Your retail packaging might look great, but are you using the latest labeling technology for your merchandise? If you haven’t shifted over to using smart labels for your products on store shelves and that are being shipped, you’re missing out on the best technology available for simple and accurate product labeling.
Recent market reports show that smart labels is a growing market, with forecasts that revenue will increase from $4.6 billion to $22.7 billion by fourth quarter of 2026. Why are so many companies making the switch? Here’s what smart packaging does, and how it helps your company:
It’s no secret that food is increasing in popularity as a gift – look at companies like Omaha Steak and Edible Arrangements. According to a research survey from Packaged Facts, more Americans are choosing to buy their loved ones edible gifts for special occasions and holidays. The survey showed over half of the buyers spent $30 or more on each food gift. This high value market is increasing the need for sophisticated retail packaging for edible products.
The most popular edible gift, not surprisingly, is chocolates or candy, which 28% of recipients gifted in the past year. Other popular gifts included baked goods, hot beverages such as coffee, tea, and hot cocoa, and nuts or other salty snacks.
It’s no secret that many brick and mortar retailers have been struggling lately. Some examples include:
- Sears has had declining sales the past few quarters and now, in what the Wall Street Journal is calling a “bid for time,” the company has sold its Craftsman tool brand to Stanley Black & Decker for approximately $900 million.
- Macy’s sales and shares have continually dropped, and have thus led the retailer to make many employee cuts numbering near 10,000. It is expected that their locations will continue to close.
- Wet Seal filed for Chapter 11 bankruptcy again last week – the chain plans to close all stores since it was unable to find capital or a buyer in the past year.
When creating an e-commerce packaging program, one of the most important aspects is safety of your product. Packages should look attractive, but they also need to be sturdy enough to ensure that the product does not get damaged or destroyed, particularly if your company ships products in addition to doing in-store sales. You want to give the same experience to in-store shoppers as online shoppers.
Recently, Internet Retailer discussed challenges and solutions to packaging safety. They profiled a Dutch bike company, VanMoof, which created packaging that discovered an unusual and original idea to keep their bicycles safe. The company previously struggled with keeping bikes safe during shipping, having to sell bikes at a discount that got harmed in shipping. Cleverly, VanMoof decided to start shipping their bicycles in shipping boxes that displayed a flat screen TV, thinking the delivery person would treat it more carefully if he/she thought it was a TV. Damaged bike issues dropped dramatically after the switch.