An Ipsos survey revealed that 67% of American consumers take packaging materials into account when making purchasing decisions, with 72% being influenced by packaging design. This consumer sentiment is further reinforced by the rising popularity of smart packaging. Smart packaging goes beyond conventional packaging by enhancing its functionality, providing more than just product protection and branding.
Also known as connected, active, or intelligent packaging, smart packaging transforms packaging into a tool that facilitates information exchange between consumers, products, and manufacturers. By utilizing barcodes, QR codes, NFC tags, RFID tags, IoT sensors, and other digital elements, smart packaging engages consumers, establishes authenticity, confirms quality, and tracks a product’s journey.
So how does smart packaging impact consumer behavior? Let’s explore:
- Branding: First impressions are crucial, especially in a digital world where e-commerce is surpassing physical store sales. Your product packaging is often the first and only physical contact a customer has with your business. Smart packaging allows you to make a positive impression from the start. It can be the key to turning a first-time buyer into a repeat customer. Even if your product is superior to the competition, negative sentiment from poor packaging can linger and overshadow its superior features.
- Marketing: Social media is now a ubiquitous part of our lives. Billions of photos and videos are shared daily on platforms like Facebook, Instagram, TikTok, Twitter, Snapchat, WhatsApp, and YouTube. Regular people sharing their everyday experiences hold significant influence within their social circles. When your product’s packaging is appealing, exceptional, and memorable, regular users are more likely to share photos of it. This can generate new leads and conversions for your business.
- Authenticity and traceability: Counterfeit products are a major concern in many industries. If your brand or product is successful and appeals to a wide audience, there will be attempts to create fake versions. Counterfeits can be so convincing that the average buyer struggles to differentiate them from genuine products. Unchecked counterfeits can damage your reputation due to their lower quality. Smart packaging provides each shipment with a unique identity, helping to combat counterfeiting and prevent grey market diversion. Offering the ability to trace a product’s journey through the supply chain, from manufacturing to delivery, via a website or mobile app can also enhance authenticity.
- Personalization: Two customers may purchase the same product but have different intended uses. Smart packaging allows sellers to associate specific information with each package. For example, condition controls can be aligned with the fulfillment route dynamics and final destination. In the event of a product recall, both the seller and buyer can quickly determine whether a particular delivery is affected by using the unique product information.
- Product information and production transparency: Knowing that a product meets your needs doesn’t mean you understand how to extract maximum value from it. While certain information may be available on the product’s official website, having access to this data once the product is in the buyer’s hands is beneficial. Smart packaging provides digital access to information through tools like QR codes. This information can go beyond product functionality and FAQs, offering insights into production processes and environmental sustainability for eco-conscious consumers.
- Quality assurance: Smart packaging can incorporate sensors that monitor a product’s integrity from within. This helps to confirm that the product remains in optimal condition as it goes through different stages of the e-commerce fulfillment process. For example, packaging that changes color when exposed to certain atmospheric stimuli can indicate potential product quality issues. In the case of food items, smart packaging can also provide a tool for confirming the true expiration date if the labeled date is incorrect.
Wrapping up:
No matter what industry your product belongs to, fierce competition for market share is a given. While every business strives to present a unique selling proposition, the technical capabilities of your product may not differ significantly from your competitors’. Though not a silver bullet, smart packaging can make a substantial difference. It can boost sales by strengthening brand identity, improving customer interaction, enabling customization, and incorporating traceability. The smart packaging market is projected to reach $31.94 billion by 2027.
About the author:
Geoff Whiting is the senior writer for Red Stag Fulfillment, an eCommerce 3PL specializing in the support of heavy, bulky, and high-value products.
