7 minutes read

The packaging is misleading customers about the value of your product

Good formulation is a necessary condition. Packaging that communicates the right segment is the sufficient condition for customers to open their wallets.

Sinh Vũ · Creative DirectorCosmetics industry

Quick summary

Local cosmetic packaging often falls into four common design pitfalls. These are messy typography, incorrect material grade, colors borrowing from the wrong segment language, and misprioritized information. These four mistakes are quietly dragging down the perceived value below the actual product. Customers do not read labels to judge; they look at the overall appearance and decide in less than a second.

In this article · 6 sections

In the cosmetics industry, packaging is the first argument, and often the only one, that customers hear before deciding whether to approach or not. Research by Lindgaard et al. published in the journal Behaviour & Information Technology in 2006 confirms that visual impressions are formed within 50 milliseconds. That speed is faster than any information on the label can be read. Local products are not lacking in quality. The packaging is simply telling a different story than the product wants to convey.

Why does a good formulation still fail on the shelf

Vietnam's cosmetics market imports more than 90% of its goods by value, according to 2024 trade industry data. That does not mean domestic products are inferior in their ingredients. Many local brands invest seriously in formulation, work with internationally certified factories, and tightly control their raw material sourcing. But once a product is on the shelf, customers do not read the ingredient list first. They take in the overall look in under a second and classify it at once: which segment does this product belong to.

This is how the brain processes visual signals to conserve decision-making energy, not because customers lack intelligence. Packaging is a signaling system. When the signaling system sends the wrong codes, no matter how good the product inside is, customers have already passed by before knowing that.

50 millisecondsThe time it takes for the brain to form the first visual impression. Source: Lindgaard et al., Behaviour & Information Technology, 2006.
72% of buyersIt is said that packaging influences the purchase decision of personal care products. Source: Ipsos, The Power of Packaging, 2022.

First mistake: typography lacking hierarchy

The typography and layout on the surface are the strongest segmentation signals that many local brands are overlooking. Premium cosmetic packaging often selects very few typefaces, placing the brand name in a dominant position with ample white space, allowing the rest of the surface to breathe. In contrast, packaging that miscommunicates its segment often features three to four different typefaces on one surface. The font sizes lack clear hierarchy, and the brand name competes for space with claims and ingredient names.

The direct consequence is that the customer's eyes do not know where to look first. A lack of visual hierarchy signals that the product lacks confidence. Customers read that lack of confidence as low quality, even if they are not consciously aware of it.

Typography is the language that is seen. It not only conveys the meaning of words, but also communicates level, personality, and reliability before any words are read.

Ellen Lupton, Thinking with Type

Second mistake: materials and finishing wrong for the segment

Packaging materials and surface finishing techniques are two factors that customers perceive through touch and sight before reading any text. A thin plastic bottle, a loose cap, or a paper label often printed offset without surface treatment will immediately send a low-cost signal. This is unfair to the product inside, but it is the reality of how customers build their perceptions.

A common issue in the local market is that brands invest in ingredients but skimp on choosing printers and materials. They see this as a cost that can be cut. The result is a product priced at 300,000 VND placed in packaging that customers perceive as belonging to the 80,000 VND group. That gap cannot be compensated for by discounts or additional advertising.

38% higherThe price that customers are willing to pay for a brand is perceived as meaningful and distinctly different. Source: Kantar BrandZ, 2020.

Third mistake: colors borrowed from the wrong language

Color on cosmetics packaging does not work through the universal “color psychology” that many marketing materials like to cite. Color works within the competitive context and the segment conventions that have built up in customers' minds over time. Some local brands choose a pastel palette mixed with white and a thin typeface to look “premium.” But combined with an information-heavy label and too many secondary colors, the packaging ends up looking more like a grocery item than a mid-range or higher skincare product.

The reverse also happens. A brand picks deep colors and a dark casing to look “luxurious,” but the print quality and materials do not keep up. This creates a gap between intent and execution. In both cases, customers sense the inconsistency even if they cannot put it into words. Their reaction is doubt.

Fourth mistake: front information in the wrong order

The front of the packaging is the most valuable and poorly managed real estate in local product design. Pressure comes from many sides. The marketing team wants to highlight the claims, the legal department requires mandatory notes, while the brand owner wants the ingredient names to stand out. The result is often that the front becomes a compressed information sheet rather than a clear identity statement.

Brands in the premium segment often do the opposite. The front only features the brand name, product name, and at most one single claim. All other information is placed on the back or in an internal leaflet. This is the discipline of a brand that knows exactly what it is saying and does not need to say everything at once.

Transparent note: observations about design flaws in this article are drawn from field analysis on retail shelves and practical experience. This is not a quantitative survey with a representative sample. This is professional judgment, not statistical data. Each product and specific segment needs to be evaluated individually according to its competitive context.

How to read packaging as customers do

The simplest practical check: print or take a photo of your product, place it next to three to five competitors in the same price segment. Look from one meter away for three seconds, without reading any text, just observe the overall appearance. Then ask: which group does your product belong to?

If the answer makes you uncomfortable, that is the most important data you can collect without incurring market research costs. Packaging does not need to be perfect immediately, but it must communicate the right segment before any marketing costs are incurred. Marketing amplifies what already exists, not fixes what is sending the wrong signals.

A brand is the gut feeling of customers about a product, service, or company. You do not control that perception. You can only influence it.

Marty Neumeier, The Brand Gap

Good domestic formulations are not lacking in Vietnam. What is often missing is systematic investment in visual communication. Packaging is not the final cost of the production process; it is the starting point of value perception in the customer's mind.

References

Gergely Lindgaard et al., “Attention web designers: You have 50 milliseconds to make a good first impression”, Behaviour & Information Technology, 2006. Ipsos, “The Power of Packaging”, 2022. McKinsey & Company, “The Business Value of Design”, 2018. Byron Sharp, How Brands Grow, Oxford University Press, 2010. Marty Neumeier, The Brand Gap, New Riders, 2003. Kantar BrandZ, “Most Valuable Global Brands”, 2020.

Frequently asked questions

How can we tell if the packaging is communicating to the wrong segment?

The clearest sign is that customers often ask for the price before inquiring about the ingredients, or compare you with cheaper competitors despite actual quality differences. A simple test: place your product next to a competitor targeting the same segment on a flat surface, without looking at the labels, just observing the overall appearance. If your product looks like it belongs to the lower tier, the packaging is betraying the product.

Do we need to change the formulation when redesigning the packaging?

No. Packaging and formulation are two completely independent layers. Many local brands have formulations that are on par with or better than imported products, but the packaging sends a signal of lower value. Redesigning packaging is an investment in communication, not a change in the product.

Can a small budget improve the packaging?

Yes, and prioritization is more important than budget. The three biggest impactful points with low costs are choosing the right primary typeface, eliminating unnecessary elements on the front, and decisively choosing a consistent ownership color. These three changes do not cost much but significantly shift segment perception.