Strategy
Position as market leader creates conditions for growth
The European market for single-use tabletop products is worth around SEK 35 billion (EUR four 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.
Unique sales model
Duni's sales force maintains 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. This entails an additional direct channel to the end consumer, with the possibility for greater dialogue, while at the same time increasing flexibility and accessibility for potential customers.
Leader in product development, design and materials
Duni’s development in terms of colors, designs and materials constitutes an important aspect of the business model. The 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 (see Brand & Design).
One quarter of the collection is renewed each year
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 in all essential respects produced within the Group, while other products are purchased from external suppliers.
Specialization in short runs enables Duni to adapt the collections quickly to the customers’ wishes. The majority of Duni’s production is made for stock. Duni’s central warehouse in Germany and a number of distribution centers handle distribution to customers (see Production and distribution).
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