The transition to 2D Barcodes such as GS1 QR Codes gathers momentum in NZ
The global transition to 2D barcodes, or GS1 QR codes is continuing to unfold. Globally, the ambition is to have these next generation barcodes scannable at retail point of sale by the end of 2027. To reach this date, a collective effort is needed from across the value chain from participants such as technology providers, brands, manufacturers, retailers and industry groups. The great news is we are seeing increasing interest from across these participants in New Zealand. In this article we provide an update on the transition, and the early signs of progress we are seeing towards adoption in the New Zealand market, along with what Kiwi businesses and organisations can do to experience the benefits.
Why are GS1 QR Codes so transformative?
Unlike the traditional GS1 barcodes, GS1 QR codes will go ‘beep’ at the point-of-sale and capture and link flexibly to trusted data for businesses, regulators, consumers, and patients alike, offering much more than just static links to webpages. They can tell a product’s “story”, where it comes from, if it contains allergens, is organic, how it can be recycled - and even what its environmental footprint is. This new level of transparency, scannable via a smartphone, will help consumers make smart decisions about what they buy and use.
Being able to encode more data on a product label will be transformative for operational processes in retail, for example deciding which products to mark down, blocking expired products at point of sale or targeting batch-specific product recalls. But being able to connect a consumer to more product information brings benefits to brand owners – you can provide up to date information about your product on their smartphone in real time. ‘Digital labelling’ will open up a world of flexibly-delivered information about your product to consumers. How-to-guides, ingredients, recipes, video tours, compliance information, certificates – all off the product’s packaging!
We have some exciting updates for you
1. Technology providers are gearing up for the change
We are continuing to see technology and packaging providers interested in the transition to 2D barcodes, and several new providers have joined the GS1 New Zealand alliance partner programme in recent months so that they can be assured of getting good advice and support GS1 members.
The transition provides an opportunity for providers of hardware, software and packaging solutions to add value to existing customers and support customers with the transition. The reality is that technology providers are the ones who use GS1 standards every day – they help support the whole value chain and are critical to supporting New Zealand with adoption.
2. Brand and manufacturers are assessing capability
The GS1 New Zealand team has been kept busy with businesses wanting to understand their readiness for the transition. The starting place for this can be a conversation with your provider, or with our team at GS1 NZ. Initial capability assessment involves testing of hardware and software.
3. Retail NZ and NZ FGC educating members about the transition
We are also seeing increasing interest from industry organisations such as Retail NZ, and the NZ Food and Grocery Council in the transition to GS1 QR Codes. The team has been involved in presenting webinars to members from both organisations, and it is great to see New Zealand businesses actively wanting to learn more about the transition and how they can be involved. You can view the webinar recording from the Retail NZ webinar here.
4. SmartFacts® launches in New Zealand and Australia
A recent development is the launch of SmartFacts® in the New Zealand and Australian markets. SmartFacts® is a collaborative industry-led programme creating harmonised ‘digital product labels’ using GS1 QR Codes with Digital Link for the Australian and New Zealand food and grocery sectors.
SmartFacts® bridges the gap between consumers and brands, digitally connecting them in real time during the shopping process. This enhances the consumer experience, improving trust and usage through the use of next generation barcodes.
5. New partnerships with Kai Commitment and Eco Choice
In the last few months, we have been excited to stand up new partnerships with organisations who see this transition as truly transformative. The first is our new partnership with Kai Commitment, focusing on the benefits of GS1 QR Codes for food waste reduction, and the second with Eco Choice, a leading eco labelling and certification organisation for products. These partnerships will be helpful for educating New Zealand businesses on the benefits of GS1 QR Codes so they can leverage the benefits in their businesses.
What can I do to prepare?
There are several things that you can do to prepare for the transition and maximise the benefits to your business and consumers. The team at GS1 New Zealand is happy to support you with the transition and provide guidance on next steps.
The first step is to evaluate the technology you have in place, so you understand what changes you may need to make in order to be able to support GS1 QR Codes. We encourage you to reach out to your current provider to understand your current hardware and software capabilities. Many providers are already onboard with the change and will be able to support you with the transition. The second step is to develop your business case for change – and this is a key step where the team at GS1 NZ can help – so that you can identify the benefits of the transition for your business and align these to your business goals.