New content
Label content is increasingly important as the requirements of brand owner and retailer are transcended by the legislation on information and food safety, security and logistics input, and customer-accessible additional information via QR codes and similar devices. As a result, label size has increased and leaflet labels are increasing used, particularly for pharmaceuticals, where use of Braille and security and track-and-trace devices is extensive.
This context offers opportunities for label printers to engage with commercial packaging companies – in cartons, for example – to add value in terms of enhanced customer experience and engagement with a particular brand. Self-adhesive labels can enable mainstream sectors of the packaging industry to benefit from 21st century brand identification strategies without changing their core technology.
Corporate strategies
The self-adhesive label converting industry emerged as small businesses, initially serving regional or specialist markets. The international nature of today’s leading brands and growing globalisation has altered the industry through a continuing stream of mergers and acquisitions. But the industry values its origins, and there is a strong desire to retain the ‘family’ aspects of the business.
Label converters can learn a lot from old-established industries like paper and board, and from new packaging formats like flexible packaging. Their successes can be analysed, and could indeed be replicated in part in label converting businesses.
Succession planning is a key factor today: many companies were set up in the 1980s, and their senior management needs now to embrace the younger generation. In this context, cross-border/cross-specialty business partnerships can create a viable alternative to formal M&A activity, and is an increasingly popular choice for label converters today.
Other complementary strategies are available. Label companies can decide to stay local, serving a local market with an intensely focused service platform. Alternatively, they can specialise in high-end solutions for specific markets such as pharmaceuticals.
They can enter into different kinds of partnerships to create flexibility, manage complexity and share risk. One option is to develop international business alliances with other label companies of similar status to build a network – perhaps to supply major global brand owners. Another is to partner with similar companies in creating commodity ‘buying centres’, with which all participants can enjoy reduced costs through leveraging economies of scale.
A dynamic and creative sector
Packaging has come a long way since the original paper bag – and labelling has had to move with the times to embrace developments that have encompassed tin cans, plastic bottles and flexible packaging.
Self-adhesive labels have proved themselves perfect, innovative partners in all these developments. They continue to represent a dynamic and creative sector of the packaging chain, offering unparalleled flexibility and versatility.
What is more, they are the product of a value chain that is deeply committed to sustainability, lean manufacturing, and – above all – meeting the buyers’ needs in terms of aesthetics, applied performance and price.