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YPB Group (ASX:YPB): A frontrunner in servicing the global need for better brand equity

Sponsored, Thematic Insights
ASX:YPB
21 July 2022 11:56 (AEDT)

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Consumer behaviour is rapidly changing, and customers are demanding detailed product information, greater product transparency, and more ways to verify product authenticity.

Whether it’s nutraceuticals, infant formula, cannabis, or wine and spirits, brands are slowly losing the war against the omnichannel marketing process.

ASX-listed YPB Group (YPB) is helping bridge the gap between the physical and the digital world and helping brands again build one-on-one relationships with their customers.

The company has developed unique end-to-end digital and material science solutions for consumer brands and governments to safeguard document and brand security, improve customer engagement and ultimately build brand equity.

In doing so, the company has placed itself at the forefront of an emerging opportunity across multiple industries as more businesses shift to eCommerce models and customers begin to transition more of their lives to the online world.

At its core, brand equity is all about how customers perceive a brand and the relationships businesses develop with their users. It’s far more difficult to build this relationship online than in traditional brick-and-mortar stores, and so demand for effective brand equity solutions is increasing across the globe.

YPB’s proprietary technology solutions are designed to answer this need. The company provides crucial brand protection and effective consumer engagement solutions for multiple sectors — from government excise stamps and document markets to fast-moving consumer goods (FMCGs) — to improve all facets of brand equity.

How does YPB help?

YPB noticed that the global shift from in-store shopping to online commerce brought with it a higher risk of counterfeiting and made it more difficult for brands and businesses to know their end customers.

YPB’s technology helps bridge the physical and digital divide to address this issue: the unique technology solutions are designed to provide several layers of protection to authenticate products and engage with customers no matter where the product sits within the supply chain.

From microparticle tracer technology that can be integrated into specific products to scannable anti-copy authentication tech and forensic smartphone-readable solutions, YPB can offer protection to all kinds of products in any sector.

YPB’s technology suite makes it virtually impossible for counterfeiters to deny brand equity, meaning customers can be certain they are getting genuine and quality products.

Meanwhile, hand-in-hand with YPB’s technology is its consumer engagement and authentication solution.

This range of technology allows consumers to scan products using nothing but their smartphones to connect to the cloud-based YPB Connect platform.

For customers, this means greater trust in the YPB-supported product and loyalty to the brand. For the business, this means a major reduction in overheads from no longer needing to rely on third-party data for customer insights.

The technology helps brands effortlessly form a unique relationship with their customers in the growing age of eCommerce and strengthens customer engagement across all aspects of a business.

This combination of brand protection and consumer engagement positions YPB as a one-stop shop for building brand equity.

Effective solutions in any industry

YPB is focused on the Australian, South-East Asian, Chinese and US markets, operating in product verticals including dairy products, identification documents, alcohol brands, FMCG manufacturers, global packaging and more. The company’s target markets represent billions of items and are growing rapidly.

For example, according to YPB’s research, counterfeit wines and spirits cost the global wine and spirits market upwards of $3.18 billion in sales. Yet, the company’s addressable market is far, far bigger.

According to market researcher Grand View, the anti-counterfeit packaging market alone is pegged to reach US$185 billion (A$274 billion) by 2025. This is not to mention the customer engagement aspect of YPB’s tech.

YPB offers smart packaging and brand protection services to the nutraceuticals and supplements industry, as well as crucial anti-counterfeiting and product transparency technology to the infant formula industry.

However, the accessibility and flexibility of YPB’s tech range mean its applications can span across a multitude of industries, from government document protection to luxury brands, medicine and raw materials.

What does this mean for investors?

Brand equity has always been tantamount to a business’ success, but the need for brand protection, quality products and customer engagement is more important than ever in the era of online commerce.

YPB is striving to capitalise on the major opportunity available in this field by developing proprietary technology to service multiple industries.

With shares in the company trading at around one cent per share in a manageable $3.7 million market cap, YPB’s technology platform could offer valuable rewards to investors who support the company’s goal of becoming a global leader in brand equity development.

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