Stora Enso Consumer Board and Packaging Solutions

Redesigning the future with renewable packaging

03/18/2015

Improve net sales and EBIT with sustainable packaging

Turning Millennials into loyal customers is crucial for future revenue streams as this group of consumers will represent nearly half of European workforce within ten years. One step towards winning the Millennials is to embrace their preference for sustainable packaging. The latest Stora Enso Viewpoint explains how retailers and brand owners can improve net sales and EBIT margins by optimizing their use of sustainable corrugated packaging along the value chain.

​Net sales opportunities

Corrugated solutions in-store and at the moment of truth such as offset printed shelf-ready solutions or point-of-sale displays improve on-shelf product availability, improve the shopping experience and drive net sales. Efficient fiber-based packaging solutions executed across the packaging value chain are estimated to have a 2 – 4 % sales uplift potential on category level.

How fiber-based packaging solutions help generate sales
(Net sales uplift potential on ctaegory level)


 

EBIT margin and ROCE opportunities

Innovative corrugated packaging solutions enable low weight, improved space utilization and efficient handling across transport, warehousing and in-store operations. The benefits of corrugated solutions across the packaging value chain can have a potential EBIT margin impact of 1 – 2.5 percentage points.

How fiber-based-packaging solutions help generate cash
(EBIT-margin improvement potential in percentage points)

Future success factors and challenges

Winning the Millennial consumers is just one of the challenges for retailers. Other important trends will shape their businesses in the years to come, like the growth of discount retail and private label, online grocery retail and intelligence in packaging.  To learn more about how to navigate these challenges read our Viewpoints on the future of packaging.

Viewpoint reports can be downloaded here.