Packaging with Clear Boxes is the third largest industry in America valued at $110 billion per annum. It is estimated that there are 350 billion packages which comprise of the tiniest item in pharmaceuticals to super sacks used that are used to carry thousands of pounds of content and which can withstand rigorous transport. Consider what product packaging design does to your product: Most importantly, packaging identifies your brand. Packaging communicates with the consumer and presents an image, displays the product and also provides instructions for its use. Packaging distinguishes your product from your competitor’s in its design, color, and shape. Packaging is your product’s promotional advertisement. It is the last thing the consumer sees about your product before making a decision to purchase it.
To see how important product label design is, take the case of DermaQuest which produces a line of skincare products. Although their products are of high quality, their initial packaging was not impressive and did not say much about their product. After working with a team of professional designers and branding houses their skincare products were given a totally new makeover. Allyson Rogers, director of education at DermaQuest said, “It’s made a huge difference. It’s helped us get into new doors that we weren’t in before. This is something that appeals to doctors. It’s clean, scientific and elegant-looking.” The new look resulted in doubling their sales.
Generally packaging works out to 10% of the retail cost of a product. However this margin would go up or down considering the product you are selling. Cosmetic and electronic manufacturers may spend up to 40% or more of the product cost on packaging, as would gift items. An attractively packaged product makes all the difference at the point of sale. The extra care and cost required to produce an attractive package are more than covered through increase in sales. Sanjay Sood, associate professor of marketing at UCLA’s Anderson School of Management said, “Packaging may provide consumers with some sort of interest or incentive that can help get customers to try it, but for repeat buys, that’s where the product will live or die on its own.” There is a psychology to a consumer’s selection of a product and it depends on product design and packaging.