In the dynamic landscape of retail, Electronic Shelf Labels (ESLs) have emerged as a game-changer, transforming traditional pricing and inventory management systems.
The global adoption of Electronic Shelf Labels is experiencing remarkable growth, driven by the need for efficient pricing management, enhanced customer experience, and the overall modernization of retail infrastructure. According to Globe Newswire, “The global electronic shelf label market is expected to grow from $0.96 billion in 2022 to $1.14 billion in 2023 at a compound annual growth rate (CAGR) of 18.1%. The electronic shelf label market is expected to reach $2.10 billion in 2027 at a CAGR of 16.5%.” This surge is indicative of the widespread recognition among retailers of the benefits ESLs bring to the table.
Currently, North America stands as a key player in ESL adoption, with a growing number of retailers recognizing the value of transitioning from traditional paper labels to electronic alternatives. However, the ESL wave is not limited to North America alone. The rest of the world is catching up rapidly, with Europe and Asia-Pacific regions demonstrating significant adoption rates. The flexibility, accuracy, and efficiency that ESLs offer make them a universal solution for retailers seeking a competitive edge worldwide. In January 2023, according to the World Economic Forum, a Switzerland-based international non-governmental and lobbying organization, artificial intelligence services in the retail automation sector are expected to grow from $5 billion to more than $31 billion by 2028. Therefore, the rising adoption of automation in the retail sector is driving the growth of the electronic shelf label market.
Several features contribute to the increasing popularity of ESLs including:
Bluetooth transmission capabilities allow for seamless communication between the ESLs and backend systems, ensuring real-time updates on pricing and inventory. Enhanced security features protect against unauthorized access and tampering, instilling confidence in retailers relying on these systems for critical operations. Not to mention the unmatched operational efficiencies and cost-savings noted by business owners immediately after installation.
Additionally, LED light applications such as Danavation Technologies’ Stock2Lite and Pick2Lite platforms are gaining attention for their role in streamlining stock management and order fulfillment processes. Geared at improving in-store efficiencies and overall improved experiences, these LED light application platforms are a game-changer for business owners, and their staff. Stock2Lite assists with accuracy, timesaving, and empowered, positive staff equates to overall efficiencies and in turn, cost saving. The Pick2Lite application can be used to fill an online order and the store clerk needs to find all the products on the shelves. The store clerk can scan the UPC code for each product on the order which triggers the lights on the DSLs linked to the product to flash, thus allowing the employee to collect the products from the shelves quickly by just looking for the flashing DSLs.
ESLs come in various forms to cater to diverse retail needs. Liquid Crystal Displays (LCDs) provide a cost-effective solution, while E-paper displays offer a more energy-efficient and visually appealing alternative. Full graphic e-paper ESLs take it a step further, allowing for dynamic and customizable content, making them ideal for promotions and branding. The choice of ESL type depends on factors such as budget, display requirements, and the desired level of interactivity.
While ESLs find their roots in retail, their impact extends across various industries. Grocery stores, electronics retailers, and apparel shops are among the early adopters, leveraging ESLs to streamline pricing updates and enhance the customer experience. Beyond retail, ESLs are making headway in industries like healthcare and warehousing, where accurate and timely information is crucial, and logistics, where inventory management plays a pivotal role in operational efficiency.
“The global Electronic Shelf Label (ESL) market is on a trajectory of substantial growth, states Yahoo Finance. “The convergence of digitization and customer engagement underpins the sector’s rapid expansion, offering abundant opportunities for innovation and market entry.”