Brand Stories: Alex and Ani

Alex and Ani is an accessories and jewelry company that offers eco-friendly, approachable products backed by influential content and powerful brand image. Founded by jewelry maker Carolyn Rafaelian in 2004, the lifestyle brand has shaken up the jewelry world by focusing on how the jewelry makes the wearer feel, rather than just how it makes them look.

 

The brand aims to design bangles, bracelets, necklaces, earrings, and rings, while enlightening the mind and empowering the spirit. The purpose of the accessories is to allow wearer to more easily and effectively express their own individuality.

The small Rhode Island factory basement venture started gaining traction in 2004 when they designed an apple necklace for Gwyneth Paltrow following the birth of her daughter, Apple. In 2011, the Paper Store chain built an Alex and Ani “shop within a shop” at each of its 72 outlets. Tom Anderson, Paper Store CEO, said, “some would call it a risk. But right out of the gate, we couldn’t keep it in stock.”

Wearing Positivity

 

 

The brand is targeted towards those who want to embrace a “positive energy” lifestyle. According to Brent Cleaveland, executive director of the Fashion Jewelry & Accessories Trade Association, the difference with Alex and Ani is that “they don’t really sell jewelry. They sell positive energy. The bracelet is just a vehicle.”

More Than Meets the Eye

 

Alex and Ani has found a way to market themselves as a lifestyle brand, rather than just a jewelry company. The brand has attracted just as many people through its products as it has through its powerful brand story and social media presence. This has really resonated with millennials, with some even following the brand before ever making a purchase. Many have said that the fandom has reached “cult status”.

In fact, Forbes found that a majority of millennials follow their favorite brands on social media, so it’s an integral marketing strategy. The brand’s mobile app also offers positive lifestyle content and motivational quotes to help further their ultimate goals. Fans were so anxious for the positive boost that the app was downloaded 80,000 times within the first three weeks.

The brand also published an inspirational book to complement the brand image, called “Path of Life: Why I Wear My Alex and Ani”. Written by CEO, Giovanni Feroce, the book includes a collection of inspiring stories from customers about how their Alex and Any pieces have helped influence their lives. He said, “I put this book together to show the world that you can indeed offer products that are infused with intentions of love, peace and positive energy, made in the USA and eco-friendly.”

As Feroce put it, “We advertise Alex and Ani, but we don’t advertise what we do. I don’t care what we do. Alex and Ani is a brand. It has to do with quality, with what we put into it.”

 

Charity By Design

 

The brand has a large impact on the local Rhode Island community – where the jewelry is made – as well as a positive impact on the globe. The “Charity By Design” initiative has been wildly successful, with 20% of sales going to charity, for 20% of sales. This has totaled $44 million donated to non-profits across the globe, to date. The brand’s employees have also volunteered over 7,000 hours to different charitable efforts.

Capitalizing On the Millennial

 

 

Millennials are looking for personalized experiences when they shop, which Alex and Ani has capitalized on. The bestselling patented expandable charm bangles are available in thousands of iterations, or you can customize a unique piece, which makes it instantly more appealing to shoppers (and particularly, millennial shoppers).

 

 

Every bangle also comes with a “meaning card” and the app offers extensive information on the meanings behind different charms, so customers get an interactive experience with each purchase.

Still Gaining Momentum

 

In 2010, when Giovanni Feroce joined the company as CEO, sales for the year grew by more than 20 times its previous annual total. While there have been a string of CEOs and senior managers following Feroce’s departure in 2014, Rafaelian has since stepped back into the CEO role.

Currently, just over 10 million charm bangles are sold per year, with revenue soaring from $5 million in 2010 to just over $500 million in 2016. By the end of 2017, there will be at least 80 company-owned Alex and Ani stores.

Rafaelian has become America’s only jewelry billionaire and is #18 on Forbes’ list of America’s Richest Self-Made Women. Some have scoffed at Rafaelian’s method of consulting the stars before making major decisions, but it doesn’t seem to have hurt her yet. In fact, Rafaelian said her winning strategy is quite simple: “I don’t listen. Which is the best thing I do.”

10 Package Design Mistakes and Why You Should Avoid Them

Every designer has encountered some major package design mistakes in their career, so we’ve covered some of the most common (and unfortunate) ones below. Avoiding these common blunders can save your business time, money, and embarrassment later.

Test your packaging with your target consumer groups to ensure it is easy to open, eye-catching, and hits all the right marks. If your packaging doesn’t attract your target market or help your business reach its goals, it may be time for a rebrand.

1.   Overcomplicating Things

 

Simplicity is key to straightforward, streamlined designs. Making the design overly complicated will just confuse customers. You’ll want to leave enough pertinent information to answer your customers’ questions about your product, without overcomplicating or confusing things.

Kraft transformed their clean, long-standing iconic logo into a juvenile, flamboyant logo with nine opposing colors. This resulted in a more expensive, complicated design that just left customers confused. They eventually saw the error of their ways and redesigned the logo and branding to something that better aligned with consumer expectations.

2.   Excess Packaging

Excessive packaging is bad for everyone. Consumers respond negatively to waste, stores don’t like giving up so much shelf space, and the company is losing money on unnecessary packaging.

 

3.   Typos and Misspellings

 

 

This may seem like a fairly obvious mistake, but it’s more common (and costly) than you may think. Nothing breaks down your business’s reputation like a simple misspelling.

 

4.   Blurry Images

 

 

Sierra Mist’s rebrand efforts included a blur effect that just ended up making everything difficult to look at, which was a bigger problem than they may have realized. Based on a 2016 study by The Benchmarking Co. on beauty product packaging and beauty consumers, 83% of consumers said that the name of the product needs to be easy to read.

 

5.   Bad Placement

 

 

Sometimes, the placement of seemingly insignificant things can really throw off the whole design. As is the case with Pampers’ pull-off handles, bad placement can look humorous, phallic, or juvenile, which reflects poorly on the brand.

 

6.   Forgetting Your Loyal Buyers

 

 

Consistency is key to creating a strong brand image and brand loyalty. If your packaging isn’t consistent, it won’t match your overall vision and can leave customers confused.

As in the case of Tropicana, sometimes, big name brands veer too far off the norm and end up turning their backs on their loyal customers. Tropicana was attempting to make more “down to earth” packaging, but ended up with a design that looked more suited to a generic store brand. This left customers puzzled, and sales plummeted as a result.

 

7.   Difficult to Open

 

 

If a package is too difficult to open, consumers may choose a competitor’s product next time. In fact, this issue is so frustrating that it’s been given its own name: “wrap rage”.

 

8.   Outdated Design

 

There is a difference between vintage and just plain old. If your packaging is outdated, it can make your company seem old and insignificant as well. It’s important to keep up with the times so that your brand can continue to stand up to the competition.

9.   No Unique Traits

 

 

With an oversaturated market, it’s important that your product can stand apart from the rest. If your branding looks too similar to the competition’s, you’re missing an opportunity to reach customers from the shelf. While your branding should stay in line with your competitors, it’s important to find the unique traits that help you stand above the rest.

 

­10. No White Space

 

 

Leaving white space is a great way to highlight the most important characteristics of your product. It also keeps things simple and straightforward, so it’s important to leave plenty of it.

7 Trends from the 2017 Summer Fancy Food Show

 

According to the Specialty Food Association, the Summer Fancy Food Show is North America’s largest trade show for the specialty food industry. As such, it is the perfect place to scope out what sorts of new tastes are being explored by brands, and what trends are emerging as a result. Here are the top seven flavor trends that we noticed after attending last week:

 

1) Meat-Free

 

From eggless mayonnaise to fish-less fish cakes (which are made up primarily of beans), vegan products were out in full force this year. As more consumers become aware of the environmental ramifications of meat cultivation, meatless alternatives are gaining a lot of attention.

With the push for more protein-rich goods that are free of animal products, we were surprised at how few brands were incorporating insects into their food. Known to be full of protein, not unpleasantly flavored, and far more eco-friendly than livestock, insect-enriched products would have seemingly fit right in at this show. It feels like every year we say that consumers are close to embracing the idea of eating insects, yet once again it appears that the industry still isn’t feeling the love.

2) Veggie Snacking

 

 

Not so surprisingly, vegetable-based snacks continue to serve as a substitute for fatty products like potato chips and pretzels. Crunchy brussels sprouts, popped lotus seeds, seaweed crisps, and beet crackers all offer consumers easy ways to bring more vegetables into their diet without sacrificing snacktime.

Notably, vegetables are now being combined with more sweet treats – Biena, for example, won a Sofi prize for their roasted chickpeas covered in caramel and chocolate. Several other brands showed up with some variation of sweetened sesame bars, which could be an alternative to granola.

3) Coconut

Coconut sugar, coconut clusters, even coconut-flavored cheese – everywhere you turned, somebody had figured out a new thing to do with coconuts. Many of these products were honored with Sofi awards, particularly those that are intended for snacking, like World Finer Foods’ GoCo Crunchy Coconut Bites.

 

4) Spiced and Textured Beverages

 

We first anticipated the spiced drink trend back when Pepsico announced their limited edition Pepsi Fire flavor. Our prediction was confirmed when the most beloved non-Starbucks drink on Instagram, Blk. Water, came to the Fancy Food Show with somewhat savory new flavors like “Spicy Black Cherry” and “Peach Mango Basil”. One of the busiest booths at the show was relative newcomer H2rOse, a beverage brand that infuses water with roses and saffron.

The show also featured a range of textured beverages, with several aloe drink, puree, and chia seed drink brands in attendance. Aloe-based beverages are often a little thicker than a traditional juice, with variations in “globiness” depending on brand. As soda sales slip, unique drinks like these have an opportunity to expand their market.

5) Beets

 

 

Last year, the Los Angeles Times reported that beets were going to be the next major superfood, and the trend has continued into 2017. Not only do beets give products an exciting, eye-catching color – which is helpful for standing out at an event like the Fancy Food Show, which features thousands upon thousands of options – they also are rich in antioxidants and nutrients. Love Beets came to the show with a variety of beet products, including organic beet juice and a mixable beet powder.

 

6) Cold Soup

Tio Gazpacho and Fawen are just two of the cold, drinkable soup brands that presented at this year’s show. With the beverage industry starting to pull away from sugar and playing with savory flavors, it makes sense that vegetable-heavy drinks would shine.

 

7) Allergy-Sensitive Products

In addition to all of the meat-free products at the show, a number of brands came with gluten-free, dairy-free, and nut-free snacks and beverages for intolerant consumers. New Jersey company No Whey! Foods presented an assortment of popular candy alternatives, like “Pea NOT Cups”, chocolate cups filled with sunflower seed butter rather than peanut butter. Many of the products in this category are also vegan and/or kosher, and incorporate other trendy ingredients like coconuts and agave.

 

 

How CPG Brands are Strategizing for the Gig Economy

The major disruption caused by platforms of the new gig economy (ie. Uber, AirBnB, Etsy) has been widely reported, and it’s still too early to fully understand the long-term implications that it will have for relevant industries. Robert Reich, former labor secretary, called the shift “the biggest change in the American workforce in over a century” and reaffirmed its unpredictability. What we do know is that these sorts of platforms are impacting increasingly diverse fields, and that companies are facing the prospect of either conforming or becoming obsolete. After several years of the gig economy going strong, CPG brands are finally responding and catching up.

 

 

In mid-May, Mars began recruiting event hosts for a new multilevel marketing campaign called “The Cocoa Exchange”. In the vein of Avon or Mary Kay, “curators” buy kits of samples to push at parties, and are awarded a percentage of any online sales that result from it. Mars has collaborated with chefs to create a unique line of products specifically for The Cocoa Exchange, meant to pair well with wine and suit a party atmosphere better than the company’s existing options.

 

Direct selling like this, Mars has said, has been a fairly safe and profitable channel for the past five or six decades. Additionally, this strategy plays into two well-documented facets of millennial economic behavior – first, the “obvious demand” (as Mars put it) for opportunities to earn supplemental income, and second, millennials’ propensity to invest more in experiences than in material goods. These factors combined convinced Mars that an interactive, entrepreneurial program like The Cocoa Exchange would be able to thrive.

 

 

Other companies are taking inspiration directly from popular digital platforms. Deliv, for instance, is a five-year-old startup that works with major retailers to deliver in-store purchases directly to customers using crowdsourced labor. Known as “Uber for the retail industry”, Deliv has managed to avoid the turbulent legal environment that rideshare services have faced because they don’t compete with regulated industries, unlike Uber and Lyft, which have been accused of threatening taxi services. Deliv has enabled companies like Williams-Sonoma and Bloomingdale’s to offer an added-value service to their consumers and aide in competing against companies that deal primarily in e-commerce, for whom home delivery is a major selling point.

 

 

Some retailers – like Macy’s – are collaborating with gig platforms to offer new experiences to a shared consumer base. Last year the Herald Square Macy’s (the company’s NYC flagship store) hosted a pop-up Etsy shop in an area of the store known as “One Below”, a section meant to appeal to millennial shoppers. At any given time, the shop featured around fifty products (including things like household goods and jewelry, which Macy’s also sells) that were constantly rotated out in order to conform to a specific theme. Prior to working with Macy’s, Etsy also collaborated on smaller projects with retailers like Nordstrom and Whole Foods.

 

Another strategy that CPG brands are taking on is challenging gig platforms for talent. According to an article published this month by the London School of Economics, self-employment is increasingly common among those who traditionally have a difficult time transitioning back into the workforce, namely stay-at-home parents and retirees. In order to retain skilled workers and prevent flexible gig platforms from absorbing these types of candidates, many CPG companies are implementing return-to-work programs. Pepsico has been a leader in this with their “Ready to Return” initiative, which accepts professionals who have taken a career break for more than two years and provides them with ten paid weeks of coaching and mentoring before they start their new position. On their career site, Pepsico tellingly specifies that they are seeking associates who can “make an impact in the Age of Disruption”.

 

Economists and commentators also refer to the gig economy as the “on-demand” economy, especially when discussing it from a consumer behavior perspective. Similar to the concept of “McDonaldization” that was so popular a few years ago, the idea now is that companies like Uber are conditioning users to expect quick and easy service from completely unrelated industries. Amazon is also largely responsible for the on-demand economy, and big box stores are strategizing for how to compete. For example, Wal-mart just opened their first automated 24-hour pickup kiosk, which allows customers to place online orders (of at least $30) and pick them up at a designated kiosk in-store. Last year, they directly partnered with Uber and Lyft for a home delivery pilot program, comparable to what Deliv currently offers. Now with Amazon’s startling announcement that they have decided to purchase Whole Foods, retailers are feeling the heat more than ever, and we should expect to see even bolder experiments from unsettled competitors.

 

 

In an article for Food Dive, industry reporter Keith Loria warned against transitioning to independent contractor-based hiring practices, as some food companies may be tempted to do. After all, companies like Uber don’t have to pay for employee benefits, nor do they have to pay for downtime. However, Loria said, the food manufacturing industry can be physically dangerous for those not appropriately trained, as improper storage and cleanup can lead to serious health concerns for both workers and consumers. Many within the industry feel that this is too big of a risk compared to the rewards offered by making the change. Further, it is important to note that Uber and companies like it have come under fire for what has been perceived as a lack of corporate and social responsibility. Many young shoppers are paying close attention to the way that companies treat their employees, and throwing away prized benefits like retirement savings plans and health insurance could potentially lead to problems with public image.

 

The gig economy has already radically disrupted service industries like transportation and hospitality, and it is gradually creeping into the CPG sphere. Its presence is still relatively new there, and brands should learn from what has happened within the service sector and prepare themselves for what’s to come.

 

Redesigns and Refreshes: Why Change is Crucial

 

Each year, new design trends emerge. It’s important for businesses to keep up with these changes in order to remain competitive, and those that are really good at it can even position themselves as change leaders within their industry. As our Director of Business Development, Kory Grushka, put it: “Be very curious and stay on top of the latest trends and news – particularly in your industry, but also outside of it.”

Adjusting to Fit the Times

 

 

 

 

 

Rocky Mountain Chocolate Factory completely rebranded their packaging and store design to better fit in with today’s aesthetic style and feel. Graphic design studio, Wedge & Lever, took advantage of the new chocolate culture by giving the branding an upscale feel, with a color palette inspired by the chocolate itself.

Rebranding Efforts Often Lead to Huge Success

 

If a brand has become outdated, is declining in sales, or needs to stand apart from the competition, then a rebrand can provide the facelift they need to bring the right attention to the product. Rebranding also keeps customers interested and shows them that people are still hard at work behind the scenes making sure the product is the best out there.

 

Target proved this when they updated their generic Market Pantry packaging to give it a hip, trendy vibe. It now feels like a standalone brand, rather than an affordable generic pick.

 

Each product has its own detailed packaging, down to the type. The heavy typography feels fresh, like something that could be seen on a Brooklyn storefront. The badges for health feel like modern stamps now, instead of boring nutrition facts or your typical callout.

 

 

The Crunchy Oats & Honey Granola Bars now have honey dripping onto the top of the type. With the Toasted Rounds Baked Crackers, the “O” and the round portion of the “D” have treatment that feels like the edge of the cracker. The mixed fruit flavored snacks now have the typography as the teeth of smiling grapes to appeal to kids. On the Woven Wheat crackers box, the type is written so that it looks like parts are weaving in the crackers.

 

Some products (like the marshmallows) are transparent with only the logo and bold type showing, letting the product be the star of the show, and saving ink at the printer in the process. Other products, such as the butter, half and half, cottage cheese, and American singles have very flat packaging focusing on the typography alone.

Holiday Packaging

 

Changing packaging to fit a holiday, theme, or season can lead to huge profits. It can make your product stand apart from the competition and help build brand loyalty with your target audience.

Learn to Accept Change

 

 

While redesigning Campbell Soup Company’s V8 packaging, our research process included multiple store visits to each of the three club store retailers, significant desktop research and interviews of club store industry experts. Further, we audited cross-category products as well as the beverage category, and conducted extensive color studies that ultimately informed the variety differentiation strategy. The final designs focused on color blocking, bold callouts for the brand, varieties and pack sizes, and photo-realistic 3D renderings of the products.

Change can be scary, and with the risks that it carries, it’s easy to see why. But with a clear vision and full understanding of trends and modernity, the resulting redesign should successfully bring a design into the present day.

The Rise of Minimalism in Package Design

The trend for minimalist package design continues to pick up steam, be it forgoing lots of wording, using simplistic designs, going without labels, or even utilizing materials that are plain and simple.

Many companies are opting for clear-cut product labels, which allow consumers to easily identify and differentiate the brands from others on the market. In an era of information overload, savvy CPG brands are realizing that their customers appreciate minimal packaging.

Matt Ramirez, senior designer with Adhere Creative, an inbound marketing and brand development agency in Houston, Texas, said it’s strict limitations or restrictions that sparks creativity.

“Minimalism is the style of the day. Companies can still bend it to fit our needs whether we use color, typography, or simple flat graphics instead of images to stand out,” he said. “Having a roadblock forces us to think up creative ways around it. Having to stand out from the pack with less and less to work with is just another roadblock designers have to think around in a creative way.”

Marketing veteran David Miskin, CMO of Lightstone, first applied the minimalist attitude doing window displays while working at the Gap, and he’s seen minimalism rise in importance over the decades.

 

“I think everybody is familiar with the term ‘less is more.’ It’s important to realize, though, that design is not about less or emptiness, it’s about impact,” he said. “A minimalist philosophy doesn’t just spare space; the designer works using pieces that tell a story. By focusing on what is essential, a designer can better exemplify a company’s or brand’s narrative by focusing on a few points that make a big difference.”

Looking at traditional advertising—whether it was print, television, or billboards—Miskin noted there was such a dominant design across all mediums from the ’60s to the ’80s, that it got to a point where there was so much clutter that designers needed to go to the other end of the spectrum and clean palates again, starting from the basics to develop new concepts.

“In fact, many modern offices have employed streamline, to varying degrees, using negative space to tell the story of their brand,” he said. “In addition, this approach has led to greater productivity, collaboration, and ideas.”

Going Minimalist

 

Some of the design elements that can help contribute to a minimalism feel include using lots of white space, bringing out a message on a small portion of the packaging; relying on bold colors and visibly appealing fonts; or using a simple photo that tells the story you want to tell.

Still, minimalism doesn’t have to be a white background with a gray apple in the middle, either. It can be an orange box with a white swoosh or even a burger made out of the simple bars of the letter “E” in the word “whopper.” All are examples of minimalism however, they use the style in very different ways.

“Color, space, shape, and typography are all very important tools we have at our disposal to make brands stand out and look different while using the same trend to communicate our message,” Ramirez said. “Having a well-thought-out brand identity is an essential tool that we must never forget about. Pepsi and Coca-Cola both use minimalism with simple packaging and on the bottles themselves. However, never in a million years could someone mix them up because they have vastly different typography, colors, and overall brands.”

Miskin said that consistency within a brand is important when pursuing a minimalistic strategy, and the elements of the minimalistic design should be across the board.
“A brand needs to know who they are and not stray too far from their formula,” he said. “By not drifting from their identity, consumers will become loyalists who seek out a brand, quickly recognizing them in a retail space.”

Le Labo, for example, designs all of its fragrance brands in the same way.

“If you look at their packaging, it’s consistent: minimalist across all scents,” Miskin said. “Maison Margiela is a stand-out fashion brand with minimal store build-outs and packaging. Their stores’ design features include books painted white, scraps of wood, reclaimed fixtures, and a consistent grit throughout the stores. Just by going to that white, clean place, they developed such a strong brand.”

Minimalism in Action

 

Another great way to get the most out of a minimalist design is to let a label make eye-catching, bold claims, such as Boxed Water, which simply has “Boxed Water is Better” written in black against a white background.

It was a decision that company CEO Daryn Kuipers said was important to getting its message in front of consumers. Furthermore, the company put great thought into its packaging materials, again opting for a minimalist approach.

“By packaging our premium water in recyclable cartons that ship flat to our regional fillers, Boxed Water minimizes our carbon footprint and increases efficiency compared to bottled water options,” Kuipers said. “The paper for our cartons is sourced from trees of well-managed forests, where new trees are continuously planted to replace the ones harvested.”

 

 

Vodka Mariette is a premium French spirit designed for bold and creative millennial women and a minimalist design was accomplished in-house by Winz Hospitality with assistance from design firm MX Landau.

“To differentiate, an antique neckless carafe was designed in a shape reminiscent of the Eiffel Tower and/or a woman’s body,” said Josh Winzelberg, Vodka Mariette’s president. “It was made completely matte black, opposed to ornate glossy or frosted bottles that are common. Rather than painted décor, a label of quality paper was opted for, similar to wines and champagnes that convey craftsmanship and class.”

Furthermore, the fonts expressed a general contrast, creating the aesthetic of the brand, which is French Modern.

“The female-oriented style of contemporary minimalism with homage to history and craft via details is truly relevant now as a hallmark for the changing landscape of luxury spirits,” Winzelberg said. “This gives the bottle a ‘fresh’ look many others lack.”

The philosophy of minimalism is to omit needless things, so by paring down packaging materials and pairing down the visual aspects of the design, a brand can do wonders and send a big message by doing what’s seen as little.

 

Top 5 Examples of Visual Texture

Visual texturing can be used to create unique, eye-catching packaging designs, through the exploration of layers, photography, illustration, and key graphic elements. This type of design plays off of elements of touch to connect with customers on a deeper level, building both general curiosity and brand loyalty. When done correctly, textural packaging can leap off the shelves, further enticing customers (particularly those who are attracted to abstract designs).

What Is Visual Texture?

Visual texture is not quite the same as actual texture. Actual texture is something you can feel, such as wood. Visual texture, on the other hand, is only implied texture using particular styles of design, such as marbling, layered texts and graphics, patterns, colors, lines, dots, or other repeated shapes.

Caribou Coffee

 

Caribou Coffee was looking for a new design that serves as “an evolution that leverages the distinct qualities of the previous packaging while incorporating new art work and design elements.” Colle + McVoy accomplished this with a burlap sack façade, which stands apart from other coffee options by simply giving the illusion of a different texture.

La Forma Saporita

 

 

This conceptual design – created by Yanko Djarov for his final bachelor’s thesis project – deserves to be mentioned for its successful use of visual texture throughout the branding. La Forma Saporita means “the tasty shape” in Italian, which is used to inspire the branding and packaging. The textural quality of the pasta is highlighted so that the design practically jumps off the branding and packaging. The design also uses a monochromatic theme to better highlight the colors of the pasta, which is also unlike most other colorful pasta packaging on the market.

Isle of Harris Gin

 

Stranger & Stranger added texturing to the Isle of Harris packaging, designed to reflect the unique colors and shapes of the landscape. It also represents a physical approach to texture design, as it entices consumers to pick it up and touch it. It stands apart without requiring a complicated (or costly) design or materials.

 

Lawyer’s House Wine

 

 

Brandient designed the new Lawyer’s House Wine packing, which serves as the perfect example of textural packaging using a simple sticker. The bottle is meant to appear like it is wearing a men’s dinner jacket using a pinstripe pattern, folded sticker, and small red handkerchief. It gives off a feeling of elegance from the shelf and is the perfect gift to take to any dinner party or client meeting.

Alternative Organic Wine

 

 

This concept created by The Creative Method offers an upscale design by focusing on the different textures found in nature. The labels use all organic packaging, from the raw twine, vine leads, and balsa wood to the inks, string, and wax used on the organic paper wrapping. Awarded the “Best In Show” at the Dieline Package Design Awards, the packaging is meant to focus on the premium nature of organic products, rather than focusing simply on the pureness of it. Along with serving as the perfect gift for any host, textural packaging designs like this one also offer a great talking point.

Amazon Squares Off Against Big Box Retailers

 

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Earlier this year, Amazon reportedly began reaching out to several major consumer product brands, telling them that they’d be better off ditching retailers and selling their goods directly to shoppers through its service.

Amazon’s outreach culminated with executives from General Mills, Mondelez, Nike and other packaged goods manufacturers gathering for a three-day summit in Seattle this month to listen to the company’s innovative pitch.

Analysts point out that with a user base of more than 300 million shoppers (a number that increases monthly), Amazon doesn’t necessarily need these brands to bite – that they could simply manufacture their own products if the CPG companies don’t want to sell on Amazon’s marketplace. For companies that wish to avoid competing with the e-commerce goliath, it makes sense to consider leaving the Walmarts and Targets of the world.

An Increase in E-Commerce

 

AMAZON

 

Randy Evins, senior principal of IVE Food Drug & Convenience at SAP Retail, said e-commerce sales are growing at rates far greater than sales through traditional channels, and is only just beginning to indicate future growth potential.

For example, recent studies show that e-commerce sales of consumer packaged goods grew 42% in 2015, faster than overall e-commerce growth of 30%.  And growth in specific categories is surging as consumers increasingly take advantage of on-demand and subscription-oriented services, either direct from CPG companies like Dollar Shave Club or from online marketplaces like Amazon.

“Fast growth in e-commerce is starting from a relatively low current base, but is expected to become a far more significant percentage of total revenue and sales volume for CPG companies,” he said. “While e-commerce today is usually less than 5% of revenue for some of the largest, most established brands, we see predictions that e-commerce sales will grow to roughly 30% of total industry revenue within the next 3-5 years.”

In 2016, Amazon sales made up nearly half of all online sales—and more than half of online sales growth.

Mihir Kittur, ‎co-founder and chief commercial officer at Ugam, noted that the rise of e-commerce sales in certain categories like batteries and baby wipes is extremely encouraging, and that it seems to reaching a point where e-commerce for consumer packaged goods is at an inflection.

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“With the rise of Alexa, chatbots and mobile apps, consumers have more convenient ways to order. Customers have proved time and time again they crave convenience, so to align with their needs, retailers are also continuing to offer speed delivery services and are improving their buy-online-pickup-in-store options,” he said. “Consumers can also save more money now, thanks to the rise of private label CPG products. In the next two years, we should see an acceleration of e-commerce growth for CPG.”

The Case For Amazon

 

The e-commerce transformation seems inevitable. By partnering with Amazon, companies will find that it’s a much faster and less expensive alternative to doing it themselves, which means higher margins on sales.  Amazon, being a single vendor, would be easier to manage with almost a turnkey platform with joint marketing dollars to promote products. It would also be easier and less costly to test products in markets, so CPG companies could double down on winning products and discontinue products that don’t sell.

“Amazon’s approach goes well beyond simply inviting CPG companies to sell their products online via Amazon but, rather, to partner with Amazon to re-imagine product design, packaging, pricing and distribution to capitalize on direct-to-consumer growth opportunities,” Evins said. “By partnering to address these opportunities, Amazon aspires to collaborate with CPG companies in ways that not only capitalize on e-commerce sales growth, but also help to re-imagine business models and business processes to engage with consumers directly, effectively and profitably.”

Jim Prewitt, VP retail industry strategy, North America at JDA Software, said CPGs have been building out their direct to consumer capabilities for the past several years and while they’ve been able to build out their web capabilities, fulfillment continues to be a challenge.

Amazon Fulfillment Center Opens In San Bernardino

“CPG manufacturers’ supply chains have been built for efficiency, shipping in larger quantities typically to retailer distribution centers, where the retailer became responsible for breaking it down to customer buying quantities,” he said. “They are facing the challenge of changing their supply chain to be able to handle shipping eaches to the consumers.”

Amazon could help address the challenges for the manufacturers by serving as their fulfillment mechanism, taking the responsibility of shipping eaches to the consumer. On the surface this is potentially a winning combination for the CPGs and Amazon. However, it could cause issues for the other retailers in the equation.

“The pressure from mass merchants, grocery, drug, etc., who comprise large percentages of current CPG volumes could derail this effort quickly,” Prewitt said. “It’s not reasonable to expect that major big box stores would accept this arrangement with Amazon.”

The Quandary

 

CPG firms are struggling to figure out Amazon, Kittur said. While Amazon is the dominant player in the market, most companies are confused on whether to treat it as a friend or a foe.

“The fear is that selling on Amazon could lead to brand dilution, extreme price discounting, and at some point the risk of an Amazon Private label,” he said. “Another point of concern is the conflicts that arise with existing channels when sellers begin to carry their products on the Amazon marketplace. Overall, CPG brands seem to have good relationships in place with store retailers, but their e-commerce readiness is not as mature.”

As the CPG industry adopts e-commerce, they are more or less running blind, as they have no clear idea on transaction and shopper metrics. Adding to the challenge is that CPG firms are soon likely to be caught in a pricing dog-fight between Walmart and Amazon.

“Amazon needs to improve its trust with CPG firms. Amazon can gain some of that back by flagging pricing violations to CPG firms,” Kittur said. “In many instances Amazon has taken action against some sellers and it needs to continue to demonstrate this in a more widespread manner. It also needs to work with brands on specific propositions for certain customer segments like Amazon Business or on exclusive available-on-Amazon-only products to help them drive growth.”

Looking Ahead

 

CPG companies have begun to take a closer look at the e-commerce landscape to better understand what is going on, but so far, they have been in a situation of “they don’t know what they don’t know.”

Operations Inside the Amazon.com Fulfillment Center On Cyber Monday

“They will need to move fast and test and iterate their e-commerce game plan,” Kittur said.  “There are no clear answers, but doing nothing is not an option. They will also need to build meaningful relationships with companies like Amazon and arrive at the right balance of store and online to be relevant to their shoppers.”

E-commerce growth will continue to become more pervasive across categories, driven mainly by changes in consumer demand. Evins noted that in response, CPG companies will continue to transform their operations to participate more fully in the new direct-to-consumer economy through partnerships with online marketplaces like Amazon, or by developing new models that enable a consistent brand experience via online channels, sub-24-hour order processing and fulfillment, and warehouse and logistics operations to enable deliveries directly to consumers.

One tactic Prewitt said could happen is the creation of Amazon-only products, package sizes, or bundles, similar to what CPG companies do for individual retailers today.

“Since Amazon has identified CPG as a growth driver, in time we can expect them to impact the marketplace the way they’ve disrupted apparel and are working to disrupt the grocery industry currently,” he said.

The reality is that the CPG core competency is innovating on the product side, not on the supply chain side. It’s best for CPG companies to leave it to the online retailers to optimize their supply chain to deal with the last mile.

Brand Stories: Buzzfeed

BuzzFeed is an American “social news and entertainment company” with a focus on digital media and digital technology. It has expanded from quizzes and lists to become the “first true social news organization”. What is now “the web’s most beloved new media brand” was once a small “viral lab” side project for founder Jonah Peretti. Since the inception in 2006, they’ve also progressed from kittens and internet memes to serious reporting (with plenty of kittens and internet memes still sprinkled in).

BuzzFeed-1

While they commit the majority of their resources to videos and entertainment, BuzzFeed News has also become a trusted, engaging news source for millennials. The site tackles hard-hitting issues and presents them in layman’s terms, and their coverage of last year’s campaign season was so well received that CNN poached an entire Buzzfeed investigative team in October.

 

It All Started with a Chain of Emails

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Source

 The idea for BuzzFeed started early on when Peretti was communicating with a Nike representative after they denied his request to customize a pair of shoes with the word “sweatshop” on it. He forwarded the email chain of messages exchanged with Nike to 12 friends around the globe. The email chain was forwarded on and went viral. Peretti was flooded with media inquiries regarding the viral messages, as well as his stance on labor practices.

After working with Arianna Huffington to launch the Huffington Post in 2005, Jonah Peretti decided to form BuzzFeed in 2006. He always had an interest in how and why people share things through the web and experimented with viral projects.

BuzzFeed Labs first experimented with BuzzBot, which used algorithms to message users with targeted links. They also used a site to highlight some popular links that BuzzBot found, but the company wouldn’t hit its true stride until they hired human editors.

 

Finding Success Through Social Media

 

Successful social media marketing, social sharing, and content creation can have a tremendous effect on any business. BuzzFeed is a prime example of this. They found enormous success by focusing more on sharable content, rather than trying to stay within Google’s stringent guidelines. Finding content that users want to share with their friends and family has always been BuzzFeed’s ultimate goal.

 

Avoiding Banner Ads

 

While many sites rely primarily on banner ads for income, BuzzFeed doesn’t have a single banner ad on its site. Instead, they generate revenue by working directly with brands’ chief marketing officers to create unique advertising campaigns that people will want to share and talk about. They have been remarkably successful in using content as the primary advertising strategy.

 

Branding You Can’t Ignore

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The bold red logo and simplistic, clean design and user interface are hard to ignore amongst an ocean of Old English-type news source branding. The bright yellow buttons featuring fun, social buttons like “WTF”, “LOL”, and “OMG” in place of the standard “Like” makes the site feel more like a gossip mag than Peretti’s original venture, The Huffington Post (which is now commonly known as HuffPost). The red trending arrow icon from the BuzzFeed logo is also used to represent when something is trending or “buzzing” to give further meaning to the logo.

 

The Future of BuzzFeed

 

BuzzFeed Community allows BuzzFeeders to now contribute content to the site that’s approved by editors. This allows BuzzFeed to capitalize on free sharable content. In order to stay successful, Peretti said, “we have to continually surprise people, we’ll have to continually evolve and change what we do”.

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Source

 After publishing an unverified dossier pertaining to Trump’s ties with Russia in January, Trump responded by deeming BuzzFeed a “failing pile of garbage”. But with a $1.5 billion valuation, over 200 million monthly unique visitors, and 75% of the traffic generated from social referrals, it doesn’t seem like BuzzFeed has anything to worry about.

Package Design Trend: Dramatic Callouts

As consumers become more resolute in their preferences for trends that have been growing over the past few years (“simple” ingredients, environmentally-friendly production practices, etc.), brands are responding by dramatically highlighting these traits in their packaging. This has proved successful for many breakout brands, and this strategy should be considered in order to show potential consumers that their needs are the primary concern of the company.

rxbar

 

Protein bar manufacturer RXBAR took a pretty big gamble when they shrunk their logo by 60% in their 2017 package redesign. Their risk paid off enormously – by making the ingredients (which are easy for buyers to understand, a valued feature for modern shoppers) the star of the design, they launched their product into third place in its category.

 chia

KIND chose a similar strategy with their line of pressed bars, minimizing their brand name in order to free up room for the ingredients to shine. The company states that each bar adds two servings off fruit to one’s daily routine, and that the snack is made with just fruit and vegetables or fruit and chia. The packaging callouts emphasize this “simple” makeup.

daytm

This packaging from design agency mousegraphics reads like a recipe, taking what RXBAR has done a step further. While the funky hand-drawn typeface is a little difficult to read, the flavors are easily distinguished because whichever ingredient is most present in each bar gets a corresponding color and small illustration at the bottom. The project won a 2017 Dieline Award for Outstanding Achievement.

halotop

Halo Top majorly disrupted the ice cream category with its loud display of its outrageously low calorie count. The treat is made with stevia instead of sugar, meaning that the brand is able to differentiate themselves from fatty, indulgent competitors. Here, this fact is the hero of the packaging, as the calories-per-pint count is the first thing that draws the consumer’s eye.

water4change

Water for Change, which donates 10 liters of water to villagers in need for every carton purchased, won an A’Design Award for this packaging. The hand-to-hand illustration clearly calls out the value that the product offers beyond its basic function, and floating words like “eco friendly” and “sustainable” further express the image of environmental health that the brand is trying to promote.