Published On: January 2018
Packaging is the process of enclosing the product for sale, storage or distribution. Latest development in the e-commerce market is cross-border online shopping. It has revolutionized the shopping experience due to its attractive offers and desired product availability. E-commerce is generally the buying and selling of goods & services online. All the distributions, transactions occurs either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The benefits of e-commerce are wide availability of goods & services, speed of access, and global reach.
Many organizations especially in Asia Pacific region have witnessed expanding share. Asia Pacific being one of the fastest growing markets, companies are grabbing opportunity and are keen on expanding their units in this region. Moreover, there are other small and medium scale players that are able to generate revenue from the local markets. International Paper Company, Nippon Paper Industries Co. Ltd., Smurfit Kappa Group, Mondi Group, DS Smith Plc., Packaging Corporation of America, Rengo Co. Ltd, Orora Packaging Australia Pty Ltd., Klabin S.A., and Georgia-Pacific LLC has been recognized as the global leaders with serving the broad range of e-comemrce products.
Increase in online shopping market:
Future Trends in Retail E-commerce Packaging
Protective packaging products are designed to protect the goods from different types of damages such as atmospheric, magnetic, electrostatic, vibration or shock. Protective packaging includes different types of boxes or storage container, liners and spacers. There is an increase in demand for protective packaging because they are widely used in online shopping industry. The growth of protective packaging is also because of the growth in the e-commerce industry. The growing trend of internet shopping, all over the world signifies the need for protective packaging, which prevents damages while transportation or storing the products.
Expansion – Growth strategy
Extensive research in this market has brought to light that mergers & acquisitions is the key strategy adopted by the major players in the global retail e-commerce packaging market. This strategy is widely adopted to increase the market share and their client base. For example, the Mondi group acquired companies such as Kalenobel to strengthen their market in Russia by improving the customer offerings. These acquisitions will support the ongoing development of corrugated packaging business in Central & Eastern Europe which will lead to the expansion of their business, globally, so as to serve customer in a much better way.
During the period 2014-2016, amongst all the key developments, Klabin S.A. (Brazil) accounted for a large in the partnership and collaborations. For instance, Klabin S.A. (Brazil) signed a partnership agreement in May 2015 with the country's main research entity, the National Council for Scientific and Technological Development (CNPq). The objective of this partnership is to develop new techniques for reusing solid waste from industrial activities.
Product development is also seen as a widely adopted strategy by the companies during the period 2014 to 2016. For instance, in August 2016, DS Smith Plc. (U.K.) has developed robust and eye-catching tray packaging in order to increase its sales and to attract the young generation. The materials that go into the tray were developed using extra strong 2 mm and 3 mm corrugated board in order to ensure that the trays and products are not damaged during transportation or in-store handling. This was done primarily to coincide with the launch of its new series of wine gums and liquorice sweets under the Nørregade brand.