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Title Electronic Shelf Labels (ESLs) Lead “Digital Innovation” in Stores Date 2017-05-01
- LG CNS Becomes First Company to Supply ESLs to National Distributors -

■LG CNS Signs Contract to Supply 500,000 ESLs to 100 GS Supermarkets Nationwide
-ESL communicates and applies product pricing information to stores all over the country in real-time through IoT technology.
-Recognized for performance and stability as an innovative infrastructure of distribution markets, ESL to be expanded to 300 stores by next year.
-LG CNS positioned to dominate the ESL market with a market potential of 1 trillion KRW.
-LG CNS plans to expand to overseas markets including Indonesia with the technology verified in Korea.
■ ESL Solution Specialized for Distribution Allows for Smart Store Management
-ESL saves on costs put into printing price tags (paper, coating, various expendables, design) and reduces the time it takes employees to manually change tags by automatically applying the changed pricing information from the server through the gateway.
-ESL includes distinguished features such as “mobile manager” for distribution stores where on-site interaction is important, and reduces the opportunity cost from leftover stock and food disposal.
-Various new services can be created including working with online-to-offline (O2O) services.

As LG CNS becomes the first company to supply national distribution stores with Electronic Shelf Label or ESL, it is to hold a higher ground in the ESL market.

Recently, the company signed contracts to supply ESL to 100 GS Supermarkets and have begun the process.

ESL is an Electronic Paper Display (EPD)- based small display device which uses IoT technology to automatically reflect and show the new price information when the user makes changes on the central server.

In 2016, LG CNS ran a pilot testing of ESL in GS Supermarket located in Dogok Rexle Apartments, testifying the performance and stability of ESL solution and earning a highly positive response from the customers.

GS Supermarket, which plans to lead the market by digital innovation, has decided to expand ESL to 300 stores by 2018 as a part of the store service infrastructure innovation.

This year, 500,000 ESL are to be installed in 100 GS Supermarket stores by October.

The domestic ESL market is roughly 700 billion KRW based on mid to large distribution stores and is to reach more than 1 trillion KRW when the small stores are included.

■ ESL Solution Specialized for Distribution Allows for Smart Store Management

ESL can now reflect product price information on electronic papers of stores all over the country error-free in real time.

Stores can not only save the various costs of printing the tags (paper, coating, POP, printer expendables, design, etc.) but also become more efficient by significantly reducing the time required for the employee to make the changes manually.

Unique Characteristics of LG CNS ESL that will be in GS Supermarkets Include
▲ A centralized control system designed for a national-scale product marketing▲ Mobile manager that can conduct marketing in each store considering the size of the store and the types of frequent customers and ▲ Product management by linking the stock information via the centralized control system.

In particular, LG CNS ESL “mobile manager” is an on-site function that allows the seller to make flexible price changes in the specific store.
The mobile manager is also expected to significantly reduce the opportunity cost from managing leftover stocks and disposals of fresh foods by applying a limited time sale.

ESL has also been recognized anew for its values as an innovation in distribution as it is expected to be a core infrastructure of various services in connection with O2O (Online-to-Offline) services.

In the future, ESL could lead to Tag-and Go services in which the consumer can “tag” the smartphone to an ESL with NFC functions and have the product delivered home from the nearby store.

GS Supermarket Marketing Department Vice President Kim Yong Won emphasized that “the ESL in GS Supermarket, which is expanding nationally, is more than an automatic price management system but an IoT-based general store innovation that will provide the best products and services to the customers.”

■ LG CNS Expands ESL Usage as the Innovative Infrastructure of Various Industries

The EPD-based ESL is becoming the leader of digital innovation in many industries in addition to the distribution industry as it encompasses various IoT elements including wireless communication, sensor, etc.

LG CNS is gearing up on developing various service models utilizing EPD.

LG CNS already has provided ESL solution to prescription rooms of large domestic pharmaceutical companies that need GMP (Good Manufacturing Practice) certifications as well as office nameplates and meeting rooms of LG Group companies. ESL usage is also promoted in hospitals, factories and other industries.

Also, the company is to expand to overseas market with the ESL solution that has already made successes in the Korean market. Currently, the company has finished the pilot testing of ESL in a large local distributor in Indonesia and is discussing the actual contract.

GS Supermarket employee uses mobile manager while checking the fresh foods

GS Supermarket employee uses mobile manager while checking the fresh foods

The promoted product is displayed in red on LG CNS’s 3 Color ESL

The promoted product is displayed in red on LG CNS’s 3 Color ESL

LG CNS ESL is installed on the store shelf

LG CNS ESL is installed on the store shelf