everything will come in plain white boxes · retail is constantly evolving. in recent years, ......

Everything will come in plain white boxes(and other online shopping predictions)

A whitepaper from Sun Branding Solutions

Sun Branding Solutions | Online Shopping Whitepaper

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It might seem like online shopping is growing at an exponential rate, with new formats, new technology and new functionality emerging every day, sounding a death knell daily for bricks and mortar stores.

But in reality, in-store sales still account for up to 95 per cent of all retail experiences worldwide. In the UK, online sales account for a slightly higher 15 per cent of retail spending - around £1bn a week, which puts us near the head of the pack and only just lagging behind China.

While these figures continue to grow steadily (April 2017’s figures were up 19 per cent year on yeari), it’s a relatively steady progression to say online shopping has been part of our lives for 22 years.

But many experts say a change is coming. Futurologist David Smith of GFF Futuresii, says digital platforms open the door to new markets, experiences and growth potential.

“Digital platforms are transforming the way we do business by creating vast markets, crafting superior customer experiences and prompting new ways to innovate,” he said.

“This could lead to further internationalisation of the shopping experience, with Accenture predicting that up to 45 percent of consumers will shop overseas by 2020. There will also be a shift in the medium of online retail. By 2020, m-commerce could account for 49 percent of total online retail commerce.”

So, will online shopping soon overshadow bricks and mortar retail – or even become our only option? Can brands really survive in a world where convenience, immediate access and speed of delivery trump face-to-face brand engagement?

Over the next eight chapters, we’ll be drawing on the insights of futurologists, academics, tech specialists and packaging design experts to drill down into some of the burning questions surrounding online shopping.

By 2020, m-commerce could account for 49% of total online retail commerce.


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It might seem like online shopping is growing at an exponential rate, with new formats, new technology and new functionality emerging every day, sounding a death knell daily for bricks and mortar stores.

But in reality, in-store sales still account for up to 95 per cent of all retail experiences worldwide. In the UK, online sales account for a slightly higher 15 per cent of retail spending - around £1bn a week, which puts us near the head of the pack and only just lagging behind China.

While these figures continue to grow steadily (April 2017’s figures were up 19 per cent year on yeari), it’s a relatively steady progression to say online shopping has been part of our lives for 22 years.

But many experts say a change is coming. Futurologist David Smith of GFF Futuresii, says digital platforms open the door to new markets, experiences and growth potential.

“Digital platforms are transforming the way we do business by creating vast markets, crafting superior customer experiences and prompting new ways to innovate,” he said.

“This could lead to further internationalisation of the shopping experience, with Accenture predicting that up to 45 percent of consumers will shop overseas by 2020. There will also be a shift in the medium of online retail. By 2020, m-commerce could account for 49 percent of total online retail commerce.”

So, will online shopping soon overshadow bricks and mortar retail – or even become our only option? Can brands really survive in a world where convenience, immediate access and speed of delivery trump face-to-face brand engagement?

Over the next eight chapters, we’ll be drawing on the insights of futurologists, academics, tech specialists and packaging design experts to drill down into some of the burning questions surrounding online shopping.

By 2020, m-commerce could account for 49% of total online retail commerce.


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1. Are bricks and mortar stores really dying?

Retail is constantly evolving. In recent years, we’ve seen a seismic shift in store formats as retailers continue to be aligned to changing consumer needs and habits. Whilst this is driven partly by the growth of online shopping, smaller shops, increased frequency and a lack of brand loyalty are all driving challenging conditions for the conventional retail formats.

While some shoppers hardly set foot in a bricks and mortar store these days, a majority percentage still prefer the experience of a physical store, and many see the ability to be able to swap between online and in-store channels as the most effective way to make choices.

Amazon made their first online sale back in 1995, so you’d imagine purely online would be their focus for growth. In fact, Amazon are focusing more on consumer experience, supported by technical innovation, to continue to build their brand across multiple channels. And their recent acquisition of Whole Foods in the US has sparked debate about their plans to expand into physical retail space. In fact, supermarkets are already feeling the effects. On Amazon’s first day of full ownership, it cut prices at Whole Foods by as much as 43 per cent on some items in its US stores, knocking the share prices of US rivals Costco and Kroger.

Prices fell in UK supermarkets too, with retail analysts predicting the ripples could grow into much bigger waves in the coming months.

The Telegraph reportediii: “The price cuts could hasten moves by UK supermarkets to pursue deals that will give them greater scale or new revenue streams. Sainsbury’s won a battle last year to snap up Argos owner Home Retail Group, which gave it a greater presence in consumer electricals, and is in discussions to buy Nisa, the member-owned wholesaler and convenience chain. Its rival Tesco is also trying to buy wholesaler Booker.

“These moves by the UK grocers could be doubly important given Amazon said it would also introduce Whole Foods’ own-brands to its Amazon Fresh, Prime Pantry and Prime Now offers across 302 postcodes in London and South East, extending Amazon's grocery offering. Amazon already has a


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wholesale agreement with Morrisons to sell fresh food in the UK, but rolling out Whole Foods’ produce, which is known for its organic and artisanal products, could attract more affluent customers to its £79-a-year Prime subscription service.”

Amazon is also experimenting with format to complement its acquisition strategy. Over the last year, they’ve been trialing pop-up book stores and have now progressed to cash-less, checkout-less convenience. Amazon Go is the online retailer’s prototype no queue, no checkout store; currently just open to Amazon employees in Seattle for beta testing, but a real opportunity to use machine learning to learn from, then play to, the cosmopolitan shopper’s demand for no-fuss convenience.

The test store is just 1,800 square feet, sells freshly prepared food made in store and everyday essentials, to cater to the day to day shopper.

You scan your mobile phone on entry, pick up the items you want and walk out; your purchases are then added to your Amazon account. Fresh food, freshly prepared, but with the convenience of an online account.

It may be that Amazon Go is the brand’s attempt to drive loyalty to its Amazon Fresh and Amazon Dash offers, delivering a more convenient way of shopping wherever you are. Or it may be an understanding of the idea that consumer behaviour is in fact the biggest disruptor, not technological developmentiv (though clearly the tech helps in Amazon’s case), and that these days, shoppers want multiple ways to shop the same brand.

The furniture trade has also seen seismic changes in the way consumers are shortlisting and editing choice through all media channels. A recent survey showed that 100 per cent of furniture consumers utilised 100 per cent of

A recent survey showed that 100% of furniture consumers utilised 100% of channels available from magazines, online, TV and physical stores before they selected their final choice.


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1. Are bricks and mortar stores really dying?

Retail is constantly evolving. In recent years, we’ve seen a seismic shift in store formats as retailers continue to be aligned to changing consumer needs and habits. Whilst this is driven partly by the growth of online shopping, smaller shops, increased frequency and a lack of brand loyalty are all driving challenging conditions for the conventional retail formats.

While some shoppers hardly set foot in a bricks and mortar store these days, a majority percentage still prefer the experience of a physical store, and many see the ability to be able to swap between online and in-store channels as the most effective way to make choices.

Amazon made their first online sale back in 1995, so you’d imagine purely online would be their focus for growth. In fact, Amazon are focusing more on consumer experience, supported by technical innovation, to continue to build their brand across multiple channels. And their recent acquisition of Whole Foods in the US has sparked debate about their plans to expand into physical retail space. In fact, supermarkets are already feeling the effects. On Amazon’s first day of full ownership, it cut prices at Whole Foods by as much as 43 per cent on some items in its US stores, knocking the share prices of US rivals Costco and Kroger.

Prices fell in UK supermarkets too, with retail analysts predicting the ripples could grow into much bigger waves in the coming months.

The Telegraph reportediii: “The price cuts could hasten moves by UK supermarkets to pursue deals that will give them greater scale or new revenue streams. Sainsbury’s won a battle last year to snap up Argos owner Home Retail Group, which gave it a greater presence in consumer electricals, and is in discussions to buy Nisa, the member-owned wholesaler and convenience chain. Its rival Tesco is also trying to buy wholesaler Booker.

“These moves by the UK grocers could be doubly important given Amazon said it would also introduce Whole Foods’ own-brands to its Amazon Fresh, Prime Pantry and Prime Now offers across 302 postcodes in London and South East, extending Amazon's grocery offering. Amazon already has a


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channels available from magazines, online, TV and physical stores before they selected their final choice. The entry of pure digital players such as Made.com and Sofa.com challenged the industry norms, although both have moved into physical retail space to ensure their consumers have the ability to touch, feel and engage with the product before final selection can be made. After all, can consumers really consider finalising large-scale / high value purchases without physical engagement? We’ve recently seen fantastic use of technology to allow consumers to personalise, to view virtually in their own home and video content to support engagement. But this is still failing to convince consumers that they don’t need to “try before they buy.”

Omnichannel is undoubtedly the future, but with many brands trying to clumsily merge their existing channels, as opposed to resetting and creating a true omnichannel experience, brands and retailers are feeling challenged to look at their brand experience across multiple platforms, as one journey, through the eyes of their consumers. According to Retail Week Connect Retail 2017 reportv, only 18 per cent of retailers say they have a single view of their customer and stock, the point defined as ‘omnichannel nirvana’. And a third say they’re still several years away from getting there. So, it’s clear technological developments and artificial intelligence can’t do it all – retailers need to think differently to keep up with what consumers are demanding, viewing their offer as one seamless brand journey.

Making your physical space work harder could also be key, especially for major retailers trying to evolve their large footprint stores as their customers’ focus moves more to convenience. Walmart trialed this last year with its hybrid Seiyu store in Tokyo. Using one location to serve both physical and

Only 18% of retailers say they have a single view of their customer and stock, the point

defined as ‘omnichannel nirvana’. And a third say they’re still several years away

from getting there.


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digital shoppers, one floor features a traditional store, with a ‘dark store’ on another, to ensure delivery of online orders doesn’t disrupt the in-store shopping experience. In a similar vein to Ocado and Morrisons’ direct from warehouse picking model, this helps streamline processes and give a clearer view on stock, whilst making the most of the retailer’s existing estates.

Centralising operations in this way could increase automation and, say some, free up employees’ time to focus on customer service. But it’s been reported that supermarkets of the future like Amazon Go could operate with just three staff, supported by robots; so, are we moving forward in terms of tech, time-saving and logistics, but losing what a lot of in-store shoppers really want – product knowledge, customer service and a friendly face?

Physically interacting with product is also a major consideration when it comes to considering a purely digital vs. physical retail strategy. Academics at the Leeds Beckett University Retail Institute have been researching consumers’ need to physically interact with a product, looking at emerging technologies which could help bridge the gap between our need for convenience and our need for physical interaction with the brands we buy.

They’ve been charting the development of haptic devices for use in digital channels, with the first commercially available products now coming to market, such as the Teslasuit and Gloveone.

“Visual-tactile product evaluation leads to greater purchase intent than vision alone, touch is used to reaffirm the information provided by the visualvi,” says Brendan Emmerson, Researcher in Sensory Marketing.

“Tactile cues include texture, weight and shape which together influence consumers’ purchase decision, product choice, trust and willingness to pay.

Supermarkets of the future like Amazon Go could operate with just three staff, supported by robots.


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channels available from magazines, online, TV and physical stores before they selected their final choice. The entry of pure digital players such as Made.com and Sofa.com challenged the industry norms, although both have moved into physical retail space to ensure their consumers have the ability to touch, feel and engage with the product before final selection can be made. After all, can consumers really consider finalising large-scale / high value purchases without physical engagement? We’ve recently seen fantastic use of technology to allow consumers to personalise, to view virtually in their own home and video content to support engagement. But this is still failing to convince consumers that they don’t need to “try before they buy.”

Omnichannel is undoubtedly the future, but with many brands trying to clumsily merge their existing channels, as opposed to resetting and creating a true omnichannel experience, brands and retailers are feeling challenged to look at their brand experience across multiple platforms, as one journey, through the eyes of their consumers. According to Retail Week Connect Retail 2017 reportv, only 18 per cent of retailers say they have a single view of their customer and stock, the point defined as ‘omnichannel nirvana’. And a third say they’re still several years away from getting there. So, it’s clear technological developments and artificial intelligence can’t do it all – retailers need to think differently to keep up with what consumers are demanding, viewing their offer as one seamless brand journey.

Making your physical space work harder could also be key, especially for major retailers trying to evolve their large footprint stores as their customers’ focus moves more to convenience. Walmart trialed this last year with its hybrid Seiyu store in Tokyo. Using one location to serve both physical and

Only 18% of retailers say they have a single view of their customer and stock, the point

defined as ‘omnichannel nirvana’. And a third say they’re still several years away

from getting there.


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“When touch is denied, unfavourable feelings are created in the mind of the consumer, such as decreased confidence in the purchase. This is compounded when the product is high in material properties (such as a mobile phone, clothing, or pillow) where visual recognition is not enough to determine product quality. It is therefore important to consider how we can appeal to the tactile sense in a digital context.”

As with the majority of consumer behaviour, there’s no ‘one size fits all’ solution, and it all comes down to each shopper’s ‘need for touch’ or NFT, say the Retail Institute. Shoppers who have a high NFT are more likely to buy in store, or at the very least research in a store before buying online. Low NFT consumers are more likely to research and purchase online. This gives omnichannel retailers a distinct advantage as they appeal to people on both ends of the NFT spectrum.

A solution may exist in touchscreen devices. Higher interface touch leads to increased perceived ownership; this results in a positive difference between the amounts someone is willing to pay for a product and how much they would be willing to accept for it if sold. This in turn leads to more positive product evaluations for highly haptic products. Interestingly, this effect is greater when the touch device is owned by the user, this could be due to a transference of device ownership to perceived ownership of the displayed product.

Apple is just one company providing tactile experiences using a “taptic engine” and “3D touch” to create the illusion of depth and texture touch in their devices. This marries tactile and auditory stimulation to grab consumer attention and drive engagement in a way which can’t be achieved through vision alone.

Disney research is developing textured touchscreens which use electro-vibrations

to simulate 3D features such as bumps, edges and texture, which can be applied to

static images and video streams.


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Meanwhile, Disney research is developing textured touchscreens which use electro-vibrations to simulate 3D features such as bumps, edges and texture, which can be applied to static images and video streams. This could give consumers the ability to experience material properties without leaving their home. We are now seeing the first commercially available haptic gloves for use with virtual reality devices. Neurodigital’s Gloveone promises to simulate object weight and differentiate between textures using vibrotactile actuators while the Teslasuit also offers a full body haptic experience with real-time temperature simulation.

Haptic devices such as these allow consumers to make more informed decisions which, in turn, could reduce return rates for non-touch channels. These devices may bridge the gap between what we see and feel in store and the digital world, but as with any developing technology, it’s unclear as to whether the average shopper would be willing to invest in such gadgets, and whether they’re relevant outside of a research environment.


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“When touch is denied, unfavourable feelings are created in the mind of the consumer, such as decreased confidence in the purchase. This is compounded when the product is high in material properties (such as a mobile phone, clothing, or pillow) where visual recognition is not enough to determine product quality. It is therefore important to consider how we can appeal to the tactile sense in a digital context.”

As with the majority of consumer behaviour, there’s no ‘one size fits all’ solution, and it all comes down to each shopper’s ‘need for touch’ or NFT, say the Retail Institute. Shoppers who have a high NFT are more likely to buy in store, or at the very least research in a store before buying online. Low NFT consumers are more likely to research and purchase online. This gives omnichannel retailers a distinct advantage as they appeal to people on both ends of the NFT spectrum.

A solution may exist in touchscreen devices. Higher interface touch leads to increased perceived ownership; this results in a positive difference between the amounts someone is willing to pay for a product and how much they would be willing to accept for it if sold. This in turn leads to more positive product evaluations for highly haptic products. Interestingly, this effect is greater when the touch device is owned by the user, this could be due to a transference of device ownership to perceived ownership of the displayed product.

Apple is just one company providing tactile experiences using a “taptic engine” and “3D touch” to create the illusion of depth and texture touch in their devices. This marries tactile and auditory stimulation to grab consumer attention and drive engagement in a way which can’t be achieved through vision alone.

Disney research is developing textured touchscreens which use electro-vibrations

to simulate 3D features such as bumps, edges and texture, which can be applied to

static images and video streams.


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2. Can you never have too much choice?

While almost half of regular online grocery shoppers claim to enjoy the shopping experience, spending an average of 20 minutes to browse the offer, 30 per cent say online shopping bores them, and that they want to find what they need and log off as quickly as possiblevii.

How often do you find yourself scrolling through pages of almost identical products online, only to log off without having bought the item you needed? At a time where we have more choice than ever before, is choice becoming a barrier to purchase?

According to psychologists, it all comes down to risk and the fear of making a poor decision – especially if it’s costing you money. This example from Dr Sheena Iyengar’s book, The Art of Choosing shows just that:

An American supermarket presented customers with two different sampling stations: one with 24 flavours of jam and the other with only six options. All received a money off voucher. When six options were available, 30 per cent of shoppers went on to buy at least one jar of jam, while the sampling station with 24 flavours had a conversion rate of only 3 per cent.

With six options, you have a good chance of making the right choice; with 24, you’re taking a real gamble.

An interesting experiment, when you consider that the average UK shopper is faced with around 45,000 products when they shop at a bricks and mortar

While almost half of regular online grocery shoppers claim to enjoy the shopping

experience, spending an average of 20 minutes to browse the offer, 30% say

online shopping bores them.


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supermarket. In the US, it’s more like 100,000. And although online ranges do tend to be edited down from the in-store offer, there’s still a lot to navigate, especially when 80 per cent of regular online grocery shoppers are using it to do their ‘big shop’.

So, does this proliferation of choice force us to stick with what we know to get the job done? According to the Retail Institute at Leeds Beckett University, it isn’t that simple. As with any form of marketing, data is key to targeting more effectively and a broad-brush approach just won’t work.

The Retail Institute categorises consumers in to two groups, based on their ability to search for information and their willingness and motivation to go the extra mile in processing and analysing it; they call them ‘maximizers’ and ‘satisficers’.

“Maximizers are the ones who are extremely conscientious on their information search, take extra time to go through every bit of information available, take great effort to read around the product category to increase their knowledge base, make extensive use of online reviews so that they choose the perfect product, get the “best value for money” and avoid regret of making a wrong choice,” says Prithwiraj Nath, Professor of Marketing.

“On the other hand, ‘satisficers’ look for an alternative that is ‘good enough’, minimize information search time, effort and cost, and want to make a quick choice.”

Maximizers like to have a large selection to choose from. They use various tools like recommendations, online reviews and comparison matrices that can help them to make choosing interactive, informative and fun. By using interactive information systems, retailers can help such consumers feel confident making a choice, justify it and minimize the fear of making the wrong decision.

In contrast, satisficers want a tailor-made approach, where every bit of information is personalised and specific to their individual needs. This means any personalisation tools such as expert advice, help-me choose features and customised newsletters will increase the likelihood of them making a purchase.


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2. Can you never have too much choice?

While almost half of regular online grocery shoppers claim to enjoy the shopping experience, spending an average of 20 minutes to browse the offer, 30 per cent say online shopping bores them, and that they want to find what they need and log off as quickly as possiblevii.

How often do you find yourself scrolling through pages of almost identical products online, only to log off without having bought the item you needed? At a time where we have more choice than ever before, is choice becoming a barrier to purchase?

According to psychologists, it all comes down to risk and the fear of making a poor decision – especially if it’s costing you money. This example from Dr Sheena Iyengar’s book, The Art of Choosing shows just that:

An American supermarket presented customers with two different sampling stations: one with 24 flavours of jam and the other with only six options. All received a money off voucher. When six options were available, 30 per cent of shoppers went on to buy at least one jar of jam, while the sampling station with 24 flavours had a conversion rate of only 3 per cent.

With six options, you have a good chance of making the right choice; with 24, you’re taking a real gamble.

An interesting experiment, when you consider that the average UK shopper is faced with around 45,000 products when they shop at a bricks and mortar

While almost half of regular online grocery shoppers claim to enjoy the shopping

experience, spending an average of 20 minutes to browse the offer, 30% say

online shopping bores them.


12

“Retailers need to focus on presenting the choice that can reduce information search cost and any undesirable emotion that such consumers might have in the fear of not being able to understand the choices,” said Professor Nath.

“Retailers need to offer the widest range of choices to maximizers supported with a platform where consumers can have high levels of interactivity with the retailer and other consumers in exploring all opportunities to know more about the product and be satisfied there is no better option available that can give them superior value for money.

“On the contrary, retailers should offer satisficers with limited and focused choice where personalisation is the key. Using site-centric clickstream data such as time spent on webpages, number of clicks made, that captures online consumption behaviour, retailers can easily identify the psychological profile of their consumers, build such differentiation tools on their customer relationship management system and improve consumer engagement in their choice-making journey.”

Data and clever UI has a lot of work to do when it comes to giving customers the confidence to click ‘buy’. But there are already examples of clever curation that not only drives sales, but opens conversations between the shopper and the brand and delivers longer term brand engagement.

Tommy Hilfiger unveiled TMY.GRL to support its Autumn 2016 collection; a bot that can help users navigate the brand's new collection through a series of automated messages. The aim was to deliver a personalised, concierge-style experience to drive brand engagement and help the shopper filter the collection based on their own needs and preferences. A great way to narrow those 20 little black dresses down to one.

But how can you ensure ease of navigation when it comes to grocery shopping; when dwell time is shorter, more people are shopping on mobile, shoppers have a clearer view of what they want to buy and you have multiple pack sizes and variants in your range?

Today about half the adult population owns a smartphone, and by 2020, 80% will.


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The University of Cambridge and Unilever have been working on new ways of visualising products for e-commerce, focusing specifically on ease of shop on mobile. Today about half the adult population owns a smartphone, and by 2020, 80 per cent will. We all expect to be able to do everything that your laptop can do on your mobile, however there are a few major differences; the screen size is much smaller and the rate of scrolling is much faster.

Online, your front-of-pack design is first viewed as a thumbnail about the size of a postage stamp, so how do you communicate quickly and clearly?

The main output of the research was to move away from conventional pack shots and instead, adopt a digitally created representation of the product, known as a HERO image, that delivers a stronger recognition of brand, product type, variant and pack size.

The artwork for creating this new breed of eCommerce images is also completely open sourced. Sun Branding Solutions is currently using the research to create clear e-commerce navigation for a major FMCG client, saving them money on costly pack photography and retaining brand integrity while creating ease of shop.

Sun Branding Solutions account director Kevin McAulay has been working on developing eCommerce images for some big name FMCG clientsviii, and believes they could be vital to brands’ success in a busy online marketplace.

“Pack shots are still industry standard, however with more consumers now using their mobile devices for grocery shopping, I would say standard pack shots don’t work; I’d even go as far as saying that they adversely affect the user experience.

“Consumers want to be able to visually scan when shopping online and don’t like being forced to read. With still the same amount of space on screen, mobile ready HERO images deliver stronger recognition of product, brand, size and variant. Sun Branding have already worked with a number of global brand owners to help launch their mobile ready HERO images to market, in doing so seen a double-digit uplift versus standard pack shots.”


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“Retailers need to focus on presenting the choice that can reduce information search cost and any undesirable emotion that such consumers might have in the fear of not being able to understand the choices,” said Professor Nath.

“Retailers need to offer the widest range of choices to maximizers supported with a platform where consumers can have high levels of interactivity with the retailer and other consumers in exploring all opportunities to know more about the product and be satisfied there is no better option available that can give them superior value for money.

“On the contrary, retailers should offer satisficers with limited and focused choice where personalisation is the key. Using site-centric clickstream data such as time spent on webpages, number of clicks made, that captures online consumption behaviour, retailers can easily identify the psychological profile of their consumers, build such differentiation tools on their customer relationship management system and improve consumer engagement in their choice-making journey.”

Data and clever UI has a lot of work to do when it comes to giving customers the confidence to click ‘buy’. But there are already examples of clever curation that not only drives sales, but opens conversations between the shopper and the brand and delivers longer term brand engagement.

Tommy Hilfiger unveiled TMY.GRL to support its Autumn 2016 collection; a bot that can help users navigate the brand's new collection through a series of automated messages. The aim was to deliver a personalised, concierge-style experience to drive brand engagement and help the shopper filter the collection based on their own needs and preferences. A great way to narrow those 20 little black dresses down to one.

But how can you ensure ease of navigation when it comes to grocery shopping; when dwell time is shorter, more people are shopping on mobile, shoppers have a clearer view of what they want to buy and you have multiple pack sizes and variants in your range?

Today about half the adult population owns a smartphone, and by 2020, 80% will.


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3. Does online shopping really create more food and packaging waste?

We’ve all seen the pictures on social media: a pen delivered in a huge box filled with brown paper, a CD in a box too big to fit through your letterbox. And over the past couple of years, online retailers have taken a real hammering in the media for transporting air in a bid to consolidate delivery box stocks.

But it isn’t a situation that needs to continue. Sun Branding Solutions pack science director Gillian Garside-Wight believes there are real solutions that could reduce packaging waste and drive innovation, and that Amazon has the opportunity to lead the pack. She believes “the packaging currently used by Amazon is as excessive as ordering a package through drone delivery and receiving it via fighter jet.”

“Amazon currently uses standard sized corrugate boxes or book/DVD envelopes for most of its deliveries,” says Gillian. “Yet very few items come through mainstream postal routes: most go to drop off points or are delivered by courier. You simply don’t need that much cardboard for these delivery methods – all you’re doing is increasing wastage and transporting a lot of air.

“We know that standard packaging formats and sizes aid their operations, ensuring that there aren’t hundreds of types of packaging in their distribution area, but that’s why so much stuff arrives in way too much packaging.” But it’s not like there aren’t other options that are cost-effective and sustainable. Why not use flexible packaging, which takes up less space and uses less material? One example of this in practice is Rockpacket developed by Parkside Flexibles, but why not take this further and make it recyclable or even better, re-usable?”

“Or how about no packaging at all? If the product doesn’t require additional protection, you can always stick the delivery label on top instead of enclosing it in another box. And for Prime customers, Amazon could consider incentivising them with returnable packaging which is collected when they get their next delivery.


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So, the potential to reduce secondary packaging waste is there; as with most major changes, it just needs someone to make the first move. And it isn’t just retrofitting – thinking online first when it comes to structural packaging could revolutionise the way ecommerce deliveries work.

Sun Branding Solutions’ group commercial director Sonia Whiteley-Guest believes thinking ‘last mile’ first is vital to changing the way we look at primary packaging for ecommerce, especially if retailers want to convince their in-store shoppers to trust their omnichannel offer.

“The last mile” is often sadly dependent on human interaction and some products just don’t make it,” she said.

“Product that hasn’t had the benefit of packaging structure advice, product that has not quite been kept within the chill chain, product that has been poorly stacked either on trucks, in cages, in stores or even in trollies and carrier bags.

“Packaging however, that is designed primarily to last throughout an online shopping experience, rather than an instore one, has a far better chance. Retailers don’t seem to have quite “flicked the switch” into thinking online first yet – but once they do, that will change the form and function of many packaging trends.”

One of the main benefits of doing your grocery shop online is buying in bulk, letting the delivery van, not you, take the strain. In high cost but low interest areas, such as cleaning products and frozen food, you can actually reduce packaging waste by buying the bigger pack you might otherwise not

Retailers don’t seem to have quite “flicked the switch” into thinking

online first yet – but once they do, that will change the form and function

of many packaging trends.


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have wanted to transport home. And because the product doesn’t have to be displayed on shelf, refill packs, or even relatively unbranded packs can be bought and decanted at home.

Cost to the customer could be reduced, as well as the cost to the environment. And at a time when retro is in demand, could we see a resurgence in more lasting branded packaging, like the OXO tin.

A need for convenience and ease of use has also fuelled a move towards meal solutions, with the likes of HelloFresh and Gousto capitalising on the increased spending power of time-poor but cash-rich consumers, delivering just the right amount of everything to their customers’ door.

At just one per cent of UK grocery spendix, the recipe box market is still relatively small and so far, with limited financial success, according to The Grocer. Yet some supermarkets are already eyeing this sector, with Waitrose and the Co-Op both venturing into the recipe box arena. Because although sales are so far relatively small, many recipe box companies are seeing triple-digit sales increases.

However, while providing just the right amount of ingredients to make each meal may mean less food is wasted, individually packed single tablespoons of oil and multiple sachets of mayonnaise does mean overall packaging waste increases.

Bloom & Wild is a new online flower shop that has taken the art of online delivery formats the extra mile. Through their letterbox flowers range, bunches of flowers arrive in post box sized cardboard envelopes, eliminating the need for water buckets, cellophane and large cardboard boxes that conventional florists would send. Plus, the convenience of not having to be in to receive your flowers makes it very consumer friendly.

It’s this type of fresh thinking that should encourage other retailers to consider their contribution to reducing packaging waste by considering how consumers need to receive established brands after the point of purchase.


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So, the potential to reduce secondary packaging waste is there; as with most major changes, it just needs someone to make the first move. And it isn’t just retrofitting – thinking online first when it comes to structural packaging could revolutionise the way ecommerce deliveries work.

Sun Branding Solutions’ group commercial director Sonia Whiteley-Guest believes thinking ‘last mile’ first is vital to changing the way we look at primary packaging for ecommerce, especially if retailers want to convince their in-store shoppers to trust their omnichannel offer.

“The last mile” is often sadly dependent on human interaction and some products just don’t make it,” she said.

“Product that hasn’t had the benefit of packaging structure advice, product that has not quite been kept within the chill chain, product that has been poorly stacked either on trucks, in cages, in stores or even in trollies and carrier bags.

“Packaging however, that is designed primarily to last throughout an online shopping experience, rather than an instore one, has a far better chance. Retailers don’t seem to have quite “flicked the switch” into thinking online first yet – but once they do, that will change the form and function of many packaging trends.”

One of the main benefits of doing your grocery shop online is buying in bulk, letting the delivery van, not you, take the strain. In high cost but low interest areas, such as cleaning products and frozen food, you can actually reduce packaging waste by buying the bigger pack you might otherwise not

Retailers don’t seem to have quite “flicked the switch” into thinking

online first yet – but once they do, that will change the form and function

of many packaging trends.


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Some projections put AR and VR investment in retail at close to $30 billion by 2020, from almost nothing today.

4. Is virtual reality shopping really the future?

According to a report by Ovisx, the lines between traditional and internet only retailers are becoming blurred and will eventually be completely eradicated. As in-store experiences become more experiential, online retailers will need to keep up if they’re going to keep an increasingly experience-focused customer base happy.

Both virtual and augmented reality are relatively new arenas for the majority of traditional retailers, but interest is growing. Last year, IKEA launched its first virtual reality kitchen – where customers could explore and interact with a full-size kitchen plan, and it’s predicted that spending on AR and VR is set to explode.

“Some projections put AR and VR investment in retail at close to $30 billion by 2020, from almost nothing today,” says futurologist David Smith.

“IKEA is one example of a retailer piloting a VR app with a longer-term view of transforming the shopper experience, and an awareness that mixed reality has profound implications for retail.

“Future out of store applications could enable the customer to virtually engage with the retailer at home or work. For example, an eCommerce-only retailer could open a 3D channel by virtually recreating the benefits of being in store. VR could also be explored as a payment medium and ‘third space’ between online and physical.”

But that doesn’t mean we’ll all be doing our grocery shop via virtual reality headsets. The future is more likely to be a place for mixed reality, not virtual reality.


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“Augmented Reality – in the form of Sun Branding’s own AR Packaging app and companies like Blippar – was an effort to bridge the gap between a digital-first consumer and the very much offline in-store experience and hasn’t really changed the world either – consumers aren’t, it seems, particularly interested in getting out their smartphones in a store and taking a picture of a tin in order to see what’s in their baked beans,” says Sun Branding CIO Kevin Evans.

“Part of the challenge in that is persuading a consumer that they want to download an app, install it on their phone, get their phone out in a grocery store and spend more time in-store when they’re busy and trying to get the evening’s shopping done before they get home. It’s an uphill battle and unless the payoff for the consumer (in terms of discounts and special offers) is significant, it’s doomed to fail, and that level of promotional payoff isn’t sustainable for the retailers or private brand owners.

“3D headsets are in a slightly different category here – the key is not to attract consumers to buy them because they can interact with their favourite stores and brands, but to appeal to users who buy them to play games and watch films and are seeking other novel uses for them. Apple’s app store is a great example of this phenomenon; people who have spent a few hundred pounds on a tablet will search out new opportunities to use apps on it in the comfort of their own home and in their spare time, but even the most ardent fans of an app are unlikely to buy an iPad specifically so they can use it.

“Tapping into that home-user market of 3D headsets means, in the first instance, the likely audience will be gamers and early-adopters; a tempting audience for upscale brands with an adventurous approach to technology.”

So, while AR and VR offers innovative brand engagement and great cost-saving opportunities for brands and retailers, it’s unlikely that a busy mum will have the time or inclination to retreat from the real world to do her weekly shop in a VR environment.

Today, social media influences 63% of everything we buy online.


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Some shifts that influence the way we shop are more subtle; so it isn’t all about wearable tech and replicating the physical shopping experience in your home.

Today, social media influences 63 per cent of everything we buy online, according to Cognizantxi. And with Facebook apparently looking in to VR and haptics, today’s social media could soon become an even more powerful retail space.

Many brands are yet to launch direct social media shopping, but with more than half of consumers who follow brands on social media sites saying they do so to browse products, it can only be a matter of time.

Facebook is the most popular network people for browsing product (2 per cent), followed by Instagram (8 per cent) and Pinterest (6 per cent). Facebook also tops the poll for people who go on to make a purchase through the brand’s ecommerce site.

Social commerce penetration varies by region, with slower uptake in North America than APAC. However, according to Altimeter’s 2016 Social Business Reportxii, 42 per cent of North American marketers list social commerce as a key strategic priority, which reflects the growing importance of ecommerce in general to an increasingly connected market, both technologically and logistically.

Brands need to be careful not just to jump on the bandwagon however; it’s vital to get your offer and your approach right, according to Hootsuite’s guide to social media trends in 2017. Following in the footsteps of brands who are already actively selling on social isn’t enough if your content and UI (User Interface) doesn’t match your brand personality.

This again emphasises the need for an omnichannel approach, as the consumer increasingly looks to engage with a brand on many channels and levels before committing to buy.


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“Augmented Reality – in the form of Sun Branding’s own AR Packaging app and companies like Blippar – was an effort to bridge the gap between a digital-first consumer and the very much offline in-store experience and hasn’t really changed the world either – consumers aren’t, it seems, particularly interested in getting out their smartphones in a store and taking a picture of a tin in order to see what’s in their baked beans,” says Sun Branding CIO Kevin Evans.

“Part of the challenge in that is persuading a consumer that they want to download an app, install it on their phone, get their phone out in a grocery store and spend more time in-store when they’re busy and trying to get the evening’s shopping done before they get home. It’s an uphill battle and unless the payoff for the consumer (in terms of discounts and special offers) is significant, it’s doomed to fail, and that level of promotional payoff isn’t sustainable for the retailers or private brand owners.

“3D headsets are in a slightly different category here – the key is not to attract consumers to buy them because they can interact with their favourite stores and brands, but to appeal to users who buy them to play games and watch films and are seeking other novel uses for them. Apple’s app store is a great example of this phenomenon; people who have spent a few hundred pounds on a tablet will search out new opportunities to use apps on it in the comfort of their own home and in their spare time, but even the most ardent fans of an app are unlikely to buy an iPad specifically so they can use it.

“Tapping into that home-user market of 3D headsets means, in the first instance, the likely audience will be gamers and early-adopters; a tempting audience for upscale brands with an adventurous approach to technology.”

So, while AR and VR offers innovative brand engagement and great cost-saving opportunities for brands and retailers, it’s unlikely that a busy mum will have the time or inclination to retreat from the real world to do her weekly shop in a VR environment.

Today, social media influences 63% of everything we buy online.


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5. Has personalisation gone far enough?

In recent years, brands have fuelled a growing trend for personalisation, with marketing campaigns that appeal to the shopper’s ego, while creating PR buzz.

Coke, Marmite and Kit Kat have all famously jumped on the personalisation bandwagon in terms of product, and the majority of savvy online retailers already recommend and personalise their offer based on your past shopping behaviour.

But clever tech is driving even more opportunities for brand engagement. Take Uniqlo Australia’s in-store headphones that measure your brain activity to pick from one of 600 T-shirt designs to suit your mood in that moment. Shoppers are shown a series of clips which stimulate a reaction, pointing them towards a fashion statement that’s driven by their unconscious thoughts.

Or, on a more conscious theme, the Barneys New York app which receives push notifications when shoppers are near items that are on their online wishlist on their mobile when they’re browsing in store, to guide them to the items they’ve already selected, and hopefully, give them a final push towards purchase.

They’re clever tools to drive footfall and brand engagement, and great for PR. But they’re also driving consumers to covet products specifically and individually selected and designed just for them.

But how much does our desire to be seen as individuals need to drive the ecommerce agenda?

Well, it seems to depend on where you live. A study by Geert Hofstedexiii revealed that different countries have a different perspective on the value of being seen as an individual versus the benefits of collectivism and it really is split between the developed world and emerging countries.


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The US tops the poll of people who want to be seen as an individual, not part of a group (91 out of 100), followed by Australia (90 out of 100) and the UK (89 out of 100). But in Central and South America, figures hover around 10 out of every 100 people wanted to be categorised as individuals, with the other 90 per cent happy to be viewed as a collective.

Of course, this may change as the emerging market’s access to technology grows, and as their spending becomes less functional and more aspirational driven by the growth in middle classes, but it’s certainly something to consider when planning brand and e-commerce strategies across multiple markets.

According to Retail Week Connect, only eight per cent of consumers say a personalised experience either in store or online fosters loyalty, so while personalisation when it comes to gifting and higher value items is valuable, it doesn’t have to apply everywhere. And if your customers do want personalisation, it doesn’t have to be complex.

In fact, when it comes to online shopping, personalisation doesn’t have to be unique to one consumer. Many e-tailers are building their brands on personalisation, using a model that’s both efficient and engaging.

Pet food brand Tails.com is a great example of personalisation built on a controlled number of choices. The site’s user interface asks for your dog’s age, breed, weight, exercise levels and likes and dislikes, to build a bespoke diet just for your pet. Their food then arrives at your door with your dog’s name printed on the packaging. It ticks the brand engagement box, but works logistically and commercially to keep the supplier’s cost and effort to a minimum.

Only 8% of consumers say a personalised experience either in store or online fosters

loyalty, so while personalisation when it comes to gifting and higher value items is valuable, it

doesn’t have to apply everywhere.


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Online retailers can tailor pricing according to factors such as time of purchase, type of browser being used and the number of times a buyer has visited a relevant web page.

Personalisation doesn’t always have to be about product and packaging; curated choice and tailored service can also help brand and retailers tick the ‘personal service’ box. And according to KPMG, providing a more personal service across the board could also lead to a higher rate of impulse purchases.

In a recent study, KPMG found that by offering online shoppers related recommended products based on their purchase, impulse buys went up by 21 per centxiv. However, when the same approach was applied in store, impulse purchase rates were 35 per cent, which proves personalisation alone isn’t the answer, particularly when it’s fuelled by data alone, not human or physical interaction.

So, while personalisation of packaging can be difficult, especially for brands without their own dedicated online sales channels, there is an opportunity to personalise on different levels.

“Across a range of industries, the paradigm of a single, uniform price for a given product or services being charged to all customers could be coming to an end,” says futurologist David Smith.

“Payment according to use and individual circumstances is already apparent, with streaming services such as Netflix and Spotify.

“It has been suggested that online retailers can tailor pricing according to factors such as time of purchase, type of browser being used and the number of times a buyer has visited a relevant web page.”

So soon it seems as though our shopping experience could be personalised not only on what we shop for, but also how, where and when we shop too.


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The US tops the poll of people who want to be seen as an individual, not part of a group (91 out of 100), followed by Australia (90 out of 100) and the UK (89 out of 100). But in Central and South America, figures hover around 10 out of every 100 people wanted to be categorised as individuals, with the other 90 per cent happy to be viewed as a collective.

Of course, this may change as the emerging market’s access to technology grows, and as their spending becomes less functional and more aspirational driven by the growth in middle classes, but it’s certainly something to consider when planning brand and e-commerce strategies across multiple markets.

According to Retail Week Connect, only eight per cent of consumers say a personalised experience either in store or online fosters loyalty, so while personalisation when it comes to gifting and higher value items is valuable, it doesn’t have to apply everywhere. And if your customers do want personalisation, it doesn’t have to be complex.

In fact, when it comes to online shopping, personalisation doesn’t have to be unique to one consumer. Many e-tailers are building their brands on personalisation, using a model that’s both efficient and engaging.

Pet food brand Tails.com is a great example of personalisation built on a controlled number of choices. The site’s user interface asks for your dog’s age, breed, weight, exercise levels and likes and dislikes, to build a bespoke diet just for your pet. Their food then arrives at your door with your dog’s name printed on the packaging. It ticks the brand engagement box, but works logistically and commercially to keep the supplier’s cost and effort to a minimum.

Only 8% of consumers say a personalised experience either in store or online fosters

loyalty, so while personalisation when it comes to gifting and higher value items is valuable, it

doesn’t have to apply everywhere.


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27

59% of 65-74 year olds shopped online over the previous 12 months.

6. Are Millennials the shoppers to target?

They might be first in line for the newest technology and the latest crazes, but brands and retailers could be focusing on Millennials at their peril, especially when it comes to online shopping.

While Millennials may live much of their life online, fewer commitments and higher levels of disposable income mean many actually prefer to shop offline, especially when it comes to food.

It’s the time poor, cash strapped family market and the older, time rich shopper, who could hold the key to commercial success.

As outlined in the last Sun Branding Solutions whitepaper, Age Repackagedxv, the 65+ age group is spending more and more time shopping online. The WGSN Report on Silver Shoppersxvi stated that 59 per cent of 65-74 year olds shopped online over the previous 12 months, versus 81 per cent of the total population. However, there is a key difference – device. Research conducted by Bronto Softwarexvii found that only 14 per cent of 55+ consumers shopped via mobile phone. However, tablet usage for shopping among this age range is higher in the UK (22 per cent) than in the US and Australia (both 11 per cent). This generation is just as likely to own a smart phone as a tablet, so this could be as simple as font size issue – which is obviously bigger on a tablet, and so mobile app layout and design is key.

In fact, if you are looking to cater to a younger demographic, it’s Centennials, or Gen Z, who are next in line to the over 60s’ spending crown. By 2020, it’s predicted that this group will make up more than 25 per cent of the workforce and will see a surge in spending power. They shop online at least seven times a month, and 62 per cent say shopping online is a way of alleviating boredom. So, there’s potential to enrich the shopping experience and build brand engagement.


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However, many experts believe focusing on demographics in one location is thinking too small. With new technologies knocking down geographical borders, there are vast new markets to tap in to. And, as always, the first place to look is China.

Although China’s online grocery market currently only has a 3.1 per cent sharexvii (lagging behind the UK’s 7 per cent), the IGD expects this figure to jump to 6.6 per cent over the next three years, and continue to grow apace – especially as smartphone use continues to expand. And with the nation aiming for annual ecommerce sales of $5.7tn by 2020 and $10.1tn by 2025, it’s a market that’s set to explode at a rate far and above predicted growth in the rest of the world.

“There is a rising population of young, middle class shoppers leading busier lives,” said Shirley Zsu, the IGD’s Asia programme director.

“In turn this is creating a class of aspirational shoppers who want to access grocery products at the click of a button, and who are increasingly looking to source international goods.”

And this thirst for international products has led some UK food and drinks businesses to secure listings on Chinese grocery marketplaces in a bid to secure a place in this expanding market. In 2015, Sainsbury’s began working with Alibaba to sell a limited number of products on Tmall, with Waitrose following suit in 2016, listing 30 products including English winexix. At the time, the supermarket predicted that China would become its biggest international market over the next three to five years.

“Digital platforms are transforming the way we do business by creating vast markets, crafting superior customer experiences and promoting new ways to innovate,” says futurologist David Smith.

They shop online at least seven times a month, and 62% say shopping online is a

way of alleviating boredom.


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The USA, which currently lags behind in terms of online grocery sales, is predicted to cover as much as 70% of consumers by 2020.

“This could lead to further internationalisation of the shopping experience, with Accenture predicting that up to 45 per cent of consumers will shop overseas by 2020.”

But it isn’t just the Far East driving ecommerce growth. The original land of opportunity, the USA, which currently lags behind in terms of online grocery sales, is predicted to cover as much as 70 per cent of consumers by 2020. If that particular prediction comes true, online shopping will equate to 20 per cent of all spending on food and drinks – more than five times the current figure.

So as geography becomes less of an issue and logistics are geared more to ecommerce delivery, retailers could access whole new markets, not just market segments, though competition will be, unsurprisingly, fierce.


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However, many experts believe focusing on demographics in one location is thinking too small. With new technologies knocking down geographical borders, there are vast new markets to tap in to. And, as always, the first place to look is China.

Although China’s online grocery market currently only has a 3.1 per cent sharexvii (lagging behind the UK’s 7 per cent), the IGD expects this figure to jump to 6.6 per cent over the next three years, and continue to grow apace – especially as smartphone use continues to expand. And with the nation aiming for annual ecommerce sales of $5.7tn by 2020 and $10.1tn by 2025, it’s a market that’s set to explode at a rate far and above predicted growth in the rest of the world.

“There is a rising population of young, middle class shoppers leading busier lives,” said Shirley Zsu, the IGD’s Asia programme director.

“In turn this is creating a class of aspirational shoppers who want to access grocery products at the click of a button, and who are increasingly looking to source international goods.”

And this thirst for international products has led some UK food and drinks businesses to secure listings on Chinese grocery marketplaces in a bid to secure a place in this expanding market. In 2015, Sainsbury’s began working with Alibaba to sell a limited number of products on Tmall, with Waitrose following suit in 2016, listing 30 products including English winexix. At the time, the supermarket predicted that China would become its biggest international market over the next three to five years.

“Digital platforms are transforming the way we do business by creating vast markets, crafting superior customer experiences and promoting new ways to innovate,” says futurologist David Smith.

They shop online at least seven times a month, and 62% say shopping online is a

way of alleviating boredom.


30


31

7. In five years, products will just ‘appear’ in your home

“Today consumers expect to get what they want, when they want it. By 2020, they’ll be expecting what they want, how they want it. And by 2025, before they want it…”xx

Smart fridges and packaging, one click ordering, drones and instant order buttons on your washing machine; many believe that the time is coming where technology will know what we want before we know it ourselves.

But can data trends really predict what we want and need? And are we prepared to let retailers and brands decide for us?

Many commentators have speculated that Amazon’s acquisition of Whole Foods could be a more strategic decision to allow them to better predict what shoppers want – often before they know they want it. While Amazon already has a plethora of information about shoppers through its various online offers, having data collected from a physical shopping environment could hold the key to developing clear, targeted experiences for shoppers.

Clever data could tell Amazon what’s in your fridge right now (perhaps about to go out of date) and get ingredients to make a meal with it dispatched to your door, based on the meals you’ve made previously. And in the US, Whole Foods large network of stores could mean those ingredients are delivered to you in a matter of minutes, as opposed to hours.

There are downsides to predictive analytics however. US retailer Target has been using customer data to promote products and offers based on a customer’s lifestage and previous purchases; for example, tracking when you’ve moved house or had a baby to give your personalised offers on what you’re likely to need next. It famously announced a teenage girl’s pregnancy

“Today consumers expect to get what they want, when they want it. By 2020, they’ll be expecting what they want, how they want it. And by 2025, before they want it…”


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to her parents before she’d told them herself, by basing its communications with her on her previous purchases.

In fact, according to Forbesxxi, Target’s data analysis algorithms are so clever, they can even predict an expectant mother’s due date.

“They identified 25 products that, when analysed together, allowed them to assign each shopper a ‘pregnancy prediction’ score. More importantly, they could also estimate her due date to within a small window, so Target could send coupons timed to very specific stages of her pregnancy.

“Take a fictional Target shopper named Jenny Ward, who is 23, and in March bought cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc and magnesium supplements and a bright blue rug. There’s, say, an 87 percent chance that she’s pregnant and that her delivery date is sometime in late August.”

But how do you convert this all-knowing data into a purchase? Many see the invention of one-click devices, like Amazon Dash, as the ultimate low-effort driver of repeat purchase and brand loyalty, however, this lack of conscious engagement does mean this brand loyalty is purely functional, not emotional.

These and other Internet of Things gadgets require some human input, however developments are underway to remove the need for any effort on the consumer’s part.

Telecomms company Telefonica has created connected coffee machines for Nestle, which automatically reorder coffee pods for its coffee machines. And Australian retailer Woolworths has been working with Samsung to integrate the retailer’s app with its smart fridge. Currently shoppers have to engage with the app to reorder products, but developments in tech in appliances and packaging could mean there is no need for human interaction in the future.

But until the tech reaches the point where no human interaction is needed, there is innovation in progress to overcome some of the hurdles imposed by online shopping.

An experiment by Volvoxxii has seen Swedish shoppers taking the click and collect concept to a new level with GPS tracked grocery deliveries to your car.


33

And while this doesn’t mean product appearing in your kitchen cupboard, it does remove delivery slots, which reluctant online shoppers may cite as a barrier.

You order your groceries online, and your order is packaged for delivery, but instead of being delivered to your home in a designated time slot, the delivery driver tracks the GPS co-ordinates of your car and follows them to wherever you’ve parked. They then use a digital key to open your boot and they place your shopping inside.

While Volvo hasn't announcing any potential partners, it has tested the service with Volvo owners and delivery services. Another example of using emerging technologies to play to the consumer need for convenience, removing a major barrier for many shoppers – waiting around at home for a delivery.


32

to her parents before she’d told them herself, by basing its communications with her on her previous purchases.

In fact, according to Forbesxxi, Target’s data analysis algorithms are so clever, they can even predict an expectant mother’s due date.

“They identified 25 products that, when analysed together, allowed them to assign each shopper a ‘pregnancy prediction’ score. More importantly, they could also estimate her due date to within a small window, so Target could send coupons timed to very specific stages of her pregnancy.

“Take a fictional Target shopper named Jenny Ward, who is 23, and in March bought cocoa-butter lotion, a purse large enough to double as a diaper bag, zinc and magnesium supplements and a bright blue rug. There’s, say, an 87 percent chance that she’s pregnant and that her delivery date is sometime in late August.”

But how do you convert this all-knowing data into a purchase? Many see the invention of one-click devices, like Amazon Dash, as the ultimate low-effort driver of repeat purchase and brand loyalty, however, this lack of conscious engagement does mean this brand loyalty is purely functional, not emotional.

These and other Internet of Things gadgets require some human input, however developments are underway to remove the need for any effort on the consumer’s part.

Telecomms company Telefonica has created connected coffee machines for Nestle, which automatically reorder coffee pods for its coffee machines. And Australian retailer Woolworths has been working with Samsung to integrate the retailer’s app with its smart fridge. Currently shoppers have to engage with the app to reorder products, but developments in tech in appliances and packaging could mean there is no need for human interaction in the future.

But until the tech reaches the point where no human interaction is needed, there is innovation in progress to overcome some of the hurdles imposed by online shopping.

An experiment by Volvoxxii has seen Swedish shoppers taking the click and collect concept to a new level with GPS tracked grocery deliveries to your car.


34

If you’re denied the ‘first moment of truth’, can you make the second count more?

8. Everything will come in plain white boxes

It may seem like the Internet has become the Wild West for brands; a place where loyalty means nothing and everyone’s just looking out for themselves. But just because the consumer isn’t interacting with your product physically, that doesn’t mean there aren’t opportunities to ‘surprise and delight’. If you’re denied the ‘first moment of truth’, can you make the second count more?

“While the ‘first moment of truth’ might not be possible with online shopping and your product might arrive at your customer’s door wrapped in someone else’s brand, there are still lots of ways for brands to forge loyalty,” says Guy Douglass, creative strategy director at Parker Williams, the strategic design arm of Sun Branding Solutions.

“When you think of iPhone packaging, it’s amazing how many of us have held onto the empty box! It truly delivers that second moment of truth – and turns opening the phone into as big an event as purchasing it in the first place. It does so much more than just promote the brand or protect the product on shelf – in fact you don’t even interact with the packaging until after you’ve bought it. So there’s a huge opportunity to make the moment your customer removes your product from that plain brown packaging into something truly engaging and more aligned to your brand proposition and values.

“Just take a look at the number of unboxing videos on YouTube.”

And however your product makes it to your customer’s home, it’s important to remember how and where your product will be used. While there could be value in creating plain white refill packs for items that stay hidden in the cupboard, there are some categories where the product will be visibly – and often proudly – displayed.


35

“The middle classes especially are particularly concerned with displays of status,” says Sonia Whiteley-Guest.

“And it’s not just about the cars they drive and the handbags they carry; it’s about the products on their kitchen worktops and their kids’ lunch boxes.

“It’s perfectly possible that brands providing more commodity items, such as washing powder and pasta, which can be decanted into reusable packaging, could be affected by shoppers’ need for convenience and ease of shop, but there are still huge opportunities for brands to build loyalty, wherever and however their customers buy.”

Second life packaging also offers a huge opportunity in the online arena, when brands may have to consider a move to the ‘second moment of truth’. Consumers are much more aware and educated about packaging, so they expect more.

They expect the brand they are buying to be ‘doing the right thing’ from a sustainability point of view, and they want product and packaging to help them achieve that memorable moment,” says Sun Branding pack science director Gillian Garside-Wight.

“We’re getting more and more clients enquiring about second life packaging; what could the box, bottle or bag turn in to that the consumer will interact with and enjoy? It’s a truly exciting time for packaging as the rules have changed.”


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If you’re denied the ‘first moment of truth’, can you make the second count more?

8. Everything will come in plain white boxes

It may seem like the Internet has become the Wild West for brands; a place where loyalty means nothing and everyone’s just looking out for themselves. But just because the consumer isn’t interacting with your product physically, that doesn’t mean there aren’t opportunities to ‘surprise and delight’. If you’re denied the ‘first moment of truth’, can you make the second count more?

“While the ‘first moment of truth’ might not be possible with online shopping and your product might arrive at your customer’s door wrapped in someone else’s brand, there are still lots of ways for brands to forge loyalty,” says Guy Douglass, creative strategy director at Parker Williams, the strategic design arm of Sun Branding Solutions.

“When you think of iPhone packaging, it’s amazing how many of us have held onto the empty box! It truly delivers that second moment of truth – and turns opening the phone into as big an event as purchasing it in the first place. It does so much more than just promote the brand or protect the product on shelf – in fact you don’t even interact with the packaging until after you’ve bought it. So there’s a huge opportunity to make the moment your customer removes your product from that plain brown packaging into something truly engaging and more aligned to your brand proposition and values.

“Just take a look at the number of unboxing videos on YouTube.”

And however your product makes it to your customer’s home, it’s important to remember how and where your product will be used. While there could be value in creating plain white refill packs for items that stay hidden in the cupboard, there are some categories where the product will be visibly – and often proudly – displayed.


36

Segments of the retail experience could be blended between online, virtual reality, augmented reality, the IoT,

haptics and physical.”

ConclusionsIt seems there’s no quick fix for brands and retailers wanting to get ahead of the pack in this fast-moving, tech-forward world. It’s a complex mix of channel, communication and opportunity, coupled with an understanding that digital and physical no longer exist as separate entities; omnichannel means looking at your brand holistically and blurring the boundaries of virtual and real.

“Future evolution of personalised retail, specifically the emergence of the Internet of Things, could blur the existing distinction between online and physical retail,” says futurologist David Smith.

“Segments of the retail experience could be blended between online, virtual reality, augmented reality, the IoT, haptics and physical.”

And keeping an eye on not just tech developments but changing consumer behaviour and blurring of geographic market boundaries is vital.

Final thoughts

• Give consumers the right amount of choice and use tech to remove barriers to purchase

• Communicate your brand clearly with colour, shape and hierarchy of messaging

• Think online first when it comes to packaging form and function

• Always think ‘omnichannel’, not just online

• Create a ‘second moment of truth’ for the times when selling online removes the first


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Mobile ready HERO images created by Sun Branding Solutions for Unilever


36

Segments of the retail experience could be blended between online, virtual reality, augmented reality, the IoT,

haptics and physical.”

ConclusionsIt seems there’s no quick fix for brands and retailers wanting to get ahead of the pack in this fast-moving, tech-forward world. It’s a complex mix of channel, communication and opportunity, coupled with an understanding that digital and physical no longer exist as separate entities; omnichannel means looking at your brand holistically and blurring the boundaries of virtual and real.

“Future evolution of personalised retail, specifically the emergence of the Internet of Things, could blur the existing distinction between online and physical retail,” says futurologist David Smith.

“Segments of the retail experience could be blended between online, virtual reality, augmented reality, the IoT, haptics and physical.”

And keeping an eye on not just tech developments but changing consumer behaviour and blurring of geographic market boundaries is vital.

Final thoughts

• Give consumers the right amount of choice and use tech to remove barriers to purchase

• Communicate your brand clearly with colour, shape and hierarchy of messaging

• Think online first when it comes to packaging form and function

• Always think ‘omnichannel’, not just online

• Create a ‘second moment of truth’ for the times when selling online removes the first


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Referencesi https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/previousReleases

ii http://www.thegff.com/Groups/37149/Global_Futures_and.aspx

iii http://www.telegraph.co.uk/business/2017/08/28/amazon-makes-good-promise-slash-prices-whole-foods-goods-first/

iv http://www.ey.com/gl/en/services/transactions/ey-capital-confidence-barometer-executive-summary#003

v https://www.retail-week.com/topics/people/retail-2017-where-are-retail-leaders-looking-for-growth/7018027.article

vi McCabe, D.B. and Nowlis, S.M. (2003) “The effect of examining actual products or product descriptions on consumer preference” Journal of consumer psychology Vol.13 pp.431-439

vii https://shoppervista.igd.com/ July 2015

viii https://www.sunbrandingsolutions.com/news-and-views/design-heroes/

ix https://www.thegrocer.co.uk/channels/supermarkets/can-the-supermarkets-really-cook-up-a-winner-from-recipe-boxes/551804.article

x https://www.webpronews.com/future-of-ecommerce-2016-08/

xi https://www.cognizant.com/perspectives/hearing-consumers-through-the-social-media-din

xii http://www.altimetergroup.com/pdf/reports/2016-State-of-Social-Business-Altimeter.pdf

xiii https://geert-hofstede.com/

xiv https://assets.kpmg.com/content/dam/kpmg/pdf/2016/02/omnichanel-retail-survey-2016.pdf


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xv https://www.sunbrandingsolutions.com/insights/whitepaper-age-repackaged/

xvi https://www.wgsn.com/en/

xvii http://bronto.com/resource-category/mobile/

xviii https://www.igd.com/about-us/media/press-releases/press-release/t/igd-chinas-online-grocery-market-to-more-than-double-by-2020/i/16582

xix https://retailanalysis.igd.com/news/news-article/t/selling-online-in-asia-four-emerging-grocery-models/i/11899

xx https://www.accenture.com/t20160729T064247__w__/us-en/_acnmedia/PDF-8/Accenture-ECommerce-PoV-v6-FINAL.pdf

xxi https://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/#4df1aad26668

xxii https://www.cnet.com/roadshow/news/volvos-concept-roam-delivery-service-brings-your-groceries-right-to-the-trunk-of-your-car/


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Referencesi https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/previousReleases

ii http://www.thegff.com/Groups/37149/Global_Futures_and.aspx

iii http://www.telegraph.co.uk/business/2017/08/28/amazon-makes-good-promise-slash-prices-whole-foods-goods-first/

iv http://www.ey.com/gl/en/services/transactions/ey-capital-confidence-barometer-executive-summary#003

v https://www.retail-week.com/topics/people/retail-2017-where-are-retail-leaders-looking-for-growth/7018027.article

vi McCabe, D.B. and Nowlis, S.M. (2003) “The effect of examining actual products or product descriptions on consumer preference” Journal of consumer psychology Vol.13 pp.431-439

vii https://shoppervista.igd.com/ July 2015

viii https://www.sunbrandingsolutions.com/news-and-views/design-heroes/

ix https://www.thegrocer.co.uk/channels/supermarkets/can-the-supermarkets-really-cook-up-a-winner-from-recipe-boxes/551804.article

x https://www.webpronews.com/future-of-ecommerce-2016-08/

xi https://www.cognizant.com/perspectives/hearing-consumers-through-the-social-media-din

xii http://www.altimetergroup.com/pdf/reports/2016-State-of-Social-Business-Altimeter.pdf

xiii https://geert-hofstede.com/

xiv https://assets.kpmg.com/content/dam/kpmg/pdf/2016/02/omnichanel-retail-survey-2016.pdf


About Sun Branding SolutionsAt the heart of Sun Branding Solutions is a team of brand and packaging experts, drawn from five different specialisms but with one shared focus; creating the very brightest ideas for brands.

Each team, whether it’s strategic design, pack science, graphics, legal or digital, is brilliant in its own right, and you can work with one, two, or as many as you need to get your big idea off the drawing board and into your customer’s shopping basket. But it’s when the teams come together that we’re at our very brightest.

Our experts’ combined experience and insight, gathered from many years working with big name brands and retailers, is what shapes the way we work - with our clients and with each other.

Because even if one specialism isn’t directly working on your project, their insight and knowledge of your market has gone in to shaping what we deliver, and how. That means more creativity, more innovation and more for your money.

Our experts are brighter together, and with them on your side, your brand will shine brighter too.

For more news, views and insight, log on towww.sunbrandingsolutions.com

Want to chat about a project?

Give us a call on 01274 202700 oremail [email protected]

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