BW Confidential - Issue #14 - May/June 2013 - (Page 81)

What’s next? An analysis of how packagers think the market will pan out in 2013 and how they are dealing with change in the way their industry is structured by Alex Wynne W hile many packaging players say they are still seeing double-digit growth, they are also reluctant to predict how 2013 will pan out. Several industry sources admit orders are coming in later than usual this year, meaning a lack of visibility, while others say that many brands have pushed back their major introductions until 2014, provoking uncertainty. “We are in a waitand-see period; 2013 is a year for flankers and limited editions, there are not many major launches. Some launches have been postponed,” says SGD vp international marketing perfumery & cosmetics Valérie Jacob. “At this point, we haven’t had many orders in, yet customers tell us they are on their way,” Topline Products-Primapack marketing and communication manager Sophie Gaspin comments. “That means they will all come in at once, and we will have to move very rapidly towards the end of the year,” she adds, saying that despite this, orders are in line with the company’s expectations. “There’s very little visibility,” Quadpack ceo Tim Eaves confirms. “Clients are reluctant to commit because they’re not sure what they are going to be able to sell. You ask clients for a forecast, and they say there’s nothing on the forecast and the next day you get an order and it’s urgent.” Changes afoot But despite the wait-and-see atmosphere, many in the industry are expecting sales hikes. “Overall, I think it will be a good year,” comments Cosfibel ceo Ilan Schinazi. “The decisions will be made a little later than we would have liked, but despite all the speculation at the end of last year, May-June 2013 - N°14 - BW Confidential credit: istock things aren’t so bad: the stock market is up, Chinese growth is back up a little bit, and Europe is getting by.” “ Despite all the speculation, things aren’t so bad: the stock market is up, Chinese growth is back up, and Europe is getting by ” Cosfibel ceo Ilan Schinazi Suppliers are well aware that the structure of their industry is changing, however. With Albéa ringing in the new year by making its acquisition of Rexam Personal Care official and creating a $1.49bn packaging giant, many are asking questions about what represents critical mass on a corporate level. “Maybe it will help us because customers will consider them too big, and therefore less flexible,” says ToplinePrimapack’s Gaspin. Recent M&A activity, which includes a number of recession-related bankruptcies, has reduced the number of players in the market. “In some respects it makes it easier because the market is less cluttered, but the good companies are working much better,” Quadpack’s Eaves believes. “Clients are going to suppliers that they feel are economically secure, and have a good product and company infrastructure.” This means that companies have to do more than just innovate on the product front to ensure orders, and this includes in their supply chain. “Our market has n n n 81 Packaging Industry outlook

Table of Contents for the Digital Edition of BW Confidential - Issue #14 - May/June 2013

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Clarins Group ceo Philip Shearer
Insight: Skincare
- Category overview
- Skincare devices
- Retail case studies
- The latest trends
Retail
- Amazon
- Store concepts
Digital Facebook
Market watch: China
- Country overview
- Industry viewpoint
- National domestic airports
- Department stores
- Third- & fourth-tier cities
Travel retail
- Emerging Asia analysis
- Passenger profiles
- Interview: King Power Group Duty Free & Travel Retail Hong Kong managing director Sunil Tuli
Radar Up-and-coming brands
Emerging markets Company profile: VLCC
Packaging
- Industry outlook
- Differentiation techniques
Last word Brand Keys founder and president Robert Passikoff

BW Confidential - Issue #14 - May/June 2013