3 Signs You Need to Find a New Packaging Supplier

Your Packaging Supplier Poses a Threat to Your Brand

The days of “business as usual” being “good enough” are gone. Consumers around the world are increasingly demanding more from the brands they know and using different metrics to evaluate the brands they don’t. Consumers not only expect companies to improve their business practices and invest in social issues that are aligned, but to be a force for change in broader society—which means doing business with entities (e.g., packaging suppliers) that care and share their beliefs.

The 2017 Cone Communications CSR Study found that consumers that have a more positive image, are more likely to trust and are more loyal to companies that support social and environmental issues. According to the results, 70% of consumers believe companies have an obligation to take actions to improve issues that may not be relevant to everyday business operations (respondents identified poverty and hunger, environment and human rights as top areas for corporate involvement). The Billerud Consumer Panel found that consumers may even be willing to reward sustainability efforts by spending more on products and with brands that champion social and environmental issues: 72% of respondents from mega-cities around the world indicated that they would be willing to pay more for a similar product if packaged in a way that provides substantial sustainability benefits.

Besides supporting ethical and sustainable brands, many consumers are also willing to punish brands that prioritize profits over the planet. According to Cone Communications, nearly 50% of respondents said they have boycotted a company in the last year for irresponsible business actions or because the company supported an issue contrary to their beliefs. These findings are consistent with other studies, such as the 2018 Ethical Consumers Markets Report that found 49% of the UK population had chosen not to buy a particular product or shop at a particular outlet because of concerns about its ethical reputation (27% of personal boycotts conducted by shoppers in the UK in October 2018 were against businesses with a negative environmental impact, and 19% were in response to unethical corporate practices).

And if you think consumers won’t look at all facets of how your brand impacts society and the environment, think again. As consumers continue to show their support or disapproval for companies through financial sway, their propensity to do extra digging on company programs has increased over time. According to the Cone Communications study, 39% of Americans report they have done research into a company’s business practices or support of social or environmental issues in the past 12 months.

What does all of this have to do with your packaging supplier? In short, protecting your brand. If consumers discover that your packaging suppliers are violating human rights or polluting the environment, it could hurt your brand in a big way. Again, this is why it’s critical that you have full visibility regarding how your packaging suppliers operate and even who they work with, since second- and third-tier suppliers can be just as damaging to your brand if consumers are able to connect bad actors with your packaging or products in any way.

Do You Want More Packaging Control?

Billerud can help. We make the complex world of packaging simple by acting as the single point of contact for all of your packaging needs in Southeast Asia. We have teams of people in offices around the world and a network of production partners to support global brands at every step of the international packaging supply chain. We are also committed to driving social compliance, workplace safety and quality assurance, as these are all integral to the long-term success of our company as well as our partners.

Learn more about how we work, or contact us to request a no-obligation, no-cost audit of your packaging and shipping operations in Southeast Asia.