Packaging In An Online World

Packaging in an online
world
Defining the role of packaging as part of the
online shopping experience
White paper | November 2011

Shikatani Lacroix is a leading branding and design firm located in
Toronto, Canada. The firm specializes in creating lasting first
impressions for brands through design innovation. The company
was first to coin “the Blink Factor” which identifies how brands
effectively connect with consumers in a complex and cluttered
world. The company has commissioned assignments from all
around the world, across CPG, retail and service industries, helping
clients achieve success within their operating markets. It does this
by enabling its clients’ brands to better connect with consumers
through a variety of core services including corporate identity,
naming and communication, brand experience, packaging, retail,
wayfinding and product design.
About the Author
Jean-Pierre Lacroix, R.G.D., President and Founder of
Shikatani Lacroix
Jean-Pierre (JP) Lacroix provides leadership and direction to his
firm, which was founded in 1990. He has spent the last 35 years
helping organizations better connect their brands with consumers
in ways that impact the overall performance of their business. Mr.
Lacroix was the first to coin and trademark the statement “The
Blink Factor” in 1990, which today is a cornerstone principle to
how brands succeed in the marketplace. JP has authored several
papers, has been quoted in numerous branding and design articles
and, in 2001, he co-authored the book “The Business of Graphic
Design,” which has sold over 10,000 copies. Most recently, he has
authored a new book “Belonging Experiences...Designing Engaged
Brands” (amazon.com) on how brands need to effectively create
meaningful relationships with consumers. JP can be reached at
jplacroix@sld.com and you can follow his blog at:
www.belongingexperiences.com. You can also explore a wide
range of useful white papers, video webinars, including this
presentation and other thought leadership ideas at
www.sldesignlounge.com.
White paper | November 2011 | Online Packaging | 1

Is there a future for packaging in an online world?
This very question was the foundation for a research study our
firm conducted in the U.S. in September 2011. With the explosive
growth of online sales, how is this impacting the need for
packaging and does packaging need to evolve to effectively
support branding initiatives that have worked so well at the retail
shelf level? We have seen other channels of distribution emerging
over the years, warranting their own style or type of packaging.
From the big discount warehouse clubs who demand oversized
multipacks to the convenience retail sector looking for products
that can be consumed in the car, marketers have met these
challenges with unique packaging.
With the rapid growth of online sales, do marketers again need to
rethink their packaging strategies for this unique type of
distribution channel? If so, what type of changes are required that
will ensure their brands remain relevant as part of the pre, during
and post purchase cycles. This white paper will present recent
quantitative research findings conducted by our firm. In addition,
we will be sharing insights on consumer online shopping
behaviors and the role packaging needs to play to provide
marketers and brands with a sustainable advantage, namely:
1. Why should we care about online?
2. What are the branding requirements for online shoppers?
3. What role does packaging fill as part of the online selection
process?
4. Guidelines and application approaches for marketers
"Online shoppers
are ‘up to 15
percent
more brand loyal’
and spend
more on the
Internet than
when
shopping at
physical retail
outlets"
Andy Houghton, Unilever
E-Commerce Director

Executive summary - leveraging a new moment-of-truth for
online shoppers
The role of packaging is changing in an online world, and how it
links to conventional retail purchase behaviors is shifting. The
greatest change is occurring at the post-purchase stage of the
online experience, challenging the conventional wisdom of creating
a consistent brand experience.
The study identified that once the purchase is completed, the role
of packaging changes dramatically, and its primary purpose is to
protect the product during shipment. We have identified the
receipt of the shipping package to customers as a new moment of
truth to which marketers need to pay greater attention. On the
most basic dimension, it is ensuring that the shipping carton
properly protects the goods during transportation. However, on a
greater dimension, it is an opportunity for organizations to convert
this functional need to one that provides a unique and ownable
experience that builds affinity for the online service provider or
branded product.
For now, marketers can take great comfort in knowing that
shoppers continue to rely on packaging to make the right selection
prior to and during the online purchase process. The ability to
leverage pre-established relationships with the brand via
conventional retail channels of distribution remains important
factors in the selection process. Packaging graphics are currently
the link of familiarity between the offline and online world.
However, with the continued growth of online sales, having a prior
offline experience with the brand is becoming less relevant.

The growth of online sales?
Much has been written and researched regarding online sales. The
hysteria of the ’90s that predicted the downfall of conventional
retailing has been replaced with fact-based proof that retail is here
to stay and prosper. The reality that came to light in the turn of this
century clearly identified that web commerce and retail sales
would prosper together as they both complemented the needs of
shoppers on their quest for finding the best value and selection.
Today, online sales in the U.S. represent $145 billion, or by
comparison, roughly 60 percent of Walmart’s total U.S. store sales.
Consistent with a continued growth for the category, a more
recent 2011 ComScore study identified that total e-commerce sales
through Q2 2010 were up seven percent versus a year ago with
travel and non-travel up five percent and nine percent, respectively.
Irrespective of online sales’ meteoric growth in the past ten years,
it still only represents four percent of total sales. Based on a 2010
U.S. Census online commerce report, this growth was
predominantly generated from the sales of music, electronics,
computer software, books/magazines and clothing. You could
argue that some of the growth is a natural transition for the
technology and service industries as they move to a digital world.
“American
internet users
have embraced
online
shopping
because they
say it is
convenient and
a timesaver.”
John B. Horrigan, Associate
Director, PEW INTERNET &
AMERICAN LIFE PROJECT
Base : All respondents n=27,665 AC Nielsen Consumer Conﬁdence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010
Other
Car hire
Sports Memorabilia
Alcoholic drinks
Baby supplies
Automobiles & Parts
Flowers
Computer Software
Toys/Dolls
Sporting Goods
Music
Groceries
Videos/DVDs/Games
Computer Hardware
Event Tickets
Cosmetics/nutrition supplies
Tours/Hotel Reservations
Electronic equipment
Airline ticket/reservations
Clothing/Accessories/Shoes
Books 44%
36%
32%
27%
26%
22%
20%
19%
18%
18%
16%
13%
11%
11%
8%
7%
7%
6%
5%
4%
7%

CPG growth of online
Not only have the sales of fashion, reading and electronic products
shifted to a significant portion of online sales, CPG companies have
seen a growth of their products. In 2010 sales of consumer
package goods online grew to $12 billion or two percent of total
online sales and are anticipated to reach $16 billion by 2012, a 25
percent increase, outpacing total online sales growth. Based on a
Forrester and Barclays study, they anticipate growth rates of 10 to
14 percent for the key CPG categories of pets, food/beverage and
personal care. This growth has not gone unnoticed as companies
such as P&G have seen their online purchases now accounting for
one percent of their total sales. This has driven the growth of
package good companies in creating online e-retailing platforms to
capture this drive for convenience, choice, and now with electronic
coupons, value.
The rise of digital has also greatly impacted shopping behavior
with nine percent of U.S. households currently buying CPG online
and this number is anticipated to rise to 21 percent by 2020.
Consumers who buy online tend to buy larger basket size ($80
online versus $30 offline) and for CPG companies, it is a platform
to build stronger brand loyalty, establish a direct dialogue with
their loyal customers and more importantly, help shift the balance
of power between retailers and manufacturers. For retailers, this
shift can be concerning as a recent Nielsen study identified that
buyers are reducing offline trips and stocking up online. CPG
manufacturers are provided a strong online presence through sites
such as Alice which allow a convenient and efficient way for
consumers to shop from a wide range of offerings. For most online
websites, the use of packaging is fairly consistent, depicted by the
face panel with supporting copy identifying the product features/
claims and retail selling prices. In most instances, sites we audited
featured the ability to magnify the hero shot, making it easier for
shoppers to recognize specific packaging features and product
claims.

Women are big online shoppers
A recent study by ComScore identified that 12.5 percent of women
Internet users made an online purchase compared to 9.3 percent
of men. What’s more surprising is the fact that women made 61.1
percent of online purchases that accounted for 58.2 percent of
dollars sold.
The purchase categories that men dominate are electronics, event
and movie tickets and the more obvious, flowers. In all other
categories, women dominate the purchases. Women are also more
likely to use social networking online, and seem to be drawn to
community, lifestyle and health websites. Internationally, women
spend more time on the web than men. SheSpeaks.com conducted
a survey of women’s online and computer habits in 2009. The
study identified that when women who enjoy online shopping get
together, 62 percent of their conversation is about products, with a
significant increase amongst those with children ages 13 to 17 (71
percent). The most talked about category of products on social
networks by women is beauty products. After that food/
restaurants and movies/entertainment are also popular, especially
amongst younger women.
Online pre, during and post shopping behavior insights
To gain a better understanding of the role of packaging in an
online world, Shikatani Lacroix conducted a U.S. web-based study
with 1,000 consumers who had purchased an online product in the
past three months. Of the total number of respondents, 66.3
percent were women versus 33.7 percent men, which supports
previous studies on the gender profile of online shoppers. To
ensure we had fair representation of the various age groups, we
set quotas for age group segments, an equal split amongst the 50-
plus, 30 to 49, and the 20 and younger segments. The actual split
within these segments is illustrated by the chart on the left.
17 or younger
18 to 20
21 to 29
30 to 39
40 to 49
50 to 59
60 or older 11%
18%
13%
17%
25%
8%
9%
Which category includes your age?
SL 2011 U.S. Packaging in an online world
study

Respondent profiles align with industry benchmarks
The study had a fair representation of the various income brackets
with 11.7 percent consisting of annual household income before
taxes of above $100,000, 37.1 percent between $50,000 and
$99,999, 20.8 percent between $30,000 and $49,000 and another
21.2 percent below $30,000. Although the online study
represented a different split between the incomes identified by the
U.S. Census recent report, they do directionally align (20 percent
earned over $100,000, 30 percent earned between $50,000 and
$99,000, 25 percent earned $30,000 to $49,000 and 24 percent
earned less than $24,000). The figure to the right clearly identifies
how the research sample income segments aligns with the U.S.
Census.
More than fifty-six percent of respondents were married with the
second largest segment consisting of singles at thirty-five percent.
The remaining segments were either widowed, divorced or
separated representing nine percent of the sample size. From an
ethnicity standpoint, the majority of respondents were Caucasian
followed by an equal percentage for Asian, African American and
Hispanic consumers.
From an educational standpoint, the majority of respondents had a
post high school education with very few having less than a high
school diploma. It was interesting to note that within our study,
only 25 percent had a full time job with another 30 percent
working less than 40 hours per week. More than 30 percent were
unemployed, either looking or not looking for work. Finally the last
segment consisted of retired respondents who represented 10
percent of the total sample.
Under $29M
$30M>$49M
$50M>$99M
$100+
20%
30%
25%
24%
37%
21%
25%
17%
SL Study 2010 U.S. Census
Which of the following ranges best represents your total
annual household income before taxes?
SL 2011 U.S. Packaging in an online world study
Married
56%
Never married
35%
Separated
1%
Divorced
6%
Widowed
2%
Which is your marital status?
SL 2011 U.S. Packaging in an online world
study
Under $29K
$30K-$49K
$50K-$99K
$100+

Majority of respondents are heavy online purchasers and do
most of the buying
Close to 70 percent of our total respondent sample fell in a group
that did all or most of the shopping for online purchase. This
segment’s largest age group was people 21 to 29, was better
educated with 27 percent having a bachelor degree, higher income
with the largest total household income group consisting of the
$50,000 to $74,999 range, and predominantly women (71.2
percent do all of the household online shopping). This group not
only did most of the online shopping, but also spent the most as a
percentage of their total monthly spending with the largest group
at 29 percent who spent between 11 percent to 25 percent monthly.
This group tends to outperform the total sample size but overall
ranking by purchase category remains consistent other than
computer software and hardware. It was also important to note
that gift-giving was a very important portion of online shopping
needs with 28 percent of all respondents purchasing more than 25
percent of their total online purchases for this purpose.
Less than 5%
Between 6% and 10%
Between 11% and 25%
Between 26% and 50%
Between 51% and 75%
Greater than 75%
1.90%
6.20%
13.70%
25.70%
25.40%
27.10%
2.40%
7.30%
15.20%
29.00%
25.40%
20.70%
Do Most of online shopping
Total respondents
Alcoholic Drinks
Sports Memorabilia
Pharmaceuticals
Hardware/Tools
Sporting Goods
Banking Services
Groceries
Baby Supplies
Computer Hardware
Toys/Dolls
Computer Software
Music
Videos/DVDs/Games 55.5%
51.0%
39.0%
35.9%
39.0%
25.3%
25.9%
25.3%
24.5%
18.4%
18.0%
16.3%
10.3%
60.2%
54.0%
44.8%
42.2%
31.4%
31.3%
30.4%
29.8%
28.0%
22.7%
21.0%
18.5%
12.6%
How important is it to see the actual packaging (graphics, brand name, format such as box, bag, tube of the package)
prior to the purchase as part of the online experience for the following categories? Please only provide answers for
the categories you have purchased in the past three months. SL 2011 U.S. Packaging in an online world study
What is your online shopping
spending percentage of total
monthly spending? SL 2011
U.S. Packaging in an online
world study
Do most of online shopping Total respondents

Overall buying experience meets expectations
Overall, the majority of online shoppers were happy with their
experience with more than 90 percent indicating that the current
experience either met or exceeded their expectations.
When asked to indicate which part of the online purchase process
required the most improvement, 41 percent identified the
experience prior to the online purchase, namely the ability to do
research, talk to friends and get information, required improving. In
reviewing the results, most respondents found the research part of
the buying process time consuming, and confusing with the ideal
consisting of sites that allowed them to review a wide range of
products and prices. Another 33 percent cited that the experience
during the online purchase, namely the viewing and selecting of
products, accessing pricing, features, shipping and payment
options had issues that needed to be resolved.
It was interesting that very few people identified the depiction of
packaging as a major issue. When asked to identify areas of
opportunities, the following key points were listed:
• The total cost of the product, including shipping before the
check-out
• Time consuming to gather all the research and find the product
• Hard to navigate websites
• Products were hard to see or information to read
• Shipping delays and tracking
• Return policies after buying
• Ability to price compare
"I usually have a
good idea of
what I want. My
online
experience is
finding the
specific product
which satisfies
my needs. I am
looking for the
right price, and I
spend a lot of
time comparing
prices."
Respondent verbatim, SL 2011
Online Study

Pre-purchase decision is very important in the selection
process
When you review the behavior of heavy online shoppers, they
tend to frequent sites that allow them to select products from
many different online stores (49 percent) as well as sites for
stores that you can only shop at online (27.9 percent). Sites
that sell their products through catalogues or “brick and
mortar” stores were less frequently visited with only 22 percent
selecting these options.
Mention of sites most visitedMention of sites most visitedMention of sites most visited
Sites where products/
services are only
available through the
web
Sites for buying singular
brands that can only be
purchased online
Online retail sites that
are linked to a
traditional “brick and
mortar”
Amazon (42%) Amazon (11%) Walmart (11%)
eBay (7%) eBay (3%) Target (6%)
Walmart (1%) Walmart (1%) Best Buy (5%)
Overstock (1%) Apple (1%) Amazon (3%)
Qvc (.5%) Best Buy (1%),
itunes (.7%), and
Target (.7%)
Old Navy, Sears, Gap
and Kohls were
mentioned less
frequently (1%)
Online shoppers rank the importance of the following factors
as very important in making the right purchase decision:
• Reading online ratings (35 percent)
• Have prior experience with the product/service (31 percent)
• Brand name (21 percent)
• Company website (19 percent)
• Read social media customer comments (16 percent)
• Referred by a friend or family (16 percent)
It was interesting to note that advertising through conventional
mediums ranked very low at 10 percent. In addition, what was
concerning was the low reliance on sites that included
conventional offline retailing options, potentially representing

an early indicator of the shift away from traditional store
shelves as the first moment of truth. When respondents were
asked to select the most important factor that allowed them to
make the right buying decision across the various categories,
two were emphasized, namely the prior experience the
respondent had with the product or service, and the ability to
read online ratings and reviews. We believe the future link of
conventional “brick and mortar” in establishing a prior
experience will be challenged with the growth of repeat
purchases of online products or services.
Role of packaging importance prior to purchase
Respondents were asked what role does the packaging graphics or
the packaging structure play as part of their online selection
process. Respondents identified the following: the importance of
the packaging protecting the product during shipping,
reaffirmation that they were getting the product they purchased
online, the ability to understand the usage or instructions as well as
product features or claims that were easy to find. The two most
important factors were that the product they purchased online was
the right product delivered to the home, in the right condition.
What role does the packaging graphics and/or the packaging structure (box, bag, bottle, etc.) play as part
of your online selection process? Most important listed in chart
Ability to see the actual packaging graphics
Product features or claims are easy to find
Recognize the product I saw in the store
Know what I am getting
Ability to understand the usage or instructions
See what it would look like as a gift
Helps me select between various options
Reinforces the brand name
Protects the product during shipping
Allows a 3D view of the product 19.6%
64.9%
20.7%
32.0%
22.8%
45.3%
60.0%
36.1%
40.8%
26.7%
Please identify the most important factor that allows you
to make the right choice for each of the online product
categories you have purchased (please only provide
answers for the categories you have purchased in the
past three months).
past three months).
past three months).
Category Most
important
Second Most
Important
Sports
Memorabilia
Prior
Experience
Read online
ratings/reviews
Alcoholic Drinks Prior
Experience
Referred by
friend/family
Baby Supplies Prior
Experience
Referred by
friend/family
Computer
Software
Read online
ratings/
reviews
Prior Experience
Toys/Dolls Read online
ratings/
reviews
Prior Experience
Sporting Goods Prior
Experience
Read online
ratings/reviews
Music Prior
Experience
Referred by
friend/family
Groceries Prior
Experience
Referred by
friend/family
Videos/DVDs/
Games
Prior
Experience
Read online
ratings/reviews
Computer
Hardware
Read online
ratings/
reviews
Prior Experience
Banking Services Prior
Experience
Referred by
friend/family
Hardware/Tools Prior
Experience
Read online
ratings/reviews
Pharmaceuticals Prior
Experience
Read online
ratings/reviews
Others
Prior
Experience
Read online
ratings/reviews

When asked how important it is to see the actual packaging prior
to the purchase as part of their online experience for the various
categories they had purchased, video games, computer hardware
and software, groceries, pharmaceuticals, toys/dolls and sports
memorabilia scored extremely high. Categories in which the
packaging was seen as slightly less important were baby supplies,
alcoholic drinks, sporting goods, music, banking services, and
hardware/tools.
The role of packaging is viewed differently during CPG post
purchasing
Consumers within the study who had purchased from conventional
consumer packaged goods categories such as baby supplies,
groceries and pharmaceuticals represented more than forty-seven
percent of total respondents within the study. This group’s website
usage mirrors the behavior of the overall group in the ranking of
types of sites. Specifically, they expressed a preference with sites
that allow them to select products from many different online
stores as their preferred choice. This consumer package goods
group of total online spend and most other factors did also mirror
total respondents within the sample.
However, where we noticed a significant change in behavior is
when respondents were asked the role of packaging as part of
their online selection process. Online buyers of baby supplies and
especially groceries and pharmaceuticals ranked the role of
packaging significantly higher in the selection process, with the
largest percentage shift consisting of a 3D view of the product
(25.5 percent versus 19.6 percent for all product categories), ability
to see the actual packaging (33.7 percent versus 26.7), and helps
me select between various options (45.2 percent versus 32
percent).
Sports Memorabilia
Alcoholic drinks
Baby supplies
Computer Software
Toys/Dolls
Sporting Goods
Music
Groceries
Videos/DVDs/Games
Computer Hardware
Banking Services
Hardware/Tools
Pharmaceuticals
39.5%
26.1%
29.0%
37.7%
30.6%
41.5%
31.7%
25.0%
29.2%
35.3%
26.2%
28.8%
32.8%
36.0%
31.9%
30.7%
38.1%
37.0%
44.7%
34.1%
30.9%
35.8%
33.7%
30.4%
25.7%
37.4%
39.9%
34.0%
30.7%
42.1%
37.6%
42.0%
30.9%
31.1%
39.2%
35.8%
33.9%
24.4%
36.5%
30.3%
24.9%
26.7%
34.1%
35.7%
35.4%
28.9%
25.6%
28.9%
31.1%
23.6%
19.0%
32.7%
Very Important - Total Sample Very Important Baby Supplies
Very Important Groceries Pharmaceuticals
For those respondents that purchased baby supplies, groceries and
pharmaceuticals versus the total sample, how important is it to see the
actual packaging (graphics, brand name, format such as box, bag, tube
of the package) prior to the purchase as part of the online experience
for the following categories?
Total Sample Baby Supplies
Groceries Pharmaceuticals

The importance of actually seeing the package graphics, brand
name, and format prior to the purchase also increased significantly
with the biggest swing between eight to eleven percentage points
for baby supplies, groceries, hardware tools and pharmaceuticals.
Overall, this group also tended to be more satisfied with their
online shopping experience with more than 30 percent citing that
their current experience exceeded their expectation versus 25
percent of total respondents.
Packaging remains an important element during the
purchase process
Respondents are looking for the quickest and most expedient way
to grasp the information they require with more than fifty percent
selecting the simpler approaches to see the packaging. These are
namely the packaging photo of the main view with the appropriate
price, and ability to view close-up images of product features
depicting all views. You could argue that customers go through a
similar offline and online product selection process, namely
identifying the category, scanning the range of offerings based on
a set of criteria, narrowing the range to a select few options and
then gaining more information through side panel information,
pricing and product claims.
Most websites that we visited and those mentioned by
respondents as most frequented mirrored a similar shopping
structure to offline experiences. Approaches that had more
elaborate features such as a virtual tour of the product where
customers can control the view in addition to the price, and
features or a video of the product being used, had very little
appeal amongst respondents.

One of the key factors we noted is the amount of time spent as
part of the purchase process as more than 53 percent of
respondents spend less than ten minutes on the online purchasing
process. The need to review many products in a short period of
time reinforces the need to have a visual link of the packaging as
part of this selection process. Websites should allow for an easy
search of products by category and use the package image as the
primary navigational vehicle, while featuring supporting
information such as price, coupons, features and testimonials as a
second layer of the purchase decision process.
This principle is supported as respondents rated the use of a photo
of the main view with appropriate price as the most important
factor that allowed them to make the right choice for each of the
online product categories. Respondents were consistent with
scoring significantly higher for photos on alcoholic drinks, music,
groceries and pharmaceuticals. When reviewing a sub-segment of
CPG shoppers, this group reflected a different approach for baby
supplies, computer software, computer hardware and hardware
tools. This group preferred a photo depicting all views with
appropriate price and product features. An underlining reason
could be that these products potentially represented more
complex structural items.
As part of your online selection process, besides absolute price and shipping policy, please indicate which
approach to depicting the product/service allowed you to make the right decision?
Photo of the main view with the appropriate price
Photo depicting all views with the appropriate price and product features
Virtual tour where you can control the view plus price and product features
Video of the product being used
Ability to view close-up images of product features
Photo of the main view with pricing, features and testimonials
Ability to view the product packaging, instructions and potential features 32.9%
38.5%
50.7%
22.1%
27.5%
49.9%
61.2%

A higher degree of security, and the ability to price
compare were important improvements
When respondents were asked what improvements they would
expect other than price of shipping options, more than 53 percent
cited more secure ways of paying and the ability to price compare
(44.2 percent). Other improvements that ranked high on the list
were easier navigation within the website, better image quality and
quicker uploads. It was interesting to note that irrespective of the
growth of smart phones and their use for browsing the web, only
17 percent identified this as an area of opportunity. Respondents
who had purchased CPG products tended to also rank the ability
to price compare as a significant area of improvement.
Packaging does not play a critical role in the post purchase
online experience for most categories
Although respondents ranked packaging as an important element
prior and during the online purchase, it was interesting to note that
its importance dropped significantly in the post purchase
experience. We would have assumed that branded packaging
would be a constant link throughout the process. However, overall,
the study identified that in most instances, especially for music and
software where the respondents can download these online,
packaging that arrived in the home did not play a critical role.
When asked how important it was to have the product arrive in the
customer’s home in the same packaging seen in the post purchase,
the CPG categories which ranked higher were pharmaceuticals
(36.2 percent) and groceries (35.8 percent). When reviewing the
150 CGP results on the role of packaging, consumers wanted
reassurance that the product they purchased online was the same
as the item being delivered.
Sports memorabillia
Alcoholic drinks
Baby supplies
Computer software
Toys/Dolls
Sporting goods
Music
Groceries
Videos/DVDs/Games
Computer Hardware
Hardware/Tools
Pharmaceuticals
Other 23.7%
24.4%
27.8%
32.5%
38.6%
35.8%
29.1%
25.6%
32.6%
33.9%
26.6%
21.7%
29.1%
How important is it for you that the product that arrives in your
home has the same packaging that you would find if you had
purchased the product in a store? Results for Very Important

Respondents also mentioned that packaging did not play a critical
role since the purchase was already completed and they had a high
level of trust in the reputation of the online company. Receiving the
same package as the one viewed online was less critical while
ensuring the item arrived in a usable condition took greater
importance. We also noted that packaging did not play a strong
role with customers who had a low requirement for branded
packaging or were repeat purchasers of the same product.
The importance of the package did increase if the consumer was
giving the product as a gift. The study identified items purchased
online for gift giving had a higher importance level for packaging
with a significant percentage increase for the following: sports
memorabilia (42 percent versus 29 percent for non-gift-giving
purposes), alcoholic drinks (33 percent versus 22 percent), baby
supplies (40 percent versus 27 percent), toys/dolls (47 percent
versus 33 percent), sporting goods (40 percent versus 26
percent), music (41 percent versus 29 percent), and hardware tools
(36 percent versus 24 percent). Marketers may want to consider
developing unique packaging for categories where the product has
a higher propensity of being sold as a gift.
Respondents did identify packaging as having a significant
influence on the perception of the quality of the product (52
percent), the quality of the manufacturer (40 percent) and the
quality of the organization/retailer (37 percent). However
respondents rated the overall packaging slightly lower on their
perception of the overall online experience (37 percent).
"If I know the
brand I am not
concerned about
packaging as
long as it is not
breakable"
Respondent verbatim, SL 2011 Online
Study
Shipping container is generic with no indication of the retailer or brand
Shipping container features the retailer or brand name
Shipping container has printed graphics that give it a premium look
Shipping container is made of recyclable material
Shipping container can be reused for storage
Shipping container is easy to open 45.1%
37.2%
39.1%
23.6%
30.3%
24.5%
33.6%
18.2%
24.1%
14.6%
16.1%
16.6%
How important is the overall design of the actual shipping container in how you would rate the overall online shopping
experience?
Very Important
Important

The shipping container is very important
Respondents were asked to rate their overall online experience
based on a series of shipping carton options. It was interesting to
note respondents were focused on more functional benefits of the
shipping carton versus the solutions that focused on the image of
the package or reinforcement of the brand. Respondents identified
the following as very important to their online experience: ease of
opening the container (34 percent), shipping container is made of
recyclable material (24 percent) and shipping container can be
reused for storage (18 percent). Branding on the shipping
container had very little appeal amongst respondents.
Most Important Important
How important is the overall design of the actual shipping container in how you would rate the overall
online shopping experience?
Printed graphics that give premium look
Shipping container is generic with no retailer name or brand
Shipping container features the retailer or brand name
Shipping container can be reused for storage
Shipping container is made of recyclable material
Shipping container is easy to open 45.1%
39.1%
37.2%
30.3%
24.5%
23.6%
33.6%
24.1%
18.2%
16.1%
16.6%
14.6%

Strategic Implications
Usability
1. Feature the total cost as part of the upfront selection process
when an item is being selected, including shipping and
delivery timelines versus offering this information at the end
of the process
2. Create a platform that allows visitors to not only review
products but gain deeper insights through reviews of the
offering and price comparison with other similar brands,
leading to a reduction of the amount of time customers
spend researching
3. Create a better delivery tracking system that is seamless
between the online store and the third party logistics
company (Amazon was cited by many as having an issue in
this area)
4. Make more secure payment systems, such as PayPal, an
option in the purchase process
5. Identify up front if an item is out of stock versus having the
shopper go through an entire buying process only to find out
that the item is not available
6. Ensure the reviews are trustworthy and transparent as this is
a growing concern amongst respondents
7. Feature higher quality images of the packaging with the
ability to enlarge the image and read the support material
and pricing, allowing customers to scan a range of offerings
quickly

8. Consider aligning customers’ typical offline purchase
decision behaviors with the site’s content structure where the
“brick and mortar” experience is their first contact with the
brand
9. Expand product selection and research that can be made
quickly, and increase the ability to view a range of items
easily
Packaging
1. Packaging continues to play a very important role in the
online experience. The importance for customers is heavily
weighted as part of the pre research and purchase stages
of the online experience while for brand marketers, it is
ensuring the brand retains its visibility when the product
arrives in the purchaser’s home.
2. Ensure consistency between the package customers see
offline with the one being presented online, as shoppers
rely on the packaging graphics as a means of making a
product selection in an online environment
3. As online shoppers tend to represent a larger basket size
versus offline purchases, it will be important for brand
marketers to reconsider their offerings to better reflect a
pantry loading strategy versus one driven by a higher
purchase frequency
4. Package images need to have the ability to be enlarged on
websites, and the quality needs to be high-end, as the
image of the package is a critical issue in the research and
online purchasing process

5. The online shopping experience must take into
consideration the customer’s prior experience with the
product, such as the brand shelf presence (first moment of
truth) and in-home experience (second moment of truth),
as they are the most important factors in allowing them to
make the right online purchase decision
6. Brand marketers need to review their post purchase brand
experience as this is a critical moment of truth:
• Shipping package needs to ensure the product is not
damaged during shipping, needs to be made of
recyclable material, and easy to open is an added bonus
• Reduce primary packaging to save costs and consider
packaging that supports the premise that customers do
not rely on graphics following the purchase process
• Explore packaging approaches where there are strong
linkages to the brand in ways that are more meaningful
and distinctive as part of the post online moment of truth
Conclusion
The role of packaging as part of an online world remains important
as this channel of distribution continues to gain a larger
percentage of customers’ total purchases. Marketers will need to
effectively monitor how online shoppers’ needs are modifying their
reliance on branded packaging as part of their pre, during and post
purchase decisions. With consumers’ basket size being
significantly larger than offline purchases, it will be important to
tailor the offering to this unique behavior.

For more information, contact:
Jean-Pierre Lacroix, President
Shikatani Lacroix
387 Richmond Street East
Toronto, Ontario
M5A 1P6
Telephone: 416-367-1999
Email: jplacroix@sld.com

Packaging In An Online World

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Viewers also liked

Viewers also liked (20)

Similar to Packaging In An Online World

Similar to Packaging In An Online World (20)

More from Jean-Pierre Lacroix, R.G.D.

More from Jean-Pierre Lacroix, R.G.D. (20)

Recently uploaded

Recently uploaded (20)

Packaging In An Online World