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Market Opportunities and Innovation|GfK PackEdge|Global|English

Battle of the retail brands: Are you ready?

30.06.2016

An innovative approach to packaging offers savvy CPG companies a unique opportunity

One of the most disruptive forces in packaging at the moment is the three-cornered battle that is emerging between traditional retail brands, Amazon and the major CPG companies. This is a perfect storm, and one which is already having a significant impact on both retailers and consumers. 

CPG companies are now using packaging to maximize their return from sales via Amazon. Price is the biggest driver of purchase on the retailer’s site, and so CPG companies are creating strategies to optimize their price performance on the platform. Bundling is one packaging-driven route to competing on price that is emerging. Using Amazon’s data, brands can identify how consumers typically buy their products and then offer pre-packaged bundles to reflect this. Simplifying the packaging of individual components can reduce vendors’ costs, enabling them to offer a stronger price proposition

This is one example of how packaging is being used as a smart and flexible element of retailing strategy to create compelling deals that appeal to consumers both on price and convenience.” according to Simon Pulman-Jones, GfK

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