How Will Electronic Price Displays Evolve in IoT?

As the internet transitions into the Internet of Things (IoT), electronic price displays (EPDs) are gradually replacing traditional paper labels, becoming an inevitable trend in retail digitalization. Especially with the introduction of the “new retail” concept in 2016, the application of EPDs has further expanded. Their value lies in reducing operational costs, enhancing management efficiency, optimizing user experience, and innovating marketing models, consistently surprising consumers with new possibilities.

In the era of IoT, the market for electronic price display is rapidly growing, making it crucial for companies to strategize their market entry. While the necessity of interconnected devices is evident, attention should also be given to the development direction of EPDs in the IoT era.

Wireless Communication in Electronic Shelf Label Systems is Indispensable

Due to the ultra-low power consumption and continuous display capability of electronic ink screens, they have long dominated electronic shelf label systems, gaining high praise in a wide range of applications. As full-color e-paper goes into mass production, the demand for communication efficiency in ESL electronic shelf label system will continue to rise. This could make full-color e-paper a key driving force in the evolution of these systems, bringing wireless communication technology to the forefront. The infrastructure of electronic shelf label systems consists of thousands of networked labels, starting with 5,000 units and gradually expanding to tens of thousands. Ensuring the coordinated operation of these numerous connected labels remains a technical challenge for many emerging solution providers.

The Business Model of Electronic Price Displays: The Ultimate Evolution of Data Services

Once companies overcome the challenges of wireless communication, choosing the right business model becomes a crucial part of their development. Observing the evolution of business models in the electronic price tag industry, it’s evident that the focus has shifted from providing single hardware services to offering comprehensive solution-based services. What new directions will EPDs take in the IoT era?

In the hierarchical structure of IoT systems, there are three main layers: the sensing layer, the network layer, and the application layer. Each layer plays a role in data collection, data transmission, and data application, respectively. Clearly, data has always been at the core of IoT systems.

The importance of data to electronic price displays cannot be overstated, as it is the key to unlocking new business opportunities. Since 2011, one of the major market challenges faced by the EPD industry has been the mismatch between price and value, with customers unwilling to pay a premium.

This mismatch can be understood in the following way: while EPDs are currently expensive, their direct functional value is relatively limited. There are two main ways to address this issue: one is to lower the price, which requires long-term efforts across the entire supply chain; the other is to enhance the value of their functionality, which will become a strategic choice for companies.

Offering more data-based services is the key to enhancing the value of EPDs and is likely to become the ultimate business model for companies. Data services imply that companies will focus on how to maximize the use of data collected through EPDs, providing value to businesses and end-users alike.