Electronic shelf labels (ESL) – small, battery-powered electronic paper displays that present product and pricing information at the shelf edge – are quickly replacing paper labels. ESLs use wireless technology to communicate with a central hub to form a dynamic pricing automation network.
Until now, ESL systems have relied on proprietary protocols for wireless communication, presenting a potential barrier to global adoption. The inevitable vendor lock-in that accompanies proprietary ecosystems has prevented the ESL market from reaching its full potential.
To address this challenge, leaders from the ESL industry teamed with the Bluetooth Special Interest Group (SIG) to create a scalable, ultra-low power, highly secure ESL wireless standard based on Bluetooth® technology. “Interoperability and standardization are in the DNA of Bluetooth technology,” said Mark Powell, CEO of the Bluetooth SIG. “Our members have a long, rich history of developing standards that enable market expansion and mass adoption of new product categories.”
Standardizing the ESL Market
Establishing a true, global ESL standard gives retailers the freedom and confidence to source ESL components from multiple vendors knowing each will work with the others. Backed by a proven product qualification program, Bluetooth® ESL is the standardized solution the market has needed to minimize barriers to adoption and build a frictionless, interoperable ESL ecosystem.
“Retailers are increasingly looking towards Internet of Things (IoT) technologies to help them deliver operational efficiencies, increase conversion, and to encourage customers to return to stores,” said Andrew Zignani, research director at ABI Research. “However, some retailers have been hesitant to adopt ESL technologies due to concerns over vendor lock-in, interoperability, scalability, and the ability to extend this to other smart retail initiatives. The introduction of the Bluetooth ESL standard will help reduce potential obstacles for retailers looking to invest in IoT technologies and accelerate adoption and innovation.”
FEATURED INNOVATION
Electronic Shelf Labels (ESL)
With the introduction of a wireless standard for the electronic shelf label (ESL) market, Bluetooth® technology is helping unlock the next chapter in in-store digital transformation to deliver better retail outcomes for both stores and shoppers..
With the introduction of a wireless standard for the ESL market, Bluetooth® technology will help unlock the next chapter for in-store digital transformation to deliver better outcomes for stores and shoppers – automating pricing, optimizing in-store operations, and improving customer satisfaction.
- Automated Pricing: Historically, retail shelf pricing has relied on error-prone, labor-intensive paper price tags and manual processes that sometimes had to be performed several times in a typical day. ESL solutions help brick-and-mortar stores fully automate pricing strategies to display the right price at the right moment and enable seamless omnichannel retailing.
- Optimizing In-Store Operations: Manual inventory management slows operations, and undetected stockouts bite away at profits. ESLs can ease and expedite picking and fulfillment for click-and-collect shoppers while accelerating shelf stocking and replenishment to optimize product availability on shelves and avoid missed sales opportunities.
- Improved Customer Satisfaction: A shopper’s experience at the shelf edge is one of the most critical influences on a purchase decision. ESLs can provide always-accurate pricing, increased access to real-time promotions and product information, and a more gratifying omnichannel experience for customers.
Standardization at the shelf edge using Bluetooth® technology also offers benefits to ESL developers, including economies of scale and better allocation of development resources.
“We are proud to have collaborated with the Bluetooth SIG and its members to lead the standardization of ESL connectivity. Backed by a proven product qualification program and an unmatched installed base, Bluetooth® technology was the logical choice to build a frictionless, interoperable ESL ecosystem,” said Art Miller, VP of business development and head of retail at Qualcomm Technologies, Inc. “By adopting a standardized approach for wireless communications, ESL development complexity is greatly reduced, allowing development teams to turn their attention to more value-added, differentiating features and capabilities for their customers.”
Lower Costs & Faster Innovation
ABI Research predicts that more than five billion Bluetooth® enabled devices will ship in 2023 alone, and Bluetooth ESL developers will benefit from the economies of scale that Bluetooth technology affords. Increased supplier diversity leads to more attractive component pricing, driving down overall product costs. And by adopting a standardized approach for wireless communications, ESL vendors can now reallocate their engineering efforts to develop more value-added, differentiating features and capabilities.
Bluetooth® ESL products will leverage new features released in Bluetooth Core Specification Version 5.4 as well as an upcoming Electronic Shelf Label Profile Specification that defines how to use these new features to create interoperable ESL systems.
Learn more about the electronic shelf label market and the benefits of the Bluetooth ESL standard.
FEATURED RESOURCES
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