Currently, global enterprises are in a phase of digital transformation, including retail companies. With the expansion of the market and the rapid increase in business scale, the retail industry's operating costs remain high, with labor costs soaring and processes becoming more cumbersome, putting retail companies under increasing pressure.
According to McKinsey & Company, more than half (54%) of the jobs in the retail or consumer packaged goods (CPG) industry are likely to be replaced by automation. And the retail automation market is expected to grow from $8.79 billion in 2017 to an annual $14.03 billion in 2022. Among these, electronic shelf labels involving shelf management are an important part of the digital transformation of the retail industry.
International Retail Companies Have Pioneered the Use of Electronic Shelf Label
Metro: Under the epidemic, ensuring the basic supply of people's life is one of the most important tasks for the retail industry, especially the industry leader Metro. BOWTZ solves Metro's needs through electronic shelf label management system and positioning ESL system, helping its online and offline integration development and reducing operation cost.
Walmart: Back in 2019, retail giant Walmart began using electronic shelf labels. Its staff said that in the past, promotional price adjustments took an entire shift of staff to carry out. The use of electronic shelf label saved time. At the same time, a large number of shoppers as well as shopping carts to the traditional shelf label wear and tear was more serious, while the electronic shelf label durable, resistant to wear and tear, effective savings in the cost of supplies. In addition, to display more product information, the electronic shelf label can show the source of nutrition, ingredients or the QR code of promotional coupons, which elevates the customer experience.
Electronic Shelf Labels Help Retailers With Its Unique Advantages
Electronic shelf label is changing the rules of shelf management in the retail industry through the advantages of technology. It can effectively control and improve the merchandise management process, optimize the inventory management process, save costs, improve productivity and elevate customer experience.
Electronic shelf label has the following features that are suitable for retail industry to reduce cost and increase efficiency:
- High maturity: Retail is a mature industry, and the electronic shelf label has been developed for nearly 20 years, with high maturity and stability.
- Simple operation process: Only simple training is required and staff can operate.
- Large volume of merchandise management: The number of SKUs and daily transactions in the retail industry are very large. Compared with paper shelf labels, and electronic shelf labels can manage a huge volume of goods at the same time.
- Efficient inventory management: Out of stock is a problem retailers have faced since the birth of grocery stores. Electronic shelf labels can be linked to a retail store's ERP system to provide flashing light alerts once an item falls below safety stock.
- Less system software: Retailers only need one set of electronic shelf label management system, they can manage the goods efficiently.
If you have more questions about how electronic shelf labels can help businesses reduce costs and increase efficiency, you can also contact BOWTZ today for inquiries!