12.07.09
New Directions in Packaging Innovation
Driven by a turn in the economy, innovation has taken on new meaning as both brands and suppliers explore new territory on the route to a profitable package. Here, key players share their thoughts on what innovation means to them.
By Jamie Matusow, Editor
specific strategies veer off in many directions.
Innovative practices can be complex or simple. Packaging designed to put a smile on a consumer’s face or a project that relies on teamwork for an economical, holistic approach can effect sales as much as a product that utilizes a whole new delivery system or a sustainable material. Innovation can be as radical as a vibrating mascara that uses a battery or as intuitive as combining hand sanitizer with moisturizing cream.
The word can apply to companies working together in new partnerships to achieve success, or bringing a high-end look to a mass-market construction.
Regardless of which avenue of innovation is followed, one age-old marketing concept remains certain: In order to stand out on shelf, survive consumer scrutiny and prosper, creative thinking perennially provides beauty companies with an edge over their competition—and in tough times, it’s more crucial than ever.
No Lack of Competition
While the meaning of innovation may have expanded, there’s no less emphasis on its powers. Marilyn Raymond, executive vice president of GfK Strategic Innovation, headquartered in New York City, says, “In the beauty area, the economy has not impacted innovation per se. We’re still seeing numbers that show growth.” She notes that mass brands, especially in skin care, are going “full-speed ahead.”
Launch numbers for new beauty products back up the efforts by brands to persevere despite any tenuous market conditions.
According to Mintel’s 2009 data (tracked through November 5), 61,795 beauty and personal care items launched this year, a slight drop from 2008, when there were 63,963, and more of a dramatic decline from 2007, with 69,735—a peak year in this arena. In 2009, the greatest number of new entries appeared in color cosmetics, with 31,591; followed by skin care, with 20,031; soap & bath products at 7,832; and fragrances, still an overwhelming 2,341, though down about 100 from the entire previous year (but down about 1,000 from the number launched in 2007).
Consumer focus groups accelerated the development and launch of TurboLash, Estée Lauder’s breakthrough vibrating mascara. |
Consumer Influence
Consumers have, of course, always controlled a product’s fate, but especially now, with purse strings held tighter than ever, they have become more vocal about demands ranging from eco-friendly materials to single-dose dispensers, keeping brands and suppliers on their creative toes.
Barbara Poder-Stiso, senior director package development, Coty, Inc.—and a member of Beauty Packaging’s board of advisors—says, “Innovation has become an expectation, as opposed to a bonus, in the beauty business. It has become a necessity for the consumer.”
She notes several approaches that aim to win shoppers’ favor.
“Where consumer product innovation provides a better quality of life, such as time savings on tasks to allow more time for pleasurable activity, the consumer will embrace the thought and purchase the product,” says Poder-Stiso.
“The use of conventional packaging materials in an unconventional way, is another approach,” she says. “This can be very successful particularly in secondary packaging.” Another route, she says, is to apply decoration methods in a more creative fashion. “Pushing the envelope on proven processes often results in the invention of something new that will appeal to consumers.”
However, in today’s economy, developing these new ideas has become more challenging than ever. Poder-Stiso says that packaging component manufacturing companies have been forced to cut back R&D funds to support the work needed to create the innovation that the consumer expects. “The new technologies that are available in the supplier community are often not affordable to marketers in the mass arena,” she explains. “So, we look to create ‘new’ by taking advantage of existing technologies and applying them to create exciting offerings.”
Opportunity for Suppliers
Internationally renowned packaging designer Marc Rosen views the current economic situation as an opportunity for packaging suppliers to innovate. “One up side of a down economy,” he says, “is that it’s giving suppliers a pause. In many cases, they have been putting out quantity, and have not had a minute to innovate. Suppliers have time now, to get business back; we have to innovate—for brands and customers. We’ve been resting on our laurels and have let other markets [such as Target] take over.”
Ralph Vestbom, owner of Spark Studio NY, Inc.—who has designed custom product packaging for Bobbi Brown, LaMer, Laura Mercier and Mark among others—agrees that packaging innovation in the beauty industry is evolving as those involved continue to comprehend “the recent and ongoing economic challenges.” Like Rosen, he looks at it in a positive way, believing that the current economy presents new opportunities for innovation for brands across the board.
“Today’s economy has presented an unprecedented shakeup to the beauty industry that will be with us for the foreseeable future,” says Vestbom. “Companies can approach this new environment as an opportunity,” he says, particularly when it comes to blurring the lines that used to separate prestige quality from mass. “In the recent past,” says Vestbom, “you could still tell the prestige brands from lower tiers by the quality presented to the customers. That is no longer the case and the playing field will only continue to be leveled.” He says that customers are beginning to realize this increasingly when trading down from a $28-$30 lipstick to a $10-$15 one.
“Presented with the new realities,” says Vestbom, “a very large segment of customers doesn’t have to trade back up again, recognizing that they can get the same quality of product and package in a broad range of lower price points and brands. This trend is only beginning. The only hedge from the prestige sector to preserve and attract sales will be to provide absolutely stellar customer service and personal contact at their respective counters. This is a huge opportunity and possible advantage that they can still own.”
Holistic Marketing Approach
One brand that’s been reliably on-target at counter is Estée Lauder. George Kress, vice president corporate package innovations, The Estée Lauder Companies, believes the current focus on innovation needs to be holistic. “By that,” he says, “I mean the consumer benefits, the supply chain aspects, the environmental opportunities and the manufacturing impact. I think innovation is the key to attracting sales, but I also believe creativity and constant improvement can drive the sales number as well.”
He also believes that the term innovation has become overused. “For me,” he says, “I look at packaging as a new challenge every day. Like it is my first day on the job and I know nothing. I think the best place to start on any new challenge is with a blank sheet of paper. When a brand or a colleague comes to me to ask for ideas and that’s what they are—ideas…some are creative solutions, while others are innovations and yet others could be breakthroughs or whole new technologies or product categories—the important thing is to understand the challenge and come with as many options as possible.”
Maesa launched Power by 50 Cent in just six months. |
One recent Estée Lauder launch that follows the more traditional definition of an innovative product is its breakthrough TurboLash mascara, the first electronic product of its kind to use an alkaline—or watch—battery. Lauder’s provisional patent was published in spring 2005, and Kress says the project was really being developed off to the side. But in focus groups, he explains, consumers loved it.
So we started developing it,” he says, “trying to decide just where the technology would fit best. We knew we had something, but didn’t yet know where to go with it.”
They decided to launch it as an Estée Lauder product—exclusively with Saks in the U.S. and in Europe in stores such as Harrod’s. Production time accelerated, and when it appeared in stores in July 2008, just about a year from the date the decision was made to go ahead with it, the mascara became the iconic overnight sensation brands dream of. Kress says thousands of websites and blogs were buzzing about it the next day.
Raymond, of GfK Strategic Innovation, notes that the groundbreaking $32 mascara was swiftly followed by other brands, including a much less expensive option, but says, whatever the price point, “Stores can’t keep vibrating mascaras in stock.” She says she can’t help relating it to how toothbrushes have evolved. “Innovation has pushed price points higher, because consumers want to have the new technology, and viral messages, especially on social media, such as ‘Have you tried the new vibrating mascara?’ drive sales.”
With SJP-NYC, Coty Prestige strives to capture the essence of Sarah Jessica Parker’s alter-ego, fashionista Carrie Bradshaw, from “Sex and the City” fame. The launch coincides with the new movie. |
Speed to Market
Like Estée Lauder’s time-critical TurboLash launch, Maesa’s holistic approach to launching Power by 50 Cent, marketed and distributed by Lighthouse Beauty, exemplifies how technological innovation pairs with process innovation to yield an exceptional end product. From a process perspective, Maesa’s vertically integrated business and supply chain structure allowed this new brand to launch in six months, from concept to completion—when the “normal” process for such an intricate project can exceed 10-12 months, according to Maesa vice president of marketing, Scott Kestenbaum.
Kestenbaum says the launch emphasizes the expansion of the definition of innovation. “In the beauty packaging industry, innovation has historically been viewed from a packaging level,” says Kestenbaum. While he says driving innovation through design, engineering, and manufacturing has been a central pillar of Maesa’s mission, equally as important has been innovation in its business model. He says that responding to a rapidly changing world and a core client base with an ever-changing set of needs has influenced the company to embrace change as an opportunity.
“To us,” says Kestenbaum, “innovation is a multi-dimensional concept, which goes beyond technological innovation to encompass a more efficient, vertically integrated development process and a speed-to-market approach.”
“Starting with the design phase [of 50 Cent],” says Kestenbaum, “rather than using the standard 2D process, Maesa created 3D photorealistic, fully engineered renderings. The company’s industrial designers concurrently assessed the manufacturability and cost feasibility of the proposed design, so package development was seamless. And for a dose of traditional, technological innovation: The elaborate five-piece cap is constructed of four different materials.The top of the cap features a unique inset decorative coin, manufactured by a multilayered process, which includes acid etching, painting, embossing and polishing.
Whimsical Bottles
While the cap of Power by 50 Cent represents the rapper’s lifestyle, playing on the construction of his favorite Audemar Piguet watch, the innovative bottle created for the new Sarah Jessica Parker
fragrance, SJP-NYC, brings to life the phenomenal wardrobe of the star’s fabulous, fictitious persona, Carrie Bradshaw, and even leaves room for updates on evolving fashion trends. From coinciding with the premier of the next “Sex and the City” film to efforts to capture a sense of whimsy and fun to making consumers smile, the package reigns supreme.
Chanel excites consumers with an innovative cap, while maintaining the iconic luxury of its packaging. |
to do so.”
Dinapoli continues, “To me, innovation in packaging means coming up with an idea or design that has never been done before. It can be in the shape of the bottle, the materials used, the way it works or even what it does. Innovation can also be achieved by rethinking the normal constraints of a brand, especially a fragrance brand. If you think past the ‘fragrance rules,’ it is really endless what can be achieved.”
He adds that Coty supports innovation in all areas 100%, and that they are particularly challenged in packaging to always come up with the “newest, coolest, most desirable package ever.” He says, “We have an internal motto ‘bold innovation,’ which is in the back of our minds at all times. Many of the most recent successes of Coty have been due, in large part, to very innovative packaging executions. Also, as a company, we challenge our vendors and packaging teams to constantly think outside the box and welcome any new ideas of how to keep things fresh.”
For SJP-NYC, Dinapoli says a large part of the inspiration was what they understand to be people’s impressions of seeing Carrie Bradshaw walk down the street and what feelings that evokes for her and for them—a real sense of freedom and possibilities, a love for the city around her and, of course, fashion.
“We started with this idea that we wanted to create something fun,” says Dinapoli. “We wanted to create a ‘party in a bottle’ and reflect that in the packaging with a real sense of whimsy and fun. Portability and fashion played key roles in the development of the packaging. The package itself was derived from the idea of ‘pattern clashing.’ We put together bold fashion prints in a way that only SJP could pull off.”
The outer canister, from Qualipack, is molded out of hot pink plastic and wrapped with embossed paper to replicate the real fabrics, with animal prints, paisley and floral patterns. The art was sourced from many different stores all throughout the city, arranged in “the perfect way” and then photographed and printed on the embossed paper. The fragrance itself is in a removable glass cylinder (glass by Heinz; pump by Rexam) with a gold actuator embellished with the SJP-NYC logo.
A big part of the innovation, adds Dinapoli, is that when the fragrance is finished, the consumer is left with a great canister that she can keep her keys, gum, jewelry or anything else in.
“When creating this package,” he says, “I was also mindful of how we could update the design once or twice a year to keep it current, just like fashion. The printed-paper wrap [labels by Kroger] makes the possibilities endless of where we can take it next.”
Judging by another of Dinapoli’s recent successes—the adorable Harajuku Lovers, which are gearing up to walk the fragrance/fashion runway in their third set of “outfits”—consumers are sure to be eager to see what SJP-NYC will be “wearing” in coming seasons as well.
Simple Luxuries
While SJP-NYC innovates with over-the-top attitude, Chanel succeeds by sticking with its luxurious simplicity. Still, there’s room for the high-end brand to capture consumers with innovative touches. Whether creating a “party in a bottle” or a touch of simple elegance, it’s all about knowing your consumer.
Scott Widro, vice president of manufacturing and materials management, Chanel—and a member of Beauty Packaging’s Board of Advisors—agrees that during 2009, innovation has taken
a different direction. “Today,” says Widro, “innovation must be combined with a thorough understanding of your customers’ needs and expectations.”
The customer, says Widro, is more select with their spending, especially in the luxury arena. “To develop innovative packages that do not meet customer needs may satisfy your development and creative direction,” he cautions, “but miss the target for your consumer.”
Value-added features and clever design combine to make Bebe irresistible to shoppers. |
His advice: “Touch and ask the customer what they are looking for and then discover those innovative packages, materials or technologies that provide mutual benefit. A balance between true luxury and adding value should drive your innovation direction.”
Widro says Chanel’s understanding of its customers’ needs coupled with the strong heritage/history that surrounds the luxury brand image fuels its packaging innovation, and like other companies mentioned in this article, champions a holistic approach.
“We have a team in France that works in concert with global marketing, creative, operations and R&D to suggest innovative packages, materials and technologies that are best-suited for our customer,” says Widro. “This cross-functional approach leads to innovation that can be executed in a timely, cost-efficient manner with the spirit of the brand and consumer driving our thinking.”
World Wide Packaging’s innovative package for Avon’s ANEW Clinical-Crow’s Feet Corrector won the 2009 HBA International Package Design Award in the Skin Care Mass category |
“So you have secured your cap and prevented loss,” says Widro, “while making sure that the cap always returns to its proper position. Besides the surprise you create, you have also developed a value-added feature for your consumer.”
Packaging That Speaks Volumes
A removable pave heart charm with the letter “b” adds value to Inter Parfums’ new Bebe fragrance, which makes shoppers at the trendy fashion retailer fall instantly in love. The amorphous heart-shaped bottle, modeled after the female form and encased in a silver metal shell, features a jauntily placed cap and a crystal-encrusted collar ring from which the charm dangles.
First Aid Beauty fills a niche with its directed formulas and apothecary-style packaging—all at an affordable price. |
Innovation has also emerged this year in brands’ downsizing of packages, particularly in offering 30ml options to allow more consumers the opportunity to step into the market. Bebe offers a range of sizes from a .33-oz. mini spray bottle in vacuum-metallized silver with a pintel cap and housed in a folding carton, to 3.4-oz. bottles. The 3.4-oz. and 1.7-oz. bottles are the same and come in the same box. The difference lies in the charm. The 3.4-oz. has a crystal pave heart and the 1.7-oz. has a silver heart without crystals. To further attract shoppers’ attention, Bebe stores nationwide have partnered with Milwaukee-based Prolitec, so the sensuous new scent now wafts through select areas of stores
via the company’s Air/Q Adjustable Room Air Freshener.
Twist & Pout keeps things fresh. |
While Bebe’s design speaks volumes with its design and coloring, so does Avon’s package for Anew Clinical-Crow’s Feet Corrector—but with a very different approach. The direct seller gets its day/night treatment across immediately with its double-ended, dual-treatment product.
Created by World Wide Packaging (WWP) for Avon’s highly successful, clinical-looking line, the innovative two-part package won the 2009 HBA International Package Design Award in the Skin Care Mass category.
“The biggest challenges regarding the development of the Crow’s Feet Corrector package involved all the unique features Avon wanted in the package, including how to orient the tottles symmetrically in the center band, front to back and left to right,” said Chris Wightman, WWP’s director, design engineering group. “Avon also wanted an unobstructed view of the heads and wanted them to match the front panel graphics,” criteria which required detailed follow-through instructions and testing and shipping procedures to ensure the accurate delivery of the parts.
The Writing’s on the Wall
Rather than relying on shape and color for an intuitive message, other beauty products use a package’s physical surface to provide a clear written message.
Created by designer Deborah Adler, the brains behind the revolutionary revamping of Target’s prescription drug packaging, which literally turned the category upside down, First Aid Beauty (FAB) skin care hit Sephora’s shelves ready to dive in and rescue skin from age and environmental effects.The apothecary-chic packaging, through its information hierarchy that appears on the front of each product—and which First Aid Beauty has dubbed “packaging with a voice”—makes an instant connection with consumers, with its “rescue and preserve” spirit. Distinct visuals and branding include striking rays, a hallmark life preserver and the tagline “for the life of your skin.” Packaging also emphasizes intelligent copy that identifies skin condition, ingredient benefits and key features for a consumer-friendly experience. Most of the packaging is recyclable plastic. The Detox Eye Roller also has a unique metal roller ball applicator. The six-product line ($14-$34) is positioned as “a premium collection that caters to universal beauty concerns, as well as the needs of sensitive and challenged skin,” and according to the brand, “creates an entirely new category in the prestige marketplace, by upping the ante on drugstore brands aimed at problem skin by delivering innovative daily solutions and treatments, scientifically advanced and dermatologist-recommended formulations, luxurious product textures and contemporary and identifiable packaging.”
Filling a Niche
First Aid Beauty saw a niche and developed a range that would fill the needs of consumers looking for quality, double-duty products at an affordable price.
Developers of Twist & Pout noticed that women were always rummaging in the bottom of their purse, trying to find their elusive lipglosses, so the Denver-based company thought outside the cylinder, and created a lip balm ball, which is made in the U.S. of recyclable PET plastic. They infused it with SPF-20 for a double-duty product, and created a range of colorful designs that bring smiles to glossy lips everywhere.Consumers liked the graphics so much, that Twist & Pout added a Lip Clip, which fits around the orb, so users could flaunt their designs outside their purses and access it in an instant. Thomas Smith, VP of sales and marketing at Twist & Pout, says the brand keeps things fresh by adding new designs every 120 days.
Merlot Skin Care, conscious of the recently evolved obsession with hand washing and sanitizing due to maladies like the H2N1-type flu, saw an increased opportunity for its grape seed-based line of skin care products.
“With concerns about the spreading of flu and germs at an all-time high, people are looking for hand sanitizers that will kill germs without leaving hands dry or sticky,” says Wayne Beckley, founder, Merlot Skin Care. “Our Hand Cream Plus Sanitizer is perfect for eliminating germs without alcohol, which means hands feel smooth, moisturized and protected.”
To make its products even more noticeable, Merlot created a new look for its signature grape seed-based line. Its new easy-to-squeeze 6-oz. tube now features a bold decorative grapes image printed on the backdrop of a clean and elegant purple vignette.
Merlot’s attractive new look won’t change its affordability, with products retailing between $10-$20. The independent family-owned company makes all products in the U.S. and conducts no animal testing.
The Innovation Highway
Whatever the direction your innovative thinking takes, the industry experts I spoke with advise that, above all, products be well thought out.
Vestbom, of Spark Studio, suggests that a brand should always question: “Is this really something different? If it is, does it have relevance to our brand—or, does it tell our customers ‘we are trying anything to win their attention because our sales are down in what should be our core competencies?’ ”
Vestbom adds that innovation can also be more about simplifying something than creating a more expensive decoration scheme or systematizing a delivery of product in an overly complicated manner just because it is new. “This next era and emerging customer base will be asking to see products innovatively less complicated yet also exceptional, beautiful and really cool. Great brands embrace the work and the fun of discovering the next innovation.”
Coty’s Poder-Stiso, cautions, “In the beauty business, innovation must provide a benefit that can be difficult to sell. Convincing the consumer that a product is truly innovative means that it has to be!”
