- New channel partner serves a broad range of consumer goods producers in Thailand
- Rapid progress is being made in Thailand market entry plan
Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) is pleased to advise that it has secured a Master Services Agreement (“MSA”) with a third channel partner in Thailand, Jirawattano Co. Ltd. (“Jirawattano”). Jirawattano offers YPB immediate access to a broad range of consumer goods industries in Thailand that produce high volume, recurring demand products. Jirawattano’s clients hold the prospect of yielding meaningful, recurring volumes for YPB’s solutions – although any assessment of such possible volumes is not able to be quantified.
Bangkok-based Jirawattano provides a best solution sourcing service to a variety of consumer goods companies in Thailand across a range of printing and packaging products including brochures, manuals, leaflets, labels, bottle labels and cap seals amongst others. Jirawattano determines and sources the best fit and best value products from printers and packaging suppliers for its customers including KCF (Kasemchai Food), GFPT, Biofresh Meat, Suree Interfood, Freedmind, Big C, Le Skin, and a number of electronics and appliance companies.
The MSA is for a three-year term and gives Jirawattano the right to promote and sell YPB’s product authentication technologies to its existing customer base and new potential customers in Thailand. Under the agreement, Jirawattano will earn a commission of 12% of YPB’s revenues on every purchase order. The Company notes that the impact on revenue is indeterminate at this time as it is driven by the ability of Jirawattano to secure purchase orders.
As with the partnership announced recently with Specific Products for the Thailand tobacco and tax stamp industries, Jirawattano undertook considerable due diligence on YPB’s Connect Platform and T2 Tracer. Its decision to actively take YPB’s current generation products to its customers is a further endorsement of both their technical strength and commercial relevance. Jiarawattano’s motivation is also in part to help reduce the cost of counterfeit to its customers and their consumers, given the scale of counterfeiting in Thailand.
YPB Group CEO John Houston said: “Thailand and the broader ASEAN region represents a significant opportunity for YPB that, to date, has not been developed. Given the infrastructure of our Technology Head Office in Bangkok, the size of the Thai market with nearly 70 million inhabitants and the high incidence of counterfeiting, we are well placed to grow a meaningful business in Thailand. Our new strategy has been to employ sales resource with an extensive, relevant network we have quickly established access to potentially large, high recurring volume customers. If our revenue base grows as expected, we will successfully leverage our established position in Thailand. It is the multiplicative power of our channel partner strategy that has the potential to result in strong revenue growth with strong profit leverage as each incremental dollar of revenue incurs minimal incremental cost. This leverage is the core of our drive toward profitability and a self-funding business.