Technological advancements in the retail sector aim to enhance the customer shopping experience. The rising complexities in managing large retail stores are encouraging the stakeholders in the retail industry to focus on automation in this sector. As part of the automation process, retail stores across the world are increasingly adopting electronic shelf label systems for delivering precision and flexibility in operations of physical stores. To automate their operations, retail stores are currently opting for full-graphic e-paper, liquid crystal displays (LCDs), and segmented e-paper.
Moreover, the increasing need for enhanced functional efficiency in inventory and warehouse management and physical management will also support the electronic shelf label market growth during 2021–2030. According to P&S Intelligence, the market was valued at $782 million in 2020. Improved efficiency in warehouse and store management has eased the work of retailers. Owing to the ease of operation offered by electronic shelf label systems, these automated systems have become useful in scheduling service operations and product deliveries and displaying product information.
In recent years, electronic shelf label system manufacturing companies have been focusing on the development of near-field communication (NFC) technology-based systems. The integration of NFC technology in these electronic label systems enables retailers to update information, such as cost, discounts, special offers, and other product details, by using NFC-enabled smartphones. Thus, the deployment of NFC-based systems in supermarkets, hypermarkets, specialty stores, and non-food retail stores helps retailers in price optimization, fast and contactless data transfer between different devices, and efficient stock management.
At present, electronic shelf label system manufacturers are largely focusing on partnerships to reach out to more retailers and manufacturing companies. For instance, in November 2020, E Ink Holdings Inc. partnered with Yes Optoelectronics (Group) Co. Ltd. to develop electronic shelf label systems. Through this partnership, both companies aim to manufacture advanced products, support sales and marketing, and propel research and development (R&D) in e-paper components and key materials. Similarly, in April 2021, E Ink Holdings Inc. collaborated with DATA MODUL AG to become a reseller of such systems in the U.S. and Europe.
Geographically, North America emerged as the largest user of electronic shelf labels in the recent past, due to the burgeoning demand for this technology among the leading chains of retail stores, such as Wal-Mart, across the region. Apart from this, the easy availability of processing machinery also accelerates the usage of electronic shelf labels in the region. Moreover, the rising number of government initiatives supporting technological advancements and integration of automated products across the retail sector will also fuel the adoption of the electronic shelf label technology in the region in the forthcoming years.
