible pricing to optimise traffic and fixture flow…