GS1 Sunrise 2027 Explained: A Guide for Businesses
The EAN/UPC barcode, a one-dimensional (1D) barcode system, has been widely used for product identification for decades. However, the limitations of 1D barcodes in fulfilling demands for authentication and traceability are obvious.
GS1 Sunrise 2027 is a global initiative to transition from traditional EAN/UPC barcodes to two-dimensional (2D) barcodes. This project intends to make products smarter, with GS1 US as the key influencer.
In this article, we will discuss how the initiative assists businesses in running more smoothly and how it enables them to give consumers a smarter and more informative experience.
Table of Contents
- What is GS1 Sunrise 2027?
- Why Sunrise 2027?
- How is GS1 Digital Link different from traditional barcodes?
- Why is Sunrise 2027 happening?
- Why Sunrise 2027 is important for businesses
- How to prepare for the Sunrise 2027 shift
- Expected challenges for adopting GS1-compliant QR codes
- Make your business future-ready with QR TIGER GS1
- FAQ
What is GS1 Sunrise 2027?
Global Standards 1 (GS1) is an international organization that creates and maintains standards for barcodes that improve transparency and supply chain efficiency across industries.
Sunrise 2027 is its global industry initiative to adopt 2D barcodes in point-of-sale (POS) and supply chain systems.
This shift from traditional 1D barcodes (like UPC/EAN) to 2D barcodes like GS1 Data Matrix and GS1 QR code is already taking place in multiple countries, including Australia, Canada, and Japan, and across industries.
It is expected to bring the following changes:
- Enhanced inventory management and preparedness for product recalls
- Improved sustainability and ethical sourcing
- Improved brand loyalty and product authentication
- Better consumer engagement, enabling customers to access comprehensive product information through a single scan
Why Sunrise 2027?
The name "Sunrise 2027" indicates the industry's strategic transition to 2D barcodes.
The global standards widely use it to specify a target date by which businesses can realistically implement the new technology or system, but it’s not a mandatory deadline.
In a webinar hosted by QR TIGER, Ned Mears, Senior Director of GS1 US, stated, “being ready by the date offers a major advantage.”
He also added that traditional 1D barcodes will not be totally phased out, saying, “keeping both 1D and 2D barcodes on packaging might be the best approach,” especially for businesses selling across multiple retail channels.
How is GS1 Digital Link different from traditional barcodes?
Traditional barcodes like UPC, EAN, GTIN-12, and GTIN-13 store only a GTIN (Global Trade Item Number). This number helps to check the price at the point of sale (POS).
2D barcodes, such as Data Matrix and QR codes, encode more information, such as product details, recall alerts, expiration dates, and sustainability data.
These barcodes possess a “digital link” feature, which lets you connect the code to digital or online content like your website or authentication checks. So, the GS1 digital link QR code allows consumers to benefit from a more interactive experience.
Let’s break down the difference between UPC and GS1 QR code below:
Traditional barcodes are commonly scanned at POS systems or warehouse scanners to retrieve pricing information and for inventory management.
Meanwhile, these Digital Link codes can be scanned with smartphones and POS systems, allowing supply chain managers, sales clerks, and consumers to access comprehensive product information online.
In terms of data storage, traditional barcodes are static and restricted. Digital Link, on the other hand, uses Data Matrix codes or QR codes. These codes can be dynamically updated to convey real-time product information.
Businesses can start learning how to generate GS1 QR codes to begin their transition and implement them at warehouses and points of sale.
Why is Sunrise 2027 happening?
The following points further clarify the significance of the Sunrise 2027 initiative:
The need for digital transformation in product identification
Traditional 1D barcodes have benefited the retail industry for price lookup at POS systems, but they can’t store comprehensive product details.
2D barcodes, particularly QR codes, allow businesses to encode more data, resulting in improved authentication, inventory handling, and traceability.
Consumer demand for transparency and digital access
A Think with Google survey found that 85% of consumers find product information and pictures crucial when deciding which brand or retailer to buy from.
For this reason, consumers are more likely to buy products equipped with a scannable QR code that leads to additional product details.
The adoption of GS1-standardized 2D barcodes empowers consumers to learn more about products right on their smartphones. With one scan of the code, they can instantly access real-time product information.
Supporting omnichannel retail and supply chain efficiencies
More manufacturers and retailers today are working in an omnichannel environment. In such an environment, the products seamlessly move among supply chains, e-commerce departments, and physical stores.
2D barcodes improve inventory tracking and recall readiness so businesses can continue fulfilling consumer expectations.
Alignment with emerging technologies (IoT, AI, smart packaging)
The transition to 2D barcodes keeps pace with advancements in artificial intelligence (AI), the Internet of Things (IoT), and smart packaging.
Such technologies depend on standardized data to improve product authentication, traceability, and automation.
GS1-compliant QR codes and Data Matrix make sure businesses stay future-ready where product identification is crucial.
Why Sunrise 2027 is important for businesses
The initiative helps businesses streamline their operations in the following ways:
Ensures accurate inventory tracking
Businesses dealing with product manufacturing can benefit from the capabilities of advanced 2D barcodes. These include decreased counterfeiting, enhanced product traceability, and improved brand credibility.
2D barcodes capture only relevant and useful data, allowing more accurate inventory tracking. As a result, they help businesses ensure safety and compliance in their operations.
Helps retailers improve customer experience
Retailers can ensure better customer experiences by using GS1-compliant 2D barcodes. Such barcodes provide all required information at POS.
Retail businesses can optimize inventory management and improve product authentication. Hence, they can build trust among customers and keep them satisfied.
Retailers using QR codes stated a faster checkout process, resulting in improved customer experience.
Future-proofs the business in the digital era
With the rapid evolution of technology, businesses should adopt digital advancements to stay competitive. Sunrise 2027 is a crucial contributor to this.
It drives companies to upgrade their existing barcode systems and adopt 2D technology. As a result, this upgrade will help businesses realize better consumer engagement, traceability, and operational efficiency.
How does using GS1 2D barcodes benefit businesses?
This initiative provides numerous benefits to businesses. Some of the prominent advantages are discussed below:
Ease of accessibility
GS1 QR code guidelines serve as a common language, enabling smooth communication among companies globally.
The initiative ensures that companies don’t face barriers when dealing with other companies' supply chains and systems. The adoption of the standards ensures that the codes are easily accessible to all.
Your business can generate them with the help of a GS1 QR code generator that offers dynamic QR codes. These are editable, secure, and provide in-depth tracking and analytics.
Enhances business efficiency
The initiative standardizes processes like inventory management, data sharing, and product identification. So, the corresponding 2D barcodes decrease errors and streamline business operations.
Improves traceability
GS1 barcodes and identifiers facilitate the comprehensive tracking of products. They ensure safety and compliance for businesses dealing with essential services like food and healthcare.
With accurate traceability, companies can realize improved efficiency, flexibility, and competitiveness.
Promotes transparency
GS1 standards make product information easily accessible and accurate. As a result, businesses can build trust among consumers by facilitating more interaction with them and offering more transparency in markets, which enriches their brand’s credibility.
High readability
2D barcodes have better readability than 1D systems. This new system ensures high efficiency during error correction. Even if 2D barcodes get damaged, businesses can still decode them more frequently than a damaged 1D code.
Improves time-to-market
The Sunrise 2027 shift ensures accurate product tracking. It decreases production delays and enables swift product movement through the supply chain.
Businesses dealing with high-speed product settings can benefit a lot because time is the key essence for them.
Manufacturers can obtain more in-depth product information in a single scan. So, human intervention is reduced. Efficient business operations mean the company can easily adapt to forthcoming industry standards.
Using a GS1 QR codes for industry accelerates your business operations and improves customer engagement.
How to prepare for the Sunrise 2027 shift
While Sunrise 2027 is not a deadline, as Mears claims, businesses adopting this change can experience significant advantages and tap into new technologies before others.
The following steps can aid a business to be ready for this shift:
- Evaluate its existing barcode scanning and creation infrastructure. Look for areas demanding an upgrade to 2D barcodes.
- Collaborate with retailers, suppliers, and tech vendors to seamlessly align with the transition.
- Educate the workforce about the usage and benefits of GS1-compliant 2D barcodes. The process involves training on new software and hardware systems.
- Redesign product packaging to assimilate 2D barcodes that comply with GS1 standards.
- Carry out pilot programs to evaluate the efficiency of 2D barcodes in a specific business operation. Review the performance to make adjustments to enhance the overall business operations.
- Notify customers about the function of GS1 2D barcodes and how they benefit from them. Emphasizing perks like smooth access to all required product details can help.
Expected challenges for adopting GS1-compliant QR codes
Depict a typical 1D barcode at the left and the right side must show a GS1-compliant QR code equipped with details such as GTIN, color, size, SKU, and place of manufacturing.
GS1-enabled QR codes are replacing barcodes in 2027. But while the rise of QR codes offers multiple valuable benefits, it does entail some challenges. Insights on the expected challenges a business must stay careful of are:
- Technology upgrades must be installed for POS systems. These upgrades can be time-consuming and expensive for small businesses.
- The GS1-compliant 2D barcodes store more data, leading to increased data privacy and security concerns. Businesses must make sure sensitive information stays secure and that the data is ethically used.
- It may be difficult to encourage customers to adopt these 2D barcodes.
- The transition demands the implementation of new quality control regulations and processes, which adds to the expense.
- Modifying product packaging to adopt QR codes increases the budget of a business.
- It demands time to make sure the generated codes are printed, scanned, and interpreted precisely.
Make your business future-ready with QR TIGER GS1
Countries around the globe are already testing and implementing 2D barcodes in their systems. The GS1 Sunrise 2027 initiative signifies a paradigm shift towards a more efficient, transparent, and traceable global supply chain.
Transitioning to 2D barcodes benefits businesses with improved data accuracy and customer experiences. While there are challenges to tackle, the advantages of this transition are noteworthy.
Your business can avoid last-minute expensive upgrades by proactively configuring systems before 2027.
Ready to make the shift? Explore our GS1-regulated QR code solutions and begin your transition towards more connected and efficient operations.
DISCLAIMER: We acknowledge that GS1, as well as the materials, proprietary items, and all related patents, copyright, trademark, and other intellectual property (collectively, “intellectual property”) relating to its use, are the property of GS1 Global, and that our use of the same shall be in accordance with the conditions provided by GS1 Global.
