Packaging: a profession in tension and in transformation, from packaging to connected objects by Solène Joulin, Capgemini Engineering

Solène Joulin, Senior Sales Manager, Capgemini Engineering, deep dives into packaging as a historical pillar of the shopping experience. As customers become increasingly connected, packaging is no longer just a container, no matter how sophisticated and durable. By embedding technology, it reinforces consumer engagement and loyalty. It is up to the packaging industry to adapt.

This is the mantra of luxury brands to build customer loyalty: offer an increasingly connected and personalised experience. According to a Salesforce study¹, 88% of consumers today consider a company’s buying experience as important as its products or services, compared to 80% in 2020. If this demand is to be translated into action throughout the purchasing process, packaging is crucial. All the more so as it crystallises contradictory feelings among consumers: on the one hand, a certain bad conscience – 43%² of 18-34 year olds say they feel guilty when they make certain purchases – and on the other, the desire for an enriched experience.

Today’s packaging specialists face a double challenge. The first is to offer sustainable packaging that must move from being a simple container – destined to become waste – to being a real object. The second challenge is to offer customers a luxurious experience, even in distribution channels that are not luxurious. Technology plays a key role in this. How do we do this? By combining the physical product with an enriched digital environment, accompanied by multiple associated services. It is not a question of innovating to simply dazzle the consumer. The packaging must be seen as a gateway to the brand’s ecosystem, made up of associated services that can vary according to the period, location or identity of the buyer, so as to personalise the experience. It is also a good way for the brand to control the return on investment of its campaigns and to know its customers better.

The world leader in the sector, L’Oréal, has chosen a well-known technology, the QR code, to link its 7 billion products sold each year to the digital world. Once the packaging has been scanned, the consumer can access the ingredients, user guides and instructions for ensuring its recyclability. This meets the expectations of increasingly demanding consumers, who are concerned about product quality and are uncompromising about safety and transparency. These QR codes also make it possible to rethink the customer journey thanks to new services such as the virtual trial, offered for hair colouring, for example.

Another brand in the L’Oréal galaxy, Lancôme, has also perfectly grasped the issues at stake: putting technology at the service of the customer experience by offering an immersion experience that begins in the boutique. Teint Particulier allows each woman to obtain her own customised foundation, according to her skin tone and desired level of hydration and coverage. A Lancôme beauty consultant begins the consultation with a scan of the skin in three different places to analyse the exact type and shade of skin. The result: 72,000 possible combinations, thanks to a specially developed algorithm

To make this type of technological breakthrough a reality, it is all a matter of skill and know-how. The cosmetics sector is undergoing a changeover from technical expertise to technological expertise that will create a real ecosystem where products and services complement each other and enrich the consumer experience. 

A necessary increase in competence  For the packaging industry, the basic skills remain essential, whether in design, mastering materials or scaling up to industrial scale. To these must be added new expertise: assessing the right technology to use according to the packaging’s lifespan; mastering the possible interactions between technology and content; analysing the packaging’s lifecycle from the point of view of its sustainability in order to make a better choice between refillable, returnable or disposable but recyclable products. The challenge for brands and packaging players remains: to move from PoC to go-to-market by offering the customer a personalised, seamless experience that is complete from start to finish. This requires a high-performance back office and trained teams capable of administering and exploiting it to the full. “Ultimately, the companies that win will be those that can offer a clear and unique proposition, with a frictionless consumer experience, meeting a need with a digital connection to their customer,” notes Eric Cohen, Vice President, Connected Consumer, Intelligent Products and Services at Capgemini Invent.

Bringing IT closer to the business

In order to make connected packaging a central element of the customer experience, it is therefore necessary to have sufficient expertise. Of course, external partners can meet the expectations of luxury brands in terms of execution and supervision of the digital environment, but the brands themselves must ensure that their employees have the necessary skills to embark on the path to packaging 4.0. It is also in their interest to blur the boundaries between packaging, IT and production by integrating expert profiles into their business teams. This will put an end to silos and encourage ‘cross-fertilisation’ for the benefit of innovation.

This major challenge brings with it many opportunities for packaging players. It is only by supporting their employees in the transformation of their professional practices in line with packaging 4.0 that companies will be able to retain staff in a job market under pressure.

Faced with the need to personalise their customer experience in a highly competitive context, the question is no longer whether luxury brands will take the step of connected packaging, but rather when this will happen… According to Precedence Research³, the global smart packaging market will reach nearly 40 billion dollars in 2021 and should exceed 63 billion by 2030. The luxury industry has been warned: tomorrow’s packaging will be connected or it won’t be!

¹ « Focus sur le client connecté », Salesforce, 2022.
² « Next Leading Brands », Etude Babel / BVA, mai 2021.
³Globenewswire

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