The electronic shelf label (ESL) system facilitates automated updating of product and pricing information displayed at shelves in retail stores. ESLs have an embedded display and communication module that allows wireless two-way communication with the backend management system. ESL systems help retailers leverage new pricing strategies, manage out-of-stocks, and improve shelf monitoring without the need for relabeling. Major retail chains in food, drug, mass merchant, and specialty segments have been adopting ESL systems to enhance operations and the shopping experience.
The global Electronic Shelf Labels Market is estimated to be valued at Us$ 97.92 Mn in 2023 and is expected to exhibit a CAGR Of 10% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The evolving retail landscape is transforming business operations to cater to the growing needs of buyers in terms of experience, convenience, and personalized offerings. ESL systems allow retailers to change prices remotely in real-time from the back-end system, gain granular insights into shelf conditions, and enhance stock visibility to boost sales through dynamic pricing. Additionally, digitalization enables continuous engagement with customers through communication of promotions, discounts, and contextual recommendations to optimize basket value. One of the key drivers for the growth of electronic shelf labels market is the need for improved retail efficiency through streamlined operations, enhanced stock management, and optimized prices. ESL reduces labor costs by eliminating manual labeling and improves inventory management through real-time availability of stock and pricing information.
SWOT Analysis
Strength: Electronic shelf labels provide real-time pricing updates which enhances customer satisfaction. It saves labor cost compared to manual price tags as price changes can be done remotely. The digitized format also allows additional product information and graphics to be displayed.
Weakness: The initial investment cost for installing ESL infrastructure is high. Technical glitches can cause the labels to malfunction which disrupts retail operations. Additional costs are incurred to maintain the hardware and network.
Opportunity: Growth of organized retail and e-commerce sectors in developing countries increases the potential for ESL adoption. Integration of ESL with IoT solutions enables innovative retail analytics and personalized shopping experiences.
Threats: Distribution of misinformation through compromised ESL systems can damage brand reputation. Technological obsolescence is a risk as the labels need regular upgrades to support new retail technologies.
Key Takeaways
The Global Electronic Shelf Labels Market Demand is expected to witness high growth over the forecast period supported by rising digitization of retail stores. Rapid expansion of organized retail outlets especially in Asia Pacific economies drives the adoption of ESL across various product categories. The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.
Regional analysis:
Asia Pacific region has been the fastest growing market for ESL owing to strong economic growth, growing middle class and urbanization in countries like China, India and South East Asian nations. Countries like Japan and South Korea already have established retail infrastructures with high ESL penetration. North America and Europe currently dominate the market with major retail chains widely using ESL for efficient inventory and pricing management.
Key players:
Key players operating in the electronic shelf labels market are Pricer, SES-imagotag, LG CNS, Diebold Nixdorf, M2COM/Linux, Altierre, Displaydata, Samsung Electro-Mechanics, and Teraoka Seiko. Pricer is a global market leader with over 70% market share in 2020. SES-imagotag and LG CNS are other prominent players focusing on product innovation and rapid retail deployments across regions.
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