There’s little doubt that the youngest generations of consumers are transforming the shopping experience. As millennials move into the mainstream and Gen Z enters adulthood, these digital and social natives are not only exhibiting new shopping behavior, but they’re also shifting how brands interact with their consumers. And this is apparent in the way top brands are changing their approach to product packaging.
What do these all-important consumers want from brands? A global 2018 study from the National Retail Federation found that Gen Zers exhibit three distinguishing characteristics. Their focus is on quality and authenticity. They want to interact with brands on their own terms. And they are less likely than other generations to be brand loyal (in the traditional definition).
A recent Adweek webinar sponsored by HP examined how these shifting behaviors are changing the ways major consumer brands approach their packaging strategies. In particular, it looked at how digital printing technology that bridges offline and online is creating powerful, emotional packaging experiences. (You can view the complete webinar here.)
Four trends are driving this transformation:
Millennials and Gen Z want to purchase from brands that reflect their values and interests
Younger consumers look for brands that have a clear set of values. And while product and price are certainly still important, Millennials and Gen Z want the products they purchase to stand for something. For example, the 2018 Cone/Porter Novelli Purpose Study found that millennials are significantly prouder than older generations to associate with purpose-driven brands.
Product packaging can reflect this.
In 2017, Smirnoff released limited-edition “Love Wins” bottles of its vodka celebrating LGBTQ pride. Each bottle had a unique design and featured portraits of couples photographed by Sarah Deragon, creator of the Identity Project. Plus, for every bottle made, the company donated $1 to the Human Rights Campaign. The program was such a success that Smirnoff updated the packaging for 2018 and highlighted 34 real LGBTQ couples that had submitted their photos for a chance to be part of the campaign.
Coffee brand Café Franqueza uses its package to tell the story behind the coffee and help underprivileged Mexican coffee farmers. The Ercus Foundation created customized flexible packaging that tells the story of each individual farmer that cultivates beans for Café Franqueza. The geo-specific packs provide location information for the area in México where the coffee is cultivated. The packaging delivers the brand story related to the product’s heritage and provenance.
Millennials and Gen Z want brands that recognize them as individuals
One-size truly does not fit all when it comes to reaching the digital generations. As the NRF study notes, Gen Zers want to be seen as individuals by brands and believe they have a one-to-one relationship with the companies they purchase from. They want a personalized experience that takes their unique interests into account and anticipates their needs. And they’re willing to share their personal data to get that experience. They also want to co-create with brands, including submitting ideas for product designs.
There are multiple examples of ways brands are incorporating personalization into their packaging. Perhaps the most celebrated is Coca Cola’s “Share a Coke” campaign, which places peoples’ names on cans and bottles. The goal? Create meaningful connections. The execution used targeted consumer demographics data and variable data printing, to produce varying run lengths of each name based on regional demand.
Direct digital commerce also can create this kind of personalized packaging. In the U.K., for instance, consumers can create personalized Kit Kat packages by uploading their own photos and messages. The actual candy bars are then delivered directly to their door in a customized, framable box.
Millenials and Gen Z want to be playful and fun
Younger consumers want brands to be relatable, human and maybe just a bit quirky and playful.
What could be more fun than cookies? What about personalized cookies? During the 2016 holidays, Oreo’s Colorfilled initiative let consumers create one-of-a-kind packages based on designs from graphic artists Jeremyville and Timothy Goodman. They could then add their own personal flair with colors, graphics and holiday greetings.
The program was then extended by Mondelez to China through a partnership with ecommerce giant Alibaba. The customized packages not only had a premium price, but they changed the ecommerce customer experience for premium products.
Millennials and Gen Z want authenticity
When you’ve been marketed to your entire life—as the digital generation has—you’re more likely to be suspect of brand claims. They want more transparency and they want to be better informed. They hold brands to a higher standard of authenticity in both their communications and their products.
Digital variable printing now allows brands to invisibly watermark their packages, ensuring that consumers know what they’re buying is genuine through track and trace security. It can also bring packages to life, using apps to trigger related videos, images and documentation.
To see more examples of how leading global consumer brands are transforming their packaging for millennials and Gen Z, catch the recent Adweek webinar with HP here.
