Retail Trends: Online vs. Bricks and Mortar Forecast

Retails trends and the competition between online sales verses brick and mortar sales continue to be a hot topic throughout the entire retail sector. The move to downsize large locations continues to be undertaken by many brick and mortar retailers, as well as an increase in online offerings to compete with those retailers taking over the online scene.  On the other hand, the fact that consumers seem to refuse to give up their desire to shop in-store at a physical location has other, previously online-only, retailers setting up shop on the ground.

The majority of retail sales are still happening offline and the forecast suggests that although online sales will continue to increase, the likelihood of them taking over is slim, at least for the foreseeable future.

Check out this great article from the Globe and Mail, “Retail Reboot: How E-commerce is Forcing an Industry Transformation”: http://www.theglobeandmail.com/report-on-business/retail-reboot-how-e-commerce-is-forcing-an-industry-transformation/article21602870/?page=all. In it, the author presents a startling number of both direct and indirect impacts of online shopping, both to the online sector itself and to brick and mortar locations. Clearly e-commerce is changing the retail landscape.

Here is a great graph from the above mentioned article that shows just how much of an impact online sales are having in Canada:

As mentioned, in 2014, several big name online only stores, including Amazon, set up physical retail stores. This is in direct opposition to those stores making the move to smaller locations, but for the online-only retailers, the need came as a result of the desire of shoppers for the in-store experience and therefore validates the need for physical stores. For these stores, new marketing strategies with things like point of purchase displays and creative packaging have become a new challenge.

This is all part of another growing retail trend - omni-channel retailing, or simply put, the creation of a seamless customer experience across all channels. Creating a positive in-store experience can lead to further online sales thanks to a heightened brand awareness and increased customer loyalty - and vice versa.

With competition in no short supply, garnering attention on the shelf has become even more crucial. Creative, unique and intelligent customer packaging can get your product noticed - another growing trend within the retail industry. This is also vital when it comes to shipping - a boring brown box catches no attention, whereas one that is branded well is seen by a significant number as it makes its way to the final destination and reinforces your brand to the receiver. For those stores now having to revamp their typical strategies as a result of their move to brick and mortar, displays are becoming a new, yet very effective, tool.

For more about the major changes going on in the retail landscape and how you can continue to compete, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.

Generation Gap: Retail Trends for 2015

It is 2015, and the impact of the generation gap on retail trends is not a new topic of conversation. That being said, for many brands and retailers alike, recognizing that different age groups benefit from different marketing tactics is proving harder to harness than many would like.

Each age group has certain characteristics that impact their buying behaviour and the purchases they intend to make over the coming months. These are just a few of the characteristics marketers are using to influence their strategies when it comes to Boomers in particular:

• Boomers are wealthier than previous generations.
• They are more concerned with youth and vitality.
• Most have some form of formal exercise in their schedule.
• Expect to take 4-5 trips in 2015.
• Boomers are downsizing in the real estate market. Purchasing condos with amenities within walking distance.
• Reviving the at-home dinner party, with more entertaining.
• Enjoying wine in a bigger way.

Still having a hard time recognizing how exactly you can take this information and apply it to your marketing strategy? Check out this great article from Magic Online, “4 Ways to Market to Baby Boomers in 2015”: http://magicblog.magiconline.com/content/4-ways-to-market-baby-boomers-2015.

Top 4 Ways:

1. Know that baby boomers are tech savvy - the all-to-common assumption that age denotes level of tech knowledge is a wasted opportunity.
2. Target without alienating other consumer groups - you can’t always please everyone at once, but that doesn’t mean segregating and separating your strategy to cut out various groups. 
3. Recognize that transparency and trust are everything - as shoppers get older, no matter the age range, loyalty changes - but transparency is a crucial way at maintaining a hold on that loyalty.
4. Don’t market to baby boomers as if they’re old - this one pretty much speaks for itself - no one likes this!

As far as retail trends for 2015 go, recognizing generation gaps is crucial for success.

For more about retail trends and how to implement them when it comes to your packaging strategy, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.

Odd Couple: Beef Consumption & Sustainable Packaging

It might seem strange to couple beef consumption and sustainable packaging together - but when it comes to the current state of consumer awareness, it actually makes a great deal of sense. Earth conscious, Earth-friendly, sustainable - all buzzwords today, no matter the industry, and these two industries are definitely included.

Check out this great article from the Calgary Herald, “Beef Industry Works to Become More Environmentally Sustainable”: http://calgaryherald.com/business/local-business/beef-industry-works-to-become-more-environmentally-sustainable. In it, the issue of sustainability in the cattle industry is raised, and the ways in which ranchers are taking very seriously the push to make everything they do more sustainable are highlighted. This includes changing decade-long practices to make them more eco-friendly, and creating a committee to discuss the matter specifically, the Canadian Roundtable for Sustainable Beef.

Why this push in the beef sector? For one thing, thanks to population growth and the rise of a new global middle-class, global meat demand is expected to surge by 70 by 2050, meaning more pressure on the beef industry to produce.

Secondly, the push also comes as a result of growing consumer awareness. Far more people are aware of the environmental impacts of what they are consuming, hence the need for the Canadian cattle industry to stand up and make changes. For example, recognizing the consumer demand for ethical, high-quality beef, several big name fast food chains have now adopted these buzz words or their counterparts as part of their marketing campaigns - and people seem to be responding well.

Here is where the connection with sustainable packaging comes in. Whether you operate in the beef sector or not, sustainability should be important to you as well. As mentioned, consumers are now far more aware, and whether or not a company chooses to be earth-friendly has come to play a major role in influencing purchasing decisions.

So, looking at your own packaging, here are some things to think about for the months ahead:

• Does your custom packaging reflect sustainability?
• Is the fact that your packaging is ethical and responsible visible to your consumer?
• Does your packaging reflect a conscious decision to choose the most minimal, recyclable materials?
• Does your packaging speak to a number of different groups in the global market?

As consumers become more and more aware of the importance of sustainability, the need to cater to these wants will inevitably increase, thereby further influencing our decisions, especially when it comes to packaging.

For more about sustainable packaging, both in design and manufacturing, please contact Packaging Technologies Inc. today at 1-800-303-5883.