30% of all global revenues through platforms by 2025

Source: By Yuriy Golub/Shutterstock.com

30% of all global revenues through platforms by 2025

Thomas Reiner | 14.01.2020

Alibaba, Amazon, Facebook, Uber, Airbnb are among the most successful companies of the digital age. What they have in common is the business model of the platform. As a platform they connect producers and consumers, enable interaction, value creation and exchange of value.

These platforms are successful because they create an ecosystem through networked services that enables the satisfaction of a variety of very different needs and brings everything together in a single, integrated experience.

Consumer ecosystems currently originate primarily in the areas of travel, health or household. B2B ecosystems, on the other hand, are predominantly created around dedicated decision-makers, such as those responsible for marketing & sales, operations, procurement or finance professionals.

McKinsey predicts that by 2025, 12 specific, massive ecosystems will emerge to satisfy basic human and organizational needs. These twelve ecosystems are then expected to represent $60 trillion in revenue. That would be a market share of 30 percent of global sales.

The design and composition of these ecosystems will vary by region and market, based on regulation and consumer preferences. But one thing is clear: the development will not stop before the packaging market. On the contrary, it offers the best conditions.
Three characteristics stand out:

  • The packaging market is highly intransparent
  • The packaging market is highly fragmented and complex on both the supply and demand side
  • The packaging market is very capital intensive. High investments, for example in production facilities, are offset by the risk of insufficient capacity utilisation

How does one act as a company in the packaging market in the face of these upheavals? Preferably courageously, decisively and creatively. Dodging away is no solution. Looking ahead is.

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Plastics leakage into the environment: It’s far more than previously expected.

Plastics leakage into the environment:

It’s far more than previously expected.

Thomas Reiner | 08.01.2020

Previously, the Ellen MacArthur Foundation assumed that around 25 million tonnes of plastic packaging entered our ecosystem every year due to improper disposal.

According to a recent study by Conversio, however, this entry is significantly higher, at 41 million tonnes.

It won’t be the last figure of this kind and will not remain the last catastrophic news on this subject. The discussions and blame won’t stop until the underlying problem is resolved.

But we can only solve the problem if we look for ways to solve it consistently and as a team. It can only be done together, in a strong cooperation of actors across the entire value chain. Pragmatic projects that are small, compact, goal-oriented and effective promise the greatest success. But so far there is hardly any evidence of this.

Yet so much is possible…

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Aldi takes stock: Much must be done to reach sustainability goals by 2025

Source: ©ALDI SÜD

Aldi takes stock:

Much must be done to reach sustainability goals by 2025

Thomas Reiner | 17.12.2019

A year ago, Aldi Nord and Aldi Süd adopted a joint packaging strategy with concrete sustainability goals and measures. The key points of the strategy include the reduction of packaging costs and the use of plastics. Now the discount giants have taken stock.

Compared to 2015, Aldi Nord and Aldi Süd, which together form the retail group with the highest sales in Germany, have saved more than 40,000 tonnes of packaging. This includes 22,000 tonnes of plastic. This corresponds to about 8 million of the “yellow sacks” used for collection in the country’s dual system. The elimination of plastic foils for cucumbers contributed 120 tonnes to the savings.

The naked numbers sound good for now. However, they are quickly put into perspective if you put them in relation to Aldi’s self-imposed goals:

  • By 2025, the packaging weight of the company’s own brands is to fall by 30 percent relative to sales and in comparison to the base year 2015.
  • Private label accounts for around 88 percent of Aldi’s total sales. This corresponds to around 820,000 – 1 million tons of packaging per year.
  • However, the company’s own brands only contribute around 15,000 tonnes to the 40,000 tonnes reduction in packaging material achieved.
  • These 15,000 tons correspond to only about 1.5 to 1.8 percent of the packaging of the private labels. The major share was accounted for by branded products, where 13 to 21 percent of packaging was saved.

So Aldi still faces a long way to go in order to reach its self-imposed goal of reducing the packaging weight of its own brands by 30 percent by 2025.

It will be exciting to see how Aldi intends to close this big gap. The only thing that is clear is that the discounter will have to increase its efforts significantly if it wants to achieve its goals.

Basically, the retailer has yet to prove that it can not only make demands, but also follow them itself. So far, brand owners have been acting with a clear lead.

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Even in the beauty sector paper is replacing plastic. Example Catrice

Source: Catrice

Even in the beauty sector paper is replacing plastic.

Example Catrice

Thomas Reiner | 13.12.2019

As long as the plastics industry does not succeed in closing its cycles, consumers will continue to increasingly see the answer to sustainability demands in paper and cardboard.

The substitution of plastic by paper is continuing in the cosmetic sector. The cosmetic brand Cosnova has introduced a paper lipstick under its Catrice brand.

The Catrice lipstick was offered between September and November 2019 as part of the “Pure Simplicity” special campaign. The cosmetic products of “Pure Simplicity” are characterized by the fact that they are free of animal testing and additives. The fact that Cosnova chose paper packaging as an ambassador for this particularly ethical and natural-biological product line was clever – and logical.

The Catrice paper lipstick is a relative novelty in the cosmetics sector. It attracts the attention it deserves and is particularly well received by young target audiences. The sustainability promise of paper packaging fits perfectly with the target group’s desire for ethically clean standards and organic products.

The success of the paper lipstick clearly shows how big the sustainability advantage of paper currently seems to be. This is mainly due to the fact that paper, unlike plastic, has functioning cycles.

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Less is more. Amazon’s Box-on-Demand ensures tailor-made packaging sizes.

Less is more.

Amazon’s Box-on-Demand ensures tailor-made packaging sizes.

Thomas Reiner | 06.12.2019

The rapid growth of e-commerce is causing packaging consumption to skyrocket. Particularly annoying: In the often badly or not at all adapted shipping packaging there is a lot of air and empty space next to the product. This not only leads to an unnecessarily high consumption of packaging material, but also to excessive transport volumes – with the corresponding negative consequences for the eco-balance, climate and efficiency.

Amazon is now addressing the problem at 55 of its US warehouses with a box-on-demand solution. Machines are used to adapt the shipping carton exactly to the products to be shipped. The result: less material consumption and lower transport volumes.

The machines used pack 600-700 cartons per hour and thus exceed the performance of human workers by a factor of four to five.

The fight against overpacking with the Box-on-Demand solution is a long overdue step. Even if the recyclability of the packaging is a compelling necessity, it is still necessary to start beforehand. Packaging materials that are not needed in the first place do not even have to be recycled in the end. Less is clearly more. And Amazon is taking a consistent step in the right direction.

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