Luxury Packaging- Check top Market Analysis

Whether you manufacture luxury products or standard day to day commodities, luxury packaging can lend an aura of expense and lavishness to your products in the most comprehensive manner. These boxes are known for their expensive appearance. Wherever they are placed on the market aisles, they indicate to the target audience that there as an item of value put to exhibit. They are manufactured ideally from rigid cardboards. Their appearance is further valued and enhanced with the help of suggestive prints that further accentuate their aura of lavishness. They are an ideal choice for packaging ornaments and jewels. Technology has ensured that more people are able to have access to premium packaging. There are certain crucial motives of this market that need deep examination. It is, hence, important to discuss them in detail:

 

Premiumization 

In the world of marketing, nothing is more potent and more powerful than reaching the masses with high quality, luxury packaging. Premiumization epitomizes this way of thinking that puts focus on enhancing the outreach if a brand through luxurious packaging. But that packaging should not be too expensive, otherwise, the whole point of manufacturing it would be defeated. Millions of consumers have also dubbed this kind of packaging as everyday luxury because it involves the packaging of products that are bought every day. Previously, it was not considered important to package everyday items luxuriously. It was thought that since customers buy premium products only occasionally, there was no need to use luxurious packaging on regularly purchased products. But modern marketing has bucked that line of thinking and has created the trend of everyday luxury. The industries that have gained most from this strategy are the food & beverage industries. They have changed their techniques and are now focused on using indulgence-based packaging that attracts customers instantly through its premium appeal. Aesthetically, this, has redefined traditional packaging and the trend is going stronger than ever. Whether it is color, shape, design, or printing, everything has taken a whole new meaning for consumers, manufacturers, and the marketers. These aspects of packaging are attracting increased attention and brands are being pushed towards thinking about them. This has not only affected the packaging on the shelf but also the presentation of the products online.

 

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Personalization

It would not be a hyperbole to state that luxurious packaging has seen a boom because of the massive expansion in the demand for custom luxury gift boxes. Every other brand in the market has now started offering elegant packaging thanks to the increased inclination of people towards gifting luxuriously. This trend is at its peak during special occasions such as Christmas, Valentine’s Day. Just in the United Kingdom, the luxury gifts industry was valued at $1.3 billion in 2015, and the average individual expenditure was $47. The trend of premium packaging has permeated all kinds of industries, from confectionaries to Luxury Jewellery Boxes. Chocolates have always been considered the delights that are perfect for gifting purposes. And the industry has taken note of it too. Many brands operating on the high end of the marketing spectrum now offer personalized packaging for luxurious chocolate gifts, no matter what the occasion. Similarly, for parties & celebrations, manufacturers now offer customized alcohol packaging with individualized messages printed on them.

Just like chocolate, jewelry is another item that is considered great for gifting, although it can be much higher in price. Jewelry brands are striving hard to gain a foothold of the market by offering highly stylized luxury ring boxes for their customers and make their gifting experiences memorable foot traffic data california. 

The Global Appeal

The trend of luxury is no longer limited to the West only. It has spread throughout the world and the West is leading it. The rise of the middle-income classes around the world has made the demand for luxury goods rise sharply. Although the points of demand have multiplied, the sources of supply are still highly concentrated. It is estimated that in the luxury goods market, Europe accounts for 70% of global sales. The rise of the urban classes has produced Western-oriented consumers that are increasingly reliant on European products. China has played a significant role in this as a large number of these consumers are from there. In fact, from 2012 to 2015, the demand from luxurious items would have contracted 2% a year if it were not for the demand from the Chinese consumers. And luxury shopping during traveling is an often overlooked aspect. Globally, 6% of the luxury item sales were generated at the airports by the customers who were traveling.

The Online World

From what was observed in 2014, the sales of luxury products has reached $42 billion by the end of the previous decade, which was a 95% increase. There are two major parts of the online luxury industry which are opposites of each other. One is showrooming which involves people checking the products in stores and then purchasing them online which they receive in custom rigid boxes. That is because many luxury brands still believe in the effectiveness of physical stores and are reluctant to put everything online. But another trend called reverse showrooming is also becoming popular which involves customers researching the products online and then buying them by visiting stores. This shows that luxury retailers are finally waking up to the online reality – it is never too late, it is often said.  Luxurious packaging has come a long way. It has seen significant changes and is going through continuous transformation. The market for luxury items has seen immense expansion and shows no signs of holding itself back. More people are now able to afford it every day. Its future trajectory seems interesting.

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