In May, BOE, SES-Imagotag, and JD Digits introduced the formation of a joint venture “to provide smart options to support the digitalization of physical retail” that’s, electronic shelf labels and supporting technologies.
The joint-venture will be created in China, with SES-Imagotag holding a 51% stake in the entity; BOE, 15%; and JD Digits, 34%. The total capital funding shall be $30 million over several years. The entity’s financial outcomes will be combined in SES-Imagotag’s financial statements.
Due to its earlier acquisition of a majority stake in SES-Imagotag for $300 million, BOE is now the world’s “global leader in IoT physical retail.” SES-Imagotag is “the global chief in Electronic Shelf Labels and retail IoT solutions,” while JD Digits’ expertise is in big data, artificial intelligence, the Internet of Things and blockchain.
The three companies intend to group their expertise to develop solutions to enhance in-store efficiency, reach a more effective partnership between brands and retailers, and improve in-store merchandising. The joint venture plans to allow POS promotions, stock optimization, and on-shelf availability by “digitalizing” the supply chain from end to end, in addition to enriching store data and boosting shopper connectivity.
The joint venture will concentrate on China, which has around 800 million Internet customers and the highest penetration rate for e-commerce and phone payments. An important objective is an increase in SES-Imagotag’s penetration of the Chinese sector.
SES-Imagotog is a 25-year-old French firm whose vital market is Europe. Although the joint venture is focusing on China, SES-Imagotog’s ambitions are global and embrace expanding the ESL market in North America. At present, the company has installed 160 million ESLs in 17,000 stores in 62 international locations.