One of my first jobs over 40 years ago
was piling surfaced four sided western red cedar fence posts, 13 pieces wide
and 13 pieces high. Those were the first two things my boss taught me. And the
third thing I was taught was to turn the defects inward to hide them from
customer scrutiny. Talk about a lack of good looks, we were a bunch of scruffy
18-year olds (this was 1972!) turning in the wane, knots and unsound wood so
that the bundles of utility & better fence posts looked like perfect clears
when they arrived at the customer’s yard. First impressions count, right?
Fast
forward to 2013, and now Rehrig Pacific, a major plastic pallet company, has
released a new case study confirming through some high tech methodology that
looks do indeed count – at least for reusable beverage trays. That study,
conducted in conjunction with Clemson University, compared the reaction of test
shoppers to two different types of reusable beverage trays. This experiment
included a typical application and one that takes care to match coloring with
the product as well as proudly display the brand associated with the displayed
product. The shopper reaction was achieved through the use of technology,
including special glasses, that measured how many times a customer fixated on
the standard or enhanced display, and for how long. The result of that study was
that the color matched and branded reusable containers generated more fixations
and longer fixations, suggesting that in this case, that looks do indeed count.
But
what has this to do with pallets, barely visible at the base of the load, and
often never actually making their way to the retail sales space except perhaps
for club store formats or building supply yards. In fact, last year’s Modern
Materials Handling pallet survey did not even list pallet appearance in its
list of top priorities for pallet buyers. To recap, the top reasons on the
Modern survey included purchase price, strength and durability. To be fair, the
fourth reason listed, customer requirements, could potentially include a
requirement for appearance, but it is not indicated in the body of the report.
More likely, customer requirements have to do with the pallet specification or
pool provider.
Costco,
which widely uses pallets in the sales area, seems more interested in pallet
quality and functionality, although pallet quality is to a degree related to
appearance of the pallet. Better quality pallets tend to be more attractive.
For Costco, point of sale graphics on display packaging, or clear wrap that
displays product inside seem to be more central to promotion than the pallet,
which is neutral.
One
thing to consider is the potential for future changes in the way goods move
through the supply chain. For the last decade or more we have been talking
about concepts such as one-touch merchandising that will eliminate the amount
of product stocking and handling at retail, thus reducing clerical requirements
at the store. This has led to not only the growth of RPCs and other tray pack
products, but also to the increased use of floor ready displays (FRDs). Again,
FRDs have been around for several years, but they are projected to continue
increasing in importance through at least 2020. FRDs reduce retail stocking labor. More
importantly, FRDs can give a lift to retail sales when placed at the right
location at the right time offering the right price point.
Recently
CHEP has brought together a group of consumer goods leaders through an
initiative it calls “The Strategic Leadership Forum.” One of the forum’s hot
button issues is that of FRDs, and as a result, the group is looking at them in
greater depth. The good news is that no one is saying that FRDs are not
attractive enough. In fact, they can be extremely attractive. The challenges
hinge on other factors, such as the lack of standardization with regard to
footprint, assembly, distribution and reverse logistics, with resulting
inefficiencies. Of course
differentiation is one of the goals with floor displays. It seemed to me that
any move to standardize the FRDs would make them more generic with less eye
appeal. I posed this question to Vishal Pattel, who is managing the project for
CHEP. His observation was that it is important to separate the messaging from
the structure, i.e., the pallet or other reusable bin that might be employed.
Getting
back to pallets, one way that Plain Jane pallets are leveraged in retail
displays is through the use of colorful pallet skirts, as shown in the
accompanying image. Typically these are recyclable corrugated cardboard,
utilizing attractive graphics to help catch the eye of shoppers.
So
there you have it. In spite of the Rehrig study, there is no apparent urgency
to roll out a neon Glampallet or a sequined Fashionpallet any time soon.
Having said that, here are my
closing thoughts:
1. By
having excellent quality assurance processes, you will ensure some degree of
related attractiveness of product, including branding and stencilling, etc.
2. In
following from the Rehrig study, if someone wants the Glampallet, then be ready
to offer it. Perhaps some customers will see a value in matching the color of
their products with pallet and color matching the customer’s product is a value
added you can offer, whether for pallets on the retail floor or pallets of
roofing shingle on the flatbed truck.
3.
Pallet skirts may make sense for some retail displayers.
4.
Given that display building is a growing trend, your company may have interest
in exploring this business opportunity, although it would require a food grade
distribution facility. Part of being a good looking pallet company is to be aware
of trends and be ready to professionally serve customers as they transition.
