Electronic Shelf Label Improves Price Competitiveness

Time:2021.12.04     Author:sertag

  Electronic Shelf Label (ESL) can more efficiently and dynamically adjust competitive prices, break the restrictions of traditional paper labels, break through the price rigidity caused by the inability of real-time price adjustment in the past, improve commodity sales and increase the income and profitability of retailers. Retailers can dynamically set the optimal price of goods at any time according to their own price policy. For example, they can immediately adjust the umbrella price on rainy days, flexibly plan marketing activities and improve management efficiency.
  Taking fresh food as an example, the waste caused by surplus has always been one of the problems to be dealt with by the retail industry, and the dynamic pricing characteristics of ESL can overcome this problem. In order to sell short-term fresh goods in real time, the sensor is used to read the IC tag of the goods with RFID technology, sense the shelf life of the goods, and then update the price in real time through the shelf ESL. Dynamic pricing is carried out at any time according to the product maturity date. ESL's support for dynamic prices saves commodities with short shelf life and greatly reduces food waste.
  Alibaba advocates that the era of pure e-commerce will end, and a new retail model combining online, offline and modern logistics will appear in the future. The whole channel pricing is an important key strategy for retailers to develop online and offline channels. In order to make the maximum profit, manufacturers should include consumer price sensitivity factors according to the characteristics of products and channels, so as to formulate the optimal pricing of goods. However, traditional retail is subject to the cost of manual bid exchange, resulting in the chain breaking state of online and offline channel pricing management.
  By integrating ESL, retail POS mechanism and online platform, retailers can centrally manage the price of the whole channel through the back-end platform, implement the same price strategy of the whole channel, and flexibly and quickly respond to the pricing of each channel of competitors, such as the online price comparison platform, so as to ensure the lowest price. In other words, ESL is a powerful tool for retailers to integrate the whole channel and practice the dynamic pricing strategy.