Germany is leading the way where major discount grocery chains, such as Aldi and Lidl, have a market share of 38 percent. Also in the Nordics the market share is growing for discount retail. Consumers are increasingly price sensitive and the latest economic downturn has also helped discount retailers to succeed. Another key to the success for the retailers is the growing market share for private labels.
To keep the prices low the discount chains also have to be rethinking the packaging. Focus is on innovative solutions and cost. Shelf-ready packaging is a great example, which can reduce replenishment costs by up to 50 percent compared to traditional shelf placement. Furthermore, pallet presentation can cut replenishment costs by up to 70%. Another way of keeping costs down is using less packaging material by, for instance, bundling products together or using light weight corrugated material.
The trick is to strike the right balance between the cost minimization, quality and visual appeal. Light-weight materials and lighter substances can be combined with high-quality attractive printing.
Read more about discount retailers’ packaging challenges and the other four packaging trends in the retail industry in the latest Viewpoint report. You’ll find it in several languages here.