Comparison Between Electronic Shelf Labels and Paper Price Tags

With the rapid development of the retail industry, price tags, as essential tools for displaying product information, have continuously evolved in both form and function. Traditional paper price tags and emerging electronic shelf labels (ESL) each have their distinct features, but in practice, the adoption of electronic pricing labels remains relatively low. This article provides a detailed comparison of the two and explores why there are still only a few stores in China using electronic shelf labels (ESL).

Paper Price Tags

Let’s first examine traditional paper price tags. Paper price tags have long been widely used in the retail industry. Made from paper, these tags display the product price and other relevant information. However, paper price tags come with several limitations. First, the printing space on paper tags is limited, preventing them from displaying more detailed information such as QR codes or promotional labels. Second, changing paper price tags can be cumbersome and time-consuming, especially in large supermarkets or shopping malls with a wide variety of products. Each time the price changes, a considerable amount of labor and time is needed to replace the tags. Additionally, paper price tags are fragile, prone to damage or loss, which can affect the accuracy of the product information provided to consumers. Finally, the production and use of paper price tags contribute to excessive paper consumption, which is not environmentally friendly.

Electronic Shelf Labels (ESL)

In contrast, electronic shelf labels have significant advantages. These labels use electronic display technology, allowing them to dynamically display product prices and other information in real-time. The content on ESL displays is rich and varied; it can show text, numbers, images, QR codes, and more, offering consumers more comprehensive and intuitive product information. Furthermore, updating and replacing electronic shelf labels is simple and quick, requiring only backend system operations, which saves considerable labor and time costs. ESL labels also have a longer lifespan and are more durable and stable, reducing the risk of label damage or loss. Most importantly, electronic pricing labels are environmentally friendly, reducing reliance on paper and helping lower carbon emissions, contributing to environmental protection.

Reasons for Low Adoption of Electronic Shelf Labels (ESL)

Despite the many advantages of electronic pricing labels, the adoption rate of electronic shelf labels (ESL) remains low in China. Several factors contribute to this situation:

1. Cost Factors
The manufacturing cost of electronic shelf labels is relatively high, which can be a significant burden for small retail stores. In addition, the installation and maintenance of ESL displays require further investment, including the purchase of devices, employee training, and ongoing maintenance costs.

2. Technical Barriers
The use of electronic pricing labels requires a certain level of technical expertise and operational capability. For stores that lack technical support, the introduction of electronic shelf labels (ESL) can present significant challenges.

3. Market Awareness
While electronic shelf labels have been widely adopted in developed countries, their awareness in China—particularly in remote areas or traditional retail sectors—remains low. Many merchants may not fully understand the advantages and potential value of electronic pricing labels, resulting in a lack of motivation to implement this technology.

4. Lack of Industry Standards and Regulations
Currently, there is no unified industry standard or regulation for the use and management of electronic shelf labels (ESL). This lack of standardized guidelines may lead to uncertainty or hesitation among merchants regarding the implementation of ESL displays, hindering their broader adoption.

Conclusion

In summary, while electronic pricing labels (ESL) offer numerous advantages over traditional paper price tags, including dynamic pricing, ease of updates, and environmental benefits, there are still challenges that hinder their widespread adoption. As technology continues to advance and awareness increases, we can expect electronic shelf labels (ESL) to become a standard in retail environments, revolutionizing the way pricing and product information are managed.