Stora Enso Consumer Board and Packaging Solutions

Redesigning the future with renewable packaging

03/04/2015

Retail value creation opportunities from fiber-based packaging

Utilizing innovative fiber-based packaging solutions can create untapped value creation opportunities to brand owners and retailers. These insights are based on the latest Viewpoint report “Future of packaging for the Millennials” by Packaging Solutions.

It all starts with inbound logistics
Typically 70% of inbound logistics costs up to the retail store are dependent on weight and space utilization. Smart and stackable corrugated packaging solutions help to optimize warehouse and transportation capacities. Every reduced cubic meter translates into cost savings and additionally into a smaller environmental footprint.

Efficient retail store operations can lift profit margins
Efficient store operations are a key source to increase margins and improve sales opportunities at the point of sale. By using shelf-ready packages, in-store handling can be rationalized and the replenishment and handling costs can be decreased up to 50%. With pallet presentation the cost reductions can reach up to 70% compared to traditional shelf presentation.  Fiber-based packaging materials enable also efficient waste handling as material can be compressed for storage and all waste is recyclable.

The moment of truth
The moment of truth takes place at the store shelf. Smart packaging solutions made of recyclable and renewable fibre-based materials  improve product visibility in store and can boost sales significantly. An example is fiber-based point of sales displays which have proven to increase sales by 22% on average in a Nielsen study among UK retailers. Close to half of the Millennials are willing to pay a premium for environmental products including sustainable packaging.

The viewpoint reports can be found here.