A seismic shift is about to take effect in the consumer goods marketplace, and companies who stay ahead of the curve are going to gain a significant advantage. In response to increased consumer interest in product ingredients, many of the leading food, beverage and consumer product companies have already started to adopt a new method of sharing relevant product information. From company, to retailer, to consumer there are many potential upsides to offering product transparency, and every consumer goods company or retailer should seriously consider participating.
This effort, led by the Grocery Manufacturers Association (GMA), is called the SmartLabel™ Transparency Initiative. SmartLabel is a simple, yet effective way to share a detailed list of ingredients and product attributes and thereby increase consumer trust. Many top consumer brands, like PepsiCo, J.M. Smucker, Unilever, Nestlé, have already created SmartLabels and incorporated them into consumer packaging. In fact, many companies are realizing that in order to survive, it’s becoming increasingly important to make their product information more transparent to the consumer. Why? Because voluntary transparency not only builds consumer trust, but indicates a good faith effort to adhere to government regulations.
How do SmartLabels work?
While browsing in a brick-and-mortar store, shoppers interested in learning more details about a product’s attributes can scan the SmartLabel QR code on a mobile device. (The package structure, substrate and size have confined the amount of information that can be shared until now.) The shopper will instantly access a SmartLabel landing page that lists additional details about that product, including manufacturing location or ingredient origin, and any updated claims or warnings. These product webpages will also be accessible to consumers via web search. SmartLabels will be especially helpful for consumers interested in whether the product they are considering contains allergens, ingredients that may be harmful to animals, ingredients that are environmentally unfriendly or even genetically modified organisms (GMOs).
Consumers will also get to scope out a product’s positive attributes, like how much fiber it contains or what percentage of daily vitamins it has. In short, consumers can protect themselves against ingredients that might be harmful or against their lifestyle choices or dietary restrictions, and they can also make informed, health-boosting decisions by researching the most nutritious products available.
Why now?
There is a marked increase in changes to regulations on the way in which ingredients are disseminated to consumers, for example the introduction of GMO legislation in the United States and Europe. That means the benefits are higher now than perhaps ever for brands using a communication method like SmartLabel to keep marketing claims up to date and product information transparent for consumers.
How can I get started with SmartLabel?
Most companies already have the data needed for SmartLabel, but it’s in the formulation lab, on the package, or on someone’s laptop. With access to the GDSN, that info can be shared with consumers worldwide. Aligning with the leading CPG companies by implementing SmartLabel on your products, is exceptionally easy to do for BLUE users. BLUE has active partnerships with 1WorldSync, the leading data provider to the Global Data Synchronization Network (GDSN), and Label Insight, the FDA’s source for verifying ingredient claims. These partnerships allow BLUE customers the ease and confidence of sharing their approved product information, usually found on packaging stored in BLUE’s Digital Asset Library, to automatically generate SmartLabels and to publish to online retailers or ecommerce platforms.
How exactly does BLUE and and its partners help you with SmartLabel execution?
Throughout the workflow, a product’s information is reviewed, changed and finalized. There is no need to re-review or hand off the information to another department. When using BLUE connected with Label Insight or 1WorldSync, brands can create SmartLabels as a workflow step or at the push of a button. Consumers will instantly have access to product information when they scan the QR code on the product’s label or if they use a search engine to find product information on the SmartLabel webpage. This enriches the brand/consumer relationship by satisfying shopper curiosity for accurate, high-quality and timely information about the products they are considering for purchase, while allowing brands to keep up with government regulations and nutrition fashions.
The benefit for retailers is that their consumers will have ready information in the aisles (via their phones) to make confident purchase decisions, adding another dimension to their shopping experience. This should increase trial and raise the per basket revenue for retailers.
Allowing you a quick and easy way to join the SmartLabel™ initiative is just one more way that using BLUE helps you build healthy relationships between your brands and your consumers. BLUE has a team of experts that can help you navigate the complexities of the process of implementing SmartLabel in the best, most cost efficient way, since fully-formulated best practices are still being developed in this rapidly-evolving space.
Contact us today to learn more.
Source: http://www.gmaonline.org/news-events/newsroom/new-smartlabel-initiative-...
