Leading B2B e-commerce firm sized US$ 5B packaging market and built an entry strategy
03 Jun 2020
2 min read
Identification of growth opportunities for B2B aggregator in industrial packaging space
Context
- Client description: A leading ecommerce company focused on B2B procurement of industrial supplies
- Opportunity: Client wanted to provide packaging solutions to its existing and new customers. So, they wanted to understand the Indian packaging supplies market in terms of market size, procurement process, purchase criteria, behavior of organizations and packaging spend by product segments.
- Categorized packaging materials based on functional purpose
- Assessed the level of customization required for each product category and what are the key reasons (logos / SKU size / usage purpose etc.,) influencing the need for customization of packaging material
- Understood the role of manufacturers, distributors / dealers, and retailers in the supply chain and how customization and pricing have an impact on the purchasing behavior of the customer
- Conducted in-depth research on existing packaging companies to understand their value addition to customers, primary supply model, product category customization offered, and market share gained
- Conducted in-depth interviews of procurement heads of manufacturing companies across 20 business verticals (FMCG, auto & ancillary, pharma and online retail, etc.) to understand packaging demand, key purchase criteria, pain points and preferred purchase channel
- Conducted in-depth interviews of distributors, retailers, and packaging aggregators / solution providers to understand supply chain flow, need for customization and software-led purchase
- Used a variety of top-down and bottom-up approaches along with industry reports to estimate market size
- Analyzed the growth aspect of the packaging industry by identifying YOY increase in the requirement of packaging material which is either co-related to increase in sales or change in packaging material standards