Strategy
Foundation pillars of Duni's strategy
Leadership creates conditions for growth
The European market for single-use tabletop products is worth around €4 billion. Duni is the leader within the premium segment and market leader on many of its core markets, which creates conditions for acting as a trendsetter and proactively promoting the trend within the industry towards increased use of single-use products. The position as market leader also constitutes an advantage in discussions with customers in the HoReCa area and also within the retail trade, where shelf space is often given only to leading brands. The strong market position, brand and broad product range also contribute to maintaining strong margins. Duni's role as a market leader shall, therefore, be defended and further strengthened.
Duni's market share in Europe for its main products, napkins and tablecoverings, exceeds 20%, which is more than twice that of its nearest competitor. In addition, Duni enjoys a very strong position within the premium product segment, where prices and margins are higher. Thanks to its unique materials, high quality and design, Duni is by far the best known brand on the market. The brand is particularly strong among the most important customers, namely restaurants and hotels. The breadth and variation in the product range also distinguish Duni from its competitors.
Unique sales model
Duni's sales force devotes a great deal of its time to maintaining a regular dialogue with the end customers concerning the selection and use of Duni's products, while orders are placed with retailers (cash and carries) as well as distributors and wholesalers. The close relationship with customers creates customer loyalty and allows Duni to quickly receive signals regarding, and be able to adapt its range to, new trends and changes in demand. Duni also operates a web shop in order to further strengthen the relationship with its customers and increase access to its products. Thus, an additional direct channel to the end consumer has been created, with the possibility for greater dialogue, which at the same time increases flexibility and accessibility for potential customers.
Leader in product development, design and materials
Duni’s development of the colors, designs and qualities in its product range is an important component of the business model. Duni’s product range is regularly evaluated based on sales, profitability, and inventory turnover rate criteria. New and existing products are evaluated using the same criteria. In recent years, Duni has placed great importance on developing product concept work within the Company. A product concept development process has been implemented in which employees, customers and suppliers co-operate in order to create and evaluate product concepts. This increases the likelihood of success and of resources being focused on those products with the greatest potential on the market.
Duni’s design department constantly monitors trends by attending various trade fairs and shows on fashion, design and current trends, and with the assistance of external trend scouts. Market surveys and focus groups also provide information about trends and feedback regarding products. Duni’s sales force participates in the development work by means of a well-defined process in which the customers’ wishes and views are passed on. The graphic design is carried out largely by Duni’s own design department.
High renewal rate in the product range
A high renewal rate creates possibilities to adapt the product range quickly to changing trends, while at the same time giving Duni the edge over its competitors. Duni thus endeavors to have the highest product range renewal rate on the market. Approximately 25% of the collection is renewed every year. Materials development within the table top products category takes place in close co-operation between the marketing department, product developers and production managers.
Control over value chain and logistics
Control over the value chain reduces the price risk, increases delivery certainty, and provides possibilities to plan the renewal of designs and materials. Thus, Duni is an integrated company which controls the entire value chain (apart from raw materials) in respect of its most important products, namely napkins and tablecoverings. Approximately 70% of the products are paper-based and these products are generally produced within the Group; other products are purchased from external suppliers and are regarded as an important complement. The manufacture of tissue and airlaid takes place in Sweden, while converting to finished table top products takes place in Germany and Poland. Duni’s paper mills are specialized in the production and deep dyeing of short runs of high-quality tissue and airlaid, and consequently table top products can be offered in many colors and shades, with color matching between different materials.
Specialization in short runs means that Duni can quickly adapt the collections to the customers’ wishes. The majority of Duni’s production is made for stock. Duni’s central warehouses in Germany and a number of distribution centers handle distribution to customers.
Content
Nautic is a design which is available as napkin, tablecovering and sacchetto.
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