The electronic shelf label market was valued at USD 690 million in 2018 and is expected to register a CAGR of 22.42% over the forecast period of (2019
NEW YORK, Feb. 20, 2020 /PRNewswire/ --
Market Overview
The electronic shelf label market was valued at USD 690 million in 2018 and is expected to register a CAGR of 22.42% over the forecast period of (2019 – 2024). ESLs signal the end of printing thousands of paper-based labels, thus changing the operational efficiency and improving the supply chains and aspects of the customer experience
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- High accuracy and reduction in labor costs (compared to the conventional label changing) are boosting the growth of the market. These factors have significantly reduced the risk of human error by ensuring potential pricing compliances. The clients lose trust in a company if the in-store prices do not align with the online display (as this is often the reality they encounter). The electronic shelf label helps to fix price errors.
- In the present market scenario, growing requirements for synchronization with e-commerce, fierce competition, and real-time price changes need maximum reliability and responsiveness to make strategic advantage, thereby driving the adoption of ESLs. ESLs can also be used to display competitor prices, product ingredients, automated currency conversion, source of origin, inventory levels, and many more key retail features of importance to the customers.
- NFC penetration in the industry is expected to gain momentum over the coming years, owing to the increasing adoption of NFC technology in multiple devices, such as POS systems and smartphones. This allows the retailers to integrate these devices with the existing handheld devices for lowering the overall installation cost of these labels. This acts as a key driver for the growth of the market.
- However, the high initial investments required to set up these products in stores, as well as less knowledge about the usefulness of the ESL system, are the major restraining factors for the growth of the electronic shelf label market.
Scope of the Report
Electronic Shelf Label (ESL) is used by retailers to display product pricing on shelves. The product pricing is automatically updated (whenever the price gets changed) from a central control server. The ESL market based on store type is dominated by hypermarkets, owing to the complications associated with the manual management of such big stores. This factor is leading to the high rate of adoption of these labels in the hypermarkets.
Key Market Trends
NFC Mobile Payment is Owing to Increase the Market in Retail Sector
- Due to increase in the NFC (Near Field Communication) enabled smartphone technology, the use of NFC in electronic shelf labels is growing in retail sector, as it is energy-efficient and cost effective. Near Field Communication (NFC) is embedded and uses proximity to create simplified transactions, data exchange, and brief connections. Prior to purchase, NFC-enabled smart packages and signage can provide timely product information and even real-time digital offer to the customers.
- In retail, the NFC technology significantly adds up to standard ESLs, which display the price and facilitate the stock management by enabling price updates at any time. This simplifies the customer interactions via a simple tap on an NFC-enabled smartphone.
- A majority of the customers prefer NFC technology over other digital innovations, such as QR code, and Bluetooth beacon, due to its high speed and improved control on information. This NFC enabled devices help in collecting the details of customers, their shopping interests, and frequently purchased items. This facilitates personalized marketing and, thus, attracts customers to visit again. This factors helps in boosting the growth of the market.
- Casino is a French supermarket that has used NFC tags in front of every product on the shop shelves. Customers can touch the tag with their phones and can view the product info or add the product to their mobile app's basket. It also provides personalized prices and activates instant promotions.
North America to Account for a Major Share
- Government regulations to show exact prices on shelf labels are complying retailers to adopt ESLs as paper labels are prone to human error. The shelf labeling rules differ based on the state in which the store operates, and the National Institute of Standards and Technology (NIST) handbook 130, 2019 specifies regulations for price display in the country
- Moreover, favorable government initiatives in the US towards technological innovation and integration of automated products across all industry verticals, specifically in retail automation is boosting the demand for the market.
- Moreover, according to the US Department of Commerce, the total retail sales in the US is expected to reach USD 6.03 trillion by 2022 from USD 5.35 trillion in 2018.
- According to the Moni group, brick-and-mortar sales account for 94% of the total retail sales during 2018, and 49% of the Americans prefer to shop at brick-and-mortar stores and the number goes up even further to 71% for the rural customers.
- The industrial revolution in the US has created large data evolution capabilities to be used in the production processes and integration in supply chain management. The technology aids in enhancing the store operations further developing the industry, by which ESL will improve the performance efficiency of store operations.
Competitive Landscape
The electronic shelf label market is highly competitive owing to the presence of many small and large players in the market operating in domestic as well as in the international markets. The market appears to be fragmented. The retailers are adopting various solutions to make frequent changes in the prices of products by allowing the retailers to add promotional offers to attract customers. This factor is intensifying the rivalry among the competitors. The key players in the market are E Ink Holding Inc., LG Corporation, Altierre Corporation, etc. the recent developments in the market are :
- May 2019 - E Ink, the leading innovator of electronic ink technology, displayed its latest innovations in color displays, writing films, and new light transmissive films at SID Display Week 2019 from May 14-16, 2019 in San Jose. It enables electronic shelf labels to respond to customer traffic patterns in an accurate manner.
- Apr 2019 - RIMI, a retailer from Baltics signed an agreement with the Pricer to make an investment in a pilot project in all three Baltic countries of EUR 200,000 with the company's ESLs.
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