Competition is a serious motivation to improve business, and it is driving many brands to evolve their operational models. One trendy approach is the Direct-to-Consumer (DTC) model, which enables businesses to relate directly with consumers, eliminating middlemen.
As DTC becomes more popular, the problem of standing out rises again. Now, businesses must look to other strategies to solidify their positions in the market. If you are a business looking to adopt this business model, one of the most-impactful strategies you can adopt is to use custom packaging for your products.
To some, using custom packaging is no longer a choice for DTC brands. It is becoming fundamental to enjoying the full benefits of the business model.
What Does Custom Packaging Do?
Custom packaging offers a lot to businesses, whether you are using the DTC model or not. Its benefits can be adapted easily by diverse businesses and you only need to emphasize the qualities that resonate best with your brand identity. Now, let’s check out some of the ways custom packaging serves businesses.
- Personalization: Custom packaging allows you to create a personalized design that you can alter for consumers based on what appeals to them.
- Sustainability: Eco-consciousness is on the rise and with it comes calls for sustainable packaging. Custom packaging solutions are often eco-friendly in nature, stemming from primarily biodegradable materials to recycling and reusing initiatives attached to them.
- Cost-Effectiveness: Custom packaging enables small businesses to save money on the excessive materials often used to package products. The key is to find a unique style that markets your products well while still protecting the content.
How Custom Packaging Helps DTC Brands Succeed
While the benefits of custom packaging we examined below are general, there are ways to customize them to your unique needs. For context, this section will explore some ways custom packaging helps DTC brands, in particular, achieve the goals of the business model.
Enhances Brand Identity
As a business looking to reach consumers directly without the roles usually played by third parties, you need to stand out well. Custom packaging affords you this opportunity, as it can help create a brand identity that resonates with your target audience. Common branding strategies include using unique colors, personalized notes,, and other tailored features that help create a stronger connection with your customers.
Improves Customer Experience
Using custom packaging as a branding strategy is an approach that requires you to know what your consumers want and how to deliver it to them accurately. These days, consumers love unique packaging that they can engage with before getting to the product within. A good unboxing experience motivates them to share their purchases with others, creating organic marketing for your product.
Increases Retention Rates
When considering business models, the goal is not just to attract new customers, but to retain them in the long run. Innovative business models, especially for e-commerce, explore possibilities of retention almost as much as grabbing new customers. A unique packaging can motivate consumers to patronize you again, increasing retention rates while attracting new buyers.
Trends in Custom Packaging for DTC Brands
The DTC business model is expanding and innovative brands are adding their unique touches to it along the way. Here, we will examine the packaging trends that DTC brands are using in their takes on customization. Notable ones include:
- Minimalist Designs: Minimalism is trendy right now, especially as preferences shift towards sustainable practices. Consumers are demanding more simple but elegant packaging made from eco-friendly materials.
- Smart Packaging: Brands are incorporating smart packaging tools like QR codes, sensors, and RFID tags into products to connect better to consumers. These interactive elements help brands form a stronger connection to their consumers.
- Seasonal Packaging: The idea of owning something only available for a limited period is an age-old tactic that still works. Creative DTC brands use this knowledge to create custom packaging for limited-time periods, such as holiday seasons and special events, prompting more purchases during those periods.
Successful Case Studies of DTC Brands Leveraging Custom Packaging for Success
Many brands are experimenting with the DTC business model, adopting some of its features to their operations. However, some brands are doing it better than others, creating templates for how DTC businesses can maximize custom packaging for their benefits. They include:
- Glossier: Glossier has one of the best examples of branding with custom packaging. It uses minimalist designs and eco-friendly materials to create a packaging that resonates with its target audience.
- Allbirds: This brand also uses packaging as a branding tool, leveraging customization to suit shifting consumer preferences.
- Birchbox: Birchbox takes one of the best approaches to custom packaging, using it to reflect season themes, such as holiday special-edition products.
- FabFitFun: FabFitFun also includes brand messaging on custom packaging, especially with season-themed products.
Concluding Thoughts on Custom Packaging for DTC Brands
Creating the right packaging for a product is a serious task for businesses, especially ones that aim to gain stronger holds in their market. For those using the DTC business model, custom packaging gives you an opportunity to convert viewers to buyers and retain them over a long period.
