Packaging gets smart

Packaging gets smart
As the world moves further and further online, the need for packaging to bridge the gap between the physical and digital worlds is becoming more and more important. David Pittman reports
 
Modern packaging is an important tool for brands in making the link between the online world and physical products.
 
Thanks to smartphones and the booming market for tablet computers, from high-end Apple products to low-cost Android-powered alternatives, consumers have become more comfortable with the idea of living their lives online.
 
Although communication, networking, retailing and many other aspects of day-to-day life can now occur online, packaging remains a key component of the physical world, providing both a means to protect and promote a product.
 
Increasingly, packaging is also under pressure to perform, often providing further functionality when the consumer is in the home. This performance can range from fulfilling a use, such as an ice bucket in certain beverage applications, to providing qualitative information, as in the case of time-temperature indicators on fresh food.
 
The need to perform plays an integral part of the work in linking the physical and digital worlds also. Various systems exist to facilitate this relationship, from QR codes printed on packaging, to built-in near-field communication (NFC) and more visual augmented reality (AR) systems.
 
The basic principle of all these systems is to create an interaction between consumers and the online world, usually triggered by a smartphone, but each have their own benefits and uses.
 
Augmented reality
AR is often viewed as a more immersive system, displaying computer-generated visualizations over items from the physical world.
 
According to market research company TechNavio, the global AR market will grow at a compound annual growth rate of 54.3 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing demand for an enhanced user experience.
 
Key vendors dominating this space are Layar, Metaio, Total Immersion and Wikitude, according to the TechNavio report, although there are many other vendors of AR platforms in the market, such as Blippar and Vuforia from Qualcomm.
 
HP’s Aurasma is also on the market, and can be seen on special Kellogg’s cereal boxes, on KFC takeaway packaging in Japan and through various other partners.
 
These case studies, and those of other vendors, are being used to promote AR, and help the market achieve the growth as predicted by TechNavio.
 
Near-field communication
Many commentators have said uptake of AR has not been as fast as had been initially predicted, but NFC is a process that has perhaps gained traction with consumers faster due to its more mainstream uses, such “wave and pay” for conducting low-value financial transactions by card and transport applications, like the Oyster card system deployed on the London Underground network. A growing number of mobile devices are also being shipped with out-of-the-box NFC compatibility, making access to the technology easier.
 
As with AR, NFC-enabled packaging is not widely used, but the ability to create automated interactions is similar.
 
Smartphones equipped with NFC can be paired with NFC tags or stickers, which can be programmed by NFC apps to automate tasks, such as launching an app, sending a text, or the execution of a number of other commands.
 
Printing machinery manufacturer Heidelberg has been developing its Smart Shelf, which uses complementary electronic components embedded into packaging and on the shelf to create a link.
 
This has potential applications for stock management, but also to create cross-channel marketing opportunities, perhaps with nearby video screens coming to life when the link is broken by the consumer picking up the product, and being exposed to more information and promotional activities linked to the brand.
 
Heidelberg is also working with Printechnologics on Touchcode, a system to merge printed electronics into packaging.
 
Similar technologically to NFC, Touchcode is promoted as “paper goes digital”, with an interaction started by consumers touching paper products, cartons, films or labels printed with a code onto the touchscreen of a mobile device on which the Touchcode software has been installed, which then launches additional video, audio or text-based content.
 
Norwegian printed electronics specialist Thinfilm has likewise been developing various technologies applicable to this market, include a proof-of-concept prototype of an integrated printed electronic tag based on rewritable memory.
 
The printed electronic label, consisting of printed memory, sensor and logic, detects that critical temperature thresholds have been exceeded and records data digitally for later retrieval and display.
 
Thinfilm’s chief financial officer Torgrim Takle says such smart labels are needed to help grow uptake of NFC in packaging applications, and give consumers more information in a more intuitive manner.
 
QR codes
Probably the most recognized smart packaging tool are QR codes. These have been seen in circulation for a number of years, and are widely recognized by consumers as an access point to additional information.
 
Still requiring the installation of third-part apps in most cases, QR codes provide access to static content hosted on a website, preferably web-optimised due to the primary way people interact with them; via a mobile phone.
 
Takle notes that a downside to QR codes is the primary use of static content as a means to connect brands and consumers, but others don't see this as an issue.
 
'QR codes are perfectly suited to bridging the gap between the physical and digital worlds,’ says Ryan Higginson, vice-president, digital channel Europe at Pitney Bowes. ‘They tick all the boxes for what needs to happen during an interaction. You can also change the static content at the source, without having to change the packaging.’
 
There are good examples of where QR codes have been deployed. McDonald’s has recently added QR codes to its packaging in North America, while food wholesaler 3663 uses QR codes to great effect on single servings of various products.
 
These codes then link to additional dietary and nutritional information relating to each product, from dairy to salt.
 
‘We’re seeing traction for QR codes where space is at a premium on packaging, but further information needs to be provided,’ says Higginson.
 
‘Responsive packaging is needed, and QR codes offer that functionality. The number of smartphones in the market is growing, and they’re always with you. This is helping drive uptake as more people scan have the ability to scan QR codes.
 
‘We’ve seen strong growth in the UK, but uptake is twice as much in the US and even greater across Asia.’
 
Higginson notes that the position of QR codes is important, and the end-user experience is critical.
 
There are, unfortunately, a number of examples of QR codes being misused by directing to content not designed to be accessed on mobile devices. This is detrimental to the user experience, and can have a negative impact on the overall communication effort.
 
He says: ‘QR codes were a fashion thing a little while ago so there were some failures, but now the understanding about their application to meet the needs of consumers and businesses is growing.
 
‘They are well suited to small businesses looking to grow their position in the market. Small businesses are not multichannel operations, so need to capitalize on the opportunities they can utilize as multi-channel communication is important. QR codes open the doors to small enterprises.’
 
Pitney Bowes offers a product for small businesses to create a QR code system. The product, pbSmart Codes, includes the ability to create a mobile site and branded QR codes, and to track and analyse interactions created through a QR code.
 
The ability to analyse the relationship between a product and consumers via QR codes is important to Higginson, who says: ‘For small companies, the ability to scrutinize analytics and see where the ROI is coming from allows better placement of marketing budgets.
 
‘NFC carries a higher cost, whereas QR codes have a lower cost barrier to entry, and is the simplest way to compete with larger brands in offering an interaction to customers.
 
‘We’re seeing that it can work, and uptake is growing month by month.’
 
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