Insights
ROBERT LOCKYER | June 08, 2021
The last 12 months saw a considerable increase in e-commerce, driven by the global pandemic with many retail commentators believing this is an irreversible behavioural shift.
If correct, this will further underline the importance of the packaging journey, since the likelihood of consumers primarily interacting with brands through deliveries increases, potentially becoming the standard purchasing process.
Robert Lockyer, CEO and founder of Delta Global, a sustainable packaging solutions provider for luxury fashion brands, considers the impact of the packaging journey amid these new retail dynamics.
How much impact could a single packaging box have when it comes to consumer engagement and marketing? This is a question that all retailers and brands should reconsider, given the tumultuous nature of the retail landscape.
If Deloitte’s recent report into the Danish consumer’s permanent shift to online shopping can be viewed as a microcosm of imminent global trends, then businesses must adapt packaging to incorporate the entire journey.
Last year, the fashion and luxury markets were forecast to decline by an astounding $450 - $600 billion. A market previously thought too-big-to fail is taking a huge financial hit. The long-term effects of Covid-19 on retail as whole are unclear. But packaging has become too integral to the sales journey to ignore.
Packaging, therefore, can work as a core marketing tool, beyond the basics of the primary recipients’ experience. In this article, I’ll highlight how best to consider and exploit the entire packaging journey, ensuring that packaging realises its complete potential.
Materials
Manufacturing that avoids the use of sustainable materials is becoming impossible to justify, from both an economic and environmental perspective.
In fact, they are, practically speaking, one and the same. We know that a significant majority of consumers expect businesses to adopt a sustainable ethos – and are willing to pay more for it.
Therefore, the economic viability of sustainable packaging is fortified by consumer expectation. It is both a market and environmental inevitability.
Beginning a packaging journey should start with the selection of sustainable, recyclable, reusable materials. This is a stage in the packaging voyage that is easily achieved, with manufacturers increasingly switching to eco-friendly methods.
At Delta Global, sustainability is incorporated into every packaging product we produce. We’ve seen demands for sustainable services increase, but more can be done to mark this initial step as a marketing footprint rather than a footnote.
There are some great recent examples of how to do this right, from Burberry’s elegant reinvention of the ordinary cardboard box which will go even further to remove all plastic from its packaging by 2025, through to Gucci’s opulent Victorian wallpaper design packaging that is fully recyclable.
And so, step one - the initial consumer experience and expectation, is met through sustainable materials, and when done correctly, is easily exceeded.
Design
Once the correct materials are selected, brands should start think about design beyond creating an attractive, secure container.
The goal here is to inspire the consumer to utilise the packaging in a way that positions them as a virtual brand ambassador.
Consider the rise of the unboxing video. YouTube reported a 57% increase in product unboxing videos in one year, with these videos having in excess of a billion yearly views.
Together with Instagram, where 58% of its estimated 1.074 billion users log-in to follow trends and styles, visually oriented content platforms provide an unmissable marketing opportunity.
It is important to underline that this type of viral marketing need not rely on paid celebrities. In fact, I am advocating for a completely organic approach where possible.
From a brand’s perspective, recipients of well-executed sustainable packaging must progress this initial positive experience by innovative and thoughtful design.
That way, authentically persuasive content will occur naturally. And it's this type of spontaneous, highly engaged micro-influencing that rewards brands that have fully considered the packaging journey.
To achieve this requires innovation. You might consider implementing technology and connected packaging, where apps and QR codes are integrated into the packing itself.
A favourite example of this is Loot Crates brilliantly innovative unboxing experience which connects, via an app, to new products and exclusive items.
While technological innovation provides a novelty that encourages unboxing videos, simpler approaches can equally inspire the consumer through personal touches like VIVE Wellness’ individually packaged and addressed turquoise vitamin tubes, or M.M Lafleur’s curated and detail-oriented ‘bento box’ styling solution.
These packaging creations work because they provide memorable experiences, centred on discovery, individuality and, ultimately, shareability.
Packaging after purchase
The third and most under-utilised part of the packaging journey is post-unboxing usage. Brands should ask themselves who the packaging is seen by – and does the packaging have the function to be seen and used by others?
At this point in the packaging journey, we are hoping to harvest as many positive impressions as possible. This can include, for example, delivery drivers, photographers and stylists.
The concept is not abstract. Reflect on the reaction felt by a fashion photographer the first time they received, from an enthused stylist, a Gucci item in its new opulent emerald green packaging. Or the response of a delivery driver when seeing, in amongst the more mundane boxes, MatchesFashion’s reimagining of the a cardboard parcel.
Is it likely that the impression made by those stand-out packaging designs will be talked about, purred over, recommended and revered? The answer is obviously a resounding yes. When this happens online, we call it influencer marketing.
And we should not dismiss this type of marketing when it happens offline. Word of mouth matters. In an increasingly online consumer market where the first – and perhaps only – physical interaction between brand/consumer is through the packaging experience, it will matter more.
To our imaginary trio of driver, photographer and stylist, let’s introduce the general consumer. How likely it is that any of those would throw such packaging away?
They are so wonderfully designed that reusability and repurposing are inevitable. When a packaging compels secondary usage - deployed around homes and offices as containers, storage or decoration – you are creating an item that symbolises what marketers spending entire budgets pursuing: brand as central to an aspirational lifestyle.
If the retail market is moving irrevocably online, the offline journey of packaging – from manufacturer, deliverer, consumer and user – can ease that transition and become a perpetual marketing tool. This way, brands and retailers can enjoy the journey and the destination.
Read MoreInsights
ROBERT LOCKYER | February 12, 2021
More and more, brands are beginning to see the value of their packaging in influencing consumers’ purchasing decisions. But much less often do they understand the true potential of their outer and additional elements in driving brand engagement, increasing loyalty and enhancing the overall customer experience – and it’s by doing the latter, you can really make consumers fall in love with not only your products, but your brand and business too.
In this article, Robert Lockyer, CEO and founder of Delta Global, a packaging solutions provider for luxury retail brands in fashion and beauty, explains why customers must love a brand’s packaging before they even begin to undress its layers and get to what’s inside.
Love at first sight
With packaging, looks do matter. In the digital age especially, that all important outer shell is often the first physical point of contact a customer has with a brand so the impression it leaves needs to be a positive one, as this will then influence consumers’ respective thoughts and feelings towards the brand and their overall experience with it.
The look of the packaging, understandably, plays a key role in making this impact. It needs to look neat, presentable and fit for purpose first of all, which will come down to the quality of materials used for example, and then in line with what they were expecting of the brand, next.
To achieve this, it’s common for packaging to carry a brand’s logo, colours or other visual cues. But while most brands have mastered this, more can be done by taking into consideration wider brand values, and then developing packaging solutions that represent them.
For instance, in recent years, an increasing number of luxury brands have adopted more minimalist images in order to represent more timeless and classic brand values, and their packaging elements have been updated to reflect such a shift. As a result, it is common for designer bags, boxes and inserts to be sleek in design, with minimal branding, often with just a name printed on them while also being in the company’s recognisable colours.
Take The White Company as an example. Whether a customer places an order online or makes an in-store purchase, there are clear preconceptions of what is to be expected from the brand’s packaging. While colour is on obvious one, customers expect the same clean, minimal and sophisticated designs present in all other branding elements to also be reflected in its packaging. And they’re not wrong.
When they receive a package from the brand, or walk out of the shop with a bag, they are left with a clear and consistent overall experience, which will then evoke positive feelings towards the company and its products, and ultimately, a repeat purchase.
Not only this, but the smart and sophisticated design of such boxes affords them greater status, and therefore use, enabling them to be used in replacement of gift wrapping and even as decorative household items.
Love is green
When packages can be reused in this way, they are also better for the environment. And with an increasing number of customers desiring greater sustainability from brands as well as ways to reduce their own carbon footprints, investing in eco-friendly packaging only does the company favours.
Ultimately, sustainability is a question of ethics, and by tapping into consumers’ deep rooted personal values by aligning their activities to them, brands can certainly encourage deeper connections and better engagement with customers. Over time, this translates to repeat purchases and even brand loyalty and advocacy, which are things all brands strive for.
The offering of sustainable packaging, therefore, becomes yet another reason for customers to choose and love a brand and its products, and going forward, this will help set certain companies apart from competitors.
Therefore, any investment will be worthwhile. With high quality packaging that meets consumers’ expectations and leaves them with a positive overall experience and feelings towards the brand, companies can encourage behaviours that only provide greater commercial value to the business, as well as protect our planet. And that certainly should not be a second thought.
An online affair
Another thing that should not be dismissed is the prominence of online retail. Unarguably, global ecommerce sales figures are on the rise, and the COVID-19 pandemic and its related disruption have only accelerated the digital-first shift.
Although not the most obvious matter, packaging has a huge role to play in ensuring products can be shipped to customers all over the world, safely and efficiently. Before a product even reaches a customer, it has likely been packed and passed around in many different ways, and by the time it does become theirs, these various packaging elements must have done their job well and enabled it to arrive on time and in one piece. If it does not, it is likely customers will have already developed unfavourable perceptions of the brand, and no matter how much they had desired the product, their experience will have been tainted and the feeling of ick will prevail.
While this is a test for the functionality of a brand’s packaging, the online route via which it has arrived at a customer’s door means brands need to think far beyond this in the digital age. As mentioned previously, in these instances, the package is often the first physical touchpoint a customer has with a brand, and as well as meeting their expectations, they also need to be impressed by what they see in order to really fall in love with their purchase.
The whole experience of receiving and opening an order needs to be just that – an experience. And while quality and functionality have some part to play in this, the real love story is created through offering customers greater value, whether that be with additional uses, higher quality materials, or personalised interactions, for example.
That last point is where there is a real sweet spot, particularly for ecommerce sales. The physical distance between customers and an online seller can drive great disconnect and have detrimental impacts on engagement. Therefore, by reinforcing the online sales journey by personalising packaging elements, this gap can be narrowed.
Personalisation in this way can be anything from tailored message cards, through to smart QR codes that take customers straight to the brand’s social media channels, for example. But whatever method is chosen, the experience must be straightforward, interactive and feel unique and relevant to each individual customer. This will allow them to get a real sense of the brand, what it stands for and exactly why they should love its products.
As it would seem, when it comes to packaging, the age-old saying isn’t true... while a package’s contents are important, as ultimately, that is what the customer has paid for, it’s what’s outside that counts.
Read MoreManufacturing Technology
ROBERT LOCKYER | January 25, 2021
These days, smart can be added to the front of just about everything. And unsurprisingly, packaging is no different.?
Being influenced by digital transformation, smart packaging is a way for brands to connect their online and offline offerings. And as?ecommerce sales continue to rise, Robert Lockyer, CEO and founder of Delta Global, a packaging solutions provider for luxury retailers such as Coach and Tom Ford,?believes the smart trend in packaging will too.
In this piece, Robert shares his predictions on how?the?new era of smart packaging and?consequently, products,?will?connect,?improve?and transform industries?and?shape new?consumer expectations.
Smart packaging refers to a container or outer shell of a product that has extended functions. Now, the concept is nothing new as these functions are?often the reason?specific?materials are chosen for use in?the?packaging?of?certain products.
For instance, in the food market,?it’s?common to find fresh produce wrapped in film with ethylene absorbers in order to lengthen shelf life. Or, for bottles to be fitted with oxygen absorbing caps to keep drinks fresher for longer.
But typically, in other FMCG markets, packaging has largely remained disconnected from?the product it is containing. Packaging is merely seen as a means for transportation or a protective outer layer.
However, we are?seeing?a shift?in perception. Increasingly, brands are investing in the smart functions of their packaging?in order to?add value to their products. And consumers are beginning to expect such things from brands as a result.
Consumer benefits of smart packaging
As the trend prevails, there are?a number of?reasons?why?brands?should consider?introducing smart packaging to their product offering. The most significant of these being the ability to improve the overall customer experience of shopping from your brand and encouraging greater customer engagement.
Although in?traditional?retail?customers are presented with various?physical touchpoints before making a purchasing decision, ecommerce is different. Unless a customer has visited a store first, which is unlikely at present due to COVID-19 restrictions, the package is often the first physical point of contact a customer has with a brand.
Therefore, from the moment the package is delivered, before it is even opened, it needs to make an impression on your customer. An impression that reflects your brand and the intended customer experience.?This way, consumers will already have positive perceptions of your business, encouraging a better reception of your products, greater overall?engagement?and a higher likelihood of a repeat purchase in order to go through the whole experience again.
And smart packaging is a way for brands to do exactly that. Packages can offer customers additional benefits and an improved customer experience by integrating within them various technologies and features.
Face value features may include?illuminations, sounds, and aromas, enticing customers by appealing to their sensory needs. But other smart technology integration can be much less obvious, yet equally as advantageous.
For instance, through use of connectivity and augmentation features, whether that be scannable QR codes,?sensors?or microchips,?this?can be used to improve communication with customers and the functionality and use of the product.
By scanning a QR?placed on the outside of a box or bag with a smartphone?for example, customers can be provided with more information on the product inside, including details of ingredients,?origins?and production.?QR’s can?also provide?other marketing content such as competitions, product recommendations?through digital discovery?channels?and the?offering of?virtual brand experiences.
Or, if the package itself is not “smart” in function, perhaps brands can look at using customer data and insights to inform designs and even tailor the outer materials to the needs of individual customers or groups, making them smart in design instead.
Either way, smart packaging is becoming a way for brands to differentiate themselves from competitors?by improving customer interactions and supplementing their product offering with additional features and benefits and overall, creating a more favourable customer experience.
Commercial value of smart packaging
However,?smart packaging?isn’t?just about giving your customers more. Rather, there are many benefits for the business,?too.
Ultimately,?there are advantages for?connectivity and transparency in the supply chain?as well as on the customer facing front. And of course, this is exactly what is offered with smart packaging.
Through the inclusion of chips and systems, such as radio frequency identification (RFID)?which identify packages wirelessly, tedious processes involved with scanning at various logistic points can be removed, making the entire process from order to delivery much more efficient.
Naturally, this would reduce?administrative tasks as well as costs for the business due to a much more streamlined chain.
For more sensitive items, particularly in food or even in the health and beauty industry, temperature can also be both managed and monitored through smart packaging. Readings can then easily be displayed on packages, giving both the brand and customer assurance that the items inside have not been breached and remain?compliant and safe to use.
Consequently, smart packaging is on track to transform industries by offering both brands and consumers new ways to deliver and use products.?Although barriers do exist at present, namely the costs related to manufacturing, it will be interesting to see how more and more brands begin to innovate and integrate smart technologies to more than just their products.
Read MoreManufacturing Technology
ROBERT LOCKYER | January 19, 2021
These days, smart can be added to the front of just about everything. And unsurprisingly, packaging is no different.
Being influenced by digital transformation, smart packaging is a way for brands to connect their online and offline offerings. And as ecommerce sales continue to rise, Robert Lockyer, CEO and founder of Delta Global, a packaging solutions provider for luxury retailers such as Coach and Tom Ford, believes the smart trend in packaging will too.
In this piece, Robert shares his predictions on how the new era of smart packaging and consequently, products, will connect, improve and transform industries and shape new consumer expectations.
Smart packaging refers to a container or outer shell of a product that has extended functions. Now, the concept is nothing new as these functions are often the reason specific materials are chosen for use in the packaging of certain products.
For instance, in the food market, it’s common to find fresh produce wrapped in film with ethylene absorbers in order to lengthen shelf life. Or, for bottles to be fitted with oxygen absorbing caps to keep drinks fresher for longer.
But typically, in other FMCG markets, packaging has largely remained disconnected from the product it is containing. Packaging is merely seen as a means for transportation or a protective outer layer.
However, we are seeing a shift in perception. Increasingly, brands are investing in the smart functions of their packaging in order to add value to their products. And consumers are beginning to expect such things from brands as a result.
Consumer benefits of smart packaging
As the trend prevails, there are a number of reasons why brands should consider introducing smart packaging to their product offering. The most significant of these being the ability to improve the overall customer experience of shopping from your brand and encouraging greater customer engagement.
Although in traditional retail customers are presented with various physical touchpoints before making a purchasing decision, ecommerce is different. Unless a customer has visited a store first, which is unlikely at present due to COVID-19 restrictions, the package is often the first physical point of contact a customer has with a brand.
Therefore, from the moment the package is delivered, before it is even opened, it needs to make an impression on your customer. An impression that reflects your brand and the intended customer experience. This way, consumers will already have positive perceptions of your business, encouraging a better reception of your products, greater overall engagement and a higher likelihood of a repeat purchase in order to go through the whole experience again.
And smart packaging is a way for brands to do exactly that. Packages can offer customers additional benefits and an improved customer experience by integrating within them various technologies and features.
Face value features may include illuminations, sounds, and aromas, enticing customers by appealing to their sensory needs. But other smart technology integration can be much less obvious, yet equally as advantageous.
For instance, through use of connectivity and augmentation features, whether that be scannable QR codes, sensors or microchips, this can be used to improve communication with customers and the functionality and use of the product.
By scanning a QR placed on the outside of a box or bag with a smartphone for example, customers can be provided with more information on the product inside, including details of ingredients, origins and production. QR’s can also provide other marketing content such as competitions, product recommendations through digital discovery channels and the offering of virtual brand experiences.
Or, if the package itself is not “smart” in function, perhaps brands can look at using customer data and insights to inform designs and even tailor the outer materials to the needs of individual customers or groups, making them smart in design instead.
Either way, smart packaging is becoming a way for brands to differentiate themselves from competitors by improving customer interactions and supplementing their product offering with additional features and benefits and overall, creating a more favourable customer experience.
Commercial value of smart packaging
However, smart packaging isn’t just about giving your customers more. Rather, there are many benefits for the business, too.
Ultimately, there are advantages for connectivity and transparency in the supply chain as well as on the customer facing front. And of course, this is exactly what is offered with smart packaging.
Through the inclusion of chips and systems, such as radio frequency identification (RFID) which identify packages wirelessly, tedious processes involved with scanning at various logistic points can be removed, making the entire process from order to delivery much more efficient.
Naturally, this would reduce administrative tasks as well as costs for the business due to a much more streamlined chain.
For more sensitive items, particularly in food or even in the health and beauty industry, temperature can also be both managed and monitored through smart packaging. Readings can then easily be displayed on packages, giving both the brand and customer assurance that the items inside have not been breached and remain compliant and safe to use.
Consequently, smart packaging is on track to transform industries by offering both brands and consumers new ways to deliver and use products. Although barriers do exist at present, namely the costs related to manufacturing, it will be interesting to see how more and more brands begin to innovate and integrate smart technologies to more than just their products.
Read More