Label printing market has been growing at a steady rate of 4.1% year-on-year and is expected to reach $45.2 billion in 2022. Digital technology is changing the landscape for all the business sectors. Packaging and labeling Industry is not untouched by digital technological advancements. Modern label printers have become smarter and faster. Large packaging lines have been automated eliminating the chances of error.
The good thing is the market size of digital technology is in trillions, and packaging industry has a huge advantage to ride on top of digitalization which each and every manufacturing brand is looking for, for the number of reasons ranging from anti-counterfeiting, track-and-trace to countless ways of consumer engagements.
With the advancement of new digital printers, the advantage of labeling or packaging company would diminish, as anyone would be able to set up the high-quality mass label printing with very low investment, something very similar to the way that availability of cheap home printers has made the small printers out of business.
So it is not just the question of the strategic advantage but it for the reason of future survival, that the labeling and packaging industry must adapt to digital technologies. Either they must invest heavily invest in such technologies or tie up early on with technology providers such as NeuroTags, a market leader in supply chain digital technologies.
Some of the specific verticals that packaging and labeling industry can target with digital partnerships are –
Anti-counterfeiting itself is more than a trillion dollar problem which brands are looking to solve via digital anti-counterfeiting solutions, as it is the only economical and effective way to tackle this problem. The authentication solutions by themselves are as vulnerable as the holograms which can very easily be copied nowadays, and the end user has no way to know which hologram is authentic and which is not. However with the help of AI and cloud technologies the products like NeuroTags solve this problem very effectively and very economically.
Track and Trace:
Track and Trace technologies help to track the product items, boxes, pallets and containers in the supply chain, these technologies are very expensive to develop and maintain but provide a very effective way to give businesses the insight of their supply chain and eliminate a lot of inefficiencies and wastes. Usually, serialization with the help of legacy databases is used to implement this, which makes this extremely expensive to build, maintain and scale. But the new products suits with the latest cloud technologies, no-sql databases and rapid mapping and clustering technologies are making this technology really scalable and economical to adapt. For example, even the small to mid-sized company can avail these nowadays as the pay-per-use model.
The most visible change from the end user perspective is gamification and digitalization of the consumer experience. Now the products labels are no longer just some dumb piece of labels; they can now act as the gateway to their own product stories, brands vision, consumer connection, and various marketing offers to gain the loyalty of the consumers.
For example, the scan of the one-time scan code can help consumer avail loyalty points or register the warranty. The AR technology can help the consumers interact with the product demo or cool ads. Smart forms can help connect consumers to the brands’ feedback and support department. The social features can help create viral marketing for the brands among its consumers. At NeuroTags we see a lot of interest from mid-sized to large companies for our loyalty and eWarranty engines, and AR customization.
Supply chain productization:
As per top business consulting firms, the Supply Chain market is going to be disrupted in the next few years by the digital technology. The main disruption would be in the form of a common product platform integrating the dis-organized and inefficient individual projects built on legacy systems. The market size would be more than $3T in next 10 yrs.
The IoT and AI-based cloud technologies will seamlessly capture all the events which are lost in the supply chain and would connect variously disconnected but interdependent divisions of the entire supply chain and over the time would help in removing the inefficiencies, monitoring the flow, forecasting the demands and disturbances, and auto-enhancing many of the transaction among supply chain stakeholders.
The above content is authored by Mr. Nitin Gupta, Co-founder, CEO & CTO at NeuroTags.