The Big Business Behind Electronic Price Tags and Their Numerous Advantages

Traditional paper price tags require manual reprinting and replacement whenever product prices or dates change—an inefficient and time-consuming process. The introduction of the electronic price tag has revolutionized this model by streamlining traditionally complex steps such as manual price adjustment requests, printing, and replacing tags. With centralized backend management, retailers can now update prices with a single click, significantly reducing labor costs and greatly improving operational efficiency.

According to PwC’s 2022 Consumer Survey, nearly 40% of consumers visit physical stores at least once a week, compared to just 27% who prefer online shopping. Furthermore, Sullivan’s 2021 statistics show that the global market for electronic price tags grew from RMB 1.4 billion in 2016 to RMB 7.7 billion in 2021.

So, what’s driving this rapid adoption? Let’s explore the key differences between traditional paper tags and smart electronic price tags, and discover how this innovative technology is redefining the way price information is managed in retail.

The Evolution of Price Tags

• Paper Price Tags：Traditional paper tags often require handwriting or printing. This method consumes significant manpower and material resources, and it’s prone to delays and errors. While this may not pose major issues for small convenience stores, large supermarkets with tens of thousands of SKUs face enormous time and labor burdens when it comes to updating, printing, and maintaining these tags.

• Black-and-White LCD Price Tags：With the advent of digital display technology, electronic price displays began to emerge, solving some issues of paper tags. Early versions used black-and-white LCD screens. Though an improvement, they had many limitations: high power consumption, poor environmental friendliness, dark background colors, narrow viewing angles, and limited visibility. Frequent screen refreshes also added to operational complexity.

• The Latest Electronic Price Tags：Modern electronic price tags now use advanced e-paper display technology. These tags offer the same clarity and visibility as traditional paper tags, while delivering high white reflectivity, wide viewing angles, and ultra-low power consumption. Most importantly, they allow for flexible, on-demand price changes—saving time and resources. This makes them the ideal replacement for traditional tags in today’s retail environment.

Challenges of Traditional Price Tags

The replacement of traditional paper tags involves multiple steps, including price verification, printing, and applying new tags. This not only wastes significant manpower and materials but also introduces several inefficiencies:

• High Cost and One-Time Use: Paper tags are disposable and cannot be reused, adding environmental pressure.

• Low Update Efficiency: Updating tags is time-consuming and error-prone, which may negatively impact promotional campaigns.

• Missing or Damaged Tags: Tags can be lost or damaged during manual handling, confusing consumers and affecting sales.

• Inconsistent Pricing: Manual updates can lead to price mismatches between shelves and checkout systems, risking disputes and damaging brand reputation.

Advantages of Electronic Price Tags

Electronic price tags solve these problems with advanced functionality:

• Simplified Price Updates: No manual replacements needed. Price and product information can be updated easily via a computer interface. For example, during promotions, red-highlighted messages can be displayed directly on the tag—boosting efficiency and enhancing the customer experience.

• Labor Cost Savings: Though initial investment is higher, over time, costs per price change are significantly reduced due to automation.

• Pricing Accuracy: Shelf prices and checkout prices remain consistently aligned, preventing customer disputes and reinforcing trust.

• Centralized Digital Management: Retailers can update prices simultaneously across different stores and regions, improving operational efficiency. Integration with POS systems allows for real-time synchronization and automation—especially beneficial for stores that run frequent promotions or pricing changes.

Electronic price tags greatly reduce material waste and manual labor costs associated with paper price tags. They enable precise management, improve workflow efficiency and service quality, and eliminate unnecessary expenses. Automated pricing lowers workload and resource use, helping retailers better manage rising labor costs. For chain stores, price adjustments can even be made remotely by headquarters.

In short, electronic price tags offer a comprehensive solution to the challenges of traditional pricing methods. They enhance operational efficiency, cut costs, and improve customer satisfaction—making them a key enabler in the digital transformation of retail.