Luxury is more than just a ‘look’

8 May 2014



In today’s luxury goods market, brand managers, packaging designers and the packaging manufacturers and suppliers have to strike a delicate balance between fulfilling the need to convey the luxurious look and feel the customer expects with the product, while also meeting the growing requirements for sustainability - as well as guarding against the counterfeiters.


Sustainability and changing customer perceptions are among factors now influencing luxury packaging designers and producers. There is a move away from the more decorative, overtly "rich " type of packaging in luxury - making way for more understated, functional and elegant packaging that has muted colours and better aesthetics, that customers will want to re use in their home.

This trend is tied into the idea of a unique product; so if there is a slight imperfection, it is something that actually adds to the concept of artisan, rather than a machine manufactured generic product.

Authenticity is a theme - merging materials and "being honest" with material selection. So if you have wood, it is combined with wood finish, matte paper, ply packaging, etc, so that the whole product maintains the materials message and provides a more honest total product. Well managed materials brought together can and will enhance the package.

Honesty - story telling
With the ease of access to information on the internet, consumers are much more informed and interested about their purchases; and in the luxury market provenance and honesty are incredibly important brand building and packaging tools. Where the product is from, how it was made, and how it was manufactured or processed sets it apart as a luxury item.

By answering these questions, customers can feel satisfied that they have bought more then just a brand, but that they own something that is special. If the hand bag is made on the same assembly line as a generic version, on the same machine or by the same person, and the difference is simply the name on the tag, this devalues the brand, and will cause customers to look elsewhere.

Absolut example
Anna Schreil, director PDR and R&D, at The Absolut Company, agrees: "We are seeing growth in premium, personalised products and the rise of craftsmanship. The challenge is to stay true to your brand ID, your values, and at the same time keep evolving and differentiate from competition in a relevant way. It's a complex task that doesn't have any simple solution. Given the artistic and creative personality of the Absolut brand, we are often using the bottle (or the bottle outline) as a canvas for various expressions - often together with collaborators."

She continues: "Our Unique and Originality products kept our premium products without sacrificing individuality, craftsmanship and artistic expression. The latest large scale examples of spectacular achievements are the Unique and Originality global editions, where we have brought individuality, craftsmanship and artistic expression to a completely new level.

"In the case of Unique, we produced four million individually designed bottles and in the case of Originality we infused the glass itself with a streak of colour, again in a quantity of several millions.

"Following decades of globalisation and standardisation, consumers are looking for new forms of authenticity and craftsmanship and products with a genuine background and history," Schreil maintains. "This led to Elyx, which is a single estate, handcrafted vodka produced with wheat harvested and distilled within a 15 mile radius in southern Sweden. The result is a product that has already been strongly endorsed by third parties, for example being named best vodka, double gold, at the recent San Francisco WSC."

She continues: "Another interesting trend is the evolution of hybrid products. Enhanced by the mixology movement, traditional category codes are getting blurred as brands from different categories are borrowing cues from each other. For example, in the US we launched one of our most innovative products, Absolut Tune, which is a sparkling fusion of Absolut Vodka and sauvignon blanc. We also launched Absolut Amber, which is Absolut rested in oak barrels.

Security
"Brand security is a constant challenge in the premium spirit sector," Schreil confirms. "We are continuously working to protect our products and prevent illegal copying and re-filling. This is done both through tamper-proof pack material (eg, a plastics seal over the top of the bottle, non-refillable closures, etc) and with special coding on the bottles.

"The digital field and 'the internet of things' is also a very interesting area of course," she adds. "The exciting thing here is not only to provide protection, but also to create clever and engaging solutions that add valuable content to our consumers, beyond just being directed to a company web page."

Sustainability
While consumers are becoming more environmentally aware, and continue to be better connected to the global market via social media, sustainability is growing as an area of focus within the luxury sector. Manufacturers are responding with a wide range of materials, and processes that are environmentally friendly and 'aware'.

While the FMCG industry has been under pressure to reduce the environmental impact of packaging, luxury brands are catching up. They are switching from plastics to paper, achieving sustainable packaging coalition status and addressing a growing trend towards "responsible luxury".

Anna Schreil again comments: "Eco-design is a highly interesting and relevant principle that has been guiding our operations and product development for a long time. Continuous improvement has, among other things, resulted in the world's most energy efficient distillery.

"We also have an agricultural collaboration with farmers and universities that goes back decades and focus on long term sustainability and minimising usage of pesticides.

"Working on packaging improvements is also an ongoing effort looking at the entire production and logistic chain from suppliers to production and storing, shipments, etc," she states.

"Keeping a close eye on legislation and directives around the world is an important part of the work. For instance, the Swedish retail monopoly is currently discussing the introduction of a fee for heavy bottles."

To achieve the 'feel' of luxury, the packaging that is employed in this sector tends to have multiple layers such as metallised films, metallised glass and paper, that provide the decorative effects a consumer can recognise as a prestige brand. One disadvantage of this multi-layered packaging approach, however, is that the materials used can be difficult to recycle.

Creating luxurious packaging that is sustainable, recyclable and communicates the brand's excellence is a difficult task.

Despite the various issues involved, in recent years there has been a move towards more sustainable practices in the luxury packaging market. International fashion brand Gucci, for example, launched 100% recyclable packaging with FSC (Forest Stewardship Council) Certified paper back in 2010.

However, do customers really care about sustainability when purchasing luxury packaging? Is this move towards sustainability for the luxury sector a genuine move or simply a passing fad?

According to research undertaken by Greenwise Business, 47% of the 200 branding and marketing professionals consulted felt that Gucci's initiative to cut down on excess packaging was a true reflection of the industry's environmental concerns and its future direction.

As Francois-Henri Pinault stated: "If we wait for consumers to insist upon sustainability as a condition for purchasing, nothing will happen. It is up to us to see to it that the environmental products become the new norm."

www.pernod-ricard.com



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