David Rogers, senior VP of business development and marketing, ZBD

09 Aug 2011

ZBD is a UK-based company that produces e-paper displays for retail applications. The company has secured applications across Europe for its electronic shelf labelling (ESL).

ZBD's bistable LCD technology means that an image is retained on screen until it is updated. Power is only used when a refresh takes place.

David Rogers, senior vice president of business development and marketing at ZBD, discusses the ESL market.

Why did ZBD choose to focus on ESL?

Everyone can readily relate to the enormous amount of paper used by retailers to provide product, price and promotion information in-store.

ZBD's electronic point-of-purchase displays combine high-definition LCD displays, which require no power between updates, with a communications device - known as a Bounce Communicator - that can wirelessly update individual displays or an entire store, at the touch of a button.

ZBD's technology provides high resolution, strong contrast and excellent viewing angle that delivers a clear, crisp and easy-to-read display that satisfies the high demands of today's consumer. It requires power only when the display content is changed, translating into a battery life that is measured in years.

The solution enables retailers to dynamically update pricing, promotional and product information at the place where purchasing decisions are made - on-shelf or at the service counter - reducing operational costs, improving store efficiency, and enabling new merchandising opportunities at the shelf edge.

Why are people investing in e-paper ESLs?

The reasons for investing in ESL are clear: store automation; reduced costs and elimination of paper; improved store efficiencies; and improved customer service.

We have a customer in Norway that has implemented ZBD's displays throughout their grocery store - approximately 6,500 displays. They were previously using paper labels.

The store typically makes 500 price changes every week. Store staff would have to print out paper labels and then spend 10-12 hours per week walking the store to replace the labels. ESLs have virtually eliminated this task, because prices are updated automatically at the shelf edge. This means that store staff can spend time more productively.

Promotions in the store are introduced weekly. They had approximately 26 A4 pages of labels every Monday morning that they would need to separate and place at the shelves. This took at least two hours every week. This task can now be updated in a matter of seconds, ensuring that they maximise the effectiveness of their promotions sooner; and ensure that once the promotional period has finished, prices revert back to their original selling price, ensuring they don't continue to sell the item at its cheaper sale price, so not losing margin.

Prices are always the same between the shelf edge and checkout, so they never lose money at the tills. This gives the store a reputation for displaying correct pricing, encouraging customer loyalty.

What progress have you made in securing applications for your technology?

We have installed our solution in over 20 countries with over 100 retailers in multiple sectors. The strong return on investment is proving the catalyst for adoption around the world, in markets that have resisted the early ESL technology due to high cost of ownership and limited functionality.

What are the market opportunities in ESLs?

The market potential is significant. We believe it to be worth $100 million [€70 million] annually, but the potential is much greater.

In terms of geographic regions, France has been using ESL technology for the past 15 years, and retailers are familiar with the technology. But we are seeing increasing interest from the rest of Europe and the US.

We have implementations in the US, France, Denmark, Norway, Italy, Spain, Germany, Netherlands, Poland, Slovenia, Estonia, Austria, the UK and Hungary.

In terms of retail sectors, the solution is beneficial to all, but the key business drivers vary from region to region. Key sectors using the technology include fresh produce, consumer electronics, and fuel and convenience.

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