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Monthly Archives: January 2016

Bucking the 'FOUR ELEMENTS' Trend

The design of packaging can now make or break a company's sales success.

Sales success is about first impressions and reflecting a brand's ethos in the way it wraps its products. The four key elements of packaging design used to be; it must be seen, it must be engaging, it must communicate a message, and it must sell.

We've seen a significant shift in attitude to packaging over the past couple of years. Mail order companies used to see packaging as nothing more than protection and opted for the lightest, most robust material that was functional and fast to pack outbound goods into.

However, now design enhancements like carry handles, twin glue lines and engaging branding that captures the attention of passers-by, as well as the shopper, has transformed the mailing bag from a practical item to a marketing tool.

Packaging designs are now also frequently including social media icons to encourage customers to engage with the brand online. We carried out a study that showed a clear link between how luxury items are packaged and repeat purchases. The study showed a number of halo effects with gift-wrapped purchases, including an increased propensity to repeat order (35%) and more likely to recommend to a friend (20%). 

As featured in Packaging Gazette 

February 2016

Returning to make a repeat order?

The Royal Mail's annual tracker study into the expectations and ambitions of UK SME e-retailers has revealed growing businesses confidence with 8 out of 10 SME e-retailers confident they will increase sales in 2016. The SME e-retailers recognised how a good returns process can drive sales and increase customer satisfaction.

- 49% believe a good returns process will make a consumer more likely to be satisfied with their service

- 45% believe having a good returns proves increase to likelihood to order in the first place

- 40% believe this increases the likelihood to become repeat customers

Returns are a real headache for almost all online retailers, with some analysts quoting a return rate of 30%. However, helping consumers to repackage goods can boost the customer experience as well as offering other business benefits:

  1. Make your packaging reusable: Adding a double glue strip to your mailing bag allows consumers to re-use the packaging to send their unwanted product back to you in the post. This improves the customer experience and reduces the need for additional packaging items
  2. Reduce damage caused by inadequate packing: Make sure your packaging can withstand the weather and the rough and tumble of the sorting office. Damaged packaging can lead to damaged goods and poor impressions; almost 95% of consumers claim poor quality or damaged packaging negatively impacts on their perception of a business.
  3. Recycle your returned packaging: While cardboard is widely perceived as a recyclable commodity, other types of packaging, including polythene are also easily recycled. In the UK there is a shortage of good quality polythene scrap leading to an increase in the price per tonne, this means recycling makes economic sense as well as fulfilling CSR aims and reducing landfill tax.

 *Royal Mail annual tracker survey and Direct Commerce Jan/Feb 16

It’s that time of year again – Packaging Waste Regulations

It's that time of year again

Does your company turnover more than £2million per year or handle 50tonnes or more of packaging material in a year? If so the time is almost here to submit your packaging weight data to the Environment Agency. 

**The UK generates 13 million tonnes of packaging waste every year** much of which can be reused or recycled. In 1997 the Government introduced packaging waste regulations for 'obligated' packaging producers, which aim to manage and reduce packaging waste in the UK.

In the UK more than 6,000 companies are classed as an 'obligated' packaging producer, it's easy to find out if that includes you just by answering yes to these two simple questions:

  • Did you handle* 50 tonnes or more of packaging material or packaging in the previous calendar year?
  • Do you have a turnover of more than £2 million per year (based on financial year's figures)?

*Handle means you:

Carry out one or more of these activities AND own the packaging on which the activities are carried out:

  • Produce raw materials for packaging manufacture
  • Convert raw materials into packaging
  • Put goods into packaging or put packaging around goods
  • Supply packaging to the end user
  • Import packaged goods or packaging materials outside the UK
  • Supplies packaging by hiring it out or lending it
  • Supply packaging or packaging materials in any stage in the chain or to the final user of packaging

If you are an obligated packaging producer you need to take these simple steps to meet the Government guidelines:

  • Complete an annual data submission detailing the amount of packaging handled (you can contact your packaging supplier who will provide you with the weight per packaging type delivered the previous year)
  • Register with the Environment Agency before April
  • Calculate your obligation (this is how much packaging waste you will need to pay towards being recycled)
  • Show evidence of the recovery and recycling of a specified amount of packaging waste with Packaging Recovery Notes (PRNs) or Packaging Export Recovery Notes (PERNs)
  • Prepare an Operational Plan detailing how compliance will be achieved
  • Submit a Certificate of Compliance and you're done!

It's not just the Government trying to reduce the amount of excess waste that goes into landfill. In 2015 Duo launched DuoGreen to help brands wanting or needing to improve the environmental credentials of their packaging, learn about the new sustainable packaging products and solutions available.

 ** The Guardian 4 January 2016**

 

Looking to add a little love to your products this Valentine’s Day?

Valentines Image

This year romantic Brits are expected to spend in excess of £1.5bn on Valentine's Day gifts and surprises. With just under two thirds of UK adults stating professional gift wrapping makes goods 'extra special', offering the option of gift wrapping by introducing tissue paper, ribbon and stickers can improve sales and leaves them with a warm loving feeling about your brand.

Overall gift wrapping and luxury packaging has a strong positive impact on the customer shopping experience and has halo effects such as improved perception of value for money, increased recommendation to friends and increases prosperity to make a repeat order.

  • In love with gift wrap - Men and women alike appreciate the attention to detail associated with luxury packaging, with a particularly positive impact seen among young consumers, those aged between 18-24 years old. Typically men are willing to pay more for gift wrapping as an added service than women, so appealing to the young male demographic is particularly important. 
  • Perfect Package - Men are far more likely to request professional gift wrapping when purchasing a gift for their wife or partner. On average men are willing to pay more than women, with the majority happy to spend around £2 for the gift wrap service. One in ten men are happy to spend upwards of £4, and this figure increases among 18-24 year olds. 
  • Wrapped with love - Whether online or in store, our advice is to introduce gift wrapping as a service option that is part of the purchasing experience, by having branded luxury paper bagsbespoke gift boxesbranded tissue paper and branded ribbon available. 
  • Love for the long-term - High quality, luxury packaging can do wonders for a brand's image and is known to influence consumer behaviour long term. Introducing a gift wrapping service can lead to an increase in repeat orders, more word of mouth recommendations and is associated with investment in customer service. The best news for retailers enjoying their improved profitability is that gift wrapped goods are actually perceived to be better value for money. 

Valentine's Day is just around the corner but there is still time to order packaging to meet the demand for gift wrapping and make the most of this opportunity to add some love to your customers shopping experience. For more information on gift packaging contact Duo on 0161 203 5767 or enquiries@duo-uk.co.uk

Read the full gift packaging research report here

 

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