Proper packaging is integral to e-commerce since it can influence a consumer’s decision. Packaging is also crucial because it makes transportation easier and reduces the possibility of damage in transit. It is therefore not surprising that e-commerce packaging is predicted to grow exponentially in the coming years. This sustainable growth is especially noticeable in Asia, thanks to constantly developing and evolving e-commerce markets like India, Sri Lanka and Bangladesh. Let us look at the Indian subcontinent specifically to see what the future holds for e-commerce packaging in Asia.
Demand is the key
Millions of packets are being developed across the subcontinent every day because more and more people are opting for online retail. Quality packaging is therefore becoming vital to customers, while choosing one e-commerce site over the other. India’s e-commerce revenue is supposed to jump to a whopping $120 billion in 2020 and this directly indicates a cut-throat competition between top players.
The central demography of online buyers falls in the age bracket of 15 to 24 years. Millennials are more likely to pay attention to a product’s appearance and are naturally quite ruthless in their reviews if a product has faulty packaging. This means that e-commerce packaging will be a deciding factor in the consumer’s verdict about which e-commerce business or brand is here to stay.
Moving towards flexibility
Plastic is the usual material that’s used for packaging across industries throughout Asia and especially in the Indian subcontinent. But consumer lifestyles are changing drastically and more people in countries like India and Bangladesh are opting for ready-to-eat products that are mostly bought online. This indicates a growing importance of flexible packaging, thanks to increased awareness about hygiene and demand for a qualitative standard.
Pack food is not the only industry going for flexible e-commerce packaging. Apparels and similar products don’t need rigid boxes and therefore lightweight and less energy consuming packaging is being used. This smaller pack size is resulting in easy storage and easy disposal.
Rigid Packaging is also on the rise
But e-commerce packaging has also increased the demand for rigid packages such as cartons or corrugated boxes. This is especially true for electronic and digital products which are sensitive by nature and susceptible to damage.
This is important because in a lot of parts in Asia and especially in the Indian subcontinent, the road infrastructure is extremely poor. This can lead to a product being damaged unless the packaging is rigid enough. So along with increased demand for electronic goods in e-commerce sites, rigid packaging is also likely to grow.
The focus is also on designing packaging that does not weigh much and does not take up too much space. E-commerce is now penetrating the traditional retail space of groceries and pharmaceuticals and therefore proper packaging is becoming crucial.
Visual appeal is important
People do judge books by their covers and visually attractive e-commerce packaging is definitely a factor when it comes to the future of the industry in Asia. Consumers automatically assume that a product is high quality if the packaging is attractive and customer friendly.
This is especially true for developing economies in the Indian subcontinent, since most buyers from these countries share product images on social media if the packaging is good. Similarly, bad packaging can also lead to poor word of mouth publicity about an e-commerce brand.
Cost is a factor too
Online sellers and e-commerce marketers are trying to cut down cost of packaging in Asian countries. This is why the focus is on adaptations and innovations which can preserve maintain the quality and increase the shelf life of a product.
A huge concern apart from the costs is of course the amount of waste increase e-commerce packaging might create. But in a survey conducted in India, 94% of the sample size was willing to take part in e-commerce packaging recycling and reuse if they were given an incentive.
E-commerce is the future of retail in India, Sri Lanka and Bangladesh and it’s the quality of packaging that will be the determining factor in this breakneck ballgame.