B2C Extended Packaging Bar Code Standard Training for GS1 Member Organisations

The way consumers shop is changing 25% of all Consumer Package Goods purchase decisions are influenced by some online or mobile activity Product manufacturers and retailers that are core members of GS1 all sell their goods to consumers. But the way that consumers shop is changing. Although physical stores remain central, consumers also research and buy products online or via their smart phone. Research in 2012 by Nielsen shows that 25% of all CPG purchase decisions are influenced by some online or mobile activity. That figure is growing daily. More and more products are appearing with bar codes that are intended to be scanned by users with their mobile devices, usually smart phones, but any device could be used. At present there is no international standard for the way in which these bar codes work, the data they encode, or any consistent advice for brand owners who want to use this new technology to provide more and better information to their customers. According to mobiThinking.com, the media tend to overegg the importance of smartphones and Apple in particular. Before media hype persuades companies into focusing their marketing/development budget on smartphones or the Apple platform exclusively, consider this: 61.3 percent of handsets sold in 2011 were not smartphones., they were feature phones; There are almost 6 billion mobile subscriptions worldwide (Source: ITU – International Telecommunication Union), yet only 968.2 million smartphones have been sold in total in 2009, 2010 and 2011, according to IDC – International Data Corporation, i.e. only 16 percent of global mobile subscriptions.

What is Extended Packaging? Key concept: Consumers access trusted product information or related services via their mobile phone Extended Packaging is a concept where consumers scan bar codes on product packaging to obtain : Either the same information displayed on the packaging in an easier to use or more personalised format Or additional information to that displaying on the packaging The most widespread extended packaging implementation in QR code in Japan - used widely since 2005. Worldwide smartphone adoption since 2005 means that Extended Packaging is now possible in other markets, but there are challenges… OPTIONAL ADDITIONAL TEXT: Two-dimensional bar codes that are appearing in print advertising and on billboard posters are encouraging consumers to try out their phones to see what extra information they can find. As more smartphones are used, it becomes more important for brand owners to have a strategy about how they can use this extra functionality to provide a better and more direct relationship with these customers. But it is not just about Apple apps and smartphones – don’t forget 94 percent of all phones sold in 2011 were not from Apple. Companies are still wondering about the possibilities in many cases, but GS1 want to provide a global standard that will provide a foundation for the building of different applications that will be appropriate for different types of device. A consumer has a question about a product they are buying. They receive the answer from a trusted source by scanning the product

Challenges for Extended Packaging Confusing for consumers Complex and costly for brands, retailers and solution providers Because smartphones make it possible to scan both linear and two-dimensional barcodes, consumers are confused. If there are multiple bar codes on a pack, which one should they scan? If they do scan, what information be displayed on their mobile phone and can it be trusted? Whilst brand-led QR code implementation allows consumers to directly access brand websites, extended packaging based on linear barcodes leads to a wide range of information, much of it containing product data not provided directly by brand-owners. Lack of global standards for keys and data carriers Lack of access to trusted product data

GS1 Vision for Extended Packaging Simple for consumers Easy and cost-effective for brands, retailers and solution providers The GS1 vision for extended packaging is that: Brand-owners use GS1 keys and data carriers Mobile applications show product information directly provided by brand-owners Global standards for keys and data carriers Easy access to trusted product data

Situation in 2010 Global standards for keys and data carriers Easy access to trusted product data Linear EAN/UPC optimal solution 2D Standards gap with background of increasing QR Code adoption When the Multiple Bar Codes Work Group started its work in 2010, the landscape for extended packaging was as follows: EAN/UPC bar codes could be scanned by smart phones. Because EAN/UPC bar codes are already used on millions of products world wide they provide an attractive starting point No GS1 standards existed for two dimensional bar codes for mobile applications. QR Code adoption was accelerating outside Japan, but extended packaging with QR Code typically did not encode any GS1 Keys. A number of other bar code symbologies were also trying to gain traction in the market using non-GS1 identifiers. GS1 had identified the need for a “Trusted Source of Data” Framework to make product data available to mobile app providers Therefore a clear standards gap existed for 2D barcodes for extended packaging. Focus of GS1 Trusted Source of Data project

GS1 Trusted Source of Data Project Objective: provide a framework for brand-owners to share digital product information with internet application providers The GS1 Trusted Source of Data Project is now well underway. The objective is to provide a framework for brand-owners to share digital product information with internet application providers. A pilot was conducted in 8 countries from July – December 2011 with very positive results. GS1 Global Office will be sharing more information about this project as it evolves. More information at www.gs1.org/b2c

Focus of this training Output of Multiple Bar Codes Work Group to address 2D standards gap for Extended Packaging GS1 has worked with manufacturers and retailers though the Managing Multiple Bar Codes Working Group to develop a standard that will provide a platform for development by application providers.

Two scenarios: bar codes for mobile applications When bar codes are scanned by mobile phones to access information, there are two basic scenarios: Direct Mode Indirect Mode As background, the group considered two basic scenarios when barcodes are scanned by mobile phones: direct mode and indirect mode.

Direct Mode The content encoded leads directly to the information (e.g. URL) The first was “direct mode” which works as follows. In a typical QR code implementation, the QR code encodes little more than the URL of a website. The mobile application decode the URL and goes directly to the website specified by the URL.

Indirect Mode The content encoded needs to be “resolved” before information can be retrieved (e.g. GTIN) The second was indirect mode. In indirect mode the URL is typically not encoded in the bar code. Instead only a numeric or alphanumeric identifier is encoded. Mobile applications that scan EAN/UPC bar codes provide a good example. These applications start by decoding the GTIN. They then use a lookup service to match the GTIN with relevant information. Finally that information is displayed to consumers. In developing their solution, the Multiple Bar Codes Work Group wanted to respond to a need expressed by the group to support both direct and indirect mode. This is an important point to understand when exploring the solution in more detail.

The Direct Mode in detail A new application identifier, Extended Packaging URL, AI (8200), was introduced to the GS1 General Specifications in January 2012. It must be encoded together with AI (01) GTIN of the product in a two-dimensional symbol. It is designed to be used with GS1’s two-dimensional symbols, GS1 DataMatrix and GS1 QR codes.

Extended Packaging URL AI (8200) indicates that the AI data field contains a brand owner authorised website address for a trade item. It must be processed with the GTIN encoded in the same symbol to obtain one address for the item identified with the GTIN. Format of the Element String Application Identifier Brand Owner authorized URL 8200 X1 variable length X70 This AI was introduced to the GS1 General Specifications in 2012 and it must be used together with the GTIN of the trade item that it relates to . This GTIN must be encoded in the same two-dimensional symbol, and it will be the same GTIN that is encoded in any EAN/UPC or GS1 DataBar symbol that also appears on the item.

An example The URL for the product is http://www.bestcompany.org The GTIN for the product (shown in a 14-digit field) is 09507000000111 When encoded in the symbol, the sequence is (01)09507000000111(8200)http://www.bestcompany.org When processed, the element strings are combined with a slash (/) to produce http://www.bestcompany.org/09507000000111

From scan to a website 01095070000001118200http://www.bestcompany.org ? 0109507000000111 8200http://www.bestcompany.org The process is as follows: Create a web site or page. The web address should terminate with the GTIN of the product expressed as 14-digits. The total web address (the URL) should be no more than 70 characters. Example http://www.bestcompany.org/09507000000111 2) Create a GS1 QR Code, or GS1 DataMatrix encoding the information using: AI (01), the GTIN of the item expressed as 14-digits AI (8200), the web-address without any separating slashes Example: (01) 09507000000111 (8200) http://www.bestcompany..org 3) When the bar code is scanned, the we address is reconstructed. http://www.bestcompany.org 09507000000111 / 09012345670016 Add slash for web link: 21.Mai 2012

Webpage from The Best Company http://www.bestcompany.org/09507000000111 Webpage from The Best Company WELCOME! Lots of information about our product with the GTIN 9507000000111…. The brand owner will decide the content of the relevant page, and that may include links to other webpages. This is all for the brand owner to decide.

Which symbol to use GS1 DataMatrix or GS1 QR Code for retail use. GS1 DataMatrix only for regulated healthcare trade items. GS1 QR Code is only approved for Extended Packaging. A linear bar code will also be needed if the item is to be scannable at retail points of sale.

Which size of symbol Consult the GS1 General Specifications, Section 2.1.8, Trade Item Extended Packaging. Then look at Figure 5.5.2.7 – 2.1 GS1 System Symbol Specification Table 1 Addendum for AI (8200). For GS1 DataMatrix and GS1 QR, x-dimension range is from 0.396 mm to 0.743 mm, with target size of 0.495 mm.

Bar code print quality As with all other GS1 symbols, GS1 DataMatrix and GS1 QR must be printed to reach a minimum print quality. This is explained in section Figure 5.5.2.7 – 2.1 GS1 System Symbol Specification Table 1 Addendum for AI (8200), and is 1.5/***/670, where *** is 80% of the x-dimension used for the symbol. The bar code print quality required for these two-dimensional symbols is the same as that for conventional GS1 bar codes.

Summary of rules for the application GTIN is the Trusted Source Data (TSD) Key. GTIN must be encoded with the Product URL. Additional AIs may be carried with GTIN and Product URL in the 2D symbol but they are not processed for this application. Only one URL per package as Extended Packaging AI. Use of URL is limited to consumer trade item extended packaging application

Further rules When AI (8200) appears on the label, the expression of the URL shall not appear in HRI. If it appears in Non-HRI text, it shall be expressed as http://www.gs1.org/09507000000111 If linear symbols are also used, the 2D symbol must not be in mirror or reverse orientation.

Regulated healthcare options For direct mode Extended Packaging GS1 DataMatrix is the only option For indirect mode Extended Packaging EAN/UPC, GS1 DataBar, GS1-128, or ITF-14 are all options.

Two-dimensional examples GS1 QR code GS1 DataMatrix http://www.gs1.org/095070000001118200 http://www.gs1.org/095070000001118200 When AI (8200) appears on the label, the expression of the URL shall not appear in HRI. If it appears in Non-HRI text, the example above would be shown as: PRODUCT URL http://www.gs1.org/09507000000111 (where GTIN expressed as 14 digits).

Indirect mode The new GS1 standard still allows for the indirect mode, when the GTIN alone is used as the reference point for the application. This may be scanned from a linear or a two-dimensional symbol.

Terminology Extended Packaging It is the ability of users to retrieve additional information about trade items via mobile devices or in general between link a trade item with virtual information or services. GS1 B2C Trusted Source of Data (TSD) A GS1 managed network concept that uses GTIN (product identification) and GDSN (product information) and would support the communication of authentic product data provided by brand owners to retailers, internet application providers, government, and consumers and shoppers using the internet and mobile devices. etc). Direct mode: Information retrieval function when the bar code contains either the address (URL) of the content or service, or the content itself, inline. Indirect mode Information retrieval function when the code contains a GTIN, which needs to be resolved to obtain the content or service. Resolving a GTIN means looking it up, typically at a network service, to determine the corresponding content or service.

GS1 Solution Benefits An international standard to be used as basis for application developments. Consistent experience for consumers, regardless of which symbols they scan. GTIN in all symbols means connection to TSD for both direct and indirect mode applications. GTIN as integral part of Product URL provides brand level addressability on demand for brand owners.

Standards Adoption: 2 phases Phase 1: Work with Solution Providers Phase 2: Work with Brand Owners GS1 Global Office has identified two phases needed adoption of 2D standards for mobile applications. Phase 1 requires work with solution providers such as companies who product scanning software for mobile phones and bar code printers. Phase 2 requires work with brand owners to use the 2D bar codes on their product packaging.

Phase 1: Work with Solution Providers Goal: Ensure GS1 QR Code and GS1 DataMatrix can be encoded and decoded by relevant software and mobile applications.  Technical questions: Scott Gray,scott.gray@gs1.org. Engaging solution providers: Gwen Lurie, gwen.lurie@gs1.org Brand-owners will only use the 2D standards for mobile applications if they can be sure that the mobile applications that consumers have on their smartphones can read the 2D barcodes defined by the standards. Each member organisation therefore needs to work with companies who product scanning software for mobile phones to ensure that the standards are integrated into their software. We recommend identifying the key players in you market and working closely with them on this topic. In parallel, you will also need to contact bar code printing and verification companies to ensure their software they use is updated.

Phase 2: Work with Brand Owners Goal: Use GS1 standards on product packaging Once the standards are well-adopted in each country by solution providers offering mobile bar code scanning applications, MOs can approach brand-owners interested in using GS1 QR Code and GS1 Data Matrix on their packaging. Once there is broad adoption of the standards amongst relevant solution providers to the extend that brand-owners can be sure that the majority of smartphone owned by their consumers can decode the GS1 2D bar codes for mobile applications, you can approach brand-owners. Brand-owners will need support about printing and placing the new bar codes on their packaging.

Deployment Considerations Migration to use of GS1 standard will take time. Implementation guidelines needed for IAPs, brand owners, other end-user companies, and MOs. Further research on mobile device capability with existing bar code standards. 1D symbols still used in retail for next 10 to 20 years. URLs which may be longer than 70 characters.

Resources Position Paper on bar codes for mobile applications http://www.gs1.org/docs/b2c/GS1_Mobile_Barcodes_Position_Paper.pdf Extended Packaging Implementation Bulletin http://www.gs1.org/sites/default/files/docs/g smp/barcodes/B2C_Extended_Packaging_ Implementation_Bulletin.pdf General Specifications http://online.gs1.org/index.php/genspecs/