Understanding the dynamics of packaging and all crucial considerations when it comes to ecommerce, from both the producer and consumer point of view.
Understanding the dynamics of packaging and all crucial considerations when it comes to ecommerce, from both the producer and consumer point of view.
The rise of consumption definitely has seen a peak in post covid time. People have been buying products at the click of a fingertip. Owing to the rising population, changing lifestyles, increasing income levels, and growing economy, the demand for e-commerce packaging is growing in India. The country is now focusing more on sustainable solutions, which is increasingly becoming a business imperative. The demand and requirement for eco-friendly and sustainable packaging is steadily rising due to increasing awareness levels The Indian e-commerce packaging market was valued at USD 13.8 million in 2020 and is steadily rising while expected to reach USD 1109.26 million by 2026, registering a CAGR of 13.8% between 2021 and 2026.
The gradual shift from retail to eCommerce is profoundly affecting the packaging industry because the packaging has traditionally been oriented towards providing attractive images that stand out on supermarket shelves. However, in E-commerce, the emphasis is now on protecting the product and then only selling it so that the product packaging can withstand the rigors of the delivery process and transportation.
On the other hand, higher volumes of online sales require higher speeds of printing and packaging so as not to slow up delivery times. The formation time of packaging & ready for transit is more & more paid attention to because it has a direct impact on overall production efficiency.
A time when the product packaging was an output of functional benefits, today the ecommerce also has to cater to emotional benefits. With most of the brands launching online first, the last mile delivery experience is a non-negotiable for most of the marketers.
“COVID-19 has redefined sustainability,” says Kaushal Shah, founder and chief executive of sustainable papers specialist envoPAP. Fundamentally, though, the scenario remains simple. “Consumers’ current top priorities are staying healthy and spending as little as possible. The real challenge is to deliver a truly sustainable packaging product that ticks both boxes,” adds Shah.
Post pandemic, with sustainability drives and continuous innovations, e-commerce packaging provides new solutions to long-standing problems retailers face, including wasted volume, damaged products, and ease of shipment. Customers have begun valuing the resources around, and the awareness has changed the audience preferences. People now prefer packaging that does not waste material and avails optimal space utilization. A term ‘purposeful’ packaging ‘purpose-driven’ packaging is gaining momentum. Less is more, and how can you make minimal environmental impact by smaller value addition’s that can lead to reuse of the packaging has become – the ‘must have’ aspect of any ecommerce marketer.
Brands need to teach a shared belief system with the customers, such as dedication to environmentally friendly packaging that earns customers’ trust. And this is where packaging design companies can play a pivotal role. They have the expertise to adapt your brand to the ongoing demand without deviating from the existing brand values or culture.
There are stakes at each level. Every brand have their own customer belief. A quick segmentation of types of players in the ecommerce market are:
And, all these ecommerce players have a strong network of shipping & logistics companies that aids them in real time movement of goods. In India, there are about 20-30 shipping & logistics aggregator’s who help these players to bring in efficiency.
With An eCommerce aggregator (a website or application that aggregates or organizes multiple offers from competing companies and sells them to consumers in one place) the entire equation of packaging changes, because an aggregator wants the customer to be platform loyal & hence would do what is essential for their last mile experience.
Eg. Trell.
How can we be effective in our packaging story –
The future will see an even greater demand for sustainable packaging supplies than we already do. We are now beginning to see the most prominent climate change protests ever in the history of the world, with large demonstrations throughout various countries globally. As the millennial and "Z" generations continue expanding their horizons into the workforce and become more excellent consumers, sustainability, recycling, and environmental issues will continue to take center stage. The same will show in adaptations in the packaging industry.
To know more, please get in touch with a packaging company that helps your brand adapt packaging in a way that delights your customers. Get in touch with us at https://desworks.bizongo.com/portfolio.
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