Innovative e-commerce and intelligent packaging. Björn Thunström Senior Vice President, Marketing & Innovation

Transcription

1 Innovative e-commerce and intelligent packaging Björn Thunström Senior Vice President, Marketing & Innovation

2 Everything that s made with fossilbased materials today can be made from a tree tomorrow Employees Countries 10 B EUR Sales Listed on Nasdaq in Helsinki & Stockholm Consumer Board Packaging Solutions Biomaterials Wood Products Paper 2

3 What a tree can do MOVIE 3

4 From insight collection to ready product e-commerce example Collect insights from consumers and customers Innovation packathon Commercialization & marketing Thought leadership insights Continuous interaction with retailers & consumers (Co-creation and development, validate and test concepts, launch & pilot) 4

5 Researched online E-commerce packaging portfolio created based on thorough segment analysis 70 Categories further explored in this presentation 60 Gone to digital Click and buy Purchased online SOURCE: McKinsey & Company iconsumer 2013 (published in the summer of 2014). iconsumer surveys 30,000 consumers across the globe annually (200,000 accumulated responses). Data above is based on European markets Digital battleground Still in store 5

6 Following 120 consumers have resulted in deep understanding of the consumer experience of the packaging Pick up Transport Open Reseal Recycle 7

7 ~50% state that the packaging does not live up to the quality of the ordered product EXAMPLE Packaging does not live up to the quality of products Packaging indicated higher quality than product 60% 50% 48% 40% 40% 30% 20% 10% 0% The package... 7% Indicates much lower quality than the product Indicates lower quality than the product Was in line with the product quality 3% Felt somewhat more luxurious than the products 1% Felt more luxurious than the products CONCLUSION There is room to improve online packaging SOURCE: Results from in-depth consumer study with 120 participants from Poland & Sweden 8

8 There are multiple consumer pleasure and pain points along the online packaging buyer journey EXAMPLE 40% 35% 30% 25% 31% 40% 35% 30% 25% 26% 36% 20% 17% 15% 20% 15% 10% 5% 11% 11% 6% 6% 15% 10% 5% 4% 4% 5% 8% 9% 0% 0% SOURCE: Results from in-depth consumer study with 120 participants from Poland & Sweden 9

9 Online retail pick and pack process ORDER PICKING PACKING LINE SELECT PACKAGING PACK & SEAL SEND 11

10 The brutal reality is that e-commerce is highly competitive with very slim margins ESTIMATE Basket profitability of consumer electronics 1 % of sales Higher number of deliveries and products returned in online shopping, resulting in higher costs (picking & packing, postal fees, return handling, customer handling) Store costs not directly existent online, but indirectly reflected in higher technology and marketing 10-15% 2-6% -5-10% -2-8% -1-3% -1-3% 0-4% Typical basket profitability of offline consumer electronics retail Store operation costs (eg. rent, in-store labor) Delivery costs (incl. returns) 2 Warehousing and fulfillment costs Other warehousing costs 3 IT and marketing costs 4 Typical basket profitability of online consumer electronics retail 1 Minimums and maximums do not add up; net difference between offline and online retail 2 A delivery fee is usually paid, but in general by no means covers the actual delivery costs 3 Higher leftovers and waste in warehouses due to smaller packaging size and larger number of orders 4 IT, credit card fees, marketing 12 SOURCE: Annual reports of retail/e-commerce companies, expert interviews

11 An integrated packaging system is key to improve supply chain operations in e-commerce ESTIMATE Basket profitability of consumer electronics 1 % of sales Packaging to support easy packing with measurement for increased fill rates: minimize packaging material and transportation costs Flexible packaging formats allowing for automated fulfillment, reducing labor costs 10-15% 2-6% -5-10% -2-8% -1-2% -1-3% 0-4% % 0.5-1% 1-6% Typical basket profitability of offline retail Store operation costs (eg. rent, instore labor) Delivery costs (incl. returns) 2 Warehousing and fulfillment costs Other warehousing costs 3 IT and marketing costs 4 Typical Basket profitability of online retail Last mile optimization Pick and pack Potential 1 Minimums and maximums in ranges do not add up; net difference between offline and online retail 2 A delivery fee is usually paid, but in general by no means covers the actual delivery costs 3 Higher leftovers and higher scrap rate due to smaller packaging size and larger number of orders 4 IT, credit card fees, marketing 13 SOURCE: Annual reports of retail/e-commerce companies, expert interviews

12 e-tales: our e-commerce packaging portfolio 14

13 What intelligent packaging can do MOVIE 15

14 Intelligent packaging lead the way for corrugated into the future of retail Consumer engagement Brand protection Supply chain 16

15 Intelligent packaging solutions for online retailers and a multitude of other brand owners 8. Apps & installations 1. Solution design 7. Analysis 2. Packaging 6. Connectivity 3. Tag design 5. Integration 4. Personalisation 17

16 Thank you, and welcome to our stand! Contacts Web: storaenso.com Name: Björn Thunström Title: SVP Marketing and Innovation, Packaging Solutions Mail: Name: Nils von Essen Title: Marketing Manager, Packaging Solutions Mail: 18

17 Appendix 19

18 E-commerce packaging is starting to standardize across countries but one-size fits all will not work across segments EXAMPLES Consumer electronics Media & books Apparel & clothing What is the same across countries 1 What is different across countries 1 Examples Structural design: Inner packaging standard instore packaging and outer packaging sturdy cardboard often with protective elements Graphical design: Brown or white box, one color print Structural design: Thin, lightweight corrugated box or sleeve Graphical design: Brown box/sleeve; one color print Structural design: Brown or white boxes; custom boxes depending on segment/brand Graphical design: Brown or white with black and white print; high quality print depending on segment/brand No significant difference In some countries (e.g., Russia), usually no print at all Sealed with plastic bands (e.g., Sweden), glued or tape (UK, Russia) In some countries (e.g., Russia), no print, just scotch branded More often shipped in bags (e.g., UK) No significant difference Sweden UK 1 European countries SOURCE: Consumer research 20