New Markets Business Area

Growth on new markets according to plan

With an integrated acquisition in Singapore, the foundations are laid for continued expansion in Asia.

Business area strategy in brief:

  • Focus on four geographic areas: Southeast Asia, Russia, the Middle East and North Africa.

  • Continue to build on the acquisition of Song Seng and grow sales of premium products.

  • Develop the distributor network in regions where demand for Duni’s concepts is strong.

The New Markets business area sells Duni’s concepts and products in markets outside Europe. The business area includes the subsidiaries Duni Song Seng in Singapore and Duni in Russia, as well as exports to other markets such as the Middle East, Oceania, the rest of Asia, and North and South America. The business is primarily focused on the HoReCa segment and retail chains.

PROGRESS ON THE SINGAPORE MAIN MARKET

In 2013, Duni acquired Song Seng, a leading supplier of single-use products for food and drink in Singapore. The objective was clear. With the acquisition, a platform was created to enable Duni to take a serious step into the Asian market. The base also allowed Duni’s premium range to establish a foothold in Singapore and on other neighbouring markets.

The integration work in Singapore has developed with strong results. The head of the New Markets business area is currently stationed in Singapore in order to develop the business and cultivate the market from there. A strategy has been created for conducting the business. The result has already proven itself in the form of new and more profitable transactions, particularly with international hotel chains and catering firms.

Designed for growth

“Duni’s products are both needed and appreciated on a large number of markets outside of Europe. Since the acquisition of Song Seng in Singapore, we have strengthened our position in order to take Duni’s concepts further out into Asia.”

Patrik Söderstjerna, Director Business Area New Markets

FUNCTIONING MODEL FOR RUSSIA

The Russian market has long been of interest for Duni and has been cultivated over several years. The market has, however, been exposed to tough challenges. Therefore, the organization has developed methods that better enable it to withstand external negative effects. One key factor has been reducing the financial exposure to the market. This has been achieved through successful work on implementing changes as regards an optimal business model, adapted organization, streamlined product range and improvements within the supply chain.

OTHER MARKETS

Other large and important markets including the Middle East with the UAE, the US and Australia, where sales to hotels account for most of the turnover. It is primarily Duni’s premium range that is popular. There is still a great deal to do in terms of providing information about the advantages of Duni’s unique materials compared with cloth and linen products. The sales corps’ ability to understand each customer’s circumstances and sell in Duni’s premium range is crucial for success.

GOODFOODMOOD® IS WELCOME

Duni’s new vision of delivering a holistic concept in the form of Goodfoodmood® has been well received, also in conjunction with launchings on new markets. A positive effect is obtained by being able to add softer values that do not merely involve product and price. It is also important to foster and communicate Duni’s brand internally within the business area. This creates employee commitment and loyalty, which are important not least when stationed far away from the home market.

POSITIVE PROSPECTS

The two years during which Duni has been established in Singapore have been instructive and provided important insights. Going forward, focus will be placed on growth in selected regions where the potential is greatest.

Net sales and operating income, SEK m
Net sales per geographic region, %

Customer categories

Cafes

Fast food

Full-service restaurants

Hotels

Take-away

New Market’s Markets

Own personnel; Dubai, Russia and Singapore.
Sales take place via distributors.