Luxury Packaging: A Trend That Boost Sales And Encourage Consumer Spending
Luxury packaging is quickly becoming a trend that many consumers in China are inclined to and this particular sector is expected to be a key topic on Tuesday's annual session to be attended by some of the country's top legislators.
According to China Daily, around 3,000 deputies are expected to discuss the increased demand for luxury products and how it could spur economic growth in a generation that seeks high-quality goods and services.
Analysts predict that this year's session will be centered on the luxury industry's success and the impact of luxury packaging in consumer buying habits. It is also expected that lawmakers will discuss how specialty packaging should be encouraged further among entrepreneurs.
Over the past few years, luxury packaging has helped boost sales in various industries including fragrances, confectionery, cosmetics, premium alcoholic drinks and wine, watches, tobacco, jewelry, and other products.
Hu Min, a Beijing-based worker, told the outlet that specialty packaging attracts her and entices her to make a purchase. "I spend roughly 30,000 yuan on luxuries every year... and when I do, I pay particular attention to packaging," she said.
For Hu, packaging makes a "great first impression on people" and adds a sparkle to the gifts she gives to friends and family. She added that packaging is very important when a customer buys luxury goods.
Industry experts forecasted that the luxury packaging industry could reach a market value of $17.6 billion by the end of 2019, accounting for a 4.4 percent increase from 2018's records.
Asia, in particular, is driving the global luxury packaging sector. As early as 2014, the region accumulated a share of 28 percent globally. China is the world's second-largest consumer of luxury products and is one of the key drivers of growth in the sect.
One of the most recent trends in the industry is the use of QR codes when giving luxury gifts. The sender can choose a luxury packaging that allows the recipient to scan a QR code to listen to greetings from the sending party. According to experts, this personalized system adds value to a product.
Ecns News reported that even international brands are getting attracted to consumer buying behaviors in China. Global luxury packaging providers have set their eyes on the massive Chinese market as the country continues to patronize luxury goods.
James Cropper Specialty Papers, a Britain-based firm, said it entered China because of the growth potential in the local market. The U.K. company established its first subsidiary in Guangzhou in 2014 and it continues to offer high-quality packaging paper to various brands selling goods in the country, including Alfred Dunhill and Burberry Group Plc.