Preparing for increased packaging demand in the golden quarter

The busiest time of the year is almost upon us. 

As the holiday season approaches, manufacturers, distributors and retailers alike experience a significant surge in demand for their goods and services. Sales skyrocket as consumers stock up on gifts and essentials for festive celebrations. 

The golden quarter, which typically runs from September to December, is marked by shopping events like Black Friday and Cyber Monday in November. Every year, these bring record-breaking spikes in online sales and 2024 is no different, with a projected increase of 30%. 

This results in a key date for packaging suppliers emerges: Peak Packaging Monday. 

On this day, businesses secure their packaging materials to ensure they can meet heightened holiday demands without disruption.  

To navigate this bustling season effectively, early planning is essential. By staying ahead of the curve, companies can maintain seamless operations and capitalise on the busiest shopping period of the year.

What is Peak Packaging Monday?

Kite Packaging Managing Director, Gavin Ashe, first coined the term Peak Packaging Monday in 2014 and it has since become widely recognised in the packaging world. 

Peak Packaging Monday is otherwise unheard of outside of the industry. 

The date marks the start of a crucial period for B2B markets, particularly for packaging businesses and retailers as it coincides with the peak demand season. During this time, packaging companies experience significant increases in orders due to amplified online retail activity and seasonal surges. 

Understanding how to prepare for and navigate this busy time is vital for a successful period of trading in the golden quarter.  

In this blog, we'll explore problems that can arise from a lack of preparation as well as strategies to ensure your packaging needs are met smoothly, helping you stay ahead during this critical time of year.

When is Peak Packaging Monday?

Peak Packaging Monday falls on 25th November this year, a few days before Black Friday (29th November) and one week before Cyber Monday (2nd December). 

Restocking on or before this date will set you up well for these prime marketing opportunities and times of massive growth potential. And the golden quarter overall.

The importance of Peak Packaging Monday

The ongoing shift in consumer behaviour toward e-commerce shows no signs of slowing down. Online orders now make up a significant 26.8% of all retail sales, says the Office for National Statistics, reflecting a fundamental change in shopping habits.  

Insights from Experian reveal consumers are more likely to do their Christmas shopping online this year than previous years. 

Based on transaction data from over 4 million UK cardholders across more than 4000 retail brands, year-to-date online spending rose by 4% compared to the same time in 2023, with instore purchases falling by 2%. 

If this upward online trend continues, UK retail will benefit from extra £28 billion during November – January, a £1.1 billion increase from the same period last year. 

Experian has also highlighted a boom in social commerce. Advances in tech mean consumers can now shop directly from retailers without ever leaving their social feeds. This has resulted in a 32% upsurge in spending on social platforms when comparing year-on-year August sales. 

What does this mean for retailers and packaging distributors? 

Retailers will require more packaging than ever before to fulfil these orders and get them parcelled out. Meanwhile packaging distributors like Kite Packaging, with an online operation based in Coventry, consistently see a 25% uplift in order activity during November year-on-year, since they started in 2004. 

Jake Kirk, Managing Partner of the online business, said: 

“As the e-commerce market continues to grow, we as a packaging business have seen a huge uplift in order activity around the November – December period as people prepare for Christmas. Typical products are things like tape, boxes and mailing bags, and as well as the number of orders growing, we also observe a significant increase in order value. On average, November shows a 40% increase in turnover when compared with the rest of the year.”

Impact on businesses

The surge in social commerce and ecommerce sales has a considerable impact on businesses, particularly on their packaging requirements, fulfilment processes and logistics. 

Higher packaging volumes

More packaging materials are needed to process and ship the increased number of orders. From boxes to protective wraps, the need for high-quality, sustainable packaging solutions intensifies. 

Tight delivery deadlines

Holiday shoppers expect faster delivery times, often with same-day or next day shipping which means businesses must have ample packaging supplies on hand and ready to go. 

Warehouse efficiency

As orders flood in, streamlined operations are crucial to avoid bottlenecks. Adequate packaging supplies ensure timely packing and dispatch of goods. 

Supply chain resilience

Packaging suppliers face heightened demand during this period, which can lead to stock shortages or delays. Planning ahead will help you mitigate the risk of disruption. 

Environmental responsibility

With higher packaging use comes greater scrutiny of sustainability practices. Companies are increasingly prioritising eco-friendly packaging to meet consumer expectations and reduce their environmental footprint.  

Peak Packaging Monday serves as a critical reminder for businesses to prepare for the holiday rush. Failure to do so can leave you facing many challenges. 

What are the consequences of being unprepared for peak?

Delayed fulfilment & shipping

A lack of essential materials such as boxes, void fill, and tape can halt fulfilment processes, delaying the dispatch of customer orders and slowing down overall operations.  

Delays can result in late deliveries, missed gift-giving occasions, and unhappy customers especially expect fast delivery during the holiday season.   

Increased costs

You may face inflated prices or rush fees when ordering materials at the eleventh hour.

Delays in fulfilment can also lead to overtime costs for staff and increased shipping charges to make up for lost time. 

Lost sales opportunities

If you run out of packaging, you can no longer process orders, resulting in potentially missed sales during a peak revenue period. Not to mention that your customers may turn to competitors who are better equipped at handling the rush. 

Damaged goods & returns

Inadequate or improvised packaging solutions can lead to damaged goods during transit, increasing return rates and replacement costs. This erodes trust in your brand, leading to negative reviews, damaged reputation and lost future custom. 

Environmental oversights

In the rush to meet demand, you might be resorting to less sustainable packaging options which will conflict with consumer preferences for eco-friendly practices. 

With the above in mind, here are some key pieces of advice to help you plan for peak demand. 

Strategies to help your business prepare for peak & Peak Packaging Monday

Stock up on packaging essentials

Analyse past order trends to estimate demand during the golden quarter. Factor in expected growth from events like Black Friday and Cyber Monday while building a buffer for unexpected spikes. 

Secure your packaging materials early to avoid shortages or inflated costs, prioritising versatile options that suit various products and sizes. Additionally, opt for eco-friendly solutions, such as recycled cardboard or biodegradable alternatives, to align with consumer preferences for sustainability.

Warehouse & fulfilment processes

To ensure smooth operations during peak, optimise your warehouse and fulfilment processes by organising packing stations, maintaining stock levels, and using automation tools like case erectors or tape dispensers to boost efficiency. 

Train your staff to manage high order volumes effectively. Leverage technology such as inventory management systems to track stock, predictive analytics to refine demand forecasts, and e-commerce integration to synchronise packaging and fulfilment processes in real time.

Communicate with customers

Effective customer communication is key during peak. Set clear shipping deadlines to encourage early purchases and reduce the strain of last-minute orders. Highlight your use of eco-friendly packaging to attract environmentally conscious shoppers and incentivise early bulk orders with discounts to drive sales while easing peak-season pressure.

Communicate with suppliers

Strengthening supplier relationships is crucial for navigating the peak smoothly. Communicate your anticipated needs early to secure priority access to materials and establish backup suppliers to mitigate risks of stock shortages. 

Negotiate pricing and delivery schedules in advance to avoid last-minute surcharges and ensure a consistent supply chain.

Monitor sales

Monitoring and adjusting your approach is essential during peak. Regularly track sales and packaging usage to identify trends and address any issues promptly. Be ready to adapt operations or restock materials as demand fluctuates. Post-season, evaluate what worked well and identify areas for improvement to refine your strategy for the next golden quarter.

Summary

By following these strategies, your business can stay ahead of the challenges the golden quarter brings.

Don’t let the busiest shopping season of the year catch your business off guard. 

Visit www.kitepackaging.co.uk to explore our wide range of sustainable, high-quality packaging solutions that can help your business. Or, call 02476 420065 today to speak to our friendly packaging advisors. 

Shop now and be ready for peak.