FMCG Packaging Design for Modern trade and e-commerce

The year 2020 is a year of Covid-19 which brought most of the lives on a standstill, affecting many industries badly.

But there are still few sections such as manufacturing, pharmaceuticals, packaged food, beverages, functional food and hygienic products among the FMCG, have been less affected by the crisis.

We can say they have seen a sizeable growth both in demand and in production, raising the need for packaging.

Pandemic has lead us to sit at home and does shopping online. When we discuss In-store sales remain core to success in FMCG, but dwindling footfall and shrinking shopper attention spans lead operating in a challenging and competitive environment.

The essential functions of any FMCG products coming through online are expected to deliver the products undamaged, fit-for-purpose, the right size, easy to open, and, for example, re-closable, to be suitable for returns.

Besides these functional requirements, e-commerce packaging is shaped by critical trends, including sustainability, efficiency, connectivity and personalization.

The Indian packaging market in e-commerce is valued at USD 451.4 m in the year 2019. It is expected to grow to USD 975.4 million by the year 2025, with CAGR of 13.8% in the phase of 2020-2025.

What is FMCG?

Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold fast and at a relatively affordable cost.

Examples- Non-durable household goods which can be packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables Wikipedia

Role of FMCG in India market

Indian FMCG industry is 4th largest sector with personal care and the household, which accounts for 50% of FMCG sales here. The revenue generation from the urban segment is around 55 per cent which is the top contributor to the total revenue developed by the FMCG sector in India.

But still, it is seen that there is drastically grown in rural part compared to an urban area. The growth in semi-urban and rural places in FMCG products lead to 50 % of the total rural spending.

Dabur identified the scope of the rural market, and now it establishes more than 45% of its domestic revenue by packaged consumer goods in rural India.

Hindustan Unilever is another brand that earns more than 35% of its revenue from a rural area where 40% of consumption in major FMCG categories is in personal care, fabric care, and hot beverages.

Revenue of FMCG reached to Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and will reach US$ 103.7 billion in the year 2020 while expected to grow at 9-10 % in 2020.

The E-Commerce segment will contribute to 11% of overall Indian FMCG brand sales by the year 2030. The e-commerce FMCG market is projected to reach $ 45 bn in 2020. Hence has been a significant catalyst in the development of the FMCG sector in rural India.

Why is FMCG Packaging Important?

Your first interaction with any product is with its packaging design which you can touch and feel the emotion of the overall brand.

As per the type of product category, the packaging requirements vary concerning the operations point of view. The level of protection for a food product would be higher than that of a home care product.

Packaging serves many practical purposes, such as:

1.Protection: To save the product from the external environment, maybe the sun, dust, temperature and contaminations.

2.Communicate Nutritional values: To protects the product from decaying, denaturing of proteins, oxidation of fats active or intelligent packaging preserves the hygroscopic nature of the work.

3.Brand positioning: Depending upon the personality of the product, if its healthier, eco-friendly, junk, delicate, luxury, the packaging will create healthy space in the minds of the audience.

4.Information: The mandatory regulatory content which can be FSSAI, manufacturing place/date, expiry, storage, usage, recipes, cautions, ingredients will keep customers informed.

5.Aesthetics:The look of packaging plays an integral role in helping it stand out and grab the buyer’s attention colour, font, brand story, image plays a crucial role to highlight.

6.Transportation: Goods have to be transported during their journey from production to consumption. Packaging ensures durability and strength, so the goods can withstand transportation stress

Securities, to enhance retail shelf impact, convenience are other few essential points in why packaging is a vital role to play in FMCG products.

How Packaging Design Increases sales in Modern Trade and e-Commerce Business?

Around 74% of younger consumer’s in-between age of 18-25 says they will share a recent purchase on their social media platform only if the packaging design of the product is unique and engaging. Source

There is one thing which you should notice: In a retail world, when you physically visit the store, the packaging does the primary job of catching the right attention and then followed by a sale.

But if its online purchases, a sale is completed first and several days pass before your packaging is revealed to the consumer. Hence for a repeat, you mustn’t neglect to consider the impression that your packaging has on the end-user.

You must consider both elements how the product arrives at the customer then unboxing experience takes place. If you are unboxing and encounter poor design, there are huge chances that it will increase negative reviews and return rates.

Customer is very excited, and he waits patiently for the product to reach him, so if packaging design is attractive, then his respect towards your brand retains.

When a product is shipped through the e-commerce platform, conduct a little research about what is making your consumers buy your brand. Then after identifying that work strategies around that emotion value and try to render it into your packaging design.

The distinct “essence” of your brand to establish this design consistency across platforms.

Your brand experience should empathize with the consumer experience of your product and seek to satisfy the expectations of your market.

Focus on the graphic design of the product itself, but also consider the physical ease of removing the product from the box.

Type of FMCG products 

1. Non-Durable Household goods

Jam Packaging

Everyone has a sweet tooth and jam makes the mornings happy and cheerful. Just like other products, Jam bottle have two aspects of packaging design – Label and Box design, Jam packaging has to be colorful and merry so that it appeals to children and inspires a feed good factor. Bright colors and yummy delicious looking images help to enhance the appeal of jam packaging.

Candle Packaging

Aromatherapy has given rise to a huge market for scented and ornamental candles. These candles have a soothing and peaceful effect. Such gentle feel inspires a similar packaging design which appeals to inner senses of the buyers. The packaging design must in soothing colors to build an ethereal atmosphere. Pastel soft shades and mystical artwork attract buyers for a feed good factor.

Footwear Packaging

Footwear products have a wide range from sport wear to fancy fashion wear. The packaging would vary according to the type of footwear. Sport footwear of often branded by companies like Nike, Adidas etc which follow their own company identity pattern. Fancy footwear packaging involving shoes, sandals, boots and all kind of heels need eye catching packaging. Apart from being attractive, the packaging must be easy handle. Shoes packaging is designed in such a way that buyers can try the footwear size without disturbing or ruining the packaging artwork.

2. Packaged food and beverages

Beverage Packaging

Beverage Packaging is another dimension of product packaging. There are set norms for beverage labels as it has to be practical and attractive as well. A fleeing of flow and freshness is essential for the design of beverage labels. Visual appeal is paramount in beverage packaging as often beverages are selected on the spur of the moment decision which is influenced by the look and visual effect of the design.

Wine Bottle Packaging

Wines have an enormous market ranging from low quality wines to connoisseurs gourmet collections. With so many flavors and grading of the wine, the packaging design is based on the quality and cost of the wine. Most of the wine packaging design is subtle and minimal with more emphasis on interplay of color tones. The specific information on the quality of wine, Deep and rich colors are used along with stylized presentations.

3. Candies

4. Toiletries

5. Cosmetics

Perfume Packaging

Perfume is a luxury sector which based on intense personal preferences. From flowery scents to woody musky scents along with various combinations- every perfume is unique and individual in quality. Most of the famous perfumes belong to known brands. So their branding is heavily emphasized. But every perfume packaging has an element which portrays its unique nature highlighting its feel, aroma and inner essence.

6. Dry goods

Chips and Dry Snacks Packaging

This is a very competitive but lucrative field as sales volumes are tremendous. Moreover these products are instinctive buy based on momentary decisions. The artwork for these products has to be visually enticing and inviting. Often sensuous aspects are introduced to invite attention and interest of buyers. Colorful images with fun element and comical humorous themes are introduced to enhance the presentation and mass appeal of the packaging. The taste value is also emphasized and highlighted on the packaging design.

7. Other consumables

Ice Cream Packaging

Ice creams are no longer the favorites of children. Everyone likes to indulge in this delicious luxury now and then. Therefore, the packaging designs for ice creams should appeal to both young and old. Some ice cream Packaging aiming at kids is colorful and vibrant like ice candy packaging. But products like ice cream desserts which are meant for adults have a classy sophisticated packaging design to create an impression of exclusivity.

Honey Packaging

Honey is becoming the super food of the century, numerous health benefits have been attributed to honey. Hence, honey production and marketing has hit a new high with many products competing with each other. In such a scenario, there can be packaging war for honey products which need to create an impact in the competitive market. Bright colorful packaging is not enough. There has to be an assertion in the design that the product is authentic and natural without any additives.

Cigarette Packaging

Cigarettes have become a controversial product facing all kind of restrictions. But there is no decrease in its sales and is a fiercely competitive market more due to restrictions. Cigarette packaging demands a very classy and aristocratic design of packages so that buyers feel they are privileged and special select group. Use of gold and silver tones gives a luxury feel also appearance to the packaging.

Author

Being a strategist’s head and a long term visionary personality aims to achieve excellence in branding, packaging and digital marketing field. My 15 years of design experience and masters degree ais my strength which keeps me motivated and keep me going positively. I have participated in extensive branding design conquests in India, USA, Australia and New Zealand with winning zeal. My objective is to encourage start-ups and hence involves actively in the articles which will act as a productive intake of knowledge for them. Do connect me personally via my LinkedIn and I love to share my expertise with you.