Samsung Electro-Mechanics (SEMCO), producer of electronics components, introduced the “Dynamic Pricing” electronic label this week at EuroShop, one of the biggest exhibitions in the retail industry.
“Dynamic Pricing” is a technology that can immediately change product prices, enabling real-time monitoring of product prices for stores. This distinctive and comprehensive solution is based on a combination of low-power wireless communication technology with e-paper display technology.
SEMCO is poised to expand its presence in the European ESL (electronic shelf label) market by joining EuroShop, being held in Dusseldorf, Germany. The global ESL market is growing at an annual rate of higher than 30% on average. The supply is on the rise for retailers in Europe, the U.S. and Australia.
“SEMCO boasts about the top-notch IT technologies it has accumulated in making smartphone components as well as outstanding mass manufacturing capabilities,” according to Chi-Joon Choi, President and CEO of SEMCO.
“Equipped with such experiences and capabilities, SEMCO ESL manages to provide solution system which is distinctive from our competitors. We intend to implement business strategies with the aim of further expanding our global market dominance,” he said.
ESL takes advantage of Zigbee, a low-power wireless communication technology, to keep product prices updated in real time. ESL consists of an e-paper equipped tag and gateway which delivers product information. The central server transmits information of each product to the gateway, which in turn sends such information to thousands of tags at the same time.
ESL will enable retailers to reduce the cost of operating stores as they can spend less on paper labels and printing, with a significantly lessened burden of paying penalty for wrong pricing.
Also, a growing trend has been spotted where consumers first check a product in an offline store and then buy the same one online. With ESL, retailers are able to adjust product prices in real time, attracting online shoppers to offline stores.
Changing prices can be applied to stores on a real time basis, allowing for diverse and prompt promotions. In addition, retailers can implement consistent price policies as the central server controls all the prices.
Stores with less disposable paper label can give shoppers a good impression of being more sophisticated, eco-friendly and smart. Retailers can better manage their stock and categorize products on the shelf, increasing management efficiency.
Near Field Communication (NFC) and QR code allow shoppers to have detailed information on products through their smartphones.
At this year’s EuroShop, SEMCO set up “ESL Market” inside its booth where visitors can enjoy hands-on experiences of ESL products. They can set prices for products such as beverages, cookies and fruits and see how the prices applied on products instantly.
SEMCO plans to display a 7-segment type ESL, which displays numbers or letters using seven segments; a graphic type ESL, which shows only on product prices but also the name of the product, barcode and logo.
SEMCO also intends to showcase an ESL with a built-in NFC which allows shoppers to have additional information on products with their smartphones and pay through In-App Purchase (IAP), greatly increasing user convenience.
SEMCO will also exhibit a comprehensive store management solution, which capitalizes on the ESL gateway to control the light system inside stores and IP surveillance cameras.
Retailers used to be unwilling to choose ESL due to the higher initial installation cost compared to its expected benefits. Thanks to a drop in ESL prices and IT advancement, however, retailers are now having a new perspective toward Dynamic Pricing.
The volume of global ESL market is expected to stand at approximately $520 million this year. The market is forecasted to grow at an annual rate of 30 to 40% to reach $1.9 billion by 2017. An increasing number of retailers in the UK, Germany, France and Northern Europe are now choosing to adopt ESL.
About Samsung Electro-Mechanics (SEMCO):
SEMCO is a corporation that produces high-tech integrated components of electronics and mechanical devices for all electrical devices. The high-tech technology of SEMCO lies in electronic devices that make our life comfortable and convenient. SEMCO is a global leader supplying passive components (MLCC, Inductors), PCB, camera module and wireless connectivity in multiple industry sectors.