Give retailers what they want
Mark Spaulding, Editor in Chief -- Converting Magazine, 12/1/2005
One of the more valuable things to come out of the recent Flexible Packaging Association Fall Executive Conference in Chicago wasn't necessarily all the statistics, percentages and dollar amounts reported by Strategic Analysis in its report, "The Impact Retailers Have on Packaging Decisions." Rather, it was the direct quotes from retailers and consumer goods companies (CGCs). These comments seem to carry more weight for package printers and converters—if they can be relied upon for the long-term.
For example, in terms of innovation, you and CGC buyer will continue to be primarily responsible. "We expect innovation from our suppliers in the way of both products and packaging. We have the last call on what we will accept, however, we leave the actual packaging development to them," says a structural packaging manager for a major club store. "The consumer goods companies dictate the packaging technologies used. Only in rare occasions do we ask for special packaging to be designed," adds a senior buyer for a mass merchandiser. Then, there's this: "The club stores and mass merchandisers tell us what they want in packaging (overall), but they don't really know what they want (specifically). They expect us to come up with the innovations," says a major CGC packaging purchaser.
On the other hand, print graphics, a package's shelf impact and a product's secondary packaging are all very important to retailers. "There are over 2,000 SKUs on our shelves. High-impact graphics and packaging impact are hands down the most important thing for selling products in general," says a pharmacy-chain purchasing manager. "We're buying more products with flexible-packaging overwrap because it's neater and allows graphics to be seen," chimes in a snack-food senior buyer. "The upscale, premium look of shrink labels is good for shelf pop and will grow. It seems to be a good surface for razor-sharp graphics and attractive colors," says a drugstore-chain merchandising manager. And this: "Shrink film allows us to put together club packs, which have been tremendously successful and is our predominate packaging strategy," says a club-store vice president of merchandising.
Finally, despite all the hype (and successful real-world development) of RFID, some retailers seem to be taking a wait-and-see attitude. Says one mass-merchandiser, "We're waiting to see how the Wal-Mart program turns out. If anyone can do it, they can." And this from a logistics director: "At this point, we're watching the Wal-Mart program. We don't yet feel the cost involved is worth the investment (in RFID)."

















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