Beyond Anecdotes: The Financial Impact of Design Innovation
Research has shown a link between the use of design and improved business performance across key measures, including share price, profit, and market share growth.
A comprehensive study by The UK Design Council, titled The Impact of Design on Stock Market Performance, followed a group of more than 150 public companies recognized as effective users of design.
Over a 10-year span, this group of design-oriented companies out-performed the stock market indices by over 200%. From 1994 to 2004, design-oriented companies saw their stock prices appreciate over 260%, while the general stock market grew by less than 60%. This strong performance was true across industry segments and in both bull and bear markets. Indeed, the design-oriented companies saw their stocks appreciate more in bull markets and decline more slowly (or not at all) in bear markets.
Recognizing the Importance of Quantification
The package designer (be it a person, a team, or an outside agency) needs to work hand-in-hand with these other functions to effect change. Consider these scorecards used by other functions:
- Sales: revenue growth, number of customers, price realization.
- Procurement: cost per component, gross-margin percent.
- Manufacturing: line speed, uptime, scrap rate, conversion cost.
- Operations: storage cost per pallet, inventory turns, freight rates.
- Finance: capital spending, EBITDA growth, working capital levels.
Spotlight on Afarpack Wooden Packaging Design Studio
AfarPack Wooden Packaging Design Studio will help its clients with creative design as well as affordable price.
– Optimizate your product’s Packaging design in wooden material,
– Relatively affordable price, maybe lower than paper box
– Work with your design team cater for market
An effective package design ultimately needs to drive profit dollars to a brand. At its core, a successful package should better connect with consumers and retailers; it should make the brand more relevant. This, in turn, increases the perceived value of the total product, increasing consumer loyalty and the brand owner’s pricing power.