Retail in Asia


APAC CPG brands yet to tap full potential of QR code technology

The onset of COVID-19 has revived the use of quick response (QR) codes in the Asia-Pacific’s consumer packaged goods (CPG) industry. Even as the pandemic drove the extensive use of QR codes by the public and private establishments due to the need for contactless transactions and interaction, the full potential of the technology is yet to be unlocked, finds GlobalData, a data and analytics company.

SEE ALSO: Card payments in China set to grow by 17 percent in 2022

“QR codes are transforming the conventional packaging labels into interactive canvases for CPG companies in the APAC to deliver a wide range of online content, including information about the provenance of ingredients, manufacturing processes, and transportation of finished goods. This can help food and beverage manufacturers in instilling more transparency and authenticity across their supply chain,” said Bobby Verghese, Consumer Analyst at GlobalData.

For instance, Australia-based wine producer Brown Brothers launched a virtual gifting campaign using QR code technology delivered by Cellr. The winemaker introduced gift bottles of its Prosecco Rose wine with an interactive QR code printed on the label.

The Prosecco Rose bottles are available in a choice of five distinctive labels Bestie, Party, Friyay, Thanks, Love and Brunch to suit the gift recipient. Buyers can scan the QR code with their smartphones to access a dedicated website where they can upload a personalized virtual picture, video, or text message for the gift recipient. The wine bottle recipient can unlock the recorded message by scanning the QR code with their smartphone.

“As consumers cocooned at home during the COVID-19 lockdowns and quarantine, they began spending more time online on smartphones and other connected devices. This is corroborated by GlobalData’s Q4 2021 consumer survey, wherein 52 percent of Australian respondents said that they continued to spend time online in general, while 30 percent were doing this more frequently, and 6 percent started doing this. Subsequently, consumers grew familiar with the use of various smartphone applications including QR code scanners,” explained Verghese.

Subsequently, these consumers have begun to use QR codes to access more product information, digital wallets, restaurant menus, maps, online shopping sites, and digital entertainment content.

“Unsurprisingly, 48 percent of Australian respondents in GlobalData’s Q3 2021 consumer survey said they actively scanned QR codes on packaging for more information for various CPG products ranging from food to household cleaning products. However, only 43 percent of Australians are actively scanning QR codes for food and beverages, indicating that there is ample room for growth in technology in the sector,” added Verghese.

Source: GlobalData

SEE ALSO: Card payments in Singapore to grow by eight percent in 2022

“The technology can aid CPG brands in engaging digitally-savvy consumers and elevating the overall consumption experience. The Brown Brothers’ personalized gifting campaign is a prime example of how the technology can be used creatively for driving sales,” concluded Verghese.