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Fashion

Why jewelry brand Bario Neal is spending 60% more on packaging per sale

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By Zofia Zwieglinska
Feb 28, 2024

Jewelry brand Bario Neal is betting big on creating custom jewelry keepsakes as opposed to disposable packaging.

Last year, luxury brands including U.K.-based jewelry brand Gerrard and luxury giant Boucheron, invested in reusable packaging, tailoring the packaging to reflect their brand image. Gerrard used blue zippable leather boxes, while Kering-owned Boucheron used silver boxes with metalwork on the lids.

For its part, Bario Neal rolled out its own iteration of luxury customized packaging this month. To do so, the brand increased its packaging costs by 25%, which it is taking out of its revenue, to use materials like wood and porcelain. Despite the cost increase, the packaging is still free to consumers, and the cost of the jewelry has not increased. Bario Neal hopes the strategy will increase long-term revenue and customer loyalty.

“The concerns as a luxury brand are twofold with [packaging],” said Page Neal, co-founder of Bario Neal. “As a consumer, you can look at a [luxury] box and think, ‘That looks fine; it’s a high-quality item, but it’s not made in an environmentally friendly way or with sustainable materials.'” This puts off customers driven by brand values, she said.

The 16-year-old, Philadelphia-based brand made $3-4 million in revenue in 2023. Its largest markets include the the U.S., Canada and the U.K. 

“The other issue is creating [packaging] people want to keep,” said Neal. “This project was about doing both, and that’s why our [packaging] costs increased to 25%.” The brand partnered with a Pennsylvania-based manufacturer that specializes in sustainable packaging to create its wooden boxes, and one from Vermont for its porcelain boxes for rings and other jewelry items.

Jewelry brands like Bario Neal and Boucherer also adopted more durable, long-lasting packaging to enhance the customer’s unboxing experience and reinforce a luxurious brand image. According to Bario, quality packaging can foster brand loyalty and encourage repeat business, serving as a continuous marketing tool. On TikTok, the hashtag #jewelryunboxing has 94.2 million views — tagged videos show customers showing off unique jewelry packaging. What’s more, luxury packaging itself can also hold value. Tiffany & Co. boxes, for example, can be resold for about $50 on resale platforms.

The rise in unique packaging options also aligns with the growing consumer demand for sustainability by offering reusable options that reduce waste. Bario Neal used reusable packaging like pouches and cardstock boxes before the new packaging launch, but many other brands are still relying on composite boxes with non-recyclable parts. Meanwhile, with plastic legislation being implemented in more states across the U.S. and greenwashing legislation being on its way in the E.U., packaging choice can make a big impact on carbon emission calculations. 

Other luxury sectors are approaching the issue of packaging, as well. Executives in the watch industry see recycled packaging as the key to sustainability progress in the next five years, surpassing six other initiatives like certified ethical gold. That’s according to a Watch Industry report by consulting company Deloitte from October 2023. 

The study also revealed a shift in the reasons behind brands’ sustainability efforts, moving from external motivations, such as consumer demand and brand image, to internal ones, including corporate strategy and the aforementioned reduction of carbon footprint.

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