What Should Retailers Consider When Implementing Electronic Shelf labels?
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- Issue Time
- Nov 6,2020
Summary
electronic shelf labels, electronic shelf labeling system, digital price tags, electronic tags, e-ink price tags
The ideal digital price tags deployment will be slightly different for each retailer -- a grocery store like Whole Foods will have different needs than a specialty retailer like Apple, and different needs than a large box store like Costco. To a large extent, as retailers seek to implement AN ESL, its unique needs and existing infrastructure will determine its priorities - and the challenges that must be overcome. Here are a few practical considerations for retailers to consider when launching AN ESL:
Store layout: The RF signal must be able to reach every label in the store to ensure accurate pricing, but this can be difficult if there are physical barriers along the way. For example, a grocery store will need to ensure that its electronic shelf labeling system RF hardware can transmit signals at sufficient power to penetrate a steel and glass refrigerator.
Workflow: E-ink price tags is designed to simplify the tagging process, but this means that the retailer's technical capabilities must be consistent with how it actually USES the tags. For example, do retailers want prices to come directly from the company, or do they process them at the store level?If the answer is the former, then the retailer's head office will have to manage the communication between multiple stores and a central server or cloud setup, which will require additional technology and management.
Custom development: In addition to choosing an electronic tags system that fits their current inventory management practices, retailers should also choose a system with a robust protocol stack that can be reconfigured to suit the retailer's changing needs. For example, while a retailer may want to explore how a shopper can use their phone to interact directly with the ESL, not all backends support this interaction.
Appearance: Retailers do not want restrictions on the "appearance" of labels. Can they choose between several sizes? Are graphics as legible as they want? ESL can even add splashy features such as flashing colored lights.
Cost: The cost-effectiveness of electronic labels systems is always an important consideration. To see if ESL represents economic prudence, retailers should compare their initial investment in ESL with their existing re-labeling costs, which can be substantial for high-inventory stores. Retailers should also consider ESL's ongoing maintenance costs and understand how long each type of low-power device will actually last.