Education and training is what the Australian Institute of Packaging (AIP) is all about - education for professionals engaged in packaging and associated disciplines. And that's one of the first messages delegates to the AIP national conference heard in Sydney today, from AIP national president Ralph Moyle in his opening address, and then from keynote speaker and president of the World Packaging Organisation (WPO) Tom Schneider.
Moyle touched on the importance of the AIP remaining relevant to its membership, designing educational and training opportunities that fit the current needs of individuals engaged in packaging and related functions, not just in Australia and New Zealand but in the Asia Pacific region and beyond.
Schneider related how through the AIP's collaboration with the WPO, it is harnessing its resources and first world experience to assist with education and training in developing countries in Asia and Africa.
Schneider applauded the AIP's efforts to date, stating that the two bodies had the knowledge, the ability and indeed an obligation to help further and foster packaging education and training in developing countries. The recent election of AIP education director Pierre Pienaar to the position of vice president for Education on the WPO will strengthen the AIP's commitment to this cause.
The final speaker in the first keynote session was Rick Fox, chairman of US and Canadian trade association, PMMI, whose 680-strong membership comprises manufacturers of packaging equipment, packaging materials and components. PMMI is the organiser of North American trade show PackExpo.
Fox shared his view on factors that will have an impact on packaging going forward. Retailing was top of the list. US suppliers are facing similar pressure on margins to those in Australia. This pressure drives some interesting decisions. Fox relates how one of the largest US beverage manufacturers has almost trebled its number of SKUs in order to try to maintain brand share, but of those new SKUs, only 130 make profit, 100 SKUs break even, and 462 lose money! At some point, he says, someone will have to make a decision that this is not financially feasible. The pushback may also come from the retailer. Some stores are down now to six choices or less in certain categories.
What's going to hurt the market more is the move online in retailing, and although not happening as fast as thought in 2012, when it was predicted that 50% of brands and retailers will disappear within 5-8 years, it's still happening steadily. Wal Mart has had its 5th straight quarterly decline, and is now testing the online grocery channel and, like other retailers, is looking at converting stores to 'ship from' warehouses.
Also to take into consideration, Fox says, is the millennial generation - these shoppers are changing the retail environment. Research that Fox cited showed that millennials surveyed believed brands are suspect, and that 92% of brands would not be missed if lost. 46% use smart apps to aid in purchasing decisions.
This increased level of mobile device usage translates into increased sensitivity at packaging level, says Fox, relating another study. If the pack image that comes up online is not the same as that on shelf when shoppers with mobile phones scanned a barcode label, they won't buy the brand.
