A taste of grandeur

2 December 2016



A taste of grandeur


 

A taste of grandeur

Even in uncertain economic conditions, there will always be those with the means and desire to spend money on luxury. Dave Howell investigates the luxury brands that have sustained innovation across their products in order to produce packaging that moves the industry forward and speaks directly to consumers.

The luxury goods market was worth £225 billion in 2015, according to a study carried out by Bain & Company. And, with emerging markets continuing to expand – particularly in China and India – 2016 looks to have been another bumper year for brands across luxury markets. Transparency Market Research places growth in this sector at 3.4% by 2020.

Although growth continues, brands have had to re-evaluate their offerings over the past two years as customer demand has shifted. Research from consultant BCG revealed that, in some sectors, consumers reported that certain luxury brands seemed to have lost their caché in the marketplace. And, in a changing marketplace, brands will have to innovate to remain relevant to their customers. The development of innovative packaging solutions is key to ensuring that luxury brands speak to their advocates and attract new clients.

A spokesperson for Pozzoli SpA says, “Our experience in the luxury market is showing us that brands are investing more money into packaging as an overall percentage of their cost of goods, as it reinforces to the consumer the luxury nature of the product and the price they are paying for that product. Brand-owners across all market sectors are now realising the ‘theatre’ that can be created by packaging luxury goods in a high-end, creative and luxurious way to the consumer, which is resulting in the packaging costing more as a proportion of the overall product cost.”

“Consumers are more discerning nowadays, and want products that connect with them and take them on a sense of discovery,” says Kenny Sum, a design director heading up the graphics team at Kinnersley Kent Design. “The narrative about the product is often more powerful than the product itself; customers buy into what the brand stands for, as it is a reflection of them.

“This is driving new techniques in packaging and greater focus on sustainability and keepsakes. Customers increasingly want packaging that they don’t just throw away. Luxury packaging that can be reused not only has a great functional quality, but also serves as a lasting reminder of the brand.”

Luxury goods and packaging seem to exist within their own space; the economic climate has little impact on the sector as a whole. This frees brands up to develop their products within a market that sees few limitations. Consumers expect the packaging of every luxury brand to match the goods they are buying, and it’s up to brand-owners and their design partners to understand their customers and show them something different.

 

Smart packaging

One of the pressing issues for all luxury brands is counterfeiting. Many systems have been developed to combat the problem but, as markets expand, brands will see a new impetus to develop even more robust anti-counterfeiting systems. In China, for instance, 600 million people now have access to the internet, resulting in a huge and growing market for fake goods across all sectors. With Taobao (Alibaba’s version of eBay) selling to 80% of the e-commerce market, brand protection is of paramount importance.

Technology is playing a pivotal role in combating counterfeiters. A good example of this comes from Levensohn Vineyards, which produces a premium Napa Valley Cabernet Sauvignon wine. Using digital fingerprinting technology from Authentic Vision, anyone in the supply chain and end consumers can scan the seal on any bottle to check it is genuine via a free app available on all smartphones.

Pascal Levensohn, owner of Levensohn Vineyards, says, “Counterfeiters are becoming increasingly sophisticated. They pose a huge threat to producers of luxury goods such as rare and special wines. Authentic Vision has delivered a superb, cutting-edge technology solution, and we are delighted to be working with them.”

Various technologies that enhance the packaging brands can access for their products were shown at the last Active & Intelligent Packaging Industry Association (AIPIA) Congress. One of the most innovative demonstrations was a partnership between Ardagh Group and watermark specialist FiliGrade. The partners’ unique watermarks are ideal for metal packaging as the product doesn’t contaminate the recycling stream, unlike other tagging technologies that use printed electronics, such as NFC or RFID chips.

In the BRP 2016 Digital Commerce Survey, it was revealed that the smartphone is clearly gaining in importance as a marketing tool, as luxury brands seek to build closer connections with consumers, and protect the integrity and value of their brands: “The expansion of mobile capabilities represents a huge customer-engagement opportunity for retailers. Nearly half of the retailers are focused on improving the mobile shopping experience as a top priority. While the main goal of mobile technology from a retailer’s standpoint may be to drive in-store sales, it is also the conduit that bridges the convergence of the digital and in-store experiences. A customer’s smartphone is the key to customer identification and personalisation of the store shopping experience.”

Brands will increasingly use the technology at their customers’ fingertips to not only ensure authenticity is assured with their products, but also enhance the experiences they can deliver. Packaging is no longer a passive enclosure, but a dynamic space that brands can experiment with.

“Brands that are now in a truly premium space have to compete with the expectations of a well-informed consumer,” adds Evelio Mattos, creative director, Design Packaging. “Consumers today desire experience. Experiential packaging has quickly evolved into the white space that brands are fighting to own, from haptic and tactile experiences to auditory and multisensory packaging that whisks the consumer from their lives into a branded lifestyle.”

 

Brand enhancements

The packaging of luxury products has to perform a number of tasks – first and foremost, attracting the attention of a prospective buyer. Here, brands and converting partners have been innovating for decades to move this essential component of brand communication forward.

The introduction of new materials, such as Lumirror MR20 from Toray Plastics, is a good example of this innovation. The polyester metal-transfer film allows vacuum-deposited aluminium on the film surface to be transferred with adhesive to paper and paperboard for superior brightness. Paper and paperboard that is transfer-metallised with MR20 film exhibits excellent dead-fold properties, remains flat and smooth, does not delaminate or curl, and does not see the flaking off of the metal. It also enables source reduction and reduced shipping costs.  Additionally, film-free transfer-metallised paper and board is brighter and more vivid than those that incorporate metallised film. And, for brands, the fact that the metalised film can be returned to Toray for recycling is a huge bonus, as luxury brand are increasingly coming under pressure to do more with their recycling initiatives.

Even more potential for attention-grabbing packaging is now possible with advanced digital printing technology from Domino. ‘Texture by Domino’ is the product of the company’s N610i digital UV inkjet label press. The ability to create visually striking textured labels offers many luxury brands across the sector a major addition to their packaging armoury.

James Cropper has been a major packaging supplier of high-profile brands including Selfridges, Burberry and Loewe. Its new luxury paper range, Dolcelicious, is suitable for contact with dry, moist and fatty foodstuff, and is designed to elevate the packaging experience for premium food brands. The range is available in 11 eye-catching colours, including Lemon Drizzle, Liquorice, Silver Spoon and Kiwi Fizz variations. The dyed-through paper guarantees a flawless finish, no matter how the paper is cut or folded, resulting in perfectly coloured edges, folds and creases.

A new entrant to the high-end confectionery market is The Amazing Chocolate Workshop. Founded in 2014, the company creates bespoke chocolate products that look like everyday objects. The company knew it needed a packaging solution that was as unique as its products, and so the packaging team from DS Smith worked with it to develop an imaginative packaging solution.

“When we were in the early stages of developing the business, we knew packaging would be one of the most important considerations,” says co-founder Edward Starr. “Not only because the chocolate is so fragile, but also because it was vital that our customers could view the product through the packaging.”

The designs for the East India Company’s chocolate range, meanwhile, needed to fuse a number of elements, including the long history of the company, which seeks ‘remarkable connections’ with its customers. The designers used packaging that included old maps and etched illustrations to reinforce the idea that the chocolate isn’t simply made but, rather, crafted.

The luxury packaging sector is nothing if not diverse, having to cater for a wide range of high-end goods. While the market thrives, attitudes towards luxury brands are certainly shifting, especially with younger consumers that need more convincing about how much they’re paying for a product. The format, function and appearance of the packaging in use play a massive role in this conversation. Brands that want to remain relevant in their market sector need to constantly look for innovation in their packaging to attract and hold an increasingly discerning consumer.



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