The packaging industry is adapting to a new target group: The growing "Generation Z", born from 1995 onwards, prefers to buy online and has special demands. The 2017 Dresden Packaging Conference dedicated its keynote speech to this age group, who can no longer imagine life without smartphones and mobile internet.
With the "Generation Z", a new generation of consumers is growing up. This age group, born from 1995 onwards, is no longer described with buzzwords such as "zero buck", "golf" or "millennial", but with "mobile first". Young adults know no life without Smartphone and social media. This is clearly illustrated by figures compiled by the Swiss "Triple-a-Team AG" in a meta-study from last year: Young people spend an average of 17.8 hours a week online. Every day, they use mobile devices for 2.3 hours, PCs or laptops for 2.7 hours and watch TV for another 1.7 hours.
There is something in store for packaging manufacturers and developers, the organisers of the Dresden Packaging Conference 2017 thought. Accordingly, they dedicated the introductory keynote speech of the two-day conference, which began on 30 November, to "Generation Z". Owner Frank Müller and creative director Ralf Wolfermann from the Chemnitz-based advertising agency "Haus E" presented the study "Packaging and Generation Z". It had been created especially for the conference.
What do Frank Müller, Managing Director of the Chemnitz advertising agency "Haus E", and dvi Managing Director Winfried Batzke have to say about the major Generation Z packaging study? We asked them. Read the full interview:
Product campaigns and benefit communication in demand[/infotext]
Young people value recyclability and low material usage
Although 73 per cent of respondents agreed with the statement "Packaging is waste!", the speakers reassured the audience that the packaging industry did not have to pack up. There is certainly "hope for a happy ending", the conference programme had already promised. After all, young people have different expectations of packaging - if only because reaching for a product is increasingly a click away in the shopping basket. Online shop corresponds. 71 per cent prioritise functionality over a smart appearance. The importance of aspects such as Recyclability, Environmental friendliness and low material usage. 66 per cent of respondents attach great importance to this.
In an interview with "packaging journal", Frank Müller says: "Generation Z has grown up with the requirement to avoid waste or at least minimise it. That's why packaging is almost exclusively used under the aspect of environmental protection and Conservation of resources valued." People are even prepared to pay more for environmentally friendly packaging.
Young people are not indifferent to packaging. This is particularly true for products such as Food, Cosmetics and Care products where the packaging stands for the contents. Some containers are even kept. 49 per cent use old packaging for other things, 44 per cent keep it for possible return shipments and 38 per cent for later transport.
Eliminating the information function creates new design possibilities
Why does "Generation Z" judge packaging so differently from previous age groups? One important reason is the changed Consumer behaviour. We are looking for specific products. Intensive research on the internet and in social media is a matter of course. Retailer and brand loyalty is declining. The international consulting firm "Accenture", for example, which conducted an international survey on "Generation Z" in 13 countries at the end of 2016, points this out. Tips from "Influencers" on YouTube, Facebook, Instagram or Snapchat.
How will the packaging of products ordered directly online by young people develop? Stephan Ango, founder and head of the agency "Lumi" in Los Angeles, has some ideas. Together with his team, he develops packaging solutions for products sold online. Classic Packaging functions like Advertising and Product information are increasingly being taken over by websites, he explains to packaging journal. The first contact with the product is moving from the shop shelf to the home. Easy access to the product, Functionality and - very importantly! - little waste left behind - these are important new functions of packaging. If a product performs poorly on these criteria, negative online reviews are the result.
[infotext icon]754 young people revealed their opinions on packagingThe study „Packaging and Generation Z“ was conducted by the Chemnitz-based „FOG Institute for Market and Social Research“. It was commissioned by the advertising agency „Haus E“ on the occasion of its upcoming presentation at the 2017 Dresden Packaging Conference. A total of 754 young people between the ages of 18 and 24 were surveyed - slightly more women than men took part. They used their smartphones to answer the ten questions presented in the „Google Consumer Survey“ online tool[/infotext].
Packaging becomes part of online marketing
Stephan Ango sees opportunities in this change: "Because the packaging no longer has to explain the product, the surface can be used entirely for colourful graphics that are often shared on social media." His agency has realised this idea with "MeUndies", for example. The online shop for customised underwear focuses its marketing on Snapchat and Instagram campaigns. The design of the packaging is communicated via social media. The company utilises the opportunity to create new incentives with new designs.
There is also interest in the online presentation of product packaging in Germany, reports Frank Müller. The first German companies are already approaching young customers in a similar way to the US slip shop. In our interview, Managing Director Winfried Batzke from dvi mentions, among other things, "MyMuesli". Its offshoot "Oh! juice", a shipping service for juice oranges, takes into account the ecological demands of the young target group. The environmentally friendly shipping carton was naturally integrated into the product presentation.
