'Welcome Soluem' ESL Adoption Rush Among Major Japanese Distribution Companies

by Jang Hyowon

Published 22 Nov.2024 08:56(KST)

Solum ESL installed in a large supermarket and a local cooperative store in Osaka. Provided by Solum.

Soluleum recently announced on the 22nd that it is rapidly expanding its presence in the Japanese market by consecutively signing electronic shelf label (ESL) supply contracts with major retailers in Sapporo and Osaka.

This is the result of a full-scale entry into the Japanese market based on the competitiveness built in Europe, with contracted companies including large supermarket chains, home centers, and food distribution companies. In particular, the contracts with cooperative stores in Sapporo and Osaka are likely to expand to other regions as these are brands with nationwide chain networks. Since signing an ESL supply contract with Life Corporation, Japan's largest retailer, last year, Soluleum's position in Japan is considered to have been further strengthened.

Soluleum stated that its global market expansion extends beyond Japan to Southeast Asia. It has signed supply contracts with major retailers such as Siam Makro in Thailand, expanding its market dominance. In line with this growth trend, the company relocated its sales corporation to Sydney, Australia, and established a new corporation in Ho Chi Minh City, Vietnam, expanding its global sales network.

An industry insider said, "Despite a temporary slowdown in demand due to the global economic downturn, Soluleum's ESL business is steadily building a foundation for mid- to long-term growth," adding, "In particular, the recent consecutive introductions by major Japanese retailers will serve as a foothold for future performance improvement."

Meanwhile, the global ESL market is expected to grow at an average annual rate of 18.9% until 2027, reaching a scale of 3 billion dollars. As digital transformation in the retail industry accelerates due to rising prices and labor cost burdens, ESL demand is expected to increase further. The industry expects Soluleum's performance to gradually improve with the acquisition of such new customers.