Automate your factory with Business Made Easy for Industry 4.0
The Disposable Hygiene market in 2022 is much more challenging than it was just two years earlier[1] . Companies are now dealing with a harsher environment, ravaged by multi-decade high inflation[2] , supply chain bottlenecks[3], fast-rising interest rates[4], a looming currency crisis[5][6], and, last but not least, war at the very border of Europe[7].
And yet, despite these difficulties, Disposable Hygiene players remain upbeat about the future, concentrating on new product development, partnerships and line upgrades while they wait for new capacity to be used and supply issues to ease. These manufacturers concur that the rate of Disposable Hygiene growth throughout the majority of application areas is still strong[8]
Now more than ever, innovation is essential. Companies are searching for a competitive edge that will set them apart from their rivals. That is why GDM has been developing Business Made Easy for Industry 4.0, a brand-new Disposable Hygiene solution designed to eliminate the complexity of this unpredictable landscape and help industry players meet — and even exceed — their business goals.
The Disposable Hygiene market 2022: what is going on?
Emerging markets in Asia-Pacific, Middle East and Africa
In the APAC region, Middle East and Africa, the main story is about local firms stealing the spotlight from established corporations. Indeed, mid- to lower-tier businesses continue to be the norm. Between 2016 and 2021, as consumers gravitated toward well-established and more affordable players, Private Labels experienced massive growth, fuelling a meaningful increase in interest among local brands (particularly in the Baby sector). To exploit the surge in demand and secure a competitive advantage, brands in the area have stepped up their R&D efforts, grown their distribution network and ensured retail availability and visibility through multichannel marketing, major shopping events and celebrity endorsement[9].
With more and more consumers demanding affordable, eco-friendly, health-forward products, Private Labels had significant sales and market share growth in 2021 — so much so that in Asia-Pacific, Middle East and Africa they now account for more than a third of the market share in the retail Disposable Hygiene sector[10]. What is the secret ingredient of this huge success?
Simply put, Private Labels are digital savvy. In 2020, they took advantage of the e-commerce boom driven by shelter-in-place orders. Smaller players, for whom size is often a limiting factor, managed to compensate for unfavourable payment cycles and the lack of bargaining power with a strong social media presence and a technology-aware digital strategy.
Western Europe and North America
In Western Europe and North America, retailers are increasingly picking up on trendy product qualities and tightening their relationship with leading manufacturers, as seen with the emergence of the eco-friendliness + pant format. In this landscape, Private Labels hold a large market share (25 percent in Western Europe and 19 percent in North America)[11], playing a similar function to their counterparts in emerging nations.
Many factors have contributed to their growth, such as Private Labels’ wide retail footprint, increasing price sensitivity among consumers and a shrinking quality gap with name brands.
Other geographical scenarios
Outside of Western Europe and North America, a pricing strategy in line with consumers' mounting demand for value for money has been Private Labels’ main selling point, particularly in underdeveloped nations where Private Labels are frequently seen as a cheaper surrogate to national brands.
Because of this, many stores are becoming eager to invest in their own hygiene line-ups to increase quality and brand recognition and support long-term success. As economies progressively recover from the pandemic's effects and small retailers work to eventually compete with big brands, this trend is likely to gain traction[12].
Business Made Easy meets Industry 4.0
In the Disposable Hygiene sector, a significant overhaul of the digital strategy is taking place. Industry players are sailing into a sea of troubles: on the demand side, consumers are increasingly price sensitive; on the supply side, companies are dealing with too large inventories and global logistics issues, leading to a pernicious Bullwhip Effect[13] across the board.
Simplicity has been more in demand among industrial clients: with increasingly price-sensitive consumers chasing fewer goods with high-performing, eco-friendly features, the result is a tougher competition and rising production costs for manufacturers and industry players. That's why more and more companies are looking for a technological moat[14] to simplify operations, reduce production costs and improve quality and output.
This is not an industry-specific phenomenon, but a global all-encompassing trend. All over the world, simplicity earns a premium: 76 percent of people are more likely to recommend a brand that delivers simple experiences. According to estimates by brand strategy firm Siegel+Gale, companies that don't provide simple experiences collectively leave $402 billion on the table[15].
In light of this shifting market environment, GDM has added more and more arrows to its quiver, transitioning from a company that is solely focused on converting and packaging up to one that, with Business Made Easy, is able to optimize the customers' value chain through a rich portfolio of digital services, such as remote support, assisted trouble-shooting, guided maintenance, digital documentation, connectivity, performance analysis and even end-of-line, on-demand automation via FlexLink.
No longer just a manufacturer and supplier, in the last few years GDM has morphed into a unique technological and consulting partner that provides 360-degree support along the entire customer journey, from order entry to shipment and afterwards.
And now, with Business Made Easy for Industry 4.0, GDM is reinventing its role once again: from a vertically integrated industrial manufacturer to a key player in the Industry 4.0 landscape.
Business Made Easy for Industry 4.0: from digital services to factory automation
Scaling the automation model from the machine to the factory level, GDM is now able to ensure the complete digitization of the manufacturing process thanks to an integrated approach for real-time monitoring and remote assistance support.
After the huge success of OptiMate, GDM optimizes the Disposable Hygiene production process with a new and upgraded portfolio of digital Industry 4.0 solutions, such as PerforMate and HyperMate.
PerforMate is a brand-new IIot platform for full-scale, real-time machine monitoring. By leveraging machine learning algorithms running on Coesia's proprietary cloud infrastructure, PerforMate provides a bird's-eye view of the production line through a personalized, easy-to-use dashboard, combined with asset monitoring, loss tree analysis, trends and alarm notifications.
HyperMate, on the other hand, is a cutting-edge factory automation solution that runs your production plant on autopilot. Through wireless sensor networks and AI, HyperMate raises your productivity to a whole new level, turning your factory into a full-fledged, 21st-century Smart Factory.
Want to beat your competition? Get in touch and discover our portfolio for Industry 4.0 before anyone else. We will guide you through this complex manufacturing scenario and unlock the full potential of your factory.