According to a recent study by Package Insight, labels play an important role to stimulate
consumer attention to buy a new product. Nowadays, creative and exciting label design trends have penetrated every corner of the food and beverage market. Moreover, brands have been exploring innovative popular design styles, patterns, and printing technology, which are designed to make their product packaging design visually impressive and stand out on the shelf.
Greater Noida based Kumar Labels is a family-owned company which is involved in labeling business for the last 13 years. Anuj Bhargav, founder and chief executive officer of Kumar
Labels, speaks about the latest trends in the labeling sector and says, “There is a huge demand of premiumization in this segment as preferences are changing across categories and there is a clear trend towards ‘stand out’ rather than ‘me too.’ With premium packaging, perceptions are changing about a brand and giving a kick to the market.” Labels are the least expensive yet very important components of a product as it people’s attention and drives them to buy that new product. “At Kumar labels, we are 360 degrees integrated
with our customers because we make raw materials, label stocks, and label applicators. Therefore, we can offer them a better price. Our focus on innovation, fast and agile equipments, reliable service, price, and our family history of working makes us different
from others.”
Kumar Label’s business is primarily (80%) focused on the alcobev segment, and the rest 20% is a mix of FMCG, cosmetics, food and beverages such as Bisleri. According to Bhargav, Alcobev is the only segment that requires high value add labels in high volumes. Bhargav’s family is into this business for quite a long time; therefore, they understand the needs of the industry and guide its customers about legal mandatories for approvals, trade
requirements for labels, and more.
Augmented reality interactive labels
With the advent of technology, a multitude of industries, from manufacturing to healthcare, are using augmented reality for a variety of applications such as product labeling. In earlier times, labels were only a medium to depict the information to consumers. Now businesses are giving their labels life and their products a story through turning them into an interactive experience. This trend has been driven by the demand from consumers for a more immersive shopping experience.
Kumar Labels is one of those label manufacturers who understands that smart labeling will be the next big trend in the market. They have developed ‘Play my Drink’ app, which can be subscribed by all the alcobev companies. Bhargav explains about the app, “When we print labels for companies, we embed or encrypt some text or pattern in labels which this app or software recognizes. Every pattern or code printed by Kumar Label is unique and hence make every bottle unique. These codes could be either in the form of peel and reveal or peel off forms, depending on the level of interaction the brand wants to happen with
its customers.”
How does this work?
“When you order a drink X with this embedded label at the restaurant and scan it using ‘Play my Drink’ app, immediately the pop up will ask you to give any feedback. In addition, it will give you more offers, for example, you may get a gift voucher of Rs 200 for a restaurant which will be linked to buying that drink X only, or you may get a free wine opener from Flipkart,” Bhargav explains.
This interactive model is designed in a way that it offers benefits to both parties – as a consumer, you get some gifts, some vouchers, and more. On the other side, the restaurant gains a loyal customer. In addition, based on inputs given in the app, data is being collected about the consumer by brand owners as well as restaurants, which they can use to send more relevant offers based on their patterns, similar brands they like, and much more. Bhargav admits that it is all about building a loyal customer base through labels. “You could interact with the bottle to know more about the brand, try new recipes, and have a distillery tour through app.”
Alcohol being a state excise matter where everything revolves around permits., the Government can use this tool by doing supply chain data integration to figure out if something wrong like smuggling is happening, for example, if the product meant for Delhi only is being found in Chennai. being found in Chennai.
Associated with big brands
Kumar Labels have been supplying labels to all the famous alcohol and spirit brands in the market, including Teachers, Jim Beam, Caption Morgan, Oaks Smith, Directors Special, B10
Premium, Rampur Single Malt, and many more.
Stating the Coronavirus impact on their business, Bhargav mentions that they had run out of some of the varnishes which they use to order from China. However, now they have put
contingency plans and done some tieups to ensure the timely supply of labels to their customers.
Smart labeling is the way forward
Kumar Labels is working on graphical and functional innovation on the supply chain model to make the order to delivery process smart on time and more efficient. Bhargav tells about their innovation, “we are working on labels that can have light. On the sustainability front we are working on single release two faces (SRTF) technology which boasts of 50% waste reduction, 60% carbon emission reduction, and a 20% total applied cost saving which is getting more and more acceptance.”
In the coming years, security, sensory effects, customization and smart and interactive labeling will be in demand. To make a solid connection with the consumer, brands need to exploit these technologies like interactive labeling, which will, in turn, become an opportunity not only to increase sales but also to improve brand loyalty.
