Esquel Adopts YPB Group’s Anti-Counterfeit Proprietary Technology

YPB Group Ltd (ASX: YPB), a product authenticity and consumer engagement solutions provider, who through its proprietary technology suite brings packaging to life, announced on 27th May 2019 that Esquel Group Ltd- the world’s largest manufacturer of woven shirts, incorporated the company’s Anti-Counterfeit tracer thread into their clothing labels for two of their major brand clients.

The company recently finalised the Bracknor Facility.

Esquel received and responded to the demand for incorporating anti-counterfeit fibres in their clothing labels by the first of its “household name” brand clients.

Also, YPB recognized a gross revenue of RMB 100,000 or A$21,000 from the initial order of anti-counterfeit fibres from Esquel, and the company estimates that to protect their fibres from counterfeit, other Esquel brand clients would adopt the company’s proprietary anti-counterfeit fibres, and anticipates further orders based on unit volumes.

Esquel manufactures for various famous brands such as Hugo Boss, Ralph Lauren, Lacoste, Tommy Hilfiger, etc., and has over 57,000 staff members globally.

The company created a scanner which allows the brands to check the presence of its anti-counterfeit fibres in the shirt label, which in turn, enable the brands to identify counterfeit products and confirm authenticity.

On the technology front, the portfolio of the company’s product consists of Motif Micro technology since the QR Codes, are susceptible to be copied. To combat it, the company’s proprietary Motif Micro technology, a multi-patented and easily read by smartphones offers a solution.

Source: Company’s Report (4^th December 2018)

The current Chief Executive Officer of YPB, John Houston, mentioned that brands spend millions of dollars on building a market profile of quality products which would build the trust among consumers that gets undermined by counterfeit products. Mr Houston also mentioned that as cotton shirts are among the world’s most counterfeited items, it costs brand opportunity cost of sales revenue that goes undermined by counterfeiters.

As per the company, it can stop the process of counterfeiting that cost brands an opportunity cost, as it can halt counterfeiting in its track. The brands, which adopted the company’s anti-counterfeit fibres are progressively noticing the gain in value chain due to the adoption of YPB’s solution for counterfeiting.

Price Actions:

The share prices of the company are moving in a continuous downtrend from the level of A$0.400 (Day’s high on 19th October 2015).

The shares dropped in value from the level of A$0.400 to the level of A$0.215 (Day’s low on 31st March 2016), before retracting back to the level of A$0.310 (Day’s high on 25th May 2016).

Post retracing to the level of A$0.310 the shares of the company resumed the original downtrend and dropped to the level of A$0.135 (Day’s low on 27th July 2016), where once again the share prices noticed a surge to the level of A$0.255 (Day’s high on 9th January 2017).

After reaching the level of A$0.255, the shares of the company resumed the downtrend, and the prices are o a continuous fall.

The share prices of the company are now hovering in the range of A$0.064 to A$0.039. The level of A$0.039 marks the day’s closing for the shares (as on 27th May 2019).

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