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In the 1980s, luxury was defined by brash displays of wealth and ostentatious design. As trends have changed, packaging design has evolved and a subtler, experience-based approach to the packaging of luxury products has been introduced.

The luxury sector has traditionally been associated with established names with a recognisable brand image. Dominic Hale, creative director at design agency PI3, points to “old-school heritage brands” such as Chanel and Hennessy as examples that are ingrained in our culture as purveyors of luxury. “It could all be part of the reason why the majority of finished brands tend to produce the industry standard of beautifully executed and finished cardboard and glass packages,” he says.

“There’s almost no end to what you can do with classic styles,” says John Anderton, managing director of cosmetics and personal care packaging specialist Vetroplas, which is responsible for the packaging of the newly launched Dr Nick Lowe range of luxury skincare. “We are never far away from a straight-sided bottle where you get a classic use of design and lettering,” he says.

Environmental pressure
Style, it seems, doesn’t date, but what about the materials used to construct these packs? In October, environmental issues were identified as key drivers in the luxury sector by experts at the 20th Luxepack event in Monaco.

“Environmental issues have very much been the key focus of 2007 and will continue to be so,” says Judith Allan, production manager at design agency Jones Knowles Ritchie (JKR). “The increased focus on environmental factors has to be the start of a trend that will intensify, because all the waste legislation that’s coming in will affect everybody.” Paper merchant GF Smith, for example, has already launched the carbon neutral Mohawk range of paper, which is made using wind power.

Allan believes designers will have to start considering which materials they combine in a pack and how these can be separated for recycling. However, due to the long lead times afforded by the luxury sector, we may not see these features on the market until the end of next year.

“Packs that use a lot of non-recyclable cardboard will struggle to justify their extravagance to consumers increasingly switched on to packaging waste,” argues Jeremy Davies, business development manager at brand and graphic design consultancy Elmwood. The effect could be heightened where ostentatious packaging does not reflect the product inside, he adds.

Davies also thinks the luxury sector could lead the way in reusable packaging. Christian Dior’s Prestige refillable skincare line is one example that has already reached our shelves.

While environmental factors are a key trend in the sector, JKR managing director Mark Gandy is quick to point out that luxury items are not an everyday purchase. Consumers, he argues, are “quick to let their morals slip when it suits them”.

“People are less interested in environmental factors with luxury goods – when they’re looking to be pampered,” he says.

Harrods, for example, is not currently addressing environmental concerns in its own packaging, but expects to look into the matter next year. The company operates both an in-house packaging team and collaborates with external agencies for the packaging design of its own-brand products. Clever, rather than expensive packaging is the philosophy behind the brand, according to Sarah Paskell, Harrods’ brand and packaging manager.

Even Harrods has been guilty of being over-reliant on its famous brand image in the past, says Paskell. The key to good design, she believes, is that “it never sits still”. In Paskell’s view it’s not enough to have a brand name on a pack and expect it to sell. “The customer expects more.”

The key is being clever with what you’ve got, she says. “Certainly with Harrods we’ve got a lot to call on.” The firm has its own archive and attempts to tap in to this history wherever possible. “What we’ve used, we’ve updated for the 21st century,” says Paskell.

This can be seen in the recently launched Opulence food range. The packs’ graphics draw on a 1920s Art Deco design, from the Harrods’ archive, which incorporates an image of Copia, the Greek goddess of plenty.

Allan also says brands must have a reason for using new or unusual materials in the traditional luxury market. She cites the example of champagne brand Veuve Clicquot, which recently packed its bottles in a trendy Neoprene jacket. “Veuve Clicquot used to appeal to a very country, English set,” she says. “By putting it into Neoprene they are trying to appeal to a more fashion-conscious consumer. It’s about why they are using these materials that drives agencies like us.”

Innovation and tradition
However, there is still a place for traditional materials. The ‘experience’ of glass is something that Allan values highly. The feeling and temperature of glass, something that plastic just can’t replicate, is central to the luxury experience, she says. “Glass, metal and wood will continue to be the backbone of luxury packaging,” says Allan. Gandy agrees: “Innovation means using traditional materials in a new way.”

Viscount Linley recently designed a limited edition wooden presentation box shaped like a sea shell, for luxury cosmetics brand Crème de la Mer. The box, which has mother of pearl inlay, contains a 60ml glass jar of face cream and retails for £795.

Cartonboard packs, for example, are beginning to move away from traditional square or rectangular boxes, with more customers now considering circular, oval, hexagonal or triangular shapes. Similarly, brands such as Gü have used expanded polystyrene or expanded polypropylene cube packs to create a luxury dessert sector within the market.

Outside the UK, however, the situation is different; emerging markets, such as China and India, are still in the ‘first cycle’ of wealth, explains Hale. “This is about flaunting wealth, so luxury brands are in the process of tailoring the products to appeal in these vastly differing cultural markets,” he says. Gandy agrees: “Russia, although a rapidly emerging market for luxury packaging, is attitudinally closer to where the UK was 20 years ago.”

But, even with our greater experience of the luxury market and heightened environmental conscience, we are not opposed to the odd Swarovski crystal. As Gandy says: “There’s still a market for old-style, ostentatious bling.”

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MATERIAL TRENDS
“Every packaging designer and brand owner always asks the same question: ‘what’s new?’,” says Nick Rowley, business development manager of GF Smith’s packaging division.

Raw material costs, he says, are always the biggest barrier to firms trying new materials. “You can have a material that ticks all the boxes, and is wanted by the end-user, the designer and the manufacturer, but if the material cost is out of budget, it won’t happen.”

Whereas established brands can rely on traditional grades and finishes, new products have a short period to prove themselves. Consequently, innovative packaging plays an essential role, according to Karen Batley, brand manager at Curtis Fine Papers.

Surprisingly, designers often hesitate to experiment with inks and finishes. Design agency Parker Williams is trying to combat this by educating its designers about what’s available to them. “Ink should be thought of as an integrated part of design and not an afterthought,” says production director Chris Evans.

According to Evans, lead times and lack of knowledge prevent designers from using new inks.
Consequently, there are some inks that have been around for years, but have not yet been used. “I would support the use of us at the earliest stage to get the best out of packaging,” adds Barry Ferne, business development manager at Sun Chemical.

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THE GLOBAL LUXURY MARKET
Luxury is expanding beyond the bounds of the developed world. Sales in emerging markets, such as China and India, are growing rapidly. Asia currently has 29.9% of the luxury packaging market, according to The future of global markets for luxury packaging to 2011, published by Pira International.

The report, published in November 2006, ranks Asia in second place to North America, which has 38.7% of the global market share. However, it is estimated that Asia, led by China, will overtake North America to become the largest luxury market by 2011.

Economic and population growth, and demographic and retail change are driving sales in the global luxury packaging market. By 2011 the sector is forecast to be worth £11bn (€15bn). Cosmetics currently holds the largest share of the end-use market, followed closely by wines and spirits, then confectionery, luxury foods and tobacco.

The huge demand for tobacco from China’s growing population makes this a market to watch. One in three cigarettes smoked in the world is smoked in China, according to the World Health Organisation, so it is not surprising that tobacco is expected to be the fastest growing luxury sector with a compound annual growth rate of 2.8% to 2011.

To order The future of global markets for luxury packaging to 2011 contact Pira International by email: publications@pira-international.com, or by phone: 01372 802080