How Electronic Shelf Labels Are Changing Supermarkets?

Why are supermarkets using electronic shelf labels? What role does it play in the supermarket? In the future, is it a necessary tool for supermarkets?

What Is Electronic Shelf Label?

The full name of the electronic shelf label is "electronic shelf label system", which is an electronic display device placed on the shelf and can replace the traditional paper shelf label, and can show the customer the name, origin, price and other information of the product (expression form including text, pictures and two-dimensional code).

Actually, each electronic shelf label is connected to the supermarket computer database through wireless network and displays the latest product price through the screen on the electronic shelf label. The electronic shelf label in fact succeeds in incorporating the shelf into the computer program, gets rid of the situation of manually changing the price label, realizes the price consistency between the checkout counter and the shelf.

For the supermarket, the electronic shelf label most attractive place is that it can adjust the price according to the actual situation of the product and the consumption dynamics, give full play to the commodity price to the consumption pulling effect.

Why Have Supermarkets Adopted Electronic Shelf Labels?

Generally speaking, electronic shelf labels have the following four main core functions:

1 Real-Time, Rapid Display of Prices

Usually, there are many uncertainties in the efficiency and accuracy of traditional manual shelf label replacement in supermarkets. This tedious work is prone to work fatigue and leads to a rise in the error rate of price information.

However, the electronic shelf label can rely on the background and front-end electronic shelf label information networking, to achieve real-time information turnover, fast time, high accuracy rate.

2 Electronic Shelf Label Has More Management Functions Than Paper Shelf Label
Display management

Once the electronic shelf label is bound to the unit shelf, the clerks can manage the goods and the shelf in correspondence, reducing the accident of misplacing the shelf and the goods.

Precise marketing

When we are shopping in the supermarket, we can scan the QR code on the electronic shelf label with our cell phones to scan the code for shopping, and we will also receive information about the discount of related products, thus enhancing the purchase rate.

Visual effect

The electronic shelf label can enhance the brand image and consumer experience because of its overall unity and strong visual impact.

3 Reduce the Production and Maintenance Costs of Paper Shelf Labels

Paper shelf label production and replacement is limited by many conditions: paper shelf label replacement cycle is long, high labor costs, expensive printing supplies, not environmentally friendly.

In the long run, the cost saving of electronic shelf label is more obvious, and it also has data analysis and marketing management function, which has great potential.

4 Remove Technical Barriers for Active Implementation of Price Strategies

The electronic shelf label is much more efficient than the traditional paper shelf label for promotion. It only needs to modify the price through the background, and the price of the front-end shelf label will be automatically modified to improve the accuracy and operational timeliness. Clerks  can also set the time of automatic price update in advance to realize time slot promotion. At the same time, for the special need to promote the main products, supermarkets can use color changing and flashing lights.

In recent years, more and more supermarkets began to use electronic shelf label on a large scale, to solve the traditional paper shelf label frequent modification of information, high manual consumption, high error rate, high loss rate, low application efficiency, increased operating costs and other multiple disadvantages. In the future, the electronic shelf label will become the necessary tool for supermarkets.