OK, one of the fun things to do at NRF is walk through the back area of the show where are all the new vendors in the 10 by 10 ft. booths are introducing their great new retail inventions. Sometimes you see things here that the big guys catch on to later. Better yet, sometimes you see solutions to a problem that the big guys have been struggling with forever.
W5 Networks is a startup company that actually debuted their Electronic Shelf Label (ESL) in the fall of 2006. At that time they published a $3.50 to $5.00 price point for the ESL, although they were more coy at NRF. They cited volume as a big factor in determining the final price and were not willing to actually state one.
I've been involved in a couple ESL implementations from the retail side. Besides the cost factor, environment has always turned out to be a challenge. Everything from ballasts in the lighting to electrical noise from refrigeration motors would impact our ability to communicate with the tags. W5 claims their proprietary and patent pending communications technology addresses those past issues and provides a robust communications network in the supermarket environment. Anyone considering them should put this to serious test. If you have tested them, it would be nice to hear some results.
The physical tag is well protected. It can be installed without it, but a tool is required to remove the ESL from the shelf edge. It fits into standard molding without the need for special overlays. The fit is snug, meant to survive the banging carts down low and the curious 3-year-old at seat height. The electronics are watertight, but there is a slot for holding a shelf talker whose presence is sensed by the tag and conveyed to the central server. (This leads into the really neat features...)
The tag supports two-way communications, an electric eye, and temperature sensors. This means the tag can send a message to the server for a "bed check" to confirm that all tags are working. It will also signal if an employee puts a finger over the electric eye to signal they have done something, or if the ambient temperature moves outside a specified range. An LED can be used to signal store employees that action is needed.
Discussions Questions: Do you think it is time for ESLs to be generally accepted? What neat ways can you think of for using some of this tag's capabilities? What price point do you feel is necessary for electronic shelf tags provide ROI?
[Author's Comment] I don't know if this is finally the solution for shelf tags. I was a little concerned about the space and format of the item description information that was printed and attached to the ESL module. There are also legal constraints on descriptive information based on various unit price label legislation which can vary by government jurisdiction.
I know, when working at store level, it is a real challenge to make sure the descriptive information that is mounted on a module is for the proper item. Even in W5's small display booth, someone had put the wrong insert in a module that was placed over a different item. This would mean the wrong price displayed for the consumer. Store people have to be well trained and there should be a process for verifying the association between label module and items. Probably most important, new employees who are doing module maintenance must be trained.