3 Benefits Digital Packaging Can Deliver Your Brand
Digitization has gained significant momentum with the global market looking to evolve and adapt to the new normal due to the Covid-19 pandemic and brands are looking for digital tools and solutions to drive new customer experiences. Smart or Intelligent packaging is becoming one such tool and solution that is offering brands the ability to connect with customers in ways that it could have never imagined. As per Deloitte’s recent study titled “Capturing value from smart packaging revolution”, packaging was a USD 424 billion industry in 2016 and has only seen growth since. The Smart packaging industry was predicted to touch USD 40 billion by the end of 2020.
It is safe to say that companies which were simply thinking about smart packaging have taken strategic steps towards implementing the technology and have benefitted in the following ways:-
Anti-counterfeit Solution and Brand Protection
When a sale of a product exceeds production, brands know that counterfeit products have been eating away their sales and affecting their brand image. However, to obtain accurate statistics or locate counterfeiting was nearly impossible, mainly because it is a clandestine activity.
Digital packaging has come to the rescue for brands. Now, packaging can be used as an anti counterfeit solution where unique digital IDs are embedded or printed on the product. These ID’s are application-independent and can be scanned by any smartphone after a purchase is made.
The scan will allow the user to know if the purchase they have made is authentic and a recognized purchase. If the consumer is unable to scan or does not recognize the purchase, he can report this to the retailer or brand directly. This structure is strengthened by adding layers of details such as hiding the dynamic QR codes by means of invisible printing, embedded image, digital watermarks, or scratch surface. It also helps in building a data bank for brands to show hotspots of counterfeit reports and establishing trust amongst consumers regarding the brand.
Such anti-counterfeit packaging solutions are estimated to witness high demand due to the increasing concerns about the dilution of brand identity due to rising counterfeiting.
Track and Trace to Gain Visibility in the Supply Chain
Supply chain digitization has been altering traditional supply chains to bring speed, flexibility, and accuracy and create a more efficient supply chain. Companies with huge volumes and fast pace have been quick to adopt these digital advancements.
Track and trace allow manufacturing companies to track any unit from the stage of raw material across its journey to the point of sale. Track and trace also allow easy serialization, aggregation, visibility in the supply chain, regulates infiltration, manage returns, and increase efficiency in warehouse operations. This recorded journey of farm to fork can also be made available to the end consumer when the consumer scans the smart packaging.
This internet of things (IoT) product of track and trace has made it possible to build a digital roadmap in the supply chain. Covid-19 pandemic became one such example where companies with traditional supply chains could not predict the market demand and adjust their supply chain to accommodate the rapid market changes. On the other hand, companies that had digitized or initiated the supply chain digitization process gained quick access to real-time data which helped them make quick decisions and ensure their products were available in the markets that required them.
The global track and trace market is expected to grow over 18.5% CAGR during 2020-2027 as per “Track And Trace Solutions Market Size, Share & Trends Analysis Report By Product, By Technology (Barcodes, RFID), By Application (Serialization, Aggregation), By End Use, And Segment Forecasts, 2020 – 2027”
Customer Engagement
Brands have been trying to communicate directly with their end consumers and target customers on their unique persona since the beginning of marketing and advertising. The options that brands usually opt for including traditional methods like print, media, and social media where typically 7-8% of revenue is spent and this may or may not bring about desired results. Hence, it is vitally important for brands to explore new ways to reach their target consumer and what better way to do so than the brand’s packaging itself.
A recent development in Smart packaging now allows brands to connect with consumers directly at the point of sale opening up possibilities to not only increase sales but also to know the consumer better and customize sales strategies.
Social media advertising had allowed online to offline targeting for brands. Digital packaging has now opened doors for offline to online targeting. This means if a potential consumer scans a product, the brand will be able to retarget him or her with customized offers online to close a sale.
Marketing campaigns via Intelligent Packaging can also be based on location, time of day, date of the week, or consumer persona. For example, companies can now run loyalty programs or select contest winners based on their actual consumption or surprise a first-time consumer with prizes instead of randomly giving a gift without gaining knowledge of the potential consumer.
Smart packaging connects products and brands with exciting digital experiences, making packaging more personal and communicative. This is the next step towards improved marketing and customer engagement that all brands will be turning towards.
It is impossible to cover the array of possibilities that are opening up with smart packaging. We have listed a few of the key benefits to help you find the best application for your brand.
Sepio Products private limited is a company that brings digital packaging solutions for brands under one solution and has established themselves as one of the most reputed suppliers of such solutions to FMCG brands and IRCTC for their food and beverages sold across India. You can simply mail them at [email protected] and one of their experts will reach out to help you start your smart packaging journey.