Rémy Fontanet, Business Development Manager, Markem-Imaje

Since the 1970s when used in a retail setting for the first time, the UPC barcode has been a trustworthy and popular resource for inventory methods and purchasing processes across the globe. However, with the rise of a digital-first era and the consumer and brand desire for more readily available information, there comes a need for capabilities beyond what the standard barcode can provide.

QR codes, also known as 2D barcodes, are on the rise, regularly utilized by restaurants, retailers, and brands for easy access to payment platforms and brand information. Able to store more information than the standard 1D barcode, the 2D barcode is being implemented on product packaging by more and more CPG brands to enable increased customer engagement and back-end tracking and data collection.

Given these opportunities, GS1 – a global organization for data compliance – announced a standardized model known as GS1 Digital Link for encoding product details, brand data, and web URLs within a 2D barcode. GS1 encourages adoption through the initiative, Sunrise 2027.

Understanding the rise of 2D barcodes

The limitations of 1D barcodes paved the way for an increased adoption of 2D barcodes. Whether in store or at home post-purchase, consumers can scan 2D codes with their mobile devices to access tailored information provided by the brand. Through customized landing pages where brands can include product origin details, engaging content about the item, and more, companies can foster a stronger connection with consumers that is not feasible through 1D barcodes.

Beyond the consumer-facing benefits of 2D barcodes, brands have the opportunity to track and provide more regulatory and product information such origin, nutritional information, late-stage production data, serial number, best before date, and expiration date. By linking these data points to every finished product, manufacturers can maintain a holistic view of a product’s entire history, pinpointing potential issues before they arise or taking swift action once identified. This entire effort requires and elevates cross-business collaboration, which can ultimately streamline operations and increase efficiency.

Designing a Digital Link barcode

In order to utilize Digital Link barcodes to their full potential, brands must understand the codes and what they can entail. GS1’s Digital Link Barcode is a type of 2D barcode that follows a specific syntax. When designing a Digital Link code for a product package, brands must determine the information to be included in that code, which directly impacts its size – the more information, the bigger the code, the more space it takes up on a package. Here are the three components to consider when designing Digital Link codes:

1. Determine the version. Different versions of QR codes impact the module number. Versions depend on the number and type of characters included in the code (i.e., the domain link) along with the error correction level which allows codes to be scanned even if they are damaged or obscured (the higher the level, the larger the code.)
2. Identify the module size.  There are two ways to define module size – by starting from the overall targeted size of the QR code and dividing by the number of modules, or by complying with a specific requirement on a so-called X-dim, like the one from GS1’s standards.
3. Consider the quiet zone. The quiet zone, also known as the blank space surrounding the QR code, is an important consideration for fitting a QR code into a label design. The quiet zone minimum may vary from 1-4 modules, depending on the necessary application.

Best practices for designing a Digital Link code include complying with GS1 digital link URI syntax, keeping the domain as short as possible, and maintaining error correction at the lowest level, given QR codes’ inherent safety compared to 1D barcodes.

Considering pre-printed vs. inline printed codes

With the implementation of 2D barcodes, brands have the opportunity to explore pre-printed codes vs. codes printed inline. Pre-printed codes tend to contain static content, as the codes are batch printed ahead of production. While solutions currently exist that offer digitally pre-printed serialized codes, their implementation requires complex data integration with advanced vision systems and synchronization modules. Additionally, as pre-printed serialized codes require connection to a data storage area, these are not able to be used in situations where data needs to be accessed offline.

Through inline printing, the individual codes are embedded with unique product information and production line data. These tailored codes enable unique identification of each package, allowing brands and consumers to drill down to specifics about individual products. Brands can also likely use existing printing and coding solutions for 2D barcode implementation, creating an unmatched value for inline-printed codes.

Preparing for migration

While the switch to 2D barcodes is not yet mandatory, GS1’s Sunrise 2027 will surely change the retail landscape for good, unlocking new opportunities for efficiency, collaboration, and transparency. Here are the top three steps brands should keep in mind for their 2D barcode transition:

1. Determine desired use cases. Determine why and how 2D barcodes will be utilized, which will drive involvement of various departments for data management, production processes, etc.
2. Assess current systems and formulate a plan. By performing an audit of existing capabilities, or working with a partner to do so, brands can determine actionable steps for a migration based on current competencies and gaps that may need to be filled.
3. Ensure robust data management capabilities. The success of Digital Link codes depends on the quality of the data included within them. By focusing efforts on data collection, organizing, and monitoring, brands can utilize Digital Link codes to their full potential.
4. Consider conducting pilot programs. By conducting test programs with Digital Link codes as soon as possible, brands can assess what works best for their operations and customers and tailor more extensive rollouts based on feedback.

Embracing a connected future

Sunrise 2027 is coming, whether brands are ready for it or not. Rather than fearing migration or procrastinating on implementation, companies should embrace the interconnectivity and untapped potential presented by 2D barcodes. It’s up to companies and retailers to take the first step towards our connected future.