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Intelligent Digital Shelving Solution Improves Profitability

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Intelligent Digital Shelving Solution Improves Profitability

Business Challenges
The store shelf is where consumers, retailers, and product manufacturers all converge; but opportunities to increase brand awareness, improve new product introduction success rates, and reduce pricing errors—among others—are being missed.

Executive Summary
Facing fierce price competition, retailers and product manufacturers are constantly looking for new ways to increase profitability. Simply put, this can be done by boosting sales volume, increasing advertising revenue, reducing operating costs, and minimizing inventory distortion. Inventory distortion is the cost of lost sales resulting from out-of-stock merchandise plus the losses from overstocks that must be deeply discounted in order to sell. Addressing all these avenues, a new technology, called micro-digital signage (MDS), places advertising and product information on small digital screens mounted on store shelves—the point-of-decision for consumers.

This intelligent digital shelving solution (Figure 1) is a tool for creating sales uplift by grabbing the attention of consumers as they are drawn to eye-catching, high-definition video and animation about products and in-store specials. The screens can help increase the success of new product launches by making sure consumers take notice of specific shelf locations as they stroll down the aisle. The advertising content can also generate incremental revenue from product manufacturers, who are able to connect with consumers when buying decisions are made.

Read the full Intelligent Digital Shelving Solution Improves Profitability Solution Brief.