Packaging for „Generation Z“: benefit communication is in demand

How do products need to be packaged to appeal to „Generation Z“? The German Packaging Institute (dvi) asked itself this question and invited the advertising agency „Haus E“ to give a keynote speech at the 2017 Dresden Packaging Conference. „Haus E“ boss Frank Müller and dvi Managing Director Winfried Batzke summarise their findings.

pj: Mr Batzke, why did you commission the study on „Generation Z“ at this particular time?

Winfried Batzke: The „Generation Z“ - especially in comparison to previous generations - is mostly used in conjunction with digital technologies and via their Media usage behaviour characterised. A whole range of other facets remain completely unexamined. We therefore wanted to find out from 18 to 24-year-olds how they view the topic of packaging, what their perception of successful packaging is and what role packaging currently plays in online retail and should play in the future.

pj: Mr Müller, „Generation Z“ informs itself via social media and buys online. They are not so much interested in the packaging, but want to quickly experience the product inside. Is this the end of traditional sales-supporting packaging?

Frank Müller: No, quite the opposite. While the basic functions of packaging - Protection, stability, durability, information, transportability While the packaging of the contents only plays a subordinate role from the perspective of „Generation Z“, the requirements for environmental protection and sustainability are all the greater. Applied to online retail, the retailer or manufacturer who fulfils the expectations of „Generation Z“ in terms of Environmental protection, sustainability and recyclability advantages.

„Convincing products and product brands coupled with good availability and convenient access to the product - that also works for Z-listers,“ says Frank Müller is Managing Director of the advertising agency „Haus E“ in Chemnitz.

Young companies demonstrate the new target group approach

pj: How do dvi member companies assess the situation? Is it harder to reach the younger target group across all sectors?

Winfried Batzke: The younger target group is certainly much harder to reach using conventional means and traditional advertising channels. However, this does not mean that they cannot be reached at all. Young, dynamic companies such as „True Fruits“ or „MyMuesli“ have successfully demonstrated how this target group can be addressed. Large food companies such as Nestlé, Dr. Oetker, Katjes and Bahlsen are currently focusing on the changing shopping behaviour of young consumers and are in the process of developing new concepts for addressing and retaining customers.

pj: Will companies have to take a multi-pronged approach in future? Older consumers will find classically packaged products in retail outlets, while an online campaign is launched for younger consumers?

Frank Müller: Regardless of the type of product and the associated packaging, the channels used to communicate with the target group have of course changed and become more differentiated. Although only very few of them have so far been used within the Online shopping In our survey, six out of ten respondents stated that they were „very“ or „moderately“ interested in an additional presentation of the packaging. The presentation of packaging and its environmental friendliness will never be the decisive criterion, but our survey data indicates that parts of „Generation Z“ can be convinced with this argumentative component. How this is communicated in concrete terms - for example via unboxing videos on YouTube or with additional packaging descriptions or presentations in the relevant shop - certainly depends on the specific platform.

Convincing products also work for „Generation Z“

pj: Generation Z„ is apparently also less brand loyal. How can brand loyalty still be established with these impulsive, digitally orientated young consumers?

Frank Müller: Generation Z„ is less likely to follow the overarching umbrella brand universe and always prefers to buy everything from Brand X simply because they have had a good experience with a product. But: Convincing products or product brands coupled with a good Availability and a comfortable Access to the product - This also works for the Z-lers. The focus of advertising communication is therefore shifting ever more consistently from umbrella brands to specific product campaigns and from image communication to Benefit communication. For manufacturers, their marketing departments and the associated agencies, the pressure to innovate, launch and communicate the respective product is therefore increasing - also in terms of time. However, this trend has been underway for some time and is probably due to the significant changes in infrastructure and technical conditions in the retail sector. Generation Z„ is merely the first generation to consume so consistently in this changed structure.

„It will be crucial for companies to be able to recognise trends and react flexibly to changing needs.“
Winfried Batzke, Managing Director of the German Packaging Institute.

pj: What impetus and assistance can the dvi provide to the packaging industry in order to adapt to the changing consumer habits of „Generation Z“?

Winfried Batzke: We use our various platforms such as congresses, innovation forums, workshops and seminars to publicise current studies such as the „Haus E“ study or survey results. It is important for us to bring together the various players along the value chain and encourage professional dialogue.

Companies must recognise trends and react flexibly to changes

pj: Usage habits in the online world are changing ever faster. Can the race for the favour of „Generation Z“ be won at all?

Winfried Batzke: It will be crucial for companies to be able to recognise trends and react flexibly to changing needs. Not only does targeted Market research but also how flexibly production can react. Plants with long amortisation periods and high output figures are often faced with the need for Individualisation and ever shorter product life cycles. If you want to keep up, you have to take a close look at the system planning stage or even rethink your traditional business model.

pj: Mr Müller, if you could decide: How would you prefer to „package“ a pair of jeans for „Generation Z“?

Frank Müller: The packaging industry won't like to hear this, but if we take the aforementioned findings about „Generation Z“ and what they want from packaging to heart, then packaging has no place on a single pair of jeans. The points Stability and Transportability are given by the product itself; anything else would contradict what I have just tried to illustrate. Of course you could Recyclable, sustainable packaging from renewable raw materials that is lightweight and uses little material, but in the words of a Generation Z respondent: „The best packaging is the one that isn't needed at all.“

Generation Z places high demands on packaging and values different things than previous age groups. Read this article to find out what is important to the mobile-first generation when it comes to packaging:

Environmental friendliness and functionality are key[/infotext]