Jabil-Sponsored Survey Highlights Packaging Challenges and Opportunities

May 4, 2017


Jabil to Co-Market Smart Auto-Replenish System to Support Changing Consumer Preferences

DUSSELDORF, Germany--(BUSINESS WIRE)-- Jabil Circuit, Inc. (NYSE: JBL) today announced the results of a new e-commerce survey that forecasts the inevitable shift from traditional retail to e-commerce channels and unveils key packaging considerations for supporting a successful transition.

The survey, conducted last month by third-party research firm Dimensional Research and sponsored by Jabil Packaging Solutions, sought to reveal the evolving packaging considerations of brands as focus on the new retail reality extends from store shelves to online. More than 200 manufacturing professionals responsible for packaging decisions participated in the survey, largely from mid-size to large companies in the U.S., representing management and executive-level decision-makers in such industries as consumer goods, food and beverage, industrial, consumer health products and electronics.

According to the survey, many brands are actively repositioning their businesses to capitalize on the growth of e-commerce and view packaging redesign as a centerpiece of their strategy. Notably, 91 percent of respondents viewed e-commerce sales as important to their revenue models, and nearly 90 percent expect it to grow in the next two years. Three-quarters of respondents saw consumer convenience as the key driver for online purchases, with the ease of replenishment being a clear second.

Respondents agree that new packaging technologies such as Radio Frequency Identification (RFID) and Internet of Things (IoT) will drive significant e-commerce packaging innovation in the coming years, in part due to the strong demographic bent of the online buyer. The survey indicates that the vast majority of brands believe e-commerce buyers are younger and more tech-savvy.

"As e-commerce increasingly becomes the preferred channel for consumer purchases, big brands are scrambling to position themselves ahead of the competitive curve," said Erich Hoch, CEO of Jabil Packaging Solutions. "The survey reflects an industry in transition and speaks volumes about the need for an evolving supplier profile. As brand experience is redefined for e-commerce, new models and packaging expertise will be required - including design and manufacturing optimization and smart and consumer device packaging solutions that support sustainability and leverage digital technology platforms."

"Jabil is ideally suited to lead the e-commerce packaging revolution, with end-to-end precision packaging capabilities and a 50-year digital and supply chain legacy," said Hoch.

To that end, Jabil Packaging will unveil its patent-pending smart auto replenishment system at InterPack (booth #7,1/ C05), as well as a new co-marketing agreement with Replenish, an e-commerce pioneer that's changing how liquid-based products are packaged, purchased and shipped. Through its new system and agreement, Jabil will support brand efforts to meet changing consumer preferences for auto replenishment. Replenish Bottling's patented Refill System, a reusable bottle that attaches directly to a concentrate refill pod, will feature smart and auto-replenish capabilities in time.

"Replenish provides an ideal solution to the challenges that plague brands transitioning to e-commerce," said Jason Foster, CEO of Replenish. "Problems associated with shipping goods through the mail are prevalent - including breakage and leakage, plus other such brand-impacting outcomes. Together with Jabil, we will enable a seamless shift to concentrates that not only drives sustainability, but also eliminates typical ‘bad' liquid e-commerce packaging challenges and cuts shipping costs." By enabling consumers to reconstitute products with common tap water, Replenish supports the sale of household products online, shipped safely and inexpensively to consumers everywhere.

About Jabil

Jabil is a product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 28 countries, Jabil provides comprehensive, focused solutions to customers in a broad range of industries. Jabil Packaging Solutions, a division of Jabil, is a global leader in value-added packaging. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". For Further info, visit: jabil.com.

About Replenish

Replenish is the creator of the patented Reusable Dispensing System designed to transform the way household products are packaged, transported and consumed. For information on Replenish and to find where products are sold, visit www.myreplenish.com.

About Dimensional Research

Dimensional Research provides practical marketing research to help technology companies make smarter business decisions. Its researchers are experts in technology and understand how corporate IT organizations operate. Its quantitative and qualitative research delivers a clear understanding of customer and market dynamics. For more information, visit www.dimensionalresearch.com.


Beth Walters, 727-803-3511
Senior Vice President, Investor Relations & Communications
AH&M Marketing Communications
Account Manager
Joe Bennett, 412-448-2260 Ext. 470

Source: Jabil Circuit, Inc.



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