Here are some facts on Point of Purchase:
- As per a recent study by Transparency Market Research, the global POP display market was valued at US$9.87 billion in 2016 and is forecasted to reach a valuation of US$16 billion by 2025.
- Globally, by point of sale material, the corrugated board POP displays are estimated to dominate the market with more than 60% share of the market value and estimated to surpass a market valuation of US$3,400 million by the end of 2026.
Top players in the global POP display market
- Asia-Pacific region projects a CAGR of 6.5% which signifies a highest opportunity of $2 billion by 2025
- According to Statisticbrain.com, the average American's attention span has dropped from 12 seconds in 2000 to just 8.5 seconds in 2015, making the importance of POP more prominent than ever
- Increase in demand for corrugated POS in European region, specifically in Germany is soaring
Drivers of Point of Purchase market
i. Fast growth in organized retail sector
A European market study has revealed that grocery segment has been the largest user for corrugated POP material. This also implies on how supermarkets and hypermarkets are the growing markets for POP displays. It is also being anticipated that small retail shops are slowly advancing and will further buzz the POP market. ii. Ever changing lifestyle of consumers
Ease of convenience and fast paced routine in urban class has led to an increase in impulse buying and demand for packaged ready-to-eat products
Emerging economies of Asia Pacific with rising disposable incomes have enabled the urban population to indulge in the luxury and convenience of packaged F&B
The above factors fuel the demand for POP displays, which can strongly influence the impulse buying behavior of a consumer. iii. Need for high brand visibility in a competitive market
In today's crowded retail scenario, POP display has become a critical component for brand marketers to persuade shoppers. The need to differentiate themselves from competitors are pushing the brands to further look out for POP display strategies. iv. Innovation & Technology "Online buying was highest in Asia-Pacific, while online browsing the highest in Latin America." – Nielsen
Is increase in online sales an impelling factor for brand owners to rethink their promotion strategies to accelerate their retail sales?
Brand owners are focused on creating an impactful experience for their in-store customers, which hints at - innovative POP displays! v. Achieving greater ROI "The global spend on in-store POP marketing materials is $20 billion, which results in over $3 trillion in spend by consumers." "A typical sales lift from a temporary POP display initiative is 24%" - Path to Purchase POP Trends Survey
The above stated merely reveals one important thing – Successful POP display results in successful sales boost!
With the pumping demand and need for gaining competitive advantage, POP display is rising to be an effective tool for both efficient space utilization and branding. Kavya Medidi is a packaging prepress consultant at Manipal Digital and writes on factors that influence consumer purchase decisions in retail and packaging.
For more ideas on packaging and its impact on point of purchase marketing, please write to [email protected]