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State of Packaging 2010
By: Jeff Falk
Posted: August 31, 2010, from the September 2010 issue of GCI Magazine.
page 2 of 17
Schinazi: Our clients have been all badly impacted by a dramatic shortfall of sales (from minus 5% to minus 40%). Luxury brands have been more impacted than masstige brands. Therefore we have been also impacted and, in 2009, we have had a 20% sales decrease versus 2008.
Dwyer: The GFC has certainly affected business globally and the market in three ways. Buyers have reduced their optimism and have kept inventories very low or run them down. New projects and launches have been decreased or held. Companies have focused more diligently on cash flow and many have slowed their payment terms as a result.
Holland: I believe traditional high-end beauty products were hit harder than value brand products. As a result, packaging sales for high-end products fell off significantly and packaging for value brand products remained active. We also saw many product launches pushed back or in some cases, abandoned completely.
DiPietro: Whether used for keeping up appearances or curing minor ailments, personal care is, ultimately, about feeling good. Sometimes, that means buying products to escape the reality of the recession.
However, the beauty industry overall took a hit as budget-conscious consumers refrained from spending, especially in the past couple of years. Despite the recession, cosmetics and personal care product companies have emerged, from private label to natural and organic products.