with one click, so the role of packaging is increasingly an important vehicle for brand owners to connect with their consumers at touch points throughout the product’s lifecycle.” For full study results, visit mwv.com/packagingmatters. Global Prestige Beauty Growth Size and Performance Country Dollar Volume Dollar% Change U.S. $10.2 Billion +7% U.K. $3.4 Billion +5% France $3.5 Billion -1% Italy $2.2 Billion -4% Spain $1.6 Billion -7% Source: The NPD Group, Inc. Category Results by Country Countries U.S. France U.K. Italy Spain TOTAL +7% -1% +5% -4% -6% Skincare +10% flat +5% -6% -7% Makeup +7% -1% +11% flat -9% Fragrance +5% -1% +3% -3% -6% Source: The NPD Group, Inc. April 2013 Spray 33 Market Beat Fewer than 20% of U.S. consumers very satisfied with packaging MeadWestvaco Corp. (MWV), supplier of packaging and packaging solutions, launched its inaugural consumer satisfaction study, Packaging Matters. The study explores the role of packaging in product satisfaction as consumers purchase, transport, use and dispose of products across 10 different categories. The results suggest that packaging satisfaction can have a significant impact on purchase intent and repeat purchase, and that there is a low level of satisfaction overall, especially once consumers leave the store and rely on the structural or functional features of the package at home or on-the-go. The study shows that when it comes to purchase intent and product satisfaction, packaging does matter. A majority of consumers will sometimes buy a product off the shelf without prior knowledge of it (64%) and rarely use mobile devices to research a product while shopping (72%). While quality (85%) and price (67%) are the most important factors contributing to overall product satisfaction, consumers report little variance in importance between a product’s brand (12%) and packaging (10%). Despite the importance of packaging, there is a clear opportunity for improvement: Fewer than 20% of U.S. consumers report they are “very satisfied” with product packaging, with the least amount of satisfaction from carry-out food containers and beauty care product packaging. “The research further proves that packaging is one of the most powerful tools in the marketing communications mix, but as it stands now, packaging does not delight consumers,” said Brian Richard, Director, Consumer & Customer Insights, MWV. “Brands should view the current gap in satisfaction as an opportunity to make improvements to their packaging by focusing on what matters most to consumers.” Packaging satisfaction ends on the shelf The study identified “satisfaction gaps”—the importance of different packaging attributes compared to their perceived performance. Of the 15 packaging attributes studied, only a small percentage of consumers ranked shelf appeal, or the product’s “attractiveness” and “distinctiveness,” as “very important” features to their satisfaction (6% and 10%, respectively). However, this is where brands were performing best, with performance exceeding importance. While brands are generally pleasing consumers during the shopping experience, satisfaction drops dramatically when product packaging is relied upon for transport and storage and then when the product is used and reused. The largest satisfaction gaps across categories all relate to the structural features or functionality of the packaging. In terms of importance, consumers want packaging that protects from breaking or spilling (74%), maintains product integrity (72%) and gets the entire product out of the package (66%). “Packaging satisfaction decreases significantly after consumers leave the store, at all touch points along the product lifecycle, such as transporting, storing and using the product. This is a huge missed opportunity for brands,” said Steve Kazanjian, VP, Global Creative, MWV. “Structural features of the packaging should be viewed as the most critical area for brands to make improvements to drive consumer satisfaction. Packaging that lives up to the brand promise of its marketing communications holds the most potential for repeat purchase. As more retail migrates online, consumers are interacting less with brick-and-mortar channels. A disappointed consumer can switch brands U.S. growth outpaces Europe in prestige beauty sales The global prestige beauty industry ended the year with mixed results, according to The NPD Group, Inc., a global information company. The U.S. prestige beauty* industry posted a 7% gain in 2012, generating $10.2 billion, compared to the 11% increase in 2011. On the other hand, challenging economic conditions contributed to sales declines across many European countries. Annual 2012 growth in the U.S. was driven primarily by skincare, which amounted to $3.4 billion. Makeup had the second highest gains generating $3.8 billion in sales, followed by fragrance at $2.9 billion. Premium-priced products in all U.S. beauty categories prevailed in the dollars gained in 2012. In Europe, skincare sales were down 2% in overall category performance with some pockets of growth in the Face, Body, and Sun segments. Driven by the strong sales in the UK, makeup was the only category to experience an overall growth of 2% throughout Europe, with Face, Eye, Lip, and Nail representing 92% of the European prestige beauty business. Fragrances were down 1% overall, comprised of Juices, Ancillaries, and Gift Sets. “Moving into 2013, we can expect premium products to again be a shining light even in Europe,” said Karen Grant, VP & Senior Global Industry Analyst, The NPD Group. “In fragrance, eau de parfums are outperforming in most geographies thanks to the strength of ‘couture’ designer brands. In makeup, alternative brands join designer and makeup artist brands in expanding the offerings in foundations and in color categories, such as innovations in lip products. In skincare, new sub-categories are gaining importance as high-end innovation in devices such as, sonic cleaning, in the U.S., make a mark and there continues to be advancements in anti-aging, which is now offered with brightening and complexion solutions,” said Grant. *Prestige Beauty: Products sold mainly in U.S. Department Stores.
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