Inside Pantone, the Company That Turns Color Into Money | WSJ The Economics Of

Summary

The video explores Pantone's transformation from a printing company to a color authority, driven by Lawrence Herbert's vision of color consistency. Pantone creates standardized color formulas to ensure uniformity across various products and surfaces, essential for brand identity. The company generates revenue through physical color guides and consulting services, including creating exclusive colors for major franchises like Universal Studios' 'Minions.' Pantone's marketing campaign, centered on the annual Color of the Year, keeps them relevant in the creative community. As the industry shifts from physical to digital, Pantone continues to evolve its services to maintain color consistency.

Takeaways

• 🎨 Pantone's 2024 Color of the Year is Peach Fuzz, but the company's focus is not solely on selling colors.
• 📦 Pantone primarily sells a promise of uniformity, ensuring colors look the same across various products.
• 👨‍🔬 Lawrence Herbert, known as the king of color, transformed Pantone from a printing company into a leader in color consistency.
• 📊 Inconsistent product packaging used to be a significant issue, with different factories mixing their own versions of colors.
• 🔬 Pantone developed a system of formulas to standardize color production across different manufacturers.
• 🟦 Color is vital to brand identity, exemplified by Tiffany Blue, which is a trademarked shade.
• 📚 Pantone offers over 10,000 colors in its formulations, which are compiled into various Color Guides.
• 💰 Pantone generates revenue from physical guides, which can range from $700 to $9,000, and through consulting and licensing.
• 🌈 The company ensures color accuracy through a rigorous quality control process using tools like the Spectrophotometer.
• 📈 Pantone's marketing campaigns and annual Color of the Year announcements help maintain its status as a color authority.

Q & A

What is Pantone's 2024 Color of the Year?

The 2024 Color of the Year is Peach Fuzz.

How does Pantone primarily generate revenue?

Pantone generates revenue by selling color consistency through its color guides, consulting services, and digital services, rather than directly selling paint or colors.

Who is Lawrence Herbert, and what is his significance to Pantone?

Lawrence Herbert is known as the 'king of color' and transformed Pantone from a printing company into a leader in color standardization after he bought the company in 1962.

Why was color consistency important for companies like Kodak?

Color consistency was crucial because variations in color across different packaging could mislead consumers into thinking products were outdated, affecting sales.

What role does Pantone's color system play in brand identity?

Pantone's color system allows companies to maintain a consistent brand identity by ensuring that specific colors are reproduced accurately across different materials and formats.

What tools does Pantone use for quality control?

Pantone uses a tool called a Spectrophotometer to compare colors across different surfaces, ensuring they match their official index.

How many colors are in the Pantone color system?

Pantone has developed over 10,000 colors in its color system.

What is the price range for Pantone's color guides?

Pantone's color guides can cost between $700 for essentials kits to about $9,000 for comprehensive color display towers.

Can companies trademark specific colors?

Yes, companies can trademark specific colors, which prevents others from using those colors for competing products, but Pantone's color guides are available for use in communication.

What recent ownership changes has Pantone undergone?

Pantone was sold to X-Rite in 2007, acquired by Danaher Corporation in 2012, and then spun off with X-Rite into Veralto Corp. in 2023.

What future directions is Pantone considering?

Pantone aims to adapt to the transition from physical to digital products while maintaining color consistency across formats.