Traditional postal organizations are headed towards inexorable change. How they react to the era of digitization and the dynamic consumer behavior will determine their profit in the future.
While it is evident that commerce has fundamentally changed, only a handful has grasped its impact on reshaping retail competition and supply chain. Transparency Market Research’ (TMR’s) analysis projects that in the near future a significant section of ecommerce purchases will be delivered to their destinations via local inventory.
A key factor impelling this is consumer inclination for same-day delivery instead of waiting for standard shipping, which can take from three to five days to reach them. Last mile delivery has therefore emerged as a key differentiator.
There is no going back for retailers hence there is immense focus on reinventing delivery experience to suit consumer preferences. Post and parcel organizations are quickly responding to the ongoing changes by reinventing their packaging.
TMR projects the volume of parcel and packages demanded in the industry will stand at above 7 billion. Ecommerce boon witnessed in the last few years has been the agent of significant changes in the industry. It has compelled institutions to rethink postal packaging solutions to make it more sustainable and convenient.
Demand to Pick Up in Response to Booming Online Sales
The demand for postal packaging is expected to rise significantly in the coming years. Thanks to rising online sales, the market is no longer dependent on traditional post organization, instead it is operating in a more dynamic environment.
Studies suggest that ecommerce express and parcel capacities have surged by more than 5% in the last couple of years. Coupled with this, new designs and cutting-back on paper use have been significantly driving the postal packaging market.
Novel technologies and changing consumer preference are causing monumental shifts in strategic priorities of postal packaging. Digital transformation has been impacting delivery and supply trends. Advent of cross-border ecommerce is further compelling postal organizations to improve their delivery experience.
Consequently, there is immense focus on new business models that will help these organizations to reduce cost incurred and realize growth. Many of them are pivoting towards advanced methods of packaging.
From simple yet practical bamboo plastic packaging to biodegradable cosmetic packaging, several trends have paved their way into the market, enabling growth since the last few years.
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Convenience, Sustainability, Traceability, and Flexibility
Certain elements that consumers expect from postal packaging include convenience, sustainability, traceability, efficiency and flexibility and other associating parameters at a pocket-friendly cost.
Changing consumer preferences and advent of novel technologies are reasons behind tectonic shifts in strategic priorities of postal packaging. Digital transformation, as discussed, is a key driver and its impact in felt in deliveries, supply, and returns, impelling postal organizations to adopt novel methods of packaging.
The demand for more sustainable packaging is driving their efforts to minimize wastage and promote the use of eco-friendly materials. Industry veterans are stressing on the need for recyclable and robust packaging for the market to stay relevant.
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