That is a large fall in profits and although it was based against a very good 2008 so a fall was expected it still doesn’t do anything to build confidence in the business.  It will be interesting to see what they do now, will they cancel any innovations they have in the pipeline to save money or will they go all out on innovation to try and push profits back up?(Jane)

Profits fell by one third for global beauty provider Beiersdorf as European consumers cut back on their beauty spend during 2009. In the face of the tough economic conditions, the company reported provisional figures showing that net income fell from €567m in 2008 to €379m, a fall of 33 per cent.

via Beiersdorf 2009 profit hit by sales downturn.

“Innovation is the key to our industry breaking out of recession, says Keith Barnes, chairman of IoP: The Packaging Society”, a subject that is ‘dear to my heart’. There is much rhetoric spouted from many quarters (not just the packaging industry for that matter) who only pay ‘lip service’ to innovation. In these recessionary times it is sad to see that true ‘innovation’ either ‘thrown out of the window’  totally or is put ‘on the back burner’ in anticipation of ’sunnier days’. Luckily some companies have had the foresight to see beyond the present ‘mire’ and are using innovation (in product developments, processes and the way they think) to position themselves and their brands in such a way that they will be ‘ahead of the pack’ when the economic climate has improved. Indeed, at Design Cognition, we are lucky enough to be working with some of these forward-thinking companies and I ‘tip my hat’ to them. If you’d like further information on particular areas of innovation and how Design Cognition can help, you can find out more and contact us here: Design Cognition Innovation

Chris Penfold

In his article, Keith says “Despite being the world’s third largest industry, packaging is still sadly perceived by the vast majority of people as  cardboard boxes and wrapping paper. As chairman of The Packaging Society, and with the industry’s support, I am determined to change this image. With the best will in the world, this will not happen overnight. What’s more, the task is going to be made increasingly difficult by so many companies and individuals focusing on their survival in the current economic climate.”

Sourced from Packaging News 6th January 2010, Keith Barnes

You can read the full article here: The enigma of  packaging innovation

The normal packaging development  process would involve firstly developing a pack to fit the product in an optimum manner. Then any legally required text would be positioned (including any required symbols, such as recycling logos). Finally the marketing requirements would be implemented, in terms of claims, branding etc. More often than not, there is then a need to go back to product marketers to get them to reduce their marketing copy on the packs, because it simply won’t fit……..and the situation is getting worse!

Other options that can help tackle this problem are:

A, reducing the font size – but this can have implications on readability, print process constraints and there is often a legal minimum size which needs to be adhered to.

B, Using paginated label leaflet formats – where, on occasions, we have developed up to a 10-page concertina style leaflets. However, these multi-layered add-ons can add a huge on-cost onto the price of a pack – for which marketers don’t always want to pay.

C, Printing on the inside of pack (e.g. cartons) – but not visible until a pack is opened. So one can’t do this with certain text which needs to be visible at time of purchase

D, Finally, if all else fails, considering increasing the overall size of the packaging.

An example of a multi-page label solution

This latter route is sometimes unavoidable, especially with pharmaceutical packs, where the packs are very small, and even after taking measures such as reducing the bar codes from 13 digit to 8 digit, there is simply not enough room to display the mandatory legal minimum required text (let alone any marketing text).

Furthermore, it is now the law for any new medicines to incorporate Braille on the packaging (it will be a requirement for all existing medicines by October 2010). This will have to detail the product name, the strength [of the medication] and the dose form – yet another constraint to bear in mind. New products also have to conform with the readability guidelines which are in place to ensure that the packs can be read clearly and understood by the patient/consumer).

It’s worth remembering that it’s not just the basic information that one has to put on the pack. Very this has to be repeated it in a number of  different languages. It’s not unusual for a European product to have a need for 12 languages. And then there might be a need to repeat ‘country of origin’ for every language, and could require five countries needing to be listed (for a range of ingredients). The result could be a situation where  all one has room to display is a list of ingredients  & addresses, and any wish for aesthetic beauty just ‘goes out of the window’.

At Design Cognition, we review the whole space to find an ideal design that looks most aesthetically appealing and hopefully doesn’t look too cluttered – but it’s not always easy!

Incorporating logos of different colours, or trying to mix varying colours of text with backgrounds, can add its own issues and problems. Sometimes ‘house colours’ do not lend themselves to readability, White text on a pastel or black background for instance, can be even harder to read, so we may need to redesign [the pack graphics], using the principles and processes detailed above.

Overall our job is to develop a pack that is fit for purpose and not over-packaged. Things are becoming increasingly challenging but, so far our use of creativity and lateral thinking has provided a suitable solution.

Moving forwards technology could aid some of the issues raised above. Nowadays, certain consumer/marketing information can be shown ‘on-line’, cutting down the need to put it all on-pack – maybe just a web address for further information. There have also been great leaps forward in microchip technology which will enable ‘talking packs’, ‘moving pictures’ and a whole new interactive consumer experience – taking packaging to a new level. These are all areas in which Design Cognition has a strong interest and is working with a number of suppliers to develop cost-effective solutions.

If you’d like more information on these areas, sign up for further information HERE

Chris Penfold

A researcher at Massachusetts Institute of Technology (MIT) who used to be a brand manager at luxury goods firm Louis Vuitton Moët Hennessy (LVMH) asked hundreds of fake bag buyers about their habits in an unpublished study ‘The Real Value Of Fakes’.

Renee Richardson Gosline interviewed the consumers who knew when they bought them that the bags were fakes and found that 46% of them bought authentic branded bags within two years.

“For some status-seeking people, at least, the social power of luxury goods means that consumption must not just be conspicuous, but real,” said a statement from MIT describing the research.

“The counterfeit actually served as a placebo for brand attachment,” Gosline told news service Bloomberg . “People were becoming increasingly attached to the real brand even though they never possessed it at all.”

You can read the full article here: OUT-LAW New

You can find further information on counterfeiting and evolving technologies, via Design Cognition’s sister site ‘The Pharma Gateway‘. Also, if you are interested in our forthcoming counterfeiting workshops – let us know.

The dangers of counterfeiting drive the need for package and brand security. The following is an extract from a recent Converting Magazine event in the US, detailed by Natalie Hasselbacher, Converting Magazine, 3rd June 2009, which provides some useful insights into successful anti-counterfeiting and security techniques and technologies.

Three speakers presented during an anti-counterfeiting session on the importance of product security and possible ways for its implementation among capable converting facilities. Discussions highlighted a desperate need for package security to save a company’s brand whilst also ensuring safety to consumers.

Jim Reiman, Sales Director at Sun Chemical Security, said once anti-counterfeiting technology is applied to a package or label, the most important thing for brand owners to consider is a strategy and who will authenticate. “Articulating a high-level strategy and defining the problem is important,” he said. “Clearly articulating requirements with metrics and an internal agreement among company employees for proper implementation is a must. You have to question whether consumers, customs, investigators or retail will authenticate.”

Reiman also discussed Sun Chemical’s newest technologies that reportedly fight counterfeiting. The Verigard is a low level taggant that is said to work in any ink or adhesive while printing using most methods including flexo, gravure and offset.

A second speaker, Jim Colby, a Consultant for ExPev Solutions, referred to interdiction, authentication and a secure supply chain as the three ways to stop counterfeiting.

Thirdly, Juliet Midlik, Sales Manager for Prime UV Systems, mentioned that most of the company’s customers purchasing UV drying systems are applying anti-counterfeiting coatings and inks on food packaging.

The full article can be read here: http://tinyurl.com/yaq3nf4

You can find further information on counterfeiting and evolving technologies, via Design Cognition’s sister site ‘The Pharma Gateway‘. Also, if you are interested in our forthcoming counterfeiting workshops – let us know.

Interesting article and data  on the importance of continued investment into innovative packaging and graphics (Annie)

Year long survey consistently finds that structure might best communicate innovation, especially with supportive graphics. Materials and production also are good barometers. In any economic environment, innovation is key to growth. But, during a recession, many companies are tempted to reduce spending on innovation to save money. Luckily, this is not an absolute rule. Daring brands still pushed the boundaries of packaging innovation in 2009.Earlier this year, Shelf Impact! and international brand consultancy Dragon Rouge formed a partnership to ask branding and packaging professionals to evaluate recent product and packaging innovations. Each quarter, we asked a sample of hundreds of Shelf Impact! readers, from brand managers to designers to materials suppliers, to rate a selection of packages on matters of innovation. View an image and brief description of each of the 10 packages reviewed this quarter.

via Shelf Impact: “Achieving attention-getting innovation” Filed In:.

Despite the current economic climate manufacturers are still pushing forward with making their products more sustainable.  More sustainable doesn’t have to mean more expensive and I think that’s the key to this – it might appear all very ‘trendy’ at the moment to talk about sustainability, but in the long run it can help to cut your costs and more importantly help your profits. (Jane)

Most grocery manufacturers have either maintained or increased their investment in sustainability during the recession a survey has found, indicating the importance it will play for businesses in the coming decade.

via Sustainability no less important in recession, survey.

Sounds like there will be a lot of artworks that will need changing – I hope the smaller businesses out there fully understand the regulations (Jane)

Canadian manufacturers of antiperspirant products have until the end of 2011 to alter product claims and labeling under new regulation. Following new guidance on the classification of products on the cosmetics drug interface, aluminium containing antiperspirants are now classified as cosmetics in Canada.

via Antiperspirant labels and claims change in Canada.

Latest Mintel report confirms the rise in private label toiletries brands.

A rise in the status of private label brands, ‘fitter’ products with fewer ingredients, and colour coding for convenience are set to be important product trends for 2010.

via Fitter products with fewer ingredients set to be big in 2010, Mintel.

I was amazed to hear that the ‘Max Factor‘ brand has been ‘pulled’ from the US market by Proctor & Gamble. How can that be for such a prominent brand? Are US females cutting back and going around without their ’slap’ on? or is it just that the market is so competitive in the US?….at least the brand is still available in other markets! However, there are some encouraging  ‘green shoot’ signs showing in the US (moreso than the UK in many respects) – so let’s hope that the trend continues and migrtaes across the ‘pond’! Chris

Via www.cosmeticsdesign.com 19 Nov 2009

An upturn in the US consumer products industry is likely to benefit the personal care sector as 2009 draws to an end, indicating a much stronger year ahead. Latest US GDP figures show a growth rate of 3.5 percent for the third quarter, a figure that is likely to translate into the creation of more jobs and ultimately improved consumer confidence.

The year 2009 has been make or break for many players in the industry, spelling the end of the road in the US for players such as Crabtree & Evelyn and brands such as Max Factor and Prescriptives (owned by Estee Lauder) .

However, Kline & Company industry analyst Carrie Mellage, believes that the worst could now be over for the personal care industry and that looking ahead some of the key growth areas for potential are about to get even more interesting.

You can read the full article here: Personal care market set for strong recovery in 2010.