Greg Hrinya & Steve Katz11.13.20
TLMI successfully presented its Virtual Annual Meeting, which took place from November 11-12, 2020. The association explored a wide range of topics, with experts touching upon the economy, facts and figures, trends, and how to better connect with the consumer at the point of purchase.
The meeting’s theme was “V2V: Beyond Uncertainty,” which evoked the event’s virtual-to-virtual format. Speakers delivered their presentations, and subsequently took questions from attendees in a live Q+A format.
Alan Beaulieu delivered a state of the economy and how it could impact label converters in the short and long term. Beaulieu’s goal was to provide guidance amidst the uncertainty.
“It’s hard to keep up with all the changes with the economy, the political scene and the coronavirus – and they all kind of work together,” he noted. “We’ve seen quite an uptick in COVID-19 cases last two weeks, and we’re dealing with the stock market being jittery, and the election is not helping the jitters.”
Beaulieu added that cases and trends do vary from state to state. The overall outlook was optimistic, though. “The vast majority of states are up and functioning,” said Beaulieu. “When I look at Florida and California, cases are going up but deaths are not. We shouldn’t have as bad a flu season because there is more social distancing, washing of hands, and getting flu shots. Having this pandemic last into 2021 won’t change our forecast unless we experience another shutdown.
“Our economy is gaining momentum and strength, and we have strong economic leading indicators,” he added. “The stock market decline doesn’t make it feel that way, but we’ll get past that and you’ll be fine, as long as the governors don’t go through another shutdown – and I don’t think they will. Business is bouncing back, and by the end of the year we think unemployment will be just a little above 6%.”
Meanwhile, AWA Alexander Watson Associates and LPC, Inc. detailed the industry with a host of data. Given the chaotic nature of 2020, label converters have generally fared well. According to LPC, Inc., one in four TLMI converters has reported that sales for 2020 have been up by more than 15%.
Corey Reardon, president and CEO of AWA, meanwhile, stated that the global growth rate for labels is 3.2%. In Europe and North America, that figure is hovering a little over 2%. Shrink sleeves are the fastest growing application at 4%, with pressure sensitive accounting for 3% growth. Reardon added, “the only constant is change.”
Globally, 45% of label consumption occurs in the Asia Pacific region, which is seeing 4-5% annual growth. Reardon added that 66.2 billion square meters of labeling materials are globally printed, converted, or affixed to a container.
According to Reardon, consolidation continues to play a big role in the backdrop of the label industry, particularly in the very fragmented converter space. Sustainability and recycling continue to be areas of importance, with developments and trends driving change across the industry. Lightweighting and matrix waste recycling are two further sub-trends in the sustainability arena.
“Longer term, sustainability and recycling will have a huge impact on the demand side of the value chain,” said Reardon. “Collection and logistics are the biggest challenges.”
Plus, regulations are increasing, not decreasing. This could pose challenges for label converters. Meanwhile, the most pressing issue for label converters is COVID-19, both on the business and human sides.
To help converters better engage with brands, Vicki Strull took a deep dive into “Packaging through the Consumers’ Eyes.” The ultimate goal is to create a package that gains value and builds brand loyalty with consumers.
Several figures could affect how the market evolves. For examples, e-commerce sales grew by 83% from April to June, said Strull, with online grocery sales up 110% since April.
Strull said, “81% of consumers say they must trust a product in order to buy it, and mistrust is a deal-breaker.
“Our job as designers and converters is to understand not only the customer but the customer’s customer,” she added. “Different generations interact with brands differently based on when they grew up and how old they are.”
With that in mind, it is important to engage with the community and create different experiences for that generation. It is also important to evaluate the landscape in which the product will be experienced. Online or retail environments will provide different challenges and opportunities.
“All those packages are screaming at us, but how much time do we spend looking at the shelf?” she added. “The attention span of a goldfish is nine seconds, and we spend eight seconds looking at products on the shelf. Those numbers vary, too. We might spend 2.5 seconds looking at cereal and 60 seconds for olive oil.”
The need for digital printing should grow, as well, as Strull emphasized the desire for personalized packaging and labeling. Sustainability, as noted by Reardon, will also be significant going forward.
Strull said, “At this point, more than 50% of people will choose a product because of a brand’s stance on the environment. It’s a range, but it’s probably as high as 75%. People will switch brands based on a sustainability stance. People will also pay more for a brand that is environmentally responsible. Consumers are choosing beyond price, and it’s a fallacy that people only choose a product based on the price – they choose a product based on how it resonates with them.”
Meanwhile, Colleen Francis detailed “B2B Sales in a Virtual World.” During these times of uncertainty, “Everyone within an organization can contribute to company success or company failure,” she says.
Every employee is a brand ambassador in dealing with customers and highlighting your brand in a new marketplace. Overall trust down in corporate America by 38% – and that can be an internal factor, too, where companies are hesitant to change. Francis said the goal is to build rapport, enhance trust and generate more sales. Plus, messaging needs to be ubiquitous.
For sellers, social media can be an effective selling tool, requiring only 15 minutes a day on the various platforms. Social media promotes interaction and conveys interest.
The meeting’s theme was “V2V: Beyond Uncertainty,” which evoked the event’s virtual-to-virtual format. Speakers delivered their presentations, and subsequently took questions from attendees in a live Q+A format.
Alan Beaulieu delivered a state of the economy and how it could impact label converters in the short and long term. Beaulieu’s goal was to provide guidance amidst the uncertainty.
“It’s hard to keep up with all the changes with the economy, the political scene and the coronavirus – and they all kind of work together,” he noted. “We’ve seen quite an uptick in COVID-19 cases last two weeks, and we’re dealing with the stock market being jittery, and the election is not helping the jitters.”
Beaulieu added that cases and trends do vary from state to state. The overall outlook was optimistic, though. “The vast majority of states are up and functioning,” said Beaulieu. “When I look at Florida and California, cases are going up but deaths are not. We shouldn’t have as bad a flu season because there is more social distancing, washing of hands, and getting flu shots. Having this pandemic last into 2021 won’t change our forecast unless we experience another shutdown.
“Our economy is gaining momentum and strength, and we have strong economic leading indicators,” he added. “The stock market decline doesn’t make it feel that way, but we’ll get past that and you’ll be fine, as long as the governors don’t go through another shutdown – and I don’t think they will. Business is bouncing back, and by the end of the year we think unemployment will be just a little above 6%.”
Meanwhile, AWA Alexander Watson Associates and LPC, Inc. detailed the industry with a host of data. Given the chaotic nature of 2020, label converters have generally fared well. According to LPC, Inc., one in four TLMI converters has reported that sales for 2020 have been up by more than 15%.
Corey Reardon, president and CEO of AWA, meanwhile, stated that the global growth rate for labels is 3.2%. In Europe and North America, that figure is hovering a little over 2%. Shrink sleeves are the fastest growing application at 4%, with pressure sensitive accounting for 3% growth. Reardon added, “the only constant is change.”
Globally, 45% of label consumption occurs in the Asia Pacific region, which is seeing 4-5% annual growth. Reardon added that 66.2 billion square meters of labeling materials are globally printed, converted, or affixed to a container.
According to Reardon, consolidation continues to play a big role in the backdrop of the label industry, particularly in the very fragmented converter space. Sustainability and recycling continue to be areas of importance, with developments and trends driving change across the industry. Lightweighting and matrix waste recycling are two further sub-trends in the sustainability arena.
“Longer term, sustainability and recycling will have a huge impact on the demand side of the value chain,” said Reardon. “Collection and logistics are the biggest challenges.”
Plus, regulations are increasing, not decreasing. This could pose challenges for label converters. Meanwhile, the most pressing issue for label converters is COVID-19, both on the business and human sides.
To help converters better engage with brands, Vicki Strull took a deep dive into “Packaging through the Consumers’ Eyes.” The ultimate goal is to create a package that gains value and builds brand loyalty with consumers.
Several figures could affect how the market evolves. For examples, e-commerce sales grew by 83% from April to June, said Strull, with online grocery sales up 110% since April.
Strull said, “81% of consumers say they must trust a product in order to buy it, and mistrust is a deal-breaker.
“Our job as designers and converters is to understand not only the customer but the customer’s customer,” she added. “Different generations interact with brands differently based on when they grew up and how old they are.”
With that in mind, it is important to engage with the community and create different experiences for that generation. It is also important to evaluate the landscape in which the product will be experienced. Online or retail environments will provide different challenges and opportunities.
“All those packages are screaming at us, but how much time do we spend looking at the shelf?” she added. “The attention span of a goldfish is nine seconds, and we spend eight seconds looking at products on the shelf. Those numbers vary, too. We might spend 2.5 seconds looking at cereal and 60 seconds for olive oil.”
The need for digital printing should grow, as well, as Strull emphasized the desire for personalized packaging and labeling. Sustainability, as noted by Reardon, will also be significant going forward.
Strull said, “At this point, more than 50% of people will choose a product because of a brand’s stance on the environment. It’s a range, but it’s probably as high as 75%. People will switch brands based on a sustainability stance. People will also pay more for a brand that is environmentally responsible. Consumers are choosing beyond price, and it’s a fallacy that people only choose a product based on the price – they choose a product based on how it resonates with them.”
Meanwhile, Colleen Francis detailed “B2B Sales in a Virtual World.” During these times of uncertainty, “Everyone within an organization can contribute to company success or company failure,” she says.
Every employee is a brand ambassador in dealing with customers and highlighting your brand in a new marketplace. Overall trust down in corporate America by 38% – and that can be an internal factor, too, where companies are hesitant to change. Francis said the goal is to build rapport, enhance trust and generate more sales. Plus, messaging needs to be ubiquitous.
For sellers, social media can be an effective selling tool, requiring only 15 minutes a day on the various platforms. Social media promotes interaction and conveys interest.
