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Brands Can Increase Customer Loyalty with Targeted Packaging
Omnichannel must become even more interlinked, says Armando Falcao, Associate Director Retail at Mintel Germany. The retail expert analyzed the current retail situation in Germany at FACHPACK. He explains to FACHPACK360° how sustainable packaging can strengthen brands.
In view of the closure of large fashion stores, the question arises: how can companies use the network efficiently to market and sell their goods? Despite the coronavirus boom between 2020 and 2022, e-commerce still only accounts for a small proportion of retail sales compared to bricks-and-mortar retail: in 2023, online sales amounted to just under 80 billion euros compared to 629 billion euros in conventional retail. For this year, Mintel is forecasting a growth in e-commerce in Germany of 83.7 billion euros, which corresponds to a percentage growth of just under 5 percentage points.
The most popular online retailer is Amazon (89% of online shoppers have shopped there in the last 12 months). In second place is eBay (41 percent), followed by the marketplace conglomerate Otto, Bonprix, Baur and About You (30 percent). The top three retailers with retail stores where consumers have shopped online in the last 12 months are drugstores such as Douglas, dm Markt (44%), Media Markt / Saturn (36%) and discounters such as Lidl (32%).
Armando Falcao, Associate Director Retail at Mintel Germany, spoke at FACHPACK about the role of omnichannel and sustainable packaging.Although online retail only accounts for a small proportion of retail sales overall, it still has an important role to play, Falcao emphasizes. More than ever, the decision-making process is shifting to the digital world. According to Mintel studies, 93% of German citizens now buy online, 56% of them on a monthly basis. Online platforms are not only used directly for purchases, but also for information purposes, such as price comparisons.
Smart and Sustainable on the Road to Success
“Our data confirms that the future points to omnichannel shopping: 66% of Germans alternate between online and offline shopping. The credo for companies should be: Point of sales and online platforms must be even more closely interlinked,” says Falcao. Online must definitely include mobile, and that across all sectors. For example, 55 percent of German grocery shoppers find it convenient to do their weekly shopping using an app. In general, it is worth relying on new technologies. Avatars can help with trying on new clothes, for example. With the help of smart mirrors, this is also possible in the online store if the item of clothing is already out of stock in the store. “The customer journey doesn't end with the purchase or shipping: With targeted packaging, brands can also create a great experience when customers receive the product, which encourages them to share it on social media and increases loyalty even further,” explains Falcao.
The trend towards sustainability will also have an increasing impact on packaging. Brands should offer visually appealing packaging solutions that also demonstrate ecological responsibility, the expert advises. 60 percent of consumers expect brands to lead the way in solving environmental problems. In addition, 55 percent of Germans for whom sustainable shopping is important choose items with reduced and/or recyclable packaging. “This shows that adopting sustainable practices – including packaging – is becoming increasingly important for brands to meet their customers' expectations,” says Falcao. “Packaging should always represent the brand or product and tell its story.“
