07.21.10
Stock Packaging: Ready, Set, Go
Off-the-shelf packaging components provide many advantages including ready access and speed to market.
Stock components make up an important sector of the beauty packaging industry. And it seems as though, today, in the midst of a recession, the segment is being relied on more, as the economic climate has brand owners looking for ways to be increasingly more cost effective. Beauty packaging suppliers by and large are reporting that stock components make a lot of financial sense, thus making them quite an attractive option.
There’s also speed-to-market, another factor that appeals to those with newly launched products, as well as existing brands targeting a product re-launch. With stock components, the time it takes for an order to be fulfilled is significantly less than a custom package. And with those choosing to go the stock route, innovation and design is not sacrificed, as technology and design teams have created stock offerings that are not only cheaper and faster, but also capable of generating shelf appeal and a differentiated look.
The Price Is Right
“The main advantage with stock packaging is cost, as there is no need for the customer to invest in a specific mold,” states Olivier De-Saignes, operational marketing director for Alcan Packaging Beauty. “And it’s an ideal option for some of our current customers affected by the economic crisis, as our line of stock packaging reduces development costs in comparison to customized solutions.”
De-Saignes also points out that the cost-effective nature of stock packaging is especially relevant in emerging markets. He says, “There is a real need for affordable packaging in countries such as China, Brazil and India, where the middle class has started buying cosmetic products, but requesting affordable prices. So we’ve tried to create solutions to capture this new demand.”
A big part of the cost of packaging is in the tooling used to create the package, be it plastic, glass, metal, jars, tubes or applicators. According to Eileen Wang, vice president sales and marketing for All Star Packaging, the difference is significant when it comes to custom versus stock tooling. “For making custom tools, cost is more than $12,000 per injection part, and $5,000 per metal part. For a single-wall jar with a cap, the tooling cost could easily be more than $30,000,” she says.
Sheherazade Chamlou, vice president of marketing and global account executive for glass packaging maker SGD, points out that while it’s also more expensive, investing in custom tooling involves some degree of risk, as brands are often subject to the changing fads of the day. “The cost of development and the cost of tooling is difficult to recapture if trends are short lived,” she says, “but if existing tooling is used to capture a trend with little or no tooling costs, both sides can benefit.”
Mike Warford, national sales manager at ABA Packaging Corp., says that the cost effectiveness of stock packaging is realized when multiple buyers elect to use the same package. “Generally, tooling cavitations and production batches are larger for popular stock packaging sizes making them more appealing to the end users from a costing standpoint. Both small and large buyers can benefit from their combined buying power,” he says.
Warford also notes the economic downturn’s effect on the market’s growth. “Stock primary packaging options are a growing market and they continue to be popular for small and large cosmetic, personal care, and spa line product marketers and manufacturers. This was especially the case when the economy took a downturn as tooling budgets were a popular line item for elimination to save money. We have seen an overall increase in stock packaging product development and marketing as a result of the recent dip in the economy, and new product development in this area continues to be robust,” he says.
Jeff Gross, vice president of sales for Kaufman Container Company, says that although the economy seems to be getting better, Kaufman’s health and beauty customers are seeking various stock options as an alternative to investing in building custom molds. “An advantage to stock packaging includes a lower startup cost versus a custom mold, especially for test-marketing products or new launches.In addition, manufacturers are offering lower minimums on many stock molds in which the variety of shapes is abundant. There truly are so many unique looks in the marketplace, available in a wide range of materials and sizes at very competitive prices. The only drawback I can see is that you may not be getting that ‘one-of-a-kind look’ for your specific product line if there are other products in the marketplace using the same stock container or package.”
Stock Evolution
Beauty packaging buyers, of course, want packaging that’s going to give off a unique look to obtain and maintain brand identity, and as Gross says, it can be a challenge. However, Kaufman and others are capable of leveraging and incorporating other packaging technologies to create truly eye-catching options that make the products look custom-made.
“From what we have seen to date in 2010, with our customers,” says Gross, “many have gravitated to stock packages for new product launches as well as re-launches of existing product lines. They have used a variety of colors and decorating alternatives to give the package that ‘custom look’ to distinguish their product from the competition. I foresee the stock trend continuing to grow for the balance of the year and beyond. Some customers, however, have moved forward with custom molds dependent on the product they are launching and the specific image they want to portray in the marketplace.”
David Hou, marketing and sales director for Cospack America, talks about some of the company’s new airless stock products. He says, “Our clients come to us because they want the flexibility and versatility offered by stock components, but they do not want their package to look like everyone else’s. We just introduced two new airless dispensers, the Athens and Laguna series that are available in stock. Both lines utilize our OS (outer spring) delivery system that eliminates product contact with any metal components and thus reduces compatibility issues while protecting product integrity. Also, we recently introduced our Opera lotion dispenser. This pump was designed for viscous products that require a larger output per stroke. It also uses our OS delivery system to ensure the integrity of sensitive formulas,” Hou says.
Lombardi Design and Manufacturing incorporates a distinct strategy to create a customized look with stock components, while at the same time overcoming the challenge of making sure the package is unique to the customer’s brand. “What people need to be careful about is that multiple brands can wind up with the same part,” says Carl Lombardi, the company’s president. “That’s why it’s important to work with a manufacturer that can protect customers, for instance, by creating stock packaging, but giving them exclusivity with the component until they’re done with it,” he adds. “Stock packaging can also be made to look distinct by combining it with custom parts. A lot of stock tooling can be modified with minimal investment by using inserts or decoration.”
Clever use of decorating techniques has turned common stock packages into original works of art, adds SGD’s Chamlou, noting that the marketing department at SGD puts together “trend presentations” to illustrate the vast array of decorative concepts the company offers, including hot stamping, spray, gluing, pad print, acid etch, silk screen, and contouring.
Alcan Packaging Beauty emphasizes its flexibility in providing either the entire stock package, or just a piece of it. “We try to develop stock item solutions for our customers by not only developing a pack (jars, tubes, compacts), but also including the right applicator and the right formula. Therefore, the customer is able to buy according to their needs,” says De-Saignes.
With such an array of options, All Star Packaging’s Wang has some advice when it comes to choosing stock packages. She says, “Stay away from packages with outstanding shapes. The image of the package itself shouldn’t be stronger than the label design or decoration. Plain geometric shapes and contemporary style usually allow the customized label and decoration to be the focal point. Also, a double wall package with a translucent outer layer usually allows a more complicated secondary decoration process to make the package more outstanding. And metal caps or a metal collar can have debossing, embossing or engraving to add intricate designs, which could make the package look more retro without a big tooling cost.”
Need for Speed
Quick turnaround is always attractive to packaging buyers, regardless of the economy. However, during a recession, the importance of just-in-time ordering is magnified. Not only are brand owners shying away from keeping an inventory, they’re also unsure of a product’s potential for sales.
“A clear advantage of using stock packaging is the quick turn-around time,” states Cospack’s Hou. “For any in-stock items we carry, we can usually ship within 48 hours. The use of stock packaging is growing because the economy has forced many companies to lower their inventory level. Our in-stock program has been very popular because our clients rely on us to stock the components so they don’t have to. They can just purchase what they need with a quick turnaround without worrying about having to order 12 weeks in advance and potentially sit on excess inventory.”
Creating the necessary tooling to manufacture the packaging is also a time-sensitive part of the workflow. “With stock tooling, the package development process can begin immediately, helping to compress that costly and time consuming process,” notes Warford of ABA. “Action items like decoration design/development, package testing, and filling evaluations can begin as soon as the stock package option is selected—in most cases.”
Wang emphasizes that time savings is a major advantage stock has over custom. “With custom tooling,” she says, “three months’ lead-time should be expected to cover tool making, pilot sampling and adjustments. And there’s also less guessing in planning,” she adds. “Since the stock packages are ready for use, the client can always get sufficient samples to cover proper function and compatibility testing. Design and marketing studies can also be done in the exact package to ensure a more accurate forecast.”
Geography can also play a role in stock packaging turnaround time. “Speed to market is a big advantage that stock packaging has, and Lombardi’s timeframe exceeds that of many manufacturers,” adds Carl Lombardi, pointing out that the company also provides its customers with a “green” stock solution. “Whereas a lot of stock items are made in China, Lombardi’s products are all made in the U.S., so there’s no long-range shipping involved. In addition, this ties in with the company’s domestic manufacturing, which is 90% hydro powered–renewable energy, that enables brands to cut down on their carbon footprints,” Lombardi says.
A selection of SGD’s stock packaging also offer eco-benefits. Chamlou says SGD’s 100% recycled and 100% recyclable glass for the perfume and cosmetics industry, Infinite Glass, is now available in its “La Collection” range of stock packaging.
“Stock packaging can also bring some technical advantages as well,” emphasizes ABA’s Warford. “As the stock products are in many cases used by a wide variety of customers, technical issues related to fit and function have generally been vetted out in the introductory stages of the stock components, thus raising the level of success for those who opt to use the stock options for their products.”
ABA Packaging Corp. recently became the source in North America for stock mascara, lipgloss, and lipstick packages manufactured by OEKAmetall of Bamberg, Germany.
Stock packaging has become an attractive option for beauty brands, and while that has a lot do with a company’s bottom line, it’s also a testament to industry innovation. Perhaps Warford sums it up best, when he says, “The design and package development talent in our industry is so impressive, and I am continually amazed with the new product introductions that I have seen utilizing stock primary packaging options. The ability of the designers and developers to continually take high quality stock jars, bottles, tubes, and other primary packaging components, and transform them into line-image products that are exciting and appealing to the consumer is absolutely amazing.”
Lombardi Design and Manufacturing offers an array of stock packaging from compacts to display cases and containers. |
Stock components make up an important sector of the beauty packaging industry. And it seems as though, today, in the midst of a recession, the segment is being relied on more, as the economic climate has brand owners looking for ways to be increasingly more cost effective. Beauty packaging suppliers by and large are reporting that stock components make a lot of financial sense, thus making them quite an attractive option.
There’s also speed-to-market, another factor that appeals to those with newly launched products, as well as existing brands targeting a product re-launch. With stock components, the time it takes for an order to be fulfilled is significantly less than a custom package. And with those choosing to go the stock route, innovation and design is not sacrificed, as technology and design teams have created stock offerings that are not only cheaper and faster, but also capable of generating shelf appeal and a differentiated look.
The Price Is Right
“The main advantage with stock packaging is cost, as there is no need for the customer to invest in a specific mold,” states Olivier De-Saignes, operational marketing director for Alcan Packaging Beauty. “And it’s an ideal option for some of our current customers affected by the economic crisis, as our line of stock packaging reduces development costs in comparison to customized solutions.”
The new Opera Pump is a stock product from Cospack America. |
A big part of the cost of packaging is in the tooling used to create the package, be it plastic, glass, metal, jars, tubes or applicators. According to Eileen Wang, vice president sales and marketing for All Star Packaging, the difference is significant when it comes to custom versus stock tooling. “For making custom tools, cost is more than $12,000 per injection part, and $5,000 per metal part. For a single-wall jar with a cap, the tooling cost could easily be more than $30,000,” she says.
Sheherazade Chamlou, vice president of marketing and global account executive for glass packaging maker SGD, points out that while it’s also more expensive, investing in custom tooling involves some degree of risk, as brands are often subject to the changing fads of the day. “The cost of development and the cost of tooling is difficult to recapture if trends are short lived,” she says, “but if existing tooling is used to capture a trend with little or no tooling costs, both sides can benefit.”
Mike Warford, national sales manager at ABA Packaging Corp., says that the cost effectiveness of stock packaging is realized when multiple buyers elect to use the same package. “Generally, tooling cavitations and production batches are larger for popular stock packaging sizes making them more appealing to the end users from a costing standpoint. Both small and large buyers can benefit from their combined buying power,” he says.
Warford also notes the economic downturn’s effect on the market’s growth. “Stock primary packaging options are a growing market and they continue to be popular for small and large cosmetic, personal care, and spa line product marketers and manufacturers. This was especially the case when the economy took a downturn as tooling budgets were a popular line item for elimination to save money. We have seen an overall increase in stock packaging product development and marketing as a result of the recent dip in the economy, and new product development in this area continues to be robust,” he says.
The All Star Packaging bottles in these photos are identical. The company switches the pumps and decorates the bottle with shiny silver foil to create a different visual experience. |
Stock Evolution
Beauty packaging buyers, of course, want packaging that’s going to give off a unique look to obtain and maintain brand identity, and as Gross says, it can be a challenge. However, Kaufman and others are capable of leveraging and incorporating other packaging technologies to create truly eye-catching options that make the products look custom-made.
“From what we have seen to date in 2010, with our customers,” says Gross, “many have gravitated to stock packages for new product launches as well as re-launches of existing product lines. They have used a variety of colors and decorating alternatives to give the package that ‘custom look’ to distinguish their product from the competition. I foresee the stock trend continuing to grow for the balance of the year and beyond. Some customers, however, have moved forward with custom molds dependent on the product they are launching and the specific image they want to portray in the marketplace.”
David Hou, marketing and sales director for Cospack America, talks about some of the company’s new airless stock products. He says, “Our clients come to us because they want the flexibility and versatility offered by stock components, but they do not want their package to look like everyone else’s. We just introduced two new airless dispensers, the Athens and Laguna series that are available in stock. Both lines utilize our OS (outer spring) delivery system that eliminates product contact with any metal components and thus reduces compatibility issues while protecting product integrity. Also, we recently introduced our Opera lotion dispenser. This pump was designed for viscous products that require a larger output per stroke. It also uses our OS delivery system to ensure the integrity of sensitive formulas,” Hou says.
Lombardi Design and Manufacturing incorporates a distinct strategy to create a customized look with stock components, while at the same time overcoming the challenge of making sure the package is unique to the customer’s brand. “What people need to be careful about is that multiple brands can wind up with the same part,” says Carl Lombardi, the company’s president. “That’s why it’s important to work with a manufacturer that can protect customers, for instance, by creating stock packaging, but giving them exclusivity with the component until they’re done with it,” he adds. “Stock packaging can also be made to look distinct by combining it with custom parts. A lot of stock tooling can be modified with minimal investment by using inserts or decoration.”
Clever use of decorating techniques has turned common stock packages into original works of art, adds SGD’s Chamlou, noting that the marketing department at SGD puts together “trend presentations” to illustrate the vast array of decorative concepts the company offers, including hot stamping, spray, gluing, pad print, acid etch, silk screen, and contouring.
Alcan Packaging Beauty emphasizes its flexibility in providing either the entire stock package, or just a piece of it. “We try to develop stock item solutions for our customers by not only developing a pack (jars, tubes, compacts), but also including the right applicator and the right formula. Therefore, the customer is able to buy according to their needs,” says De-Saignes.
With such an array of options, All Star Packaging’s Wang has some advice when it comes to choosing stock packages. She says, “Stay away from packages with outstanding shapes. The image of the package itself shouldn’t be stronger than the label design or decoration. Plain geometric shapes and contemporary style usually allow the customized label and decoration to be the focal point. Also, a double wall package with a translucent outer layer usually allows a more complicated secondary decoration process to make the package more outstanding. And metal caps or a metal collar can have debossing, embossing or engraving to add intricate designs, which could make the package look more retro without a big tooling cost.”
Need for Speed
Quick turnaround is always attractive to packaging buyers, regardless of the economy. However, during a recession, the importance of just-in-time ordering is magnified. Not only are brand owners shying away from keeping an inventory, they’re also unsure of a product’s potential for sales.
“A clear advantage of using stock packaging is the quick turn-around time,” states Cospack’s Hou. “For any in-stock items we carry, we can usually ship within 48 hours. The use of stock packaging is growing because the economy has forced many companies to lower their inventory level. Our in-stock program has been very popular because our clients rely on us to stock the components so they don’t have to. They can just purchase what they need with a quick turnaround without worrying about having to order 12 weeks in advance and potentially sit on excess inventory.”
Alcan Packaging Beauty’s Artist Tubes stock range features innovative applicators. |
Wang emphasizes that time savings is a major advantage stock has over custom. “With custom tooling,” she says, “three months’ lead-time should be expected to cover tool making, pilot sampling and adjustments. And there’s also less guessing in planning,” she adds. “Since the stock packages are ready for use, the client can always get sufficient samples to cover proper function and compatibility testing. Design and marketing studies can also be done in the exact package to ensure a more accurate forecast.”
Geography can also play a role in stock packaging turnaround time. “Speed to market is a big advantage that stock packaging has, and Lombardi’s timeframe exceeds that of many manufacturers,” adds Carl Lombardi, pointing out that the company also provides its customers with a “green” stock solution. “Whereas a lot of stock items are made in China, Lombardi’s products are all made in the U.S., so there’s no long-range shipping involved. In addition, this ties in with the company’s domestic manufacturing, which is 90% hydro powered–renewable energy, that enables brands to cut down on their carbon footprints,” Lombardi says.
A selection of SGD’s stock packaging also offer eco-benefits. Chamlou says SGD’s 100% recycled and 100% recyclable glass for the perfume and cosmetics industry, Infinite Glass, is now available in its “La Collection” range of stock packaging.
“Stock packaging can also bring some technical advantages as well,” emphasizes ABA’s Warford. “As the stock products are in many cases used by a wide variety of customers, technical issues related to fit and function have generally been vetted out in the introductory stages of the stock components, thus raising the level of success for those who opt to use the stock options for their products.”
ABA Packaging Corp. recently became the source in North America for stock mascara, lipgloss, and lipstick packages manufactured by OEKAmetall of Bamberg, Germany.
Stock packaging has become an attractive option for beauty brands, and while that has a lot do with a company’s bottom line, it’s also a testament to industry innovation. Perhaps Warford sums it up best, when he says, “The design and package development talent in our industry is so impressive, and I am continually amazed with the new product introductions that I have seen utilizing stock primary packaging options. The ability of the designers and developers to continually take high quality stock jars, bottles, tubes, and other primary packaging components, and transform them into line-image products that are exciting and appealing to the consumer is absolutely amazing.”
