SOURCE : SMITHERS PIRA - 2016

An insight into the luxury packaging market that continues to grow globally, driven by exciting trends - the surge of personalised packaging, attention to sustainability issues, economic and demographic drivers.

Data from the Smithers Pira report The Future of Global Packaging to 2020 estimates a total world market for all packaging in 2015 worth $839 billion. This will grow steadily at a rate of 3.3% year-on-year through to the end of the decade; with the market will be worth nearly $1 trillion in 2020.

Luxury packaging is a lucrative, fast developing segment of this; Smithers Pira values it at $14.8 billion in 2015. It relative share belies its importance to the broader industry however. It is a segment where higher unit costs and the willingness of brands to invest in designs that directly enhance their products making it a cockpit for the entry and perfection of novel technologies. 

LUXURY IN VARIETY

Luxury packaging designers are increasingly gaining access to high-quality materials, finishes, decoration, innovative shapes, and caps and closures that enhance the consumer experience of the product. In its recent report The Future of Luxury Packaging to 2019 Smithers Pira identifies six key end-use applications:

- Confectionery
- Cosmetics & fragrances
- Gourmet food & drinks
- Premium alcoholic drinks – top-end spirits, wines and champagnes
- Tobacco
- Watches & jewellery

Across these, cosmetics and fragrances is the largest, accounting for a projected 43.3% share of luxury packaging market by value in 2014. This is followed by premium alcoholic drinks and tobacco, which have market shares of 21.9% and 16.5% respectively. In terms of volume, premium alcoholic drinks accounts for the largest share at 46.0%, followed by cosmetics & fragrances, which has a share of 31.0%.

Across the luxury markets under review, cosmetics & fragrances and watches & jewellery are forecast to be the fastest growing sectors for value and volume over the next 4 years. This growth in cosmetics & fragrances and watches & jewellery is driven by increased demand in emerging markets. Consumption of tobacco is set to grow only slowly by comparison over the next five years, with a decline in the developed regions of Western Europe and North America. Profits of luxury packaging suppliers in this area will also be seriously damaged if regulatory mandated plain tobacco packs – currently active in Australia and planned for the UIK – spread. 

All of these applications are potentially profitable markets for packaging manufacturers. This is because luxury packaging margins are typically higher than in mass-market packaging due to the greater perception of value it can add to the product. This is also reflected in a willingness for more investment in design and development work and justifies a larger outlay on materials and converting processes.

As the market expands, luxury applications will outstrip mean expansion in the packaging industry, growing at 4.4% in value terms year-on-year through to 2019 – culminating in a market Smithers Pira estimates at $17.6 billion in that year. Growth will be highest in Asia and the currently modest market of Latin America. The more mature regions of Western Europe and North America will see growth that, while still healthy, is below the global average.

The volume of luxury packaging consumed will increase at 3.1% annually across the same period.

GLOBAL BRANDS

In the 21st century globalised economy, ongoing industry consolidation means there is a smaller number of worldwide luxury houses that own multiple brands across different high-value markets. Examples of such houses are Moët Hennessy Louis Vuitton (LVMH) – the most valuable luxury goods group in the world; Richemont, PPR; and Kering.

Such companies are keen to maintain, and where possible burnish, brand identities on a global scale. They are investing to evolve several key technologies that will help shape and bolster the luxury packaging market over the next five years, including:

- Anti-counterfeiting and brand protection
- Digital printing
- Enhanced embellishment and tactile effects
- Connection to the online world via smart devices and Big Data stores.

In addition to these technology developments, there are a number of other factors impacting the direction towards which luxury packaging is developing, including:

- Active packaging that can affect the goods within is increasingly being used for luxury products, with for example, isothermal sleeves for champagne to keep the drink cool;
- Luxury experience packaging where increased physical engagement with the branded pack enriches the consumer’s overall experience. This encompasses designs for novel opening and unwrapping mechanisms; infusing paper and packaging material with long-lasting fragrances; and fixtures, for example magnetic closures for colour cosmetics compact cases so that consumers are able to hear a sound confirming that the product has closed correctly;
- Personalised packaging, where a packaging product is embellished to make it unique and personal to the consumer – a trend that is most prevalent in gift-giving and driven by the technical capability of inkjet printers;
- Sustainability is a megatrend across packaging. Luxury brands too are aware that a greener profile is a worthwhile commitment for products like confectionary and cosmetics. 

SUBSTRATES

The main materials used in luxury packaging are paperboard, glass, metal, plastic, textiles, leather and wood. Paperboard is the most popular material used in luxury packaging, accounting for a projected 41.9% share of luxury packaging market value in 2014. The second most used material in value terms is glass, followed by plastic, with market shares of 30.1% and 15.4% respectively.

Source : Smithers Pira

In terms of market volume, glass accounts for the largest share at 58.3%, followed by paperboard, which has a share of 25.9%. This discrepancy can be explained by the relatively lower cost of glass per tonne, compared to both luxury paperboard and plastic, as well as the higher unit weight and density of glass – particularly in the case of premium alcoholic drinks.

Across luxury packaging materials, plastic and glass are forecast to show the highest growth rates in value terms through to 2019. Plastic is also set to be the fastest growing material in terms of volume.

Demand for both glass and plastic is being driven by the recovery and stronger growth evident in the main luxury markets, particularly cosmetics and fragrances. Glass on the whole is losing share in packaging, but is proving much more resilient and hard to replace in luxury applications. Here it remains popular with brand owners and consumers, due in part to its strong sustainability associations, but more importantly for its high-quality appearance. Rising demand for plastic packaging meanwhile is being driven by its lower cost and lighter weight.

MARKET LANDSCAPE

The mass-market packaging industry is increasingly consolidated – especially in older material formats like glass and metal – but less so for newer rigid and flexible polymer types. The luxury packaging supply industry is also diverse – consisting of a large number of businesses with a broad range of sizes, scopes and product offerings.

There are a number of multi-material companies that have a particular speciality in luxury packaging; for example, the Verpack Group is a leading European manufacturer, specialising in luxury packaging made from both cardboard and plastic. There are also a number of large international packaging groups that specialise in one particular material and supply to the luxury market – for example, Mayr-Melnhof is one of the leading paperboard manufacturers, Ardagh Glass is a top glass manufacturer and Crown Specialty Packaging is a prominent metal packaging supplier.

BRAND PROTECTION

Counterfeiting that leads to lost sales and damaged brand perception is among the top concerns for luxury brands. This is a problem to which luxury pack designs can provide an answer – principally because high-grade materials and embellishments are much harder for counterfeiters to copy convincingly – giving an indication to consumer before they buy.

This opportunity is now coalescing around a number of key trends like enhanced decorative holograms and covert taggants and electronic platforms, where buyer can verify products themselves via smart device. The basic level for this is via QR codes. Such visual signs have a major drawback however in that their block monotone graphics are likely to seriously impinge on the overall appearance of the pack.

Systems that rely on radio-frequency identification (RFID) and increasingly Near-Field Communication (NFC) protocols have the advantage of being discrete. Furthermore the higher margins in luxury packaging mean that cost considerations that inhibit roll-out in mass applications are less of a barrier.

NFC, QR and RFID platforms have the added benefit that they can also allow the consumer and brand to interact – forging a deeper, more enduring relationship. For example, once a consumer has confirmed the authenticity of a purchased product using an internet connection to a secure online database, the same medium can be used to offer vouchers for repeat or complimentary purchases.

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SOURCE : LE MONDE.FR - 02 JUILLET 2016

La mode est par définition éphémère. Les groupes de mode devraient-ils l'être aussi ? Si certains se fanent l'espace de quelques saisons, d'autres s'épanouissent dans la durée. Beaucoup sont des enfants de l'après-guerre, comme Zara ou H&M, d'autres puisent leurs racines carrément au début du siècle. L'ancêtre de Vivarte, le chausseur André, a ouvert sa première boutique parisienne en  1903, avec comme slogan " souliers de mode depuis 1900 ". Et déjà cette idée du choix le plus large et des prix bas qui fera les délices de la société de consommation du XXe siècle.

Depuis trois ans, Vivarte, l'un des premiers groupes de mode français, avec 17 000 employés, enchaîne les plans de restructuration, les fermetures de magasins et les cessions de marques. Jeudi 30  juin, il a annoncé la mise en vente de trois de ses noms les plus populaires, Kookaï, Chevignon et Pataugas. En début d'année, la Compagnie vosgienne de la chaussure et l'enseigne Défi Mode avaient suivi la même route. La société n'en finit pas de détricoter un ouvrage construit depuis sa diversification dans l'habillement en  1984, et qui a culminé au seuil de la crise de 2008. Les marques acquises consciencieusement racontent l'âge d'or des gloires du quartier parisien du Sentier. Caroll, Creeks, Liberto, Kookaï, Naf Naf, Chevignon. Vivarte est un enfant des années 1980… comme un parfum de jeans à la française et d'exubérance à l'américaine.

Mais les fans des années 1980 doivent se souvenir que cette période a aussi apporté aux entrepreneurs français la magie de la finance et de l'endettement facile. Le virage vers l'habillement de la star hexagonale de la chaussure familiale s'est produit dans les deux décennies 1990-2010 sur une montagne de dettes, notamment grâce à l'arrivée en France des fonds d'investissement et de leur technique du LBO. Une formule magique qui permet à des financiers de racheter une entreprise au moyen d'un recours massif à l'endettement, remboursé par la société achetée. La crise de 2008 a sifflé la fin de cette période glorieuse où dirigeants et actionnaires gagnaient à tous les coups.

A la fois trop petit et trop gros.

La baisse de la consommation et l'arrivée à maturité d'une nouvelle concurrence ont fragilisé les châteaux de cartes comme Vivarte. Soudain, le français est devenu bien fragile face à des mastodontes comme Zara ou H&M, des monuments d'organisation rationnelle et d'innovation qui ont pulvérisé les modèles anciens.

Face à ces " machines ", la collection de marques de Vivarte n'a pas pu opposer une agilité et une créativité qui font le succès de petits nouveaux venus, comme le français Sandro Maje, ou de stars de l'Internet, comme le britannique Asos. Coincé au milieu du sablier, à la fois trop petit et trop gros, sous la pression d'actionnaires d'autant plus impatients qu'ils sont ses anciens créanciers, Vivarte n'a pas d'autre choix que de maigrir ou de disparaître. Pas facile de redevenir à la mode.

Philippe Escande

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Le diamant le plus gros au monde n’a pas trouvé preneur

By Romain, 15-juillet-2016, Journal du Luxe, Joaillerie & Horlogerie

Le plus gros diamant du monde a été mis aux enchères à Londres le mercredi 29 juin 2016. Il s’agit du Lesedi La Rona, un énorme diamant de 1 109 carats. Il n’a toutefois pas trouvé preneur.

Analysé par des experts de l’Institut américain de gemmologie, la pierre a été qualifiée de « la plus pure jamais trouvée ». Le Lesedi La Rona se démarque également par son ancienneté. On estime que la pierre daterait de 2,5 millions d’années.

Pour cause, son prix de réserve de 70 millions de dollars n’a pas été atteint. « Seulement » 61 millions de dollars ont été proposé lors de cette vente organisée par Sotheby’s.

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Night of Adetem (Nuit de l’Adetem) – Tuesday 07/05/2016

Picture: Award-winner Jean-Louis Moulins, professor at the University of Aix-Marseille, surrounded by two of the Jury members, its President Philippe Jourdan and Karine Cervoz-Goyat.

The first recipient of the Research Award RFM 2016 is Professor Jean-Louis Moulins, University of Aix-Marseille, and his co-author, Dr. Tarek Abid, with their article: "A scale for the social responsibility of brands: the application for consumers of organic food brands." (Original title: « une échelle de la responsabilité sociétale des marques : application aux consommateurs de marques alimentaires biologiques »).

This award was presented by Pierre-François Brézès, VP & General Manager, American Express Global Commercial Payments, France and Philippe Jourdan, head editor of the French magazine of Marketing, University Professor and founder of Promise Consulting Inc / Panel On the Web. The presentation of awards took place at the Night of Adetem (Nuit de l’Adetem), on July 5th 2016 and was held at the Pavillon Elysée, rue Marbeuf, 75008 Paris.

The aim of awarding this prize in the framework of the prestigious “Night of Marketing” is primarily the following: “To create a connection between the academic approach and the expressed need of marketers to find a source of knowledge, inspiration and innovation for renewed practices", says Philippe Jourdan, chef editor of the French Journal of Marketing since 2011. It also reinforces the magazine’s FNEGE / AERES ranking among the best French journals in Management Science.

Philippe Jourdan, president of the jury of this first edition, sincerely thanks the multidisciplinary jury of nine members, consisting of academics and professionals, French and Francophone (2 Swiss, 1 resident in Switzerland and one resident in San Francisco), for their adopted scientific assessment process based on the following criteria: originality of the subject, mastery of literature, rigor of the scientific and methodological approach, coherence of the argumentation and finally, the paper’s managerial contributions and its usefulness for Marketing professionals.

[MORE ABOUT THE JURY MEMBERS]

A FEW WORDS ON THE FRENCH JOURNAL OF MARKETING

The French Journal of Marketing aims to present the most innovative marketing techniques and practices to the academic community, to the students and to the professionals in the French speaking countries It thus pursues two major purposes: a scientific quality regarding the selection of the published articles and a selection based on relevance, interest as well as impact on all marketing professionals (teachers and practitioners) of the best articles.

As first French journal in the field of education and marketing strategy, the French Journal of Marketing distributes 4 numbers per year in France, as well as in 38 countries.

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[LEARN MORE ABOUT THE NIGHT OF MARKETING]

MORE ABOUT PROMISE CONSULTING

Pr Philippe Jourdan, CEO of Promise Consulting, is the editor-in-chief of Adetem’s journal, the French Journal of Marketing (Revue Française de Marketing, RFM), since 2011. He publishes in academic journals internationally on the problems of the valuation of the brands in luxury, beauty and selective distribution. He also publishes in the economic press and news media (such as Le Monde, les Echos, le Figaro, l’Opinion, la Revue des Marques, etc.). Philippe is a university professor, researcher at the IRG (CNRS) and laureate of the Best Article of Research AFM 2000. He holds a certification in social media and is member of ESOMAR.

Promise Consulting is a company specialized in marketing studies and consultancy, issued from the merge of Promise Consulting Inc., JPL Consulting and Panel on the Web. Promise Consulting integrates services of market research and marketing consultancy delivered with a high added value. We created an innovative measuring methodology of a brand’s performance and its return on investments (ROI): “Monitoring Brand Assets©”. This methodology, deployed in nearly 50 countries, has surveyed 250 brands in multiple sectors, totaling over 1.5 million questionnaires.

Established in Paris, New-York and Casablanca, Promise Consulting conducts studies and services of consultancy in the whole world. Promise Consulting is mostly known for its expertise in measuring a brand’s value from the clients’ perspective. Promise Consulting has developed innovative techniques and models, was awarded 7 times in 10 years, by its Peers nationally and internationally. It provides insights and recommendations to the most notorious brands in luxury, cosmetics and retailing sectors, helping them develop on national and foreign markets. It is also active in several sectors of the industry, every time the brands are looking for an effective growth strategy in order to better understand the market, to reach their customers, attract them and, finally, keep them.

Promise Consulting is one of the 300 highly qualified members of the ICG (Internal Consulting Group): A network which brings experts from different areas of competencies (marketing, finance, governance, risk management, ect.) together, aiming to offer companies high-level consulting services on a transnational basis.

To cope with the growth of its business, Promise Consulting has established two departments to specialize its strong sector expertise: 

> LUXURY LAB: dedicated to the luxury sector in the world of Fashion, Beauty and selective distribution, Luxury Lab follows nearly 250 luxury brands in over 35 countries for over 10 years.
More: promiseconsulting-blog.com

> CONSO LAB: dedicated to the sectors of FMCG, automotive, finance and retail, Consumer Lab accompanies the announcer from the concept testing to the tracking of the market performance.
More: promiseconsulting-consoblog.com

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