Consumer business area

BETTER CUSTOMER INSIGHTS LEAD TO A STRONGER CUSTOMER OFFERING

The Consumer business area markets and sells napkins, table covers, serving items, candles and other table top accessories via the grocery retail trade and retail outlets. Sales are both under the Duni brand and under private label. The Consumer business area also includes the wholly-owned German company, Paper+Design.

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 customer’s business model through a high level of flexibility and excellent service offering, both for Duni’s own brand and for each customers’ private label

CLEARER CUSTOMER FOCUS

To increase customer insights, Consumer conducted extensive customer segmentation work during the year. This was based on customer needs, purchase criteria and desired service levels. The work created a deeper understanding of what the customer wants as well as what is less important to the customer. The segmentation also provides guidelines for how the business area should be organized and for how product development can better meet customer needs.

SYNERGIES AND THE DUNI SPIRIT

In 2017, the organizations in Paper+Design and Duni’s sales companies became closer and increased their cooperation. The work has helped to create a clear and common Duni spirit that facilitates the exchange of knowledge and experience, thereby enabling synergies that make it possible to provide a customer offering that is even more relevant.

STRATEGIC PRODUCT DEVELOPMENT

The work with customer segmentation confirms that the chosen strategy with increased focus on environmentally-sound products is the right path to take. Customer demand for sustainable products is on the rise. This goes hand-in-hand with Duni’s development of sustainable product concepts. Work continues with several new products that will fulfill ecoecho® criteria. The focus on adapting the range to ecoecho comes down to strategic product development linked to market development. It is a step that is both necessary and the obvious choice. In 2017, the initiative was intensified as regards products of this type as well as building concepts and communicating environmental benefits.

Net sales for the business area amounted to SEK 1,010 m (1,039), corresponding to a 3.6% sales increase at fixed exchange rates. Operating income was SEK 57 m (65) and the operating margin was 5.6% (6.2%). Income for 2017 reflects lower sales and the contribution margin was reduced accordingly.

GOOD DESIGN AND FUNCTIONALITY

Autumn 2017 saw the introduction of the Amazonica collection, which is the result of a partnership with the design duo Bernadotte & Kylberg. It is a series of single-use items for the set table made of various plant-based materials, such as bagasse, CPLA and FSC-certified biomaterial. Amazonica has a prominent design in terms of both appearance and functionality, with the idea that the food should always be the primary focus. It also shows that environmentally-conscious production, good design and functionality are the future. At Duni, we consider it an important and competitive advantage to meet market demands and create commercial benefit.