Market Insights | Page 1

In recent years, nearshoring has emerged as a prominent global trend. This surge can be explained by many global events that make companies take the strategic step of relocating their business operations to neighboring countries. In the US, nearshoring is gaining traction as a larger number of businesses are shifting operations from APAC countries to Mexico — a move designed to reduce risk amid significant global volatility.

According to a recent Morgan Stanley study, new nearshoring investments could reach about $46 billion over the next five years, helping to boost Mexico's annual GDP growth to about 3% between 2025 and 2027. This has the potential to accelerate the growth of Mexico’s manufacturing exports to the U.S. from $455 billion to an estimated $609 billion over the next five years, boosting Mexico's economy while delivering benefits to US companies. 

Nearshoring is often credited with helping to reduce geopolitical risks by establishing closer ties with neighboring countries. It also offers compelling advantages for businesses equipped with the right strategy, such as enabling significant shipping and transportation cost savings due to the geographic proximity between manufacturing hubs and consumer markets. Nearshoring can also help companies minimize carbon emissions associated with long-haul transportation routes.

But in spite of these promising opportunities, nearshoring also brings challenges — particularly in the packaging supply chain. Maintaining consistency, quality and continuity across operations in Mexico and the US is critical. Addressing these challenges requires partnering with a packaging company that brings expertise and resources on both sides of the border. 

In today’s packaging landscape, sustainability matters more than ever. And it’s not just important to consumers; business leaders and legislators alike are prioritizing environmentally friendly packaging. However, sustainability gets a lot more tricky when it comes at the expense of packaging’s cost or ability to protect your product. 

Luckily, there’s a clear-cut way to achieve all three goals: Lowering excess packaging material. Packaging material reduction — the practice of eliminating unnecessary material from your packaging — can help you better protect your product, the environment and your bottom line. Here’s how to get started with this packaging strategy.

Dimensional weight, nicknamed DIM weight, is an alternate formula used by couriers to determine an item’s shipping cost. Also known as “volumetric weight,” DIM weight accounts for how much physical space your package occupies rather than merely its weight on the scale. If you've shipped items at any point since 2015, you know DIM weight — and its potential to drive up shipping costs — all too well. That’s especially the case if you have a light item in a large box, as couriers calculate both traditional weight and DIM weight, then charge you based on the higher figure. 

The introduction of DIM weight has transformed how both B2B and B2C companies think about packaging. Not paying attention to a package’s size in relation to the product inside can drive up shipping costs significantly, even if the package is fairly light when placed on the scale. Although it may seem like a purely cost-driven consideration, optimizing your package’s DIM weight also has an impact on sustainability. And in a landscape where sustainability matters to more consumers, retail partners, C-suites and government bodies than ever before, any measure that enhances cost savings and environmental impact is a major win.

Read on for our quick guide to all things DIM weight, including how to calculate it, how it impacts your packaging sustainability and how to optimize it through savvy engineering and automation solutions. (Hint: To maximize your savings even further, let an expert partner handle that last part.)

There’s no denying that sustainable packaging is becoming the new norm. More than 40% of consumers say it’s a key decision-making factor, and about half are willing to pay more for products that feature eco-friendly packaging. Fueled by customer sentiment, corporations and retailers alike are embracing sustainable materials. In a global survey from McKinsey, nearly 75% of companies said they have already committed to sustainable packaging. Meanwhile, retailers aren’t just using recycled or recyclable materials in their own packaging; they’re often requiring the brands they stock to do the same. 

This year, more than 50% of retail brands will invest in tools that allow them to sell anywhere. And for good reason: Nearly 3 in 4 customers use multiple channels to shop. Meanwhile, research shows that the opportunity cost of not adopting an omnichannel retail strategy could be as much as 10% in lost revenue. But this sales-boosting strategy also comes with a key challenge: channel customization, or meeting the bundling and packaging requirements of multiple retailers and channels. 

Of the many retail dynamics to spring forth from the pandemic, one has shown unreliable staying power: Fulfilling e-commerce orders from retail stores rather than warehouses. Ship-from-store fulfillment is expected to reach $140.96 billion by 2024, driven by sky-high e-commerce order volumes and customer expectations for speedy deliveries. 

Like all emerging trends, ship-from-store fulfillment has the potential to deliver major benefits for agile early adopters. (Think: Faster deliveries, lower shipping costs and less reliance on distribution centers.) But in-store fulfillment can also pose risks for even the savviest retail teams. Without the right approach, your intention of enhancing shipping speeds could actually cause delivery delays, not to mention issues like limited in-store space. 

Victory Packaging’s team has been on the leading edge of ship-from-store dynamics, and we’ve helped numerous nationwide retailers optimize their programs. Through this experience, we’ve gleaned proven best practices that you can implement now to overcome common pitfalls and pave the way to maximum value.

Keep reading for our team’s take on the ship-from-store landscape, including these programs’ benefits, their potential challenges and how the right packaging partner can reduce risk — to the benefit of both your brand and your customers.

Here at Victory Packaging, we know that navigating the ecommerce world can be challenging. That's why we work with ecommerce fulfillment companies — those that sell and ship products out to customers — to help them select and stay stocked with the right packaging. It gives them one less thing to worry about in the grand scheme.

At the start, it's all about understanding your ecommerce needs and how your packaging might be affected by them. After that, you'll need a solid packaging provider that can make sure you don't miss a beat when it comes to shipping your goods. We cover both of these topics below.

First up: understanding your needs.

Food waste is a significant problem. According to the USDA, an estimated 133 billion pounds of food produced worldwide for human consumption is lost or wasted.

It turns out that one of the biggest contributors to food waste is the packaging. In fact, packaging accounts for a significant share of food waste throughout its life cycle — from production to consumption and disposal.

The packaging you use for your retail products can make a big difference when it comes to attracting customers. In order to boost business, your products need to stand out among the competition and make a strong impression on customers. Whether your products are on store shelves and displays or delivered right to a customer's home, custom retail packaging can provide you with an effective way to help your business thrive. How can you make sure customers head right for your products in stores or online? Consider the following packaging ideas for your retail products.

In order to stay competitive in the ecommerce industry, it is important to have a well-oiled ecommerce fulfillment machine. This means having a system that can receive and inventory products, pick and pack orders, and get those orders shipped out quickly.

To ensure you have the packaging products necessary to pull this off, you need a partner who understands the challenges of running an ecommerce empire. This is where Victory Packaging comes in. We have the experience and expertise to understand your needs and keep your fulfillment centers stocked with the packaging materials your business requires.