Concept, Design and Strategy of Brand-name Product Packaging (I)

Mustard, produced in Sichuan, was produced in large cylinders and sold for a profit; Shanghainese traded in middle cylinders, sold in Hong Kong, and profited 30%; Hong Kong people replaced them with vials and exported them to Japan and doubled their profits; the Japanese took Vacuum bags replaced it, marketing worldwide, profits doubled.

First, the evolution of packaging concepts:

The traditional packaging concept believes that the purpose of packaging is to hold and protect the product for transport. This concept has its background and its existence is the era of low commodity economy and the market is in short supply seller market. Advances in science and technology have promoted economic development. Since the mid-1950s, large-scale production has become increasingly widespread, and the seller’s market has gradually been replaced by the buyer’s market. This change has exposed the shortcomings of traditional packaging concepts. In the buyer’s market, Packaging not only has the function of protecting products, but also an effective promotion method.

A survey by DuPont, the largest chemical industry company in the United States, showed that 63% of consumers select products based on their packaging. This discovery is known as DuPont Theorem. According to a report from the British market research company, women shopping in supermarkets generally attract more than 45% of their purchases when they go out because they are attracted by exquisite packaging.

Market God's choices and concerns have prompted manufacturers to improve their product packaging. Famous brand manufacturers have always been interested in this area and are committed to it. According to the report of the American Market Association, the annual cost of packaging research and development of famous brand companies in the United States accounts for nearly 3% of the sales revenue, and the resulting revenue is approximately five to ten times the investment. This is easy to understand: In the early 1980s, The Coca-Cola Company spent nearly ten billion US dollars to replace its own packaging, in order to maintain the image of a brand name, and get a lasting return. At present, American companies attach importance to commodity packaging has become a consensus, this point can be answered from the output value of the United States packaging industry, the US packaging industry's output value in 1981 reached 50 billion US dollars, the current figure exceeded 100 billion US dollars, becoming the United States The third largest industry.

In contrast, Chinese enterprises are indifferent to packaging, leading to backward packaging technology and undeveloped packaging industry. According to incomplete statistics, the losses caused by poor packaging of goods before 1980 in China were more than 20 billion yuan each year. Taking glass as an example, in 1978 the country produced 12.5 million TEUs of glass containers each year, of which 1 million were damaged due to poor packaging, which was 8%, compared to the output of two medium-sized glass plants.

The backward packaging also affected the sales and selling prices of China’s export products, and at least lost 10% of foreign exchange earnings. Therefore, there is a saying of "first-rate goods, second-rate packaging, and third-rate prices." For example, China's traditional Yixing porcelain originally had only very simple packaging. No one cares about the 25 US dollars in the international market. Later, it was packed into a beautiful satin box. It was unique, and each price of US$250 was in short supply.

Since the 1980s, China has gradually improved its packaging technology and achieved certain results. However, since 1983, the country’s annual losses have remained above 10 billion yuan. The backward performance of China's product packaging is many, such as materials, technology, design, etc., but the most fundamental is the concept of backwardness and short-sightedness. Its main performance is in the two extremes: At one extreme: Some managers of companies consider packaging as an optional element. They think that only good quality and low price, good or bad packaging are not relevant, and even think that packaging is more attractive. Cost, raise the selling price, will have an adverse effect on sales; the other extreme is: Some companies put the packaging as the core of the product, engage in high value-added, high-grade packaging materials, while ignoring the quality of the product itself, resulting in the sale of packaging The facts exist. These two extreme concepts fundamentally suffocate the development of China's brand-name goods, especially the latter concept is the enemy of the future. It completely misunderstands the purpose of packaging and confuses the boundaries between core products and physical products. This is We will pay close attention to our work in the future. In short, to create brand-name goods in domestic and international markets, we must pay attention to the packaging of goods, establish a correct packaging concept that is consistent with the modern market economy, and do not put some basic marketing ideas in order.

(to be continued)