With the constantly evolving technology in retail businesses, electronic shelf labels have become an essential tool for dynamic pricing.
These labels, commonly abbreviated as ESLs, are digital display systems that you can use in your retail business to show the price of the products, promotions, and any other relevant information regarding the particular products. Compared to traditional paper labels, ESLs are easily updatable because they use LCD technology and e-ink. Read on to know the future innovations in ESLs and how they will benefit businesses.
What is the Future of Electronic Shelf Labels (ESLs?)
According to research, technology has grown unprecedentedly in the last ten years. This has brought about innovations such as conversational AI, augmented reality, and robotics, which are now in play in various industries. As it grows, systems such as electronic shelf labels are set to become even more sophisticated by integrating different innovations, as mentioned below.
1. Integration with IoT (Internet of Things)
The Internet of Things hugely influences the retail sector. Today, ESLs can be integrated with other rental technologies, including customer analytics tools, inventory management, and digital kiosks, for a seamless environment. With these systems, the retailer can update stock levels, change prices, and even have a poll segment to engage customers. By receiving this information in real-time, they know which products are poorly performing and craft promotions for them.
One notable integration is the use of RFID technology alongside ESLs on smart shelves. These shelves come with sensors that automatically detect the product levels and automatically update the ESLs. This prevents occurrences such as ‘out-of-stock’ alerts and ensures customers have the correct information at all times.
2. Expansion into Other Industries
In the beginning, ESLs were only found in supermarkets and grocery stores. Nevertheless, with the growing ESL adoption trend, the tool has found its way into different sectors, including electronics and pharmacies. The growth in non-grocery sectors is expected to grow as more businesses navigate inventory control and dynamic pricing.
For businesses, such as electronics reselling, the electronic shelf labels are perfect for providing detailed product specifications and feature comparisons. This helps a customer make a more informed decision especially when they do not have time to research more on the products. Clients can also get information on the availability and discounts or promotions applicable in real-time, eliminating misunderstandings while paying at the counter.
3. More Focus on Sustainability
Gone are the days when you needed a whole roll of stickers for your products. With ESL, retailers have confessed to spending less on paper production, which brings more sustainability. Research shows that consumers have grown more environmentally conscious and are more likely to shop at your store if you prioritise green practices.
ESL reduces paper usage by up to 70%. By adopting ESL, you minimise your carbon footprint from start to finish. This innovation not only supports your cause of making Mother Nature happier but also helps you connect with environmentally conscious clients.
4. AI (Artificial Intelligence) Integration for Pricing
AI is another emerging trend striving to improve the customer’s shopping experience. By incorporating artificial intelligence into your ESLs, you can easily adjust the prices for your products based on demand, competition, and even other local events. In the next few years, retailers will use AI-driven dynamic pricing alongside ESLs to optimise inventory turnover and maximise revenue. You will see them in time-limited promotions and flash sales, which increase purchases by more than 20%.
Conclusion
The adoption of electronic shelf labels has transformed the retail landscape over the years. This has been driven by the need for more efficiency, transparency, and better customer experiences. The above trends are slowly being implemented and integrated with ESLs, which makes their adoption even faster. With these integrations, businesses enjoy operational efficiency, functionality, and excellent customer service. All these help them retain satisfied customers and stand out from their competition.
