GS1 assembles retail coalition to widen use of product QR codes for transparency

02 Jul 2024 --- On the 50th anniversary of the world’s first barcode being scanned, 22 industry giants — including marketplaces such as Alibaba, retailers like Carrefour and manufacturers like Procter & Gamble (P&G) — are calling for the global adoption of QR codes with GS1 standards.

Provided by GS1, the non-profit standards organization behind the barcode, QR codes give access to product information that is easily accessible via smartphones for better traceability. This opens a range of new possibilities for consumers, manufacturers and retailers, highlights the coalition.

“The first barcode scan forever changed how we buy and sell products,” says Renaud de Barbuat, president and CEO of GS1. “Fifty years on, industry champions have come together calling for the transition to QR codes powered by GS1.”

“This collaborative effort is set to transform in new ways how we shop, eat and live. We believe this marks the start of a second barcode revolution — making products more traceable and transforming the consumer experience, thereby unlocking the future of retail.”

“Wide adoption” by end of 2027
The companies that have joined forces are a combination of leading brand owners, retailers and marketplaces with a combined market value of over US$1.5 trillion USD, discloses GS1.

“The goal of this collaboration is that by the end of 2027, QR codes with GS1 standards should be widely adopted,” states the initiative.

“To achieve this, a coordinated effort is necessary between manufacturers and retailers: manufacturers should start implementing QR codes with GS1 standards on product packages, while retailers should ensure their point of sale scanners are equipped to read the new barcodes.”

GS1 QR codes can convey usage and recycling instructions, safety, nutritional information and industry certifications.Unlike traditional barcodes, QR codes powered by GS1 can connect consumers to extensive product information to elevate their experience — including usage and recycling instructions, safety, nutritional information and industry certifications.

Since the first scan in 1974, the collaboration between retailers and manufacturers through GS1 has led to the widespread adoption of the original barcode.

Over 1 billion items carrying barcodes that are scanned more than 10 billion times daily, highlights GS1.

“Consumers demand more information about the products they’re purchasing, regulators require the disclosure of more information and there’s an ongoing need to more effectively track and trace products through the supply chain,” says Jon R. Moeller, chairman of the board, president and CEO of P&G.  

Enhancing consumer experiences
A previous Packaging Insights report highlighted 85% of brands reporting their intention to boost investments in connected tech in the next year. Product QR codes powered by GS1 are being tested in 48 countries across the world, representing 88% of the world’s GDP.

Companies will need to evaluate their internal technology and processes to make the most of QR codes with GS1 standards, states the coalition. Adding more detailed product information into QR codes can be done gradually, allowing businesses to “plan changes at their own pace.”

With information no longer limited by packaging space, QR codes powered by GS1 can enhance the consumer experience by allowing brands to share additional information, including video tutorials, style advice, suggested recipes or other information relevant to their purchase.

QR codes can also connect consumers to information such as where a product was sourced, its components, carbon footprint, and guidance on recycling or reusing packaging.

In addition, QR codes can facilitate access to regulatory information, detailed allergy advice, and “Best Before” or “Sell By” dates. These allow expired foods to be rejected at checkout and those close to expiration to be sold at reduced rates, leading to a reduction in food waste.

“We expect that the transition to QR codes with GS1 standards will happen gradually around the world, but one thing is certain: those that accelerate through this transformation the fastest will be best positioned to unlock valuable new capabilities and provide more benefits to their customers, shoppers, and consumers,” says Mark Batenic, chairman of the Independent Grocers Alliance and chairman of the GS1 Management Board.

The complete list of companies that have signed the industry global joint statement includes: Alibaba (Taobao & Tmall Group), AS Watson Group, Barilla Group, Carrefour, 7-Eleven (CP ALL Thailand), Dr. Oetker, IGA, JD.com Group (Jingdong), Lidl International, L’Oréal, Master Kong (Tingyi Holding Corp.), Mengniu Group, Metro, Migros Ticaret, Mondelēz International, Nestlé, The Procter & Gamble Company, Savencia Fromage & Dairy, The J.M. Smucker Co., Tsingtao Beer Group, WH Group (Henan Shuanghui Development Co.) and Yili Group.

Digital IoT agency SharpEnd recently released its second “Connected Experience Report,” examining how the industry is adopting and responding to developments in connected technologies like QR codes, alongside near-field communication and augmented reality.