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  • Brief discussion: the development of label industry under the influence of e-commerce

    Post date:2019-10-29 Returns a list of

    For years, brand owners have agreed on the importance of labels/packaging in terms of shelf appeal to accelerate consumer buying decisions.


    8 seconds is the average time for consumers to decide which product to take home. That is to say, there is only 8 seconds for brand owners to use product labels/packaging to exert consumer influence. The importance of labels and packaging is evident.As a result, marketers tend to view product labeling and packaging as an important extension of the brand sales team.


    In recent years, with the development of Internet technology, especially the rapid progress of modern mobile Internet and the gradual popularization of smart phones, shopping on the Internet has become ubiquitous and an indispensable convenient mode in people's life, which is increasingly changing the way of transaction and consumption habits of consumers.


    But when retail shelves are displayed electronically, will labels and packaging be able to exert the same important buying decisions as they do in physical stores?Is value-added packaging and dynamic packaging still necessary?


    E-commerce accounts for almost a tenth of the $28 trillion global retail market and is growing rapidly, according to a January report by Nielsen, a leading market research firm.Global retail sales from e-commerce channels are expected to grow 20 per cent to a $4tn market by 2020.


    "The e-commerce channel is not currently the world's leading sales channel, but it is growing rapidly and will become more prominent in the future," the Nielsen report said.


    According to Nielsen, global FMCG sales from e-commerce channels grew 21.1 percent in 2015-2016, while brick-and-mortar retail stores grew only 0.1 percent.In the online retail goods, the transaction volume of the main goods are clothing, home decoration, household appliances, mobile phone digital, food and beverage, maternal and child supplies.


    In the future, as long as e-commerce continues to erode sales in traditional brick-and-mortar stores, label and packaging processors will have to question the survival value of their products and whether they will decline due to the arrival of the digital age.Is there a need for print to survive on electronic shelves?


    Global change


    Have to admit the practicability of electronic commerce, it brings a lot of convenience to people's life.Consumers are turning to online shopping in order to get more convenience and competitive prices.Market experts say 23 percent of consumers worldwide buy their groceries online and that figure is expected to triple in the next 10 years.


    2016 and 2017 should be a watershed year, when the line between online shopping and brick-and-mortar retail channels starts to blur.


    Amazon, the world's largest e-commerce retailer, "bucked the trend" by buying Whole Foods Market for $42 a share in cash to open a growing number of brick-and-mortar stores in traditional markets.


    In 2016, the world's largest retailer, wal-mart, bought Jet.com for $3 billion plus $300 million in wal-mart stock, which was interpreted as a move to catch up with rival amazon and accelerate its e-commerce model.


    Focus on China


    On August 28, 2017, at the launch of alibaba retail general strategy, Stephen Maher, President of mondelez foods China, said, "my one year in China is equivalent to ten years abroad. China's development is really too fast."


    Mr Maher is excited by the rapid growth of China's economy and the Internet, and by his admiration for alibaba's new retail business.In fact, e-commerce giants such as alibaba, jd.com and tencent have already begun laying out new offline retail models.


    This is because, in recent years the entity shop online retail giant business into a dilemma, hit the electric business enterprise flow dividend fade, development bottleneck, combined with the consumption demands occur profound changes, prompting entity retail and electricity network is gradually from independent - depth fusion, confrontation to integration and collaboration, complementary advantages, realize win-win development direction.


    As Mr. Ma said, in the future, it will be difficult for pure e-commerce and offline retail. To better adapt to the development of The Times, it is necessary to combine online and offline logistics. In the future, it is no longer a simple matter of how to sell things, but how to serve customers well.


    According to the report on the development of China's retail industry (2016/2017) released by the Ministry of Commerce, by the end of 2016, the total retail sales of consumer goods in China totaled 3.32316 trillion yuan, an increase of 10.4% over the previous year, or 9.6% in real terms.


    According to national statistics, China's online retail sales reached 5155.6 billion yuan in 2016, up 26.2 percent year-on-year, the report said.The online retail sales of physical commodities were 4194.4 billion yuan, up 25.6%.Online retail sales of physical goods accounted for 12.6 percent of total retail sales of consumer goods.


    In the retail market is like in the future, with the Internet, the Internet of things, artificial intelligence and big data driven, leading technologies such as digital technology will deeply integrated virtual and reality, traditional retail in physical space and time dimension will gain great extend, consumers no longer restricted by factors such as area, time and stores, retail industry will eventually develop into online and offline all customers, provide complete channel, complete category, all the time, new retail model of the whole experience.


    In the future, under the Internet environment, consumption concept, consumption demand and consumption pattern with consumption upgrading as the main line will undergo profound changes.Consumption stratification, minority changes, individuation characteristic is more and more outstanding.Therefore, in the mode of online shopping, the traditional commodity labeling and packaging methods are bound to undergo certain changes. There are several trends worthy of special attention of label/packaging processing enterprises:


    First, in the era of big data, under the trend of the continuous development of e-commerce driven by the Internet of things and cloud computing, it is an inevitable choice for brand owners to introduce the production, sales, logistics and other data information of commodities to consumers through commodity labels and packaging, and to analyze and trace product information in real time.

    Second, due to the formation of big data on the Internet and the application of 3D printing technology, the model of rapid development, production and consumption has been provided for many commodities.

    Third, the consumption of the main group of the Internet.The new consumer groups, represented by the post-90s and post-00s, have different consumption concepts and ways compared with the traditional consumption concept, with increasingly prominent consumption characteristics of stratification, niche and individuation.

    Fourthly, e-commerce only changes the sales and logistics channels of commodities, and the essence of labeling/packaging as shaping product image to better meet consumer needs has not changed.

    Fifth, online shopping goods on the economic line up and down the order, generally need a number of links to finally safely reach consumers.


    Today's traditional manufacturers have very thin profits, if you rely on the creation of profits to achieve business breakthrough growth is difficult.


    Label printing enterprise might as well use electricity business development opportunities, accurately find the breakthrough point, through the provision of label/packaging design, printing, inventory management, cost control and other service projects, completed as soon as possible from the printing processing enterprises to provide a full set of labels and packaging solution provider of transition, from made in "labels" to "label" service.