Package Design: A Powerful Tool for CPG Brands in Times of Economic Slowdown
With the current economic climate, it's natural to feel a bit uneasy about the future. Layoffs and profits are on the rise, which can leave us feeling confused and uncertain about which way the wind is blowing. But one thing is for sure: planning for the worst while hoping for the best is always a smart move. So, with that in mind, let’s look at how packaging can help CPG food brands weather an economic slowdown.
When the economy takes a downturn, people tend to tighten their purse strings and become more cautious with their spending. This can make it tough for companies to maintain their sales numbers. However, investing in custom package design can actually help companies survive a recession – maybe even thrive. When a company's packaging stands out on the shelf and looks more appealing than their competitors, customers are more likely to choose that product over others, even if it costs a bit more. Plus, great packaging can give the impression of higher quality, which can help justify a higher price point in the minds of customers. By investing in packaging that looks great and communicates their brand's message effectively, companies can keep their sales strong even during a recession.
Let's start with a simple truth: retail is a tough business. Anything a brand can do to stand out from its competitors is an advantage – and this becomes even more important during an economic slowdown. Great packaging is a tried-and-true way to add some shine to your brand. Customers are more likely to choose a product with packaging that they find attractive and appealing, which can increase sales even in a challenging market.
Packaging design also plays a crucial role in shaping customers' perceptions of a product's quality and value. When you see a well-crafted package, what goes through your mind? You’re likely to think that the product inside is high-quality and worth buying. On the other hand, a poorly designed package might lead you to believe that the company is cutting corners and the product inside is of lower quality, which might make you think twice about buying it. I've seen this play out firsthand when I updated Staples' private label packaging. After comparing the old packaging to the new, 83% of customers indicated that they thought the new package would hold a higher quality product. We saw a parallel increase in positive word association with Staples brand products and intent to purchase. Customers are more likely to pay for a product that they perceive to be of higher quality, even during an economic downturn.
Lastly, during periods of stress, people seek out comfort. Buying a trusted product can be that comforting experience, like indulging in a luscious pint of chocolate ice cream (not that I have any first hand experience with this). Good packaging design can help a brand retain its existing customers by reminding them of the simple pleasures they derive from the brand. If your brand is performing well, consider making small updates to your packaging that can have an outsized impact on sales. Improving the product photography is a great place to focus. A great example of this is the transformation of GoodPop, an Austin-based frozen treat company. After a redesign that put new emphasis on beautiful photos of their frozen desserts, they saw a 40% increase in sales.
In conclusion, we hope this article has given you some valuable insights on how great package design can help your company thrive during an economic slowdown. Don't let tough times discourage you, instead take advantage of this opportunity to invest in your packaging and stand out in the market. If you're looking for help with your package design, we invite you to contact us. Our team of experts can guide you through the design process and help you create packaging that sets your brand apart. Let's work together to make your product shine!
