Luxury Packaging
Using luxury packaging to adapt to new shopping habits
The evidence shows that our online lockdown shopping habits are here to stay. AA Labels business development manager, Ian Axelsen, looks at how brands can utilise luxury packaging to better reach digital audiences.
E
commerce sales now account for 27.9% of total retail sales in the UK, according to the Office for National Statistics, up from 21.8% in 2019. Further research from Visa underlines how the pandemic has accelerated our shift to ecommerce; 41% of respondents admitted shopping online more frequently during lockdown and 74% plan to continue after the pandemic. Good quality products are essential, but how they are presented plays a key role in how visible they become on digital platforms, particularly social media.
Designing product labels that leap off the digital shelf is very different to creating products for in store shopping, as customer interaction is limited.
How a product looks on screen need to be incorporated into the design process and this is where mass market brands are increasingly adopting luxury packaging techniques to appeal to digital audiences, such as beauty brands. These are the most agile and adaptable brands that have succeeded during the accelerated shift to ecommerce, which other industries can incorporate to grow their online presence. Branding is as important as the product, with the biggest beauty brands demonstrating their prestige via luxury packaging which conveys brand messaging and storytelling. The use of label embellishments in beauty branding has increased as the technology has become more affordable and more sophisticated. The most successful beauty brands share many similarities across their branding and product labelling, such as embossing, metallic hot foil printing and UV spot printing detailing, which can easily be conveyed online and adds to their coveted status.
Coca Cola led the way in personalised labelling
in 2013 with its ‘Share a Coke’ campaign. Replacing its iconic logo with popular names helped sell 150 million bottles, underlining the untapped potential of making packaging part of the shopping experience.
In 2021, the UK personalised gift market is expected to reach £1bn, according to a study from Roland DG. Research from Deloitte
consumer review Made-to-Order: The Rise of Mass Personalisation also revealed valuable insight; consumers will pay more for personalisation, with one in five who expressed an interest in personalised products or services willing to pay a 20% premium.
These figures highlights a major area of growth available to both brands and labelling and packaging suppliers.
Beauty brands are the leaders in utilising user generated content (UGC) in the form of product reviews. Attractive, photogenic packaging plays a significant role in building a digital audience because it makes products more sharable. Potential buyers also trust other users; research from 3dcart highlights the power of UGC, with 70% of shoppers considering UGC reviews or ratings before making a purchasing decision. Additional analysis by SocialToaster underlines the impact, with social media posts receiving 28% more engagement than standard posts from brands.
Social media usage shows no signs of slowing down; worldwide users of TikTok increased by 85.3 percent to approximately 100 million in 2020, driven partly by global lockdowns, while in the
UK, Ofcom has noted that 28% of UK adults now upload video content to TikTok on a weekly basis. It can be a powerful tool for reaching new audiences and unboxing content is particularly potent. Brands should think about appealing to digital audiences through the use of tactile packaging, where effects that add texture to labels or boxes can be used to deliver real, on screen impact.
Embossing and debossing provide 3D detailing that can be conveyed digitally, alongside screen printing, which also adds texture to printed finishes.
Increasing audience engagement can help businesses grow their customer base, both online and offline. QR codes can be used to communicate with customers via product labels, as they can be scanned to present additional information in a range of formats, including images, web pages and videos.
Incorporating QR codes into label designs can encourage consumer engagement by offering incentives for sharing UGC or upselling via discount codes and personalised offers.
Xwww.aalabels.com
36
November 2021
www.convertermag.com
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