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YPB clocks up 75 million codes issued milestone
4 minute read
Product authenticity and consumer engagement solutions provider YPB Group Ltd (ASX:YPB) is experiencing increased demand for its proprietary QR codes known as “Protect Codes”, as well as accompanying subscriptions to the “Connect” platform both in Asia and Australia.
YPB brings packaging to life through its proprietary technology suite that provides certainty of authenticity and connects brands directly to consumers enabling new levels of market intelligence and ROI (return on investment) data capture.
In an evolving marketplace and with the rapid growth of cross border commerce, YPB’s expertise presently focuses on the rapidly growing consumer markets of Australia, South East Asia and China, but it is quickly gaining exposure to new regions.
Updating the market on recent developments, management said that the adoption of Protect Codes has accelerated in recent months and YPB has now broken through a 75 million “codes issued” milestone.
Protect Codes are supplied to the group’s brand customers to apply to their product packaging.
Consumers scan the QR codes to verify the authenticity of the product and the scanning process also triggers an opportunity for the brand to interact directly with their end customer through YPB’s Connect platform.
Connect reports consumer behaviour
The Connect platform is YPB’s proprietary software platform which is sold to customers as a SaaS offering that complements the use of Protect Codes and other YPB anti-counterfeit product markers.
The Connect platform receives data from consumer scans and provides subscribing brands with detailed information and reports on their end-consumer behaviors including the location, timing and other purchasing information that significantly adds to their market knowledge.
The Connect platform is sold on a monthly subscription (SaaS) basis and the codes are sold on a per unit basis.
As YPB’s markers are applied to more products the usage of the Connect platform is growing, resulting in a number of the company’s product customers having adopted the Connect platform.
Underlining the high margin revenues generated by the group, as well as the valuable benefits on offer to clients, YPB chief executive John Houston said, “The growing adoption of Protect Codes and the Connect platform is highly significant for us as it confirms the viability of YPB’s solutions and adds to our revenue base with high margin software subscription revenues.
“The unique insights into consumer purchasing behaviours that can be gained from the information generated by consumer scans and delivered through Connect can be highly valuable when applied to the brand’s future marketing and product development.”
Targeting resilient health and well-being sector
New clients include PT Combiphar which has come on board after successful trials on its first stock keeping unit - Indonesia’s most popular cough syrup line.
The pharmaceutical giant has agreed to adopt YPB’s Connect platform solution.
In another development, the company has gained exposure to the rapidly growing ‘vape’ market.
‘Cannabis Confirmed’ is a joint initiative between Namaste Technologies and YPB to provide an authentication and customer engagement solution to the rapidly growing “Vape” market.
Product authenticity is a significant concern in the cannabis market and brands are looking at innovative ways to connect with their consumers.
YPB has now signed four Vape suppliers to Cannabis Confirmed and is looking to extend the initiative to other e-commerce retailers in the sector.
In partnership with the Sydney-based tube packaging group, Impact International, an important joint venture has been formed with Kim Pai Lamitube in Europe.
Impact already applies YPB’s tracer to well-known Australian exports to China and has now agreed to offer the company’s Protect Codes for consumer engagement to its higher volume tube customers.
ASX listed group Cellmid Ltd (ASX:CDY) has also adopted YPB’s technology in order to protect the company’s rapidly growing évolis® product range which has recently gained approval for importation into the European Union, and is also gaining popularity in Asia and the US.
YPB is also expected to benefit from a widespread marketing campaign that the client is launching to coincide with their cannabis product launch.