CLEAR SAILING THROUGH THE FINANCIAL TSUNAMI
HIP LIK PACKAGING
Much has been said about how billions of consumers are tightening their belts as a result of the financial tsunami. People everywhere are altering their lifestyles. And their buying preferences are consequently changing in many ways. I had a chance to see how these changes were playing out during a recent visit to a well-known discounter during a recent US. visit to a Chicago suburb
I was initially surprised by the bustle of shoppers, which suggested that individuals may be shifting to shopping to high-volume shopping outlets such as retail discounters and supermarkets. I also observed a couple who were interested in purchasing a small stuffed animal, probably for play in a toddler’s crib or playpen. There was a variety of species available, some were in paper box packaging, others in soft plastic. What captured their attention was a cuddly stuffed bear attractively packaged in a clear gift PET plastic box where the handle colourfully displayed the printed brand and trade name, providing an unobstructed view of the animal. The brand looked to be a house label. Printed on the box was a brief but clear description of the safety requirements that the product complied with as well as complementary attractive decorations centring attention on the bear.
Then our couple scanned the area for similar stuffed animals and picked up some others, including some renowned brands, for a closer look. After several minutes of comparison and discussion, they opted for the bear in the plastic box.
Changed consumer behaviour
From their behaviour, I had a chance to witness a few other trends in action. For starters, their comparison and discussion suggests impulsive purchases are apparently being replaced by the trend towards selective buying. In fact Boston Consulting Group has found that half of Americans say they will spend more time in stores to find the best possible prices. In the UK Mintel has found 29 percent of British shoppers now spend more time in supermarkets to compare prices with 31 percent of shoppers now using value supermarkets more frequently than before. Department stores and luxury stores are starting to feel the pinch caused by this shift.
Despite the apparent trend toward trading down, from watching that couple one concludes that quality continues to be important. The selected toy was priced less than some other comparable products, including two within a paper box package with a photo illustration of the product. The toy they selected appeared to have the hallmarks of a well-made and designed quality product, which were plainly visible, thanks to the clear plastic container and the crisp printing citing safety compliance information. Our couple did not select an inferior product, which means that consumers still expect quality, hoping they can get the same value at prices as low as possible.
The couple, like more and more of their counterparts elsewhere, were attracted to house brands, which are proliferating in efforts to boost sales. According to a survey by Nielsen 72 percent of consumers believe private labels are good alternatives to national brands, and 63 percent consider the quality of private labels is as good as national brands.
Helping consumers to make a clear choice
In the high-volume discounters, shoppers such as our couple are faced with choosing from a bewildering number of products on a cluttered retail shelf. If producers of consumer goods want to increase sales to more rational consumers, like our couple, they need to devote more effort to product design and development to offer the quality consumers demand in this changed market. Like the producer of the stuffed bear, they must convince consumers that they do so.
A clear view of the product provided by a well-designed plastic package can go a long way to demonstrate product quality to discerning consumers and inspiring consumer confidence, as it did with our couple.
For quality clear packaging, it is paramount to use Grade A materials. Polyethylene terephthalate (PET), packaging the stuffed animal selected is increasingly popular due to its strength including higher barrier characteristics and superior recycling capabilities while yielding more film per pound of resin than PVC. PET’s design flexibility and choice of decoration options mean the material can create a striking visual identity for a new brand as well as a more established name. Equally important, PET can retain this image as a family range across a number of different sizes.
Clear plastic packaging transparently showcasing product quality is a worthwhile investment with a return of stronger sales revenue that can help product marketers overcome the challenge presented by the financial tsunami.
Sep, 2009
