One of our main priorities is to lift your labels to the next level. That is why we always strive to acquire and share new knowledge, resources, tools, and methods that will help your brand succeed. Here are some of our main takeaways from the past year – that will be just as important to keep in mind well into 2024.
After surviving a global supply chain crisis, the labelling world has been full of new opportunities in 2023. Shifting market dynamics and consumer demands have pushed brand owners to adapt accordingly and reflect on existing labelling and packaging strategies. Let’s quickly look back on some of the topics we've covered on the blog this past year, where we’ve explored everything from value brands to ways of enhancing labelling productivity.
Exploring new market areas
Consumers are becoming increasingly price-sensitive. Therefore, premium brand owners should highly consider introducing value brands. Although this strategy involves higher production volumes with smaller margins, value offerings open new market possibilities. Moreover, choosing cost-effective label materials and adjusting the label size will help you:
- Keep production costs low
- Promote environmental friendliness
- Distinguish your value offerings from premium brands
Before developing a new product, including value brands, remember to keep the basics of marketing and product sales in mind:
- Evaluate the target market
- Stay updated on market trends
- Comply with policies and regulations
- Design labels with "shelf appeal”
- Strategically time product launches for maximum impact
Read more: How psychology and sensory marketing can boost your product sales
Stable supply chains and reduced lead times
Supply chains across multiple industries have had a positive upswing during 2023. The improved stability has led to numerous benefits:
- Reduced shipping and transportation costs
- Better lead times and logistics
- Better availability and predictability of raw materials
As a result, collaborations between brand owners and suppliers have become stronger.
However, there are still some financial restraints in Kenya and across Africa, and it was expected that the 2023 Finance Bill would further increase business costs. In 2024, we expect to see increased costs for paper and filmic products, due to higher pulp and oil prices.
To mitigate financial constraints, Skanem Africa established a new warehouse in Uganda for finished labels. The main aim was to reduce lead times, minimize friction in the supply chain, and keep working to keep transactional costs low.
New customer portal
As part of our digital transformation and effort to provide a streamlined ordering process, Skanem Africa has launched SiteLine. The customer portal enables you to view, manage, and track your label orders in real-time.
Enhancing production efficiency with advanced technology
Traditional labelling machines often lead to a 10-15% productivity loss due to frequent label roll changeovers and wastepaper removal. Automated labelling machines have revolutionized this process, allowing for continuous operations by handling multiple label applications simultaneously.
Another aspect of labelling that can be particularly time-consuming is defects during printing. With a defect detection system in place, you can reduce:
- Cutting Tool Errors
- Colour Variations
- Misregistrations
The system is integrated with the printing press, editing desk, and finishing workflow link to ensure high-quality labels that meet your requirements.
Read more: How much should your labels be able to endure?
Brand consistency
Attracting and retaining consumers is vital for the survival of any brand. This means that to build trust, it must be obvious what a brand and its products stand for over time. Three areas are particularly important to achieve brand consistency:
- Product Exterior
- Outward Communication
- Sustainability
Brand consistency is also about being able to distinguish your product from others, mainly through your labels. They are the primary touchpoint that bridge the gap between your brand and consumers. Think about these three elements when you create your labels:
- Aesthetics – Convey a deeper message through text and colour
- Functionalities – Use Smart Labels, such as QR codes
- Sustainability – Be transparent about your brand’s environmental efforts
Successful product launches
Because your products are the face of your brand, you should always strive to ensure that they match your brand’s mission, vision and values. It all starts with the manufacturing process, where friction and misunderstandings can easily turn into unwanted product outcomes. This is especially common when the parties involved are not under the same roof.
To avoid the “blame game” after a product launch, it can be wise to combine production areas and coordinate efforts. In return, you’ll have a product that meets the requirements of the brand and the consumers.
Read more: Do you have a sustainable plan for your packaging and labelling?
At Skanem Africa, our main goal is to ensure that you enter 2024 with fresh perspectives so that you can reach your labelling goals. For any queries or advice on labelling and packaging, feel free to contact us.
You can also find new inspiration in our free eBook covering the latest trends in the market:
