China Sales Revamp Bears First Fruit, Further Momentum Expected
Sydney, Sep 3, 2018 AEST (ABN Newswire) - Anti-counterfeit and customer engagement solutions provider YPB Group Ltd (
ASX:YPB) has secured its first significant clients with a powerful new distribution partner in China, CCN Technologies. This follows a rebuild of YPB's China sales capability, culture and market approach begun in April 2018. The possibilities in this new relationship mark it as the most significant commercial step by YPB in China since inception due to the scope of the opportunity. It also implicitly validates the quality of YPB's core anti-counterfeit solutions.
- CCN Technologies new channel partner in China
- First clients global majors in automotive and oil
- Most significant commercial milestone since YPB has been in China
- Validates advantages of YPB anti-counterfeit technologies
CCN Technologies is a provider of anti-counterfeit technologies globally. Under a 3 year Master Services Agreement, CCN Technologies will supply YPB's patented, covert forensic anti-counterfeit tracer to its clients who will integrate YPB's tracer into their production processes.
Two clients have been secured:
- The first is one of the world's leading automotive producers who will use YPB tracer to protect after-market spare parts. Headquartered in the USA, it has a number of production sites throughout China and sells within China and exports globally.
- The second is one of the world's leading oil companies who will use YPB tracer to protect lubricant within China from counterfeit. The lubricant market has seen a rapid increase in counterfeit over the past few years globally.
CCN Technologies has numerous powerful, large clients of the above calibre and YPB and CCN will work together to protect more clients from counterfeit with YPB's advanced solutions.
Market access in China has been extremely difficult for YPB. The original sales strategy of partnering with existing players as channels to market was rekindled in April 2018 but with a sales team reinvigorated with specific skills and contacts. The team is clearly building momentum and this relationship with CCN Technologies and its clients is the first validation of the team and strategy.
It is also significant that an anti-counterfeit specialist such as CCN has chosen to include YPB's technology in its client offer. The implicit imprimatur of YPB's technologies is notable. The contract with CCN will commence in September 2018 and will initially be a moderate revenue contributor to YPB.(see Note below)
YPB's Executive Chairman John Houston said: "Although we have achieved relationships with other channel partners in China in the past, most have proven disappointing. By contrast, CCN Technologies has already delivered clients of exceptional quality and scale, surpassing anything in our past and with further opportunity ahead. The new client relationships via CCN also open up new market verticals for YPB in Automotive, Petroleum and Lubricants in all relevant geographies. We are intent on making YPB China profitable and this first fruit of our refocused strategy is a significant stride toward realising that intention. I look forward to building a lucrative and mutually beneficial relationship with CCN."
Note:
Please note:
Modest revenue contribution: < AUD100K per annum
Moderate revenue contribution: > AUD100K < AUD1m per annum
Major revenue contribution: > AUD1m per annum
About YPB Group Ltd
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