In modern times you are probably hearing about ecommerce, and how it is growing rapidly and will take over from traditional sales in no time. While it is true that e-commerce is indeed taking a bigger slice of the pie, it isn’t completely straightforward.
In 2020, ecommerce grew by a whopping 44% to take the total revenue from the retail market to $860 billion. This massive increase in 2019’s figures was largely down to the pandemic and the need to purchase many items online as restrictions made travel difficult. Many retail units also had to close temporarily in 2020 which led to more people shopping online.
When the traditional retail figures are looked at, you can see that they also grew in 2020 by 5.6% which is the biggest growth enjoyed by the sector in many years. The traditional retail industry is worth over $3 trillion, so no one should be holding their breath for the end of traditional stores just yet.
If you happen to have your own fashion brand or range of clothing and retail traditionally, you will probably want to know how to make more sales, market more effectively, and generally grow.
Packaging and labeling are easy areas to overlook, but they can make a huge difference to your brand and your sales.
Why Are Packaging And Labeling Important?
The first thing that packaging does is protect the product inside. Good packaging is designed not only to look good but to be practical too so that the consumer takes home a product in mint condition.
Secondly, the packaging is there to contain the product so that nothing spills out, and no components are lost.
But, the area that this article is interested in, is the third use for packaging, communication. There are certain legal requirements that packaging and labeling have to comply with under the Fair Packaging and Labeling Act, but they can also be used to communicate with the consumer and push brand awareness.
How Does Packaging And Labeling Help With Brand Awareness And Sales?
Well-designed packaging can help to make your brand more visible and the product stands out in a retail environment. As such, investing in custom boxes and packaging can boost brand awareness and put your business in front of customers’ eyes It helps to create brand loyalty also if a consumer can readily identify your product.
Labels and packaging can also help convey information that a consumer may look for including materials used, eco-friendly credentials, and allergens. Clear labeling can help a consumer decide to buy a product, or not.
While it may be clear why packaging is important, there is another type of labeling that is less heard of. Hang tags are used on many items, especially on clothing, and these can be invaluable to your brand.
What Are Hang Tags?
Believe it or not, one of the best branding tips you will hear this year is to use hang tags. These small tags are attached to products and can be used to communicate directly with the consumer. They are also used as a form of marketing and branding.
Hang tags are normally made from thin cardboard and are rectangular. However, they can be made from a variety of materials including plastic, leather, metal, wood, or anything that can be printed on. They can be cut in a variety of shapes and could be circular, rectangular, fold-out, or anything else the designer requires.
The reason hang tags are important is that a well-designed tag with your logo on can help your product be identified in a retail store. Then, once a shopper starts to read the tag, its true power can be shown. A hang tag can make the difference between someone buying item A and item B simply because of the information on the tag itself.
How Can A Hang Tag Increase Your Sales?
For such a small item, a hang tag can be surprisingly powerful when used correctly. Firstly, a hang tag allows shoppers to see your logo clearly so that they know what brand they are looking at before they even pick up the item. Secondly, the information you choose to place on a hang tag can influence consumers.
Brands are well aware that consumers these days are much savvier than perhaps they were in the past. Common concerns when buying products include the following:
- Country of origin
- Are the materials used organic?
- Are the workers treated fairly?
- Are chemicals used in the production/growing of materials?
- Is the brand environmentally friendly?
- Are the farming/manufacturing methods sustainable?
- Is the product vegan?
These are just a few of the things that consumers are concerned about when they shop now. They will look for allergens to make sure the product won’t harm their child, and they will look to see what chemicals are used to make sure the product isn’t hurting the planet.
When you want to grow and uniquely position your small business use hang tags to market your credentials. By clearly conveying the information on a hang tag that your processes are ethical and your product is safe for humans, animals, and the planet, you can help your sales growth compared to a rival brand whose items are not clearly labeled.
What Else Can You Put On Your Packaging Or Hang Tags?
The options are literally as wide as your imagination. Other information that can help your brand become more popular and can be included on packaging and hang tags includes:
- Social responsibility charter
- Company’s mission statement
- Discounts or cut out vouchers
- QR code
These small details can add value to your packaging, create engagement with your consumers, and provide information, and companies such as The Dutch Label Shop can help explain what to put on a custom hang tag.
Social responsibility and company mission
Let your consumers know where your company stands on its social responsibilities. Is it planting trees, or digging wells? Then let your consumers know. Similarly, if you have a strong company mission that would help influence sales then put it on the packaging.
Discounts and tear-off slips
Everyone likes a discount or something free, and packaging is a great way to advertise promotions or loyalty discounts. Hang tags are perfect for cut-off sections or to use as a loyalty card and be stamped.
Say for example that you were selling clothing. There would be little packaging involved and therefore you only have the hang tag to use. If you want to get more information about your brand across to the consumer then a QR code is a great way to do it. Scanned by a smartphone, the code can then give the consumer a wealth of information instantly.
Use your packaging to advertise your website, or to point consumers towards mailing lists. You can use this method to get consumers to visit your social media page and engage with your brand just by printing it on a hang tag. You can see some examples here of custom hang tags and the type of information that is normally added.
Packaging isn’t just there to protect the product inside, it can communicate with a shopper and pass on valuable information that can influence decisions. Hang tags can help to advertise your garments and make your brand stand out in a retail store. A good custom hang tag can inform your consumer and help your brand grow and increase sales.