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YPB passes the 100 million QR code mark
3 minute read
Product authentication and consumer engagement solutions provider YPB Group Ltd (ASX:YPB) reached the significant milestone of over 100 million proprietary QR codes known as “ProtectCodes” issued to existing customers of the company’s Connect platform.
This represents another important milestone for the group which has continued to expand quickly in fiscal 2019.
In May, YPB announced that it had reached a milestone of 75 million “ProtectCodes” issued, a level that had been reached in around 24 months from the launch of Connect.
In the past two months, YPB’s cannabis and pharmaceutical customers (predominantly) have now accelerated the uptake to 100 million, with over 29 million codes being issued in the past 60 days.
The company’s growth rate and news that it had recently negotiated a Master Supply Agreement (MSA) with cannabis extraction specialist Halo Labs has attracted significant investor interest.
The MSA was formalised in mid-July, and since then the company’s shares have increased by 60%.
Protecting brands and providing security solutions
As a backdrop, YPB's proprietary smartphone enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumer engagement.
The combination of YPB’s smartphone authentication solutions and its SaaS Connect platform, creates ‘smart’ product packaging, opening cost-effective, digital and direct marketing channels between brands and their consumers.
Connect gathers actionable data on consumer preferences, allowing it to host tailored marketing campaigns directly back to the scanning smartphone.
YPB’s technology is also trusted by the world’s largest passport issuing nation to ensure the authenticity of its passports.
Management is currently focused on the rapidly growing Australian, South East Asian, and Chinese markets.
Its focus is dairy, cannabis, alcohol and cosmetics where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers.
YPB’s technology has recently been adopted by one of Australia’s leading winemakers in Seppeltsfield as the group strives to protect its premium products, particularly in export markets.
Suppliers receive protection and consumer data
The potential for sustained growth appears achievable given the benefits that YPB’s technology offers, as well as the vast size of the markets that it could tap into.
YPB’s Connect platform is sold to customers on a monthly subscription SaaS offering that complements the use of ProtectCodes which are sold on a per unit basis in connection with other YPB anti-counterfeit product markers.
As YPB’s markers are applied to more products the usage of the Connect platform continues to grow.
The Connect platform receives data from consumer scans and provides subscribing brands with detailed information and reports on their end-consumer behaviours including the location, timing and other purchasing information that significantly adds to their market knowledge.
Commenting on the significance of these developments, as well as underlining the opportunities that are likely to stem from the release of the group’s new Motif Micro technology, YPB chief executive John Houston said, "We were delighted when YPB reached the 75 million codes issued milestone in May 2019, and now more so that we have exceeded 100 million codes issued.
“This uptake of ProtectCodes and Connect completely validates the time and investment into our Connect SaaS platform.
“It also validates the rapidly growing need for product authentication and when Motif Micro is released commercially it will perfectly complement that revolutionary product.”