From the store shelf to the online store: Optimize product information with Category Management and the GS1 DataMatrix Code

The dynamics of modern retail, characterized by increasingly networked and demanding consumer behavior, require innovative solutions in category management. The GS1 DataMatrix Code, a highly developed 2D barcode, has immense potential to fundamentally change this central field in both e-commerce and brick-and-mortar retail. Instead of being limited to simple product identification, the DataMatrix Code opens up a new dimension of information collection and processing, which leads to a data-driven, more efficient and customer-oriented design of product ranges.

A new era of product information

A key advantage of the GS1 DataMatrix Code is its ability to store a significantly larger amount of data compared to traditional one-dimensional barcodes. This enables a more detailed and multi-layered product description that goes far beyond the mere GTIN (Global Trade Item Number). For example, essential information such as the exact expiry date, the specific batch number or individual serial numbers can be stored directly in the code. This granular data collection is particularly relevant for products with high safety requirements or a short shelf life, such as in the food or pharmaceutical industries.

The 1D barcode successor 2D matrix code is suitable for WebAR or WebXR! – Image: Xpert.Digital

Suitable for:

• 2D matrix code (from 2027 successor to the EAN/UPC or GTIN 1D barcode) can also be used for WebAR or WebXR (3D)!

In addition, the integration of URLs in the DataMatrix code enables seamless linking of physical products with extensive online resources. By simply scanning the code with their smartphone or other reading device, customers can immediately access detailed product information, such as ingredient lists, nutritional information, usage instructions, customer reviews, product application videos or even information about the product's origin and sustainability. This transparency creates trust and enables informed purchasing decisions. In category management, this opens up the possibility of categorizing and analyzing products not only based on their basic properties, but also based on more complex criteria. This leads to a more precise segmentation of the product range and enables a more targeted approach to specific customer groups.

Suitable for:

• From Barcodes to Metaverse: The Role of 2D Matrix Codes in Future Product Visualization and Product Information

Increased efficiency throughout the entire supply chain

The implementation of the GS1 DataMatrix Code has a positive impact across the entire life cycle of a product and optimizes processes along the entire supply chain. The detailed information stored in the code enables improved and complete traceability of products - from the origin of raw materials through the various production stages to the point of sale and beyond. In the event of product recalls or quality issues, affected batches or even individual products can be identified quickly and accurately, minimizing damage to companies and consumers.

Warehouse management also benefits significantly from the precise identification provided by the DataMatrix code. Inventory levels can be recorded and managed in real time and with high accuracy. This not only reduces the effort required for manual inventory, but also minimizes the risk of stock-outs or overstocking. By integrating the DataMatrix data into merchandise management systems, automatic ordering processes can be triggered and inventory can be optimized as needed. This increase in efficiency contributes to data-driven product range optimization by, for example, reordering products with a high turnover rate in a timely manner and identifying slow sellers and removing them from the product range if necessary.

Suitable for:

• Warehouse management is facing a groundbreaking change: product identification with GTIN and the GS1 Data Matrix Code

Customer orientation as a central element of product range design

The GS1 DataMatrix Code enables retailers to put greater customer focus at the heart of their category management. Linking the information contained in the code with customer data and online analyzes opens up new opportunities for personalized product recommendations, especially in brick-and-mortar retail. Imagine a customer scanning a product on the shelf and receiving personalized recommendations on their smartphone for complementary items or alternative products based on their previous purchases or preferences. Such scenarios are made possible by the wealth of data in the DataMatrix code and the possibilities of real-time data analysis.

In addition, retailers can use the DataMatrix Code to offer their customers added value in terms of product information directly at the point of sale. By scanning the code, consumers can immediately access detailed information that goes beyond what is contained on the product packaging. This can have a positive influence on the purchase decision and increase trust in the product and the retailer. Interactive elements, such as the ability to view product reviews from other customers or take part in competitions, can also be integrated via the DataMatrix code and enrich the shopping experience.

Seamless omnichannel integration for a consistent customer experience

In a world where consumers move seamlessly between online and offline channels, consistent product identification and information is critical. The GS1 DataMatrix Code acts as a connecting element that enables smooth omnichannel integration. The same code that identifies a product in brick-and-mortar stores can also be used online to ensure consistent product presentation across all channels. This avoids customer confusion and contributes to a coherent brand perception.

The precise product identification through the DataMatrix code also optimizes processes such as “Click & Collect”. Goods ordered online can be identified quickly and accurately in the warehouse or in a brick-and-mortar store and made available for collection. Returns made via different channels are also simplified by clear product identification. This integration supports cross-channel category management, where assortment decisions are made based on data from all sales channels and the customer experience is optimized across all touchpoints.

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• Smart shopping business models: 30 innovative ideas and variants that have emerged around the new shopping in recent years

Data-driven decision-making as the basis for sustainable success

The abundance and quality of the data obtained through the use of the GS1 DataMatrix code forms a solid basis for well-founded decisions in category management. Detailed product data enables more precise sales analysis that goes far beyond the aggregated numbers of traditional barcodes. Exact sales patterns can be identified, customer purchasing behavior can be analyzed in detail and the performance of individual products or product variants can be precisely evaluated.

Based on this expanded data, retailers can make more informed decisions about the optimal placement of products on shelf or online. It becomes possible to place products specifically in environments in which they have a higher probability of being noticed and purchased by the relevant target group. The effectiveness of marketing measures and promotions can also be better evaluated and optimized through detailed analysis of the DataMatrix data. This improved data basis enables companies to continuously refine their category management and to react flexibly to changing market conditions and customer needs.

Challenges and future developments

Despite the enormous potential, the implementation of the GS1 DataMatrix code also brings with it challenges. Companies must invest in the necessary infrastructure to generate, deploy and read the codes. The integration of the new data streams into existing IT systems can also be complex. It is important that all actors in the supply chain - from manufacturers to retailers - work closely together to ensure a smooth transition and take full advantage of the benefits of the DataMatrix code.

The future of category management will be significantly shaped by technologies such as the GS1 DataMatrix Code. As digitalization advances and real-time data becomes more important, the DataMatrix Code will play a key role in increasing efficiency, improving customer experience and enabling data-driven decisions. The DataMatrix Code also offers potential in the area of ​​sustainability, for example by providing information on the origin and environmental impact of products. The integration of dynamic information that can change over time is another exciting field of application.

A paradigm shift in category management

The introduction of the GS1 DataMatrix Code represents more than just a technological development. It marks a paradigm shift in category management, which enables retailers and manufacturers to create their product ranges on a new, data-supported basis. Through improved product information, increased efficiency in the supply chain, greater customer orientation, seamless omnichannel integration and a well-founded database, companies can significantly improve their category management. This not only leads to optimized product range design and higher customer satisfaction, but ultimately also to increased sales and a stronger competitive position in the dynamic market environment. The consistent use of the potential of the GS1 DataMatrix code is a crucial step for companies that want to be successful in modern retail.

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• Category management in comparison: online retail (e-commerce) vs. stationary retail – similarities and the 6 biggest differences

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The GS1 DataMatrix code offers a variety of innovative options to fundamentally transform category management in online retail (e-commerce) as well as in stationary retail. Its ability to store and flexibly use extensive data makes it an important tool for optimizing processes, improving customer experience and data-driven decision making. The key potential of this code is described below and supplemented by additional insights that illustrate its transformative impact.

1. Product information revolution: precision and transparency

The GS1 DataMatrix code can store significantly more information compared to conventional barcodes. This function enables significantly improved product display and management.

Detailed product attributes

In addition to the GTIN (Global Trade Item Number), information such as expiry date, production batch, serial number or even specific ingredients of a product can be stored directly in the code. This creates a basis for more precise categorization and product range design.

Linking to digital content

The GS1 DataMatrix can integrate URLs that give customers or dealers access to advanced online resources such as product descriptions, instructions for use or videos. This not only makes product selection easier, but also strengthens trust in the brand.

Improving food safety and quality

Particularly in the food sector, the code enables precise traceability, which supports both safety for the consumer and compliance with legal requirements.

These enhancements create a new dimension of transparency that is essential for a differentiated and customer-centric product strategy.

2. Increase efficiency in the supply chain

Implementing the GS1 DataMatrix code in the supply chain contributes significantly to optimizing logistical processes.

Complete traceability

Every step along the supply chain – from production to sale – can be precisely documented. This is particularly important in the event of recalls or quality issues.

Efficient warehouse management

The granular capture of product information significantly simplifies inventory management. Automated systems can use the code to update inventory in real time and avoid overstocking or shortages.

Reduction of waste and costs

With better planning and monitoring, retailers can minimize waste, especially perishable items, while reducing costs.

These improvements promote data-driven category management that both increases efficiency and supports sustainability.

3. Customer-oriented product range design

The GS1 DataMatrix code opens up new opportunities to align the range more closely with customers' needs.

Personalized product recommendations

Merchants can use the data stored in the code to make personalized recommendations based on individual purchasing behavior. An example would be linking directly to digital platforms that suggest similar products or complementary items.

Instant access to product information

Consumers can scan the code with their smartphone and gain immediate access to detailed information such as ingredients, nutritional values ​​or origin. This supports purchasing decisions and strengthens customer loyalty.

Highlight sustainability aspects

Companies can store environmental certificates or information about sustainable production methods in the code in order to specifically target environmentally conscious buyers.

A greater focus on customer preferences leads to higher satisfaction and ultimately increased sales.

4. Integration of omnichannel strategies

The GS1 DataMatrix is ​​a key tool for seamlessly integrating online and offline channels.

Uniform product presentation

Thanks to the universal applicability of the code, products can be displayed consistently both online and offline. This reduces confusion and increases brand awareness.

Efficient processing of Click & Collect

Customers who order products online and pick them up in store benefit from precise product identification. The code makes it easier to quickly find and spend the right items.

Easy return processes

The code can contain information that makes returns easier, such as: B. by linking it to purchase receipts or guarantees.

Omnichannel integration not only improves operational efficiency but also creates a consistent and satisfying shopping experience.

5. Data-driven decision making: In-depth analysis and strategies

The data contained in the GS1 DataMatrix provides a valuable basis for analyzing sales and customer behavior.

More precise sales analysis

Traders can gain detailed insights into sales patterns, such as: B. which products are particularly in demand in certain periods or regions.

Optimized product placement

Based on the data collected, products can be better placed in store or on digital platforms to maximize their visibility and appeal.

Effective category management

The combination of comprehensive product data and analysis tools enables continuous optimization of the product range, which increases both profitability and customer satisfaction.

Through data-driven strategies, retailers can react more quickly to market changes and secure competitive advantages.

6. Future prospects: innovation and competitive advantages

The use of the GS1 DataMatrix will play an even greater role in the future, especially with regard to the following developments:

Automation and AI

Systems using artificial intelligence can analyze the data from the GS1 DataMatrix code to predict trends and automate operational decisions.

Augmented Reality (AR)

By combining the code with AR technologies, consumers can receive interactive product information in real time.

Strengthening brand loyalty

Companies that use the GS1 DataMatrix code for innovative and customer-friendly solutions can position their brand as modern and trustworthy.

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