Is Ready for Retail Packaging on Your Radar?
Ready for Retail Packaging or RRP as it’s known has been around for a while, but are you wondering why it’s never taken off as expected? RRP is apparently popular in Europe and many still contend that it is unstoppable trend.
And, if the trend does pick up pace, you and your packaging company will face the design and logistical demands that come with ready for retail packaging. Designs, materials, and distribution may all be affected. You may even have access to new markets with new languages.
The recession may be the only issue stopping faster adoption of RRP packaging. RRP costs are typically 20% higher than regular display packaging. RRP packaging companies are finding new ways to cut down on materials usage however, and this innovation is good for the industry in terms of cost efficiencies, new technology and sustainability. At some point, as resistance to RRP decreases, standards improve, and technology improves, we’re going to see it reach critical mass in demand and ROI.
North America IGD has produced a study of the Rise of Retail Ready Packaging. The report says more suppliers believe in RRP, and that more requests for RRP are coming in. Despite that, suppliers are not seeing any increase in ROI from RRP. It looks like RRP’s primetime is still ahead.
Do you think Ready for Retail packaging can offer you any display or sales growth advantages? Have retailers demanded RRP from you?
Big Retailers are Using RRP
Mega retail giant Walmart oddly enough is putting an emphasis on RRP while simultaneously supporting waste-cutting sustainable packaging as part of their supplier requirements. Traditionally, RRP utilizes more packaging since displays are preloaded with product and therefore need additional coverage. For Walmart and other megastores, the distribution efficiencies of RRP is very attractive. For certain product categories, it may become mandatory.
Ron Sasine, senior director of Packaging at Walmart was quoted as saying “eliminating extraneous material wherever you can. So people are selectively thinning walls or shrinking caps or eliminating layers. They’re doing it in such a way so that the structural components remain intact, the printing surfaces are very attractive and presentable to consumers, but they’re taking out whole chunks of what we would consider a standard carton or a regular slotted shipping case.”
Back in 2010, Loblaws rolled out its RRP campaigns. From their 2011 Annual Report, “with 1.8 million retail-ready packaging cases delivered to our stores each week, product is ready for the shelves upon delivery. “ I take that to mean they’re fairly committed to RRP.
RRP is simply boxes inside boxes. The attraction of RRP is that there is little for retail staff to do other than rip off a cardboard tab by hand and put it on the shelf. The display gives additional promotional support for the brand and products. It also sets the product out against other free standing or loose product of other competing brands on the shelves. RRP has its advantages.
How much do you follow the latest trends in shopper marketing, branding, launch strategies, and retail shopping studies? Is multichannel marketing a priority for you in 2013? How are being disruptive and innovative in your POP display designs? What works for you?