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Brands increasingly investing in QR & NFC marketing

Thu, 2nd May 2024

An independent report by SharpEnd, based on over 1,000 global brand C-suite marketers, shows increased investment and reliance on connected technologies such as Quick Response (QR) and Near Field Communication (NFC). These findings demonstrate a growing emphasis on First Party Data and sustainable marketing initiatives.

SharpEnd's second Connected Experience Report dives deep into the marketing strategies of global brands. It shows that an overwhelming 96% of brands consider connected packaging a crucial aspect of their marketing strategy. An impressive 92% believe First Party Data is a key pillar of their strategies. Further, 85% of brands intend to ramp up their investment in connected products in the next 12 months. Likewise, an equal percentage expressed a willingness to pay more for incorporating NFC into their products.

The report indicates an increasing consumer demand for QR codes (95%) and NFC (93%). QR codes are currently the most renowned packaging technology, yet the majority of brands have shown a strong preference for NFC. Additionally, 85% of respondents believe their suppliers possess the capability to integrate NFC into their products. However, only 51% believe this is currently being done, implying a significant potential for growth.

Connected packaging technologies offer an avenue for brands to create personalised and interactive experiences for their consumers. These technologies also enable brands to collect their own First Party Data, which can provide valuable insights into consumer interactions with their products. Despite the hurdle that First Party Data is typically held by retailers, this digital bridge offers brands a closer relationship with their consumers.

Among the leading sectors using QR and NFC are Alcoholic Beverages, with 82% currently utilising these technologies in their marketing strategies. This same sector also shows the greatest intention to increase investment in these technologies in the next year, at 88%, and is the most willing to pay more for NFC solutions, at 90%. The Healthcare & Wellness sector primarily uses these technologies to improve accessibility and educate consumers about their products. In contrast, the Consumer Packaged Goods sector uses them for their sustainability efforts.

Future predictions indicate that implementation of digital triggers on packaging may become mandatory for displaying information such as sustainability credentials (50%), authentication (46%), ingredients and provenance (44%) and legitimising product claims (42%).

Cameron Worth, CEO of SharpEnd, commented on the findings: "We've done a lot to build this industry over the last ten years and independent research has been fundamental in helping to educate brands about the possibilities. The data is on our side with brands clearly prepared to scale."

Antonio Linardi, Fedrigoni's RFID Business Director, echoed these sentiments stating, "We are witnessing an exponential growth of connections between the physical and the digital worlds. This interest paves the way for significant innovations throughout the industry and strengthens our position as a strategic partner for brands interested in smart packaging and labels."

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