EAN CODE
Definition
The EAN (European Article Number, now known as GTIN in the international GS1 nomenclature) is the unique numerical identifier assigned to every product on the market. The most common format is EAN-13 (13 digits), which appears beneath the barcode. It unambiguously identifies a product throughout the entire value chain: manufacturing, logistics, distribution, checkout, and e-commerce.
When it comes to pricing, the EAN code is the key that links internal data (inventory, sales) to external data (competitor reports, market panels).
Why It's Important to Know
- Enable reliable identification: a unique identifier across all IT systems, which is essential for product matching and competitive intelligence.
- Ensuring traceability: tracking a product from the supplier to the end customer, as required by certain regulations.
- Serve as a hub for analysis: multiple sources, including internal sales data, competitive intelligence, panel data, and customer feedback.
Example
A hypermarket chain wants to compare the prices in its yogurt section with those of three competitors. Without its own EAN codes, it must manually match each product by name, size, and packaging, with a success rate of
Reliable competitive monitoring and product matching prevent the comparison of non-equivalent products and ensure that repricing is based on verified matches at the product detail, EAN, and attribute levels.
With EAN codes, matching is instantaneous: the EAN 3033710065530 identifies a 4×125g plain yogurt from a specific brand, regardless of which retailer sells it. Matching 4,200 SKUs across four retailers takes just a few minutes instead of several days.
How to Use It
Using EAN codes for pricing requires two prerequisites:
1. a clean and up-to-date product database (each SKU must have its EAN entered, validated, and consistent over time) and
2. A matching system capable of handling special cases (changes to the EAN following product modifications, and items without an EAN, such as open-pack or bulk products).
Matching tools primarily use the EAN as the first matching key, then fall back on descriptive attributes if the EAN is not available.
Mistakes to Avoid
- Reusing an old EAN: for a slightly modified product: historical traceability is lost, and comparative analyses become inaccurate.
- Entering EANs manually: typos prevent any automatic matching.
- Ignore EANs on private-label products: An EAN specific to your private label cannot be directly compared to a competitor's EAN.
Frequently Asked Questions
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