What Changes Will New EU Members Bring to Packaging?

In May 1, 2004, the European Union extended its membership from 15 to 25. Many of the new additions to the EU are nations from the old ‘Eastern Block,’ including Poland, Hungary, Slovakia, Latvia and the Czech Republic.

While it is well documented how marketers such as Avon, Estée Lauder, Elizabeth Arden and Henkel have made inroads in Eastern Europe, that is all from a low-cost manufacturing aspect.

In the longer term, what will the future of packaging design and innovation be with the addition of these EU member nations? Could Eastern Europe ever challenge the French in designing the most innovative fragrance bottles? Will these emerging regions ever be the source of the kind of innovation that is seen below in the packages of Essence Body Lotion by Gianfranco Ferre and Very Irresistible Given­­chy by Givenchy Paris? These are prime examples of stylish packaging in personal care products. The Essence bottle glows with a ivory pearlized finish, enhanced with a soft, satin touch. Subtle vertical groves are ergo­nomically correct and add interest to the column. The Given­chy bottle adds a twist to a slim cone for a colorful swirl in iridescent hot pink.

Are we going to see the European packaging in­dustry succumb to the pressure of lowering manufacturing overheads and looking to the East of Europe as the new ‘China’?

There is everything to suggest that, over the long term, East will meet West, and there will be a smooth collaboration between all of the EU member nations. However, it will take a some time and effort to change the current situation, where there are many major challenges facing the new nations of the EU. The first is the fact that many have been in an economically oppressed state due to the heavy influence of communism. Where this is not the case, trade has been managed in a highly bureaucratic and restrictive manner. As a result, new EU member nations have to confront the need to adapt to the many new laws governing their membership. This is highlighted in the EU cosmetics directive, which sets out rules related to issues such as safety, labeling, transport and free movement of goods. This alone will spell the end for many smaller companies that will not have the funding to follow the new directive.

What Does the New EU Have to Offer?

The first, obvious enticement for marketers to move production is a cost reduction strategy. Resources such as labor and land on which to build massive sites are considerably cheaper in Eastern Europe, therefore making this option very appealing. In the case of Avon, a reliance on local suppliers for packaging components has added further to this equation and is a good indicator as to where things may be heading. On the positive side of all the low-cost discussions, these present and future changes should be viewed as giving life to new industries within countries that have been development-deprived for a long time. However, how far will innovation and design go? Will Poland become the new innovative leader in glass design? Could any of the new EU members become the leaders in the creation of higher-clarity PET? Or will they simply remain a low-cost manufacturing option?

When China emerged as a low cost option a decade ago, marketers moved their operations to that part of the world to not only service the region, but to service the rest of the world’s markets as well. Now, less than 20 years later, China is at the forefront of packaging technology and innovation.

A great deal of European color cosmetics are being produced in China now. A testament to this is the fact that large packaging groups such as Aptar and Techpack have set up operations in the region. The tyranny of distance is keeping many European marketers from dabbling in the Far East but, with similar conditions now opening up closer to home, there is an enormous potential for the industry to change the way and where it sources.

Tomorrow will soon arrive and all of the EU nations will be driven to work to each other’s strengths. The population of Europe is large enough to support a thriving industry. As they grow, the newer EU countries will develop their strengths and resources to shape the face of a new Europe.
Western Europe will always be the home of European innovation, however, the ‘new kids on the block’ will not be new forever. The curtain is about to be raised on the next act.

It’s Hip to be Square

Looking around the European market beauty shelves, a second glance is needed. What immediately comes to mind is the Huey Lewis song called ‘It’s Hip to be Square.’ It seems that marketers all over have been caught up in a rush to brush aside cylindrical bottles and substitute square containers. Whether in PET, PP, PE, straight lines and sharp corners are dominating the shelves as squares and rectangles.

Fragrance packaging (glass) began this trend and now the square phenomenon has exploded into plastics. The shape has quietly been on our shelves for a couple of years in the form of Jo Malone products. However, the rest of the industry has caught onto the shape and brands such as Chanel, JP Gaultier, Armani, Dolce&Gabbana and YSL have decided to play the square as well.

What is it about the square shape that is so popular all of a sudden? The shape leads to very clean lines and presents very well on the shelf. Square containers, especially those in clear PET look very much like glass and capture the uniqueness of a product in a fresh and vibrant way, therefore the consumer is more likely to be attracted to the square design much more than they would a standard milky Boston round. What this is really saying is that packaging is finally viewed by marketers as a statement and not just an after-thought. Shape within the packaging industry is now a fashion statement.

The word is on the street—packaging is the new marketing, and thank goodness that it is finally catching on.