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Cost saving-electronic shelf labels

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Cost saving-electronic shelf labels

Issue Time:2020-01-11
   Cost is the most concern of retailers when they run retail stores. With the gradual decline of China's demographic dividend and the rise of labor costs, it has posed a challenge to the traditional retail industry, which has been facing fierce competition pressure and falling profit margin.

   In the information age, the evolution of the whole society is in the direction of improving efficiency and reducing costs. In 1993, an electronic label which can replace the paper price label appeared. The electronic shelf label successfully brings the shelf into the computer program, eliminates the situation of manual replacement of price label, completes the operation of price change quickly, and realizes real-time dynamic pricing.
   In terms of efficiency, paper price tags need to be replaced frequently, and manual replacement of price tags for at least 2 minutes is inefficient, which will affect the timeliness of promotional activities. The MTAG electronic price tag can change the price on the cloud platform remotely, just a little. It takes less than one second to refresh the price of the price tag. The rapid price update speed makes it easier for businesses to implement the price strategy and gain the leading edge in the competition.

    In terms of cost, electronic labels have more advantages in the long run. The specific analysis is as follows:

   According to the electronic shelf label 70 yuan / piece, the cost is 350000 yuan, plus 60000 peripheral accessories for installation, a total of 410000 facilities; the change speed is 15000 units / hour, only one employee is necessary, and the five-year labor wage: 5000 x12x5 = 300000 yuan, the gross rough cost is 710000 (plan 2: the overall price change needs 0.033 hours, in five years and the total time: 0.033 x365x5 = 60 hours, according to 20 yuan / hour, the assembly This is 1200 yuan, 5 years, roughly estimated total cost: 411000 yuan).

  The paper label price is 0.12 yuan / sheet (0.07 yuan / sheet, printing 0.05 yuan / sheet), 5-year cost (0.12 × 500) x (5x365) = 109500; if 3 employees are needed, 5-year labor wage: 5000x12x5x3 = 900000, rough total cost: 10.095 million (scheme II: labor price is 2min / piece (0.033 hours / piece), labor cost is 0.033x500x (5x365) X20 = 602250 yuan, rough total cost: 717175 yuan).

  According to the calculation of two different schemes in five years, the actual cost of these two schemes is about 300000!

  Therefore, the short-term investment in the use of  digital price tag  seems to be huge, but it is a one-off investment. It is easy to operate, with the lowest labor cost, and no need to reinvest in the later stage. In the long run, the total cost is low. However, because signing high-quality price requires a large number of labor, the cost will gradually rise with the passage of time, the hidden cost is huge, and the future domestic labor cost will be higher and higher.

  In the future, with the acceleration of the super intelligent transformation of traditional retailers, paper price tags will be gradually eliminated, and electronic shelf tags will be more widely used in various retail stores.
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