Consumer business area
INCREASED AWARENESS OF CUSTOMER NEEDS YIELDS RESULTS
Specific solutions directly meeting customer needs are the way forward.
Business area strategy in brief:
To be the natural business partner for the European grocery retail trade
Operate the category together with the grocery retail trade based on a customer and consumer perspective
- To be a part of each customers business model through a high level of flexibility and excellent service offering, both for Duni’s own brand and for each customers private labels
Business area Consumer markets consumer products such as napkins, tablecoverings, serving products and candles, under its own brand and under the customers’ private labels. The largest channels are the grocery trade and retail outlets in Europe, with Germany being the largest market.
A CHANGING MARKET
The trend of creating a convivial atmosphere with designed products is continuing. A wealth of table setting ideas and Goodfoodmood® moments are shared through established social media. At the same time, there is increased awareness of sustainability, and demand for environmentally profiled table setting products continues to increase. Duni is well-positioned to meet these needs. The retail trade in Europe is continuing to grow at around 2% annually, while Consumer lost some ground last year. During the year, it was not possible to compensate in full with new customers for the loss of several major customers in 2015.
GOOD DESIGN IS DRIVING THE MARKET
There is a clear demand for good design, which is driving the market trend forward. This is precisely the reason why the acquisition in 2014 of the German company Paper+Design is important for Duni. The company possesses expertise within design and printing technology and has contributed with great value to the Group. As a result of the acquisition, Duni has now achieved a significantly broader customer base thanks to access to several retail channels in Europe.
“Our strength lies in creating products that provide added value by meeting the end customer’s desire for good design and function.”
Anna Lundqvist, Director Business Area Consumer
THE CUSTOMER COMES FIRST
During the year, work has continued on devising the optimal structures for customer contacts. It is clear that the major chains desire individualized solutions, an area Duni has worked methodically for during a number of years, and the organization has therefore been adapted accordingly. All issues ranging from customer categorization to logistics and service are now handled to an even greater extent based on the customer needs. As a natural consequence, the success of service, products and displays is more accurate.
FOCUS ON THE ENVIRONMENT
The work on developing an environmentally profiled product range continues. Duni’s products are environmentally certified in accordance with Svanen®, FSC® and OK Compost®. A product series using the environmentally adapted material bagasse is also something that sticks out. Many of the products have been brought together under the ecoecho® name, a brand which entails exacting demands for, among other things, compostability and recyclability. Trends point to an ever greater share of future sales coming from this product range.
EXTERNAL DESIGN COLLABORATION
The Designs for Duni® concept was created in 2013 in order to signal Duni’s ambition to offer top class design. By introducing limited editions designed by high profile external designers, the idea is to reach out to an even wider audience and create visibility. The concept has proved to be extremely popular and each launch is eagerly anticipated.
In 2016, cooperation was announced with the Swedish label, Jobs. The sisters Lisbet and Gocken Jobs are known for their beautiful, unique designs from the 1940s. Five of their patterns were launched on Duni napkins during the Formex trade fair in Stockholm at the beginning of the year, attracting considerable media attention. Customers have praised the collection, which also serves as a reminder that good design withstands the test of time.
|Net sales|||Operating income|
|Net sales, %|
|Net sales, %|
|Southern and Eastern Europe||7|
|Rest of the world||6|