Omni Talk Retail Podcast Summary
Episode: The Past, Present & Future Of E Ink And ESLs With Bryan Chan | Spotlight Series
Release Date: May 26, 2025
Hosts: Chris Walton and Anne Mezzenga
Guest: Brian Chan, Senior Director of Business Development, E Ink Corporation

Introduction: Welcoming Brian Chan

The episode kicks off with co-hosts Chris Walton and Anne Mezzenga introducing Brian Chan, a seasoned expert from E Ink Corporation. Brian shares his enthusiasm for joining the podcast, emphasizing his long-term support as a listener.

Understanding E Ink: Origins and Evolution

[01:35] Anne Mazinga prompts Brian to delve into the basics of E Ink and its inception.

Brian Chan:
"E Ink is a display technology with a history dating back to 1997. It originated as a spin-out from the MIT Media Lab, where brilliant minds discovered a material that changes color, resembling paper and consuming minimal power. Since its inception, E Ink has evolved significantly, finding applications across various industries."
[01:59]

Brian elaborates on E Ink's journey, highlighting its versatility beyond initial expectations. He recounts how E Ink initially aimed to revolutionize newspapers but pivoted successfully into the book market with the rise of Amazon's Kindle.

E Ink's Diverse Applications

[02:41]
Anne Mazinga encourages Brian to explore the different applications of E Ink technology.

Brian Chan:
"Electronic shelf labels weren't our initial focus. Early on, there were doubts about replacing inexpensive paper tags. Originally, we considered digital newspapers, aligning with declining print readerships. However, with the advent of devices like the Amazon Kindle, E Ink found a natural fit in the book industry, garnering significant success among avid readers."
[02:50]

Brian reminisces about early investor interests from print media companies and how market dynamics shifted their focus toward more practical applications like electronic shelf labels (ESLs).

Transition to Retail: Challenges and Innovations

[04:26]
Chris Walton shares a personal anecdote about a Harvard case study on E Ink, highlighting its potential even in unconventional uses like meat packaging.

Brian Chan:
"Retail adoption of ESLs was largely driven by operational and labor savings. For instance, retailers like those employing 'belly loaders'—night staff who restock shelves manually—needed robust shelf tags. This insight led us to prioritize durability and low maintenance in our ESL designs. Additionally, advancements in battery life and color capabilities were pivotal in enhancing ROI for retailers."
[05:09]

Brian discusses how practical challenges in retail, such as labor-intensive restocking processes, influenced E Ink's technological advancements, ensuring ESLs were both durable and cost-effective.

Advancements in Color E Ink Displays

[07:45]
Chris Walton inquires about the evolution of color in E Ink displays.

Brian Chan:
"After introducing a three-color solution (black, white, red) in 2013, we expanded to four colors by adding yellow, a crucial color for promotions in retail. Today, we offer full-color solutions through technologies like Spectra 6, Gallery, and Kaleido, catering to various applications from retail to consumer products and even video-rate displays."
[07:45]

Brian highlights the continuous innovation in E Ink technology, enabling more vibrant and versatile display options tailored to specific industry needs.

Regional Adoption: Europe Leading the Way

[08:44]
Chris Walton asks about the geographical adoption rates of ESLs.

Brian Chan:
"Europe has been at the forefront of ESL adoption, driven by sustainability concerns, higher labor costs, and stringent pricing regulations. These factors made ESLs a more appealing investment compared to the US, where lower labor costs and different regulatory environments initially slowed adoption. Asia follows as the second-largest market, with the US expected to catch up following significant investments from retailers like Walmart."
[08:56]

Brian underscores Europe's progressive stance on sustainability and operational efficiency as key drivers behind the early and widespread adoption of ESLs in the region.

The US Market: Walmart's Role and ROI Improvements

[12:35]
Anne Mazinga probes into the factors propelling ESL adoption in the US, particularly Walmart's influence.

Brian Chan:
"Walmart's extensive investment in ESLs has been a validating force for the US market. Other major retailers like Target, Kohl's, and Whole Foods have either deployed or trialed ESLs, observing substantial operational savings and improved ROI. The reduction in ROI timelines—from 36 months down to as low as nine months—has made ESLs an attractive investment."
[14:07]

Brian explains that the decreasing ROI period has been crucial in making ESLs a financially sound choice for large-scale retailers, with Walmart's adoption serving as a catalyst for broader acceptance in the US.

Factors Driving ROI: Cost Reduction and Operational Efficiency

[16:20]
Chris Walton seeks deeper insights into the specific elements enhancing ESLs' ROI.

Brian Chan:
"The primary drivers are reduced operational costs and enhanced pricing accuracy. Initially, ESLs were costly—around $15 per tag for basic models. However, as tag costs have decreased and technological efficiencies have improved, large-scale deployments have become feasible. Additionally, ESLs enable dynamic pricing and accurate promotions, reducing pricing errors and labor associated with manual tag changes."
[18:18]

Brian emphasizes that cost reductions in ESL production and the ability to automate pricing and promotions are pivotal in delivering quick and substantial ROI for retailers.

Enhancing Pricing Accuracy and Compliance

[20:29]
Brian Chan:
"Compliance in promotional pricing is a significant benefit. For example, some retailers experienced as low as 50% compliance during promotions when using manual tags. ESLs ensure that all promotional tags are accurately and consistently displayed, eliminating the risk of manual errors or intentional non-compliance."
[21:37]

Brian highlights the critical role of ESLs in maintaining pricing accuracy and ensuring that promotions are effectively communicated to consumers, thereby enhancing trust and sales.

The Future of E Ink and Retail Media

[22:45]
Brian Chan:
"The future of E Ink in retail is promising, especially with advancements like Spectra 6, which offers vibrant colors and low power consumption. Innovations such as integrating small solar cells for perpetual displays are making ESLs even more versatile and maintenance-free. This opens up possibilities for retailers to expand beyond pricing to include dynamic retail media, enhancing in-store consumer experiences without the logistical challenges of traditional digital screens."
[24:16]

Brian envisions a future where E Ink technology not only streamlines pricing and promotions but also serves as a foundation for more interactive and dynamic retail media solutions.

Recommendations for Retailers: Strategic Implementation

[29:50]
Chris Walton offers a strategic framework for retailers considering digital shelf labels.

Brian Chan:
"It's essential to address real-world retail challenges without adding complexity. Start with digital shelf labels to solve operational inefficiencies and prove ROI, then gradually explore additional digital solutions like retail media."
[30:29]

Brian concurs, advising retailers to prioritize operational solutions first before expanding into more complex digital integrations, ensuring a smooth and effective technological transition.

Conclusion: Final Thoughts and Contact Information

[31:50]
As the conversation wraps up, Anne Mazinga and Chris Walton emphasize the importance of starting with digital shelf labels and understanding their benefits before moving to more advanced digital displays.

Brian Chan:
"People can reach me on LinkedIn by searching for Brian Chan C H A N."
[31:50]

The hosts thank Brian for his invaluable insights and encourage listeners to engage with the podcast on social media for feedback and further discussions.

Notable Quotes:

• Brian Chan on E Ink's Origin:
  "E Ink is a display technology with a history dating back to 1997... It changed color, resembling paper and consuming minimal power."
  [01:59]

• On ESL ROI Improvements:
  "We started hearing 14 months and then we started hearing 12 months... something as crazy as a nine month return for one retailer."
  [14:07]

• On Future Innovations:
  "The future is colorful... perpetual display that is untethered and you can place it everywhere."
  [22:45]

• On Pricing Accuracy:
  "Compliance in promotional pricing is a significant benefit... ESLs ensure that all promotional tags are accurately and consistently displayed."
  [20:29]

This episode of Omni Talk Retail offers a comprehensive exploration of E Ink technology and its transformative impact on the retail industry, particularly through electronic shelf labels. Brian Chan provides valuable insights into the technological advancements, market adoption dynamics, and strategic considerations for retailers aiming to enhance operational efficiency and embrace digital transformations.