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Moderating

Al McClainCEO, Co-founder, RetailWire

Al McClain has spent 30+ years in the retail, tech, and CPG spaces. Al's career highlights include sales and management stints with Luzianne-Blue Plate Foods, Bestfoods, Red Rose Tea, and Progressive Grocer (Trade Dimensions and Retail Insights divisions).

Al has also spoken extensively at industry events such as Shoptalk and for the National Grocers Association, the Institute for International Research, the Magazine Publishers Association, and the Category Management Association. He has written for publications such as Nielsen Wire, Loyalty Management and Forbes.com.

About RetailWire

• Largest expert discussion site in the retailing industry

• Over 120,000 sessions per month

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• Unique BrainTrust of industry experts —125+ panelists

Presentations:

Is the barcode obsolete?• Nick Tabet – Datalogic

Advantages of the modern barcode• Heidi Dethloff – Digimarc

Panel Discussion:

• Nick Tabet – Datalogic

• Heidi Dethloff – Digimarc

• Ken Morris – Retail industry thought leader

Audience Q&A

Today’s agenda

Nick TabetVice President, Product Marketing, Datalogic

Nick is responsible for leading the company’s Product Marketing group for fixed retail and transportation and logistics scanning applications to develop market leading solutions for supermarket, grocery, mass merchandise, and drug stores as well as courier, express and parcel logistics companies.

Nick has over 35 years of management experience in the AIDC market. He joined Datalogic in 1985 and has served in a variety of management positions including sales, sales forecasting, customer administration, technical support, service, product management and program management with increasing responsibility during this time.

Featured presenter

Heidi DethloffVice President, Marketing, Digimarc

A 25-year technology marketing veteran, Heidi Dethloff has an extensive background in technology marketing with a long-time focus on partnerships, customer advocacy and market development. Her role is pivotal in developing integrated strategies that showcase Digimarc's value, highlighting the significance of digital identities in all forms of media for consumers and brands alike.

Heidi has previously held roles at IBM, Sequent Computers and Edelman.

Featured presenter

1 /

Is The Barcode Obsolete?

/

2 /

Grocery – Driving the Need

• Improved productivity

• Improved price control

• Improved inventory

3 /

Maintaining the Brand Image

• Can’t sacrifice brand image for a barcode label

• Consumer demands for more product information o Ingredients

o Nutrition

o And more…

4 /

Barcodes in Supply Chain

• Drove the need for longer barcodes

• Added need for alpha-numeric information

• Labels got to be very long….

5 /

2D Or Not 2D

• Expiration date

• Batch code

• Name, address, etc.

• URLs

• Drove imaging-based readers adoption • Reads 1D & 2D barcodes

6 /

Barcodes Aren’t Perfect

• Printing issues still exist - creates no-reads

• Label substitution – a real problemo Contributes to the $40 billion of annual shrink

7 /

RFID – A Viable Alternative?

• The Walmart Initiativeo Tag costs $.50 - .75

o System implementation challenges

o Cost prohibitive except for limited applications

• Today o Tag costs of $.03 - .08

o Gained acceptance for higher value items.

o Still too expensive for grocery

8 /

Image Recognition – The New Frontier

• True frictionless shopping

experience

• Eliminate the need for

barcode

9 /

No the Barcode Isn’t Dead

• Need better solutions for more information

• Need to address maintaining brand identity

• Need to address counterfeiting

10 /

/

Advantages of the Modern Barcode

11 /

Better Barcode Means Better Business

Long Lines,

Slow Checkout,

Hand Keying

86% of U.S.

consumers have

left a store due to

long lines, losing an

estimated $38B

58% of consumers

would change

stores f or better

checkout

Product

Transparency;

Regulations

Three quarters of

shoppers in 2018

would switch brands

f or transparency

73% of shoppers

are concerned

about the nutritional

content in their f ood

Operational

Shrink

Shrink cost

retailers $100B

last y ear (2017)

accounting f or

1.85% of sales

64% of retail

shrink is

associated with

operational shrink

Inventory

Management

Average Out-of-

Stock rate is about

8%

78% of the time,

when a product

isn’t on shelf , it’s

still in the store

somewhere

Rise of Private

Label Products

Private brands

influence 46% of

consumers on

where to shop

Private brands

had growth of more

than 3x the rate of

branded products

Counterfeiting

& Grey Market

Diversion

Consumers spend

$460 billion y early

on counterf eit

goods

Counterfeit goods

cost the U.S. f rom

$29B to $41B

annually

Manufacturing

Quality / Parts

Matching

Food recalls cost

companies an

av erage of $10

million in direct

costs alone

More than half of

FDA recalls inv olv e

the mislabeling of

products

1Sensormatic Global Shrink Index – Tyco Retail Solutions & PlanetRetail RNG, May 2018 • 2National Supermarket Shrink Survey - FMI & The Retail Control Group, 2011 • 3The cost of convenience – Ayden & 451 Research, May 2018 • 4Consumers Cringe At Slow Checkout - Forrester Consulting on behalf of Digimarc, August 2018 • 5The Transparency Imperative: Product Labeling from the Consumer Perspective - FMI & Label Insight, October 2018 • 6U.S. Grocery Shopper Trends 2018 - FMI & The Hartman Group, June 2018 • 7SOLVING THE OUT-OF-STOCK PROBLEM - FMI/GMA Trading Alliance, March 2015 • 8Product Promotion Effectiveness: Root Causes Of Stock-Outs - MIT Supply Chain Management, May 2016 • 9The Power of Private Brands – FMI & IRI, July 2018 • 10Total Consumer Report - Nielsen, March 2018 • 11The Economic Impacts of Counterfeiting and Piracy - International Trademark Association, February 2017 • 12IP Commission Report - Commission on the Theft of American Intellectual Property, February 2017 • 13Capturing Recall Costs - GMA, October 2011 • 142017 Recalls, Market Withdrawals & Safety Alerts - FDA, 2017

Recyclable

Identification

39% of consumers

chose sustainability

as a f actor when

deciding which

products to buy .

12 /

Traditional UPC Barcode (1974)Universal Product Code Symbology

• Price

• PLU

Digimarc® BarcodeThe Barcode of Everything®

• Price

• PLU

• Sell-By Date

• Weight/Count

LOOKS LIKE THIS PERFORMS LIKE THIS

Digimarc Barcode Basics

• Consumer Web Experience

• Dynamic Discount

• Deter Shrink

• Faster Checkout

13 /

Advantages of the Modern Barcode

Confirm component parts matching

Locate products anywhere with traceability

Engage directly with consumers and store associates

Communicate ownership of brand image assets

Swiftly and accurately sort recyclable materials

Scan products faster across all forms of checkout

ACTIONS OUTCOMES

Reduce production errors, costs and recalls

Deliver better on-shelf availability

Increase consumer brand loyalty

Thwart gray market sales and increase trust

Minimize pollution and maximize social responsibility

More efficient, productive and faster check out experience

14 /

Store Operations

Front of Store and In-Aisle:

• Easier scan at all forms of check out including

bottom of basket

• Improved front end productivity for cashiers

• Reduce repetitive motion injuries

• Increased items per minute at checkout

• Less shrink, increased sales

• More efficient inventory audits by associates

and robots

• More accurate data in stock, pricing, planogram

compliance

• Direct store delivery

• More reads and better data everywhere

15 /

Consumer Experience

Consumer Engagement

• Package links to digital content without restrictions of

package size or graphics

• Content links can be updated in real time

• True 1:1 personalization possible with serialized printing

Benefits:

• Reduction in visible codes on pack

• Access to product information, promotions and instructions

for use

• Improved accessibility (sight impaired, 2nd language, etc.)

• Product transparency initiatives such as SmartLabel® and

GMO disclosure

• Product reordering in home

16 /

Manufacturing & Quality Control

• Leading inspection systems can reliably and accurately detect at high speeds

• Quickly uncover errors in the parts-matching process during manufacturing production

• Enable automatic detection of small labels that may otherwise be manually verified or marred by visible codes

• Ensure accuracy and reduce the costs associated with product recalls

• Reduces waste and saves time and money

17 /

From Manufacturing to Recycling

MANUFACTURINGEnable Application (identifiers)

RECYCLING

Labels

• Mis-Fill (GTIN, GIAI, SGTIN, etc.)

• Track & Trace (SGTIN)

• Recall (SGTIN, GIAI, etc.)

• Expiry (GTIN + Date)

Bottles

• Mis-Fill

(Container ID, Recycling ID, etc., Mold ID, Stepping, etc.)

• Supply Chain Visibility

(Container ID, Mold ID, Stepping, etc.)

• Gray market/relabeling (Mold ID, Stepping, etc.)

• Food Safe Packaging (Container ID, etc.)

Labels

• Recycling (GTIN, Recycling ID, etc.)

• Track & Trace (SGTIN)

Bottles

• Recycling (Recycling ID, etc.)

• Supply Chain Visibility (Container ID, etc.)

• Food Safe Packaging (Container ID, etc.)LABEL LABEL

Enable Application (identifiers)

18 /

Optimize Your Supply Chain

Capturing reliable and accurate data across the supply chain creates new efficiencies, saves time and money

ManufacturingDesign Distribution

Center

In-Aisle

(Shopper, Store

Associate, Robot)

Check Out

(Cashier-assisted,

In-Aisle, Self-checkout)

Home-Use/

Post

Purchase

Recycling

Discussion: Is the barcode obsolete?

Ken MorrisRetail industry thought

leader

Nick TabetVice President, Product

Marketing, Datalogic

Heidi DethloffVice President,

Marketing, Digimarc

Al McClainCEO, Co-founder

RetailWire

Ken MorrisRetail industry thought leader

Ken was the founder of Boston Retail Partners (BRP Consulting). Prior to that, he was CEO and President of LakeWest Group and founder of CFT Consulting and CFT Systems, a retail software company.

Earlier in his career, Ken held retail information technology executive positions at Lord & Taylor, Filene’s (Macy’s), Talbots, Stop & Shop Supermarket Company and Sears. His experience is with strategy, selection development and deployment of retail technology systems and processes.

BrainTrust Panelist

Audience Poll Question #1

Of the challenges to be addressed with better barcodes, which do you think will be most difficult to tackle?

Question #1: Seeing green

With consumers demanding greater social and environmental responsibility from brands and retailers, what benefits do advanced barcodes offer that will be visible to consumers? Which will be less obvious but important as well?




Heidi DethloffVice President, Marketing,

Digimarc


leader

Al McClainCEO, Co-founder,

RetailWire


Which benefit of advanced barcodes do you expect consumers would rate most highly?

Question #2: Faster, better, smarter

How has the rise of ecommerce changed (i.e., heightened) the need for accurate traceability? How would better barcoding systems assure greater customer satisfaction for online and omnichannel customers?





Digimarc


leader


RetailWire


Will having the ability to use a mobile app to trace a product’s origin soon be an expectation for consumers?

Question #3: Traceability is in fashion

Last week, Ralph Lauren announced the addition of Digital Product IDs to its labels, giving shoppers the ability to use an app to verify product authenticity and learn product details, styling tips, etc. What advantages do you see this level of traceability having for fashion brands?





Digimarc


leader


RetailWire

Audience Q&A


leader



Heidi DethloffVice President,

Marketing, Digimarc


RetailWire

YOUR QUESTIONS FOR THE PANEL

For more information

For RetailWire:


[email protected]

(561) 398-0613

retailwire.com

For Ken Morris:

[email protected]

617-880-9355

For Datalogic:

Jose I. Vega,Retail Marketing Manager

[email protected]

541-743-4905

For Digimarc:

Heidi Dethloff,Vice President, Marketing

[email protected]

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