GETTING IT RIGHT I CAN’T OPEN THIS “@!?!#!” THING! FACTS AND FIGURES THAT HURT

BY PETER CLARKE

For retailers it’s about self-merchandising, maximized Editor’s Note: In our October 2006 issue, we featured a cover real estate and velocity. They want packaging that offers story on consumers’ increasing frustration with packaging func- high product visibility, that is easy to handle by staff and tionality—better known as “wrap rage”. This month, we offer a that works with existing display systems and technologies. follow-up to the original piece—a call to action and a vision of Of course, retailers also want packaging that’s pilfer-resist- how things could be in the not-so-distant future. ant—and they often flex their muscle and demand it from their manufacturing suppliers. e all know the routine—you’ve just bought that great Brand owners, however, are more concerned with Wnew gadget everyone’s talking about, and you’re thrilled communicating the values and delight associated with to get it home. Now, how to get it out of the packaging with- their brands—think of all those ad dollars they don’t out hurting yourself, damaging the item or blowing a fuse? want to see wasted. Brands want consumers to enjoy the “I’m more scared of the than the knife I use to open whole experience, from initial impact through to the it” is the kind of comment we often hear from consumers rewarding experience of unveiling their new purchase. when we’re conducting competitive design research. Everyone’s Yet this huge investment can be destroyed in just a familiar with the problem, but what’s being done about it? The moment if the product is inaccessible to consumers short answer is: not a lot. through retailer-imposed difficult-to-open packaging. But that’s about to change. Ironically, while the focus of both retailers and Every day, across the world, brand owners is on consumers, it is consumers millions of consumers face the who are often ignored. They want a simple, physical and emotional chal- safe and easy packaging experience, with lenge of so-called wrap rage. minimum effort and negligible waste. At Each month in 2004, more than the same time, consumers want their 5,500 British consumers visited item to be packaged securely so as to hospital emergency rooms to be be untouched by other shoppers treated for injuries inflicted by before they get it home. stubborn packaging. In an industry driven so hard We don’t track such data yet in by competition, retailers and this country, but we do record a relat- brand owners can’t go on ignor- ed, equally astonishing, statistic: in ing the obvious: the situation is 2005, on average, every person in the worsening. Now, too, the voice United States between the ages of 18 and of the consumer can be heard 64 stole more than $160 worth of products loudly complaining across a from retailers. The figure is staggering: in just 12 multitude of media and online months, $29.9 billion was lost as a direct result of channels. So where to start tack- what’s oh-so-delicately referred to as “shrinkage”—shoplifting ling the crisis? by consumers and retail employees. What’s the relationship between packaging that’s impossi- Whose team can pull the strongest? ble to open and retail theft? It’s a story of opposing interests. We believe the evidence points toward retailers taking the lead to drive much-needed change. While brand owners A tug-of-war between three teams must always control the consumer’s experience of handling Retailers, brand owners and consumers each have widely and opening the , the retailer ultimately controls con- differing goals and conflicting motives. sumers—manipulating their behavior in-store and defining

20 BRANDPACKAGING www.brandpackaging.com JANUARY/FEBRUARY 2007 their physical space. Until a radical new business model But appropriate technologies can work when they are arrives, the seller has the upper hand. integrated into a comprehensive system that is built on This doesn’t mean brands should passively surrender to strong operational procedures. For the retailer, the first strategies forced on them by shortsighted retail companies. step is staffing and training, followed perhaps by ver- Instead, they need to be realistic about the opportunity to sions of Electronic Article Surveillance or miniaturized solve the theft problem while simultaneously building wireless visual recording systems. Developments in consumer support for their brand. point-of-sale interface technologies such as fingerprint recognition and electronic wallets are also advancing Changing the game… quickly; when integrated with packaging and retail dis- The smartest brand owners will accompany retailers on this play systems, these technologies can progress from the journey of change. New harmonious partnerships will enable war on fraud to the battle against theft. In Asia, munici- those that take the lead on this issue to set themselves apart pal business partnerships are already using unique verifi- and generate strong competitive advantage. cation and transaction technologies that could be rele- The silver lining of wrap rage is that it can spark an vant to the problem of theft faced by U.S. retailers. opportunity to reinforce the expanding role that packaging There’s also RFID. Analysts forecast that RFID item-level plays in building brand success. tagging will come down to a fraction of one cent per item by At the grassroots level, the nature of the challenge 2012, making it cost effective for use on a single can of soda, means addressing issues of material choice, packaging of chips and other low-cost consumer goods. RFID at the types and manufacturing processes. Some simple, first- and level has already provided the big retailers with step tools for tackling the problem already exist but are logistical efficiencies, but, so far, it provides little direct benefit frequently overlooked. to the brand owners supplying those stores—or to consumers, for that matter. And, still to be solved is the problem of how to An easy-to-access toolbox integrate the tracking capability of RFID as a deterrent against An appropriate starting point is the concept of universal theft in the retail space. design. For packaging this is a no-frills idea with strong advocacy in Europe, and it’s gathering speed The silver lining of wrap rage is that it in the United States. Simply put, it’s the business of ensuring packaging is easy to access for every- can spark an opportunity to reinforce the one—both young and old, regardless of ability. The approach advocates clear diagrams and easy-to- expanding role that packaging plays in read instructions, visually intuitive points of entry building brand success. and ergonomic handling characteristics. A univer- sal design strategy also avoids the need for con- sumers to exhibit excessive strength or to require sec- And to wrap up, our vision… ondary tools to open the packaging, and it culminates We envision a landscape of self-merchandising systems where with easy disposal or . you can see, touch, compare and even try that great new thing Some categories find such goals easier to achieve than you’ve read about before you decide to buy it; and of places others. In pharmaceuticals, for instance, there are contra- where packaged products have great visual impact and truly dictory design criteria for packaging—the goal is to keep communicate the brand’s values—and, oh yes, where you can children out, but to provide the elderly with easy access. have the item you’re actually handling. You pay for it right Here, too, universal design can help resolve these seem- there with a swipe of your cell phone. The product you’ve ingly opposing requirements. bought is economically packaged and, when you open it, it Rather than putting what many believe to be too strong of offers a rewarding experience. To top it off you have the satis- a focus on packaging, retailers can take a stronger stand with faction of discarding the biodegradable packaging, knowing better theft-prevention technologies. Used in isolation, most you’re not adding more trash to the overburdened planet. We technologies, however innovative, can be ineffective and they envision a landscape where brands will be can sometimes even exacerbate the problem. How many able to seize every opportunity to create times have you—together with equally confused store staff— consumer delight and build loyalty. ignored the ear-splitting false alarm at the store’s exit gate? But…the time to act is now. BP

On the Web The author, Peter Clarke is president and founder Looking for more on this topic? Go to www.brandpackaging.com of Product Ventures, a packaging and product design and development agency. Contact Peter at and search our -library. e 203.319.1119 or [email protected].

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