Retail, CPG and Logistics

Innovations in smart packaging for CPG products

The need to connect with their customers and build a relationship with them has driven CPG innovation for years. Packaging of CPG products has evolved significantly over time. Innovative packaging has come a long way from simply protecting and identifying the product inside to driving sales and restructuring the consumer psyche.

Trends in CPG packaging

Packaging is one of the first things a customer sees when purchasing a product, as CPG packaging gives brands a chance for a good first impression. As a result, CPG innovation has focused heavily on packaging design to establish a brand identity, promote brand recognition, establish commitment to quality and sustainability, and – ultimately – drive purchase decisions.
As a result, some popular trends have emerged in CPG packaging, including

• Sustainable and eco-friendly packaging
• Minimalist design
• Interactive packaging
• Personalised packaging
• Smart packaging

What is smart packaging?

Smart packaging allows CPG brands to tie product packaging with a digital experience by leveraging connected technologies. Such innovative packaging can send customers to the brand's social media channels, allow them to download files, or find a personalised coupon page. This allows customers a deeper look and an interactive experience into the product and brand story than traditional packaging.
Additionally, smart packaging also includes,

• Active packaging that allows packaging material and product to interact, improving shelf stability.
• Intelligent packaging that gives retailers insights into the current state and health of the product inside.

The COVID-19 pandemic accelerated the use of smart packaging to offer customers a connected and interactive experience. However, the rapid growth of the e-commerce industry, emphasis on sustainability and delivery optimisation, and rapid development and adoption of technologies are also some of the key drivers of smart packaging. As a result, the smart packaging market is set to grow from US$0.6 billion in 2023 to US$2.6 billion in 2033.

Smart packaging: Strategies and technologies

Innovation in CPG packaging can fail without the right strategy, and you risk disappointing your retailers and customers while exhausting your resources. However, a correct strategy can help you get excellent ROI while satisfying your customers. Here’s how you can leverage external and internal packaging to connect with your customers using smart packaging strategies:

External packaging: Keeping it short and sweet

When examining the external packaging, a customer is already considering purchasing and reviewing all the components on the package. You could use this opportunity for brief interactions – like capturing customer information while offering the latest coupons and promotions or bringing the product to life in short videos.

Internal packaging: Strengthening the relationship

Unboxing allows you to connect with customers and use innovative packaging to strengthen your relationship. You can further the brand story by highlighting why customers should believe in your brand, enhance customer experience with interactive packaging, or capture customer feedback to improve consumer journey and experience.

NFC tags, QR codes, and RFID tags are some of the most common smart packaging technologies that simplify inventory management and asset control while facilitating an interactive customer experience for CPG customers.

Benefits and risks of smart packaging

Although it has significant potential, you must be aware of some limitations and risks of smart packaging to succeed. If CPG brands are not cautious of these limitations, they can turn away customers instead of attracting them.

• You can lose the marketing space that drives product awareness, interest, and purchase if you cannot get the right trade-off for scannable codes on the package.
• Smart packaging can limit you when changing packaging or label manufacturers, causing supply chain issues.
• You run the risk of spreading your operational resources thin to manage the landing page you direct your customers to run the promotion smoothly, segment the audience across all channels, and create accurate reports to generate actionable insights.

Despite these challenges, smart packaging has tremendous potential and benefits that can support your efforts to improve customer experience, loyalty, and satisfaction. So, if you can effectively manage the risks of smart packaging, you can leverage its benefits to drive revenue.

• Smart packaging can help retailer integration as you focus on omnichannel presence, allowing you to manage each channel separately while collectively supporting them.
• Smart packages have the potential to deliver consumer insights that can be the game changer and give you the competitive edge you need to succeed.

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How can Infosys BPM help?

Infosys BPM CPG outsourcing gives CPG brands a comprehensive toolset to handle the disruptions and global factors that demand innovation. Leverage our deep industry expertise, embrace our visionary approach, and leverage cutting-edge technologies to drive efficiency, productivity, and cost optimisation. With Infosys BPM as your trusted CPG outsourcing service provider, optimise your customer experience with smart, innovative packaging and achieve new heights of success.