Product packaging that pays
How consumer-product companies are revamping their containers to jump-start sales.
(Business 2.0 Magazine) -- Though it's their first chance to make a good impression, for many companies package design has often been an afterthought. Designers were called in at the last minute, and cost was the deciding factor.
But with more than 30,000 new products expected to hit store shelves this year, creating an innovative exterior has become a crucial way to boost the bottom line.
"Revenues in the food and cosmetics markets don't really grow much, so companies have to raise prices to boost them. And they do that through packaging," says Ghansham Panjabi, packaging analyst with Wachovia Securities.
Certainly, there are risks: Years of development might end in poor reception; a new design could cause confusion and erode brand awareness.
But if packaging is done right, the rewards can be huge. Even a clearer label or a new container shape can lead to double-digit sales growth.
The six products that have outdesigned the competition: