Could you provide an introduction to Quadpack and its journey since 2003?
Quadpack began in 2003 with three founders who united their small trading businesses across Spain, France, and the UK to help beauty brands perform – which remains our mission to this day. Originally, our model was 100% trading, connecting European brands in need of innovative packaging with solutions from Asia. This initial venture was fueled by a scarcity in packaging solutions, and it offered Western brands an easy avenue into the Asian market. Over time, our focus on aiding beauty brands expanded, and we saw the need for our own manufacturing capabilities. Beginning in 2013, Quadpack started acquiring companies to bolster our manufacturing prowess, starting with wood specialization near Barcelona. By 2019, we acquired three factories in Germany, emphasizing state-of-the-art decoration and injection molding techniques for PET – a highly recyclable material favored in packaging. Today, our model is a hybrid: 50% of sales come from our own innovations and manufacturing, and the other half from the original trading model. Our distinctiveness lies in our ability to fuse market needs with various competencies. Additionally, our ethos as a purpose-driven company has remained steadfast.
We’re dedicated to looking after and giving back to future generations, demonstrated through our B Corporation status and our foundation's mission to support underprivileged youth in the communities that surround us.
How do you keep pace with the needs of the cosmetics industry, especially regarding sustainability and innovation?
Our approach is indeed needs-driven, but it also involves anticipating trends. We invest in market insights, understanding macro trends, beauty shifts, and brand dynamics. One undeniable change we've observed is the industry-wide emphasis on sustainability. Regulatory landscapes are also shifting, and our teams constantly monitor these evolutions to adapt accordingly. Historically, our DNA is rooted in partnerships. Our teams, especially in Asia – a hotbed of beauty innovation led by countries like South Korea – are always scouting the latest advancements. While we do cater to explicit needs, part of our role is to stay ahead and make informed suggestions to our customers, giving them a glimpse into the future.
Has the business dynamic changed, especially concerning the supply from APAC to Europe and the US?
It's a cyclical phenomenon. Initially, Europe pioneered innovations in areas like glass-making for perfumes, and the US in closures. However, Asia, with its deep-rooted beauty culture, eventually surged ahead in packaging innovations. But recently, two significant trends have influenced a shift. First, the disruptions during COVID-19 underscored the risks of relying heavily on one region. This spurred a drive for more localized suppliers. Second, sustainability concerns made it less acceptable to source components globally when they can be produced locally. Both trends catalyzed a reversal, pushing for regional production. We've aligned with this shift by heavily investing in manufacturing in Europe for the European market.
Given the disruptions in the supply chain due to factors like COVID-19, how do you manage, particularly with your focus on delivering localized products for sustainability?
50% of our supply consists of our own products, primarily manufactured in Europe for European customers. This strategy mitigates supply risks. Moreover, we are launching a program in the US, producing locally in collaboration with regional partners. This approach aligns with our belief that we cannot excel at everything, and we need to identify the best solutions for us and our customers. Leveraging local resources helps alleviate supply chain pressures by catering to local needs.
From a sustainability and technological innovation perspective, how does Quadpack plan to be a trailblazer in the coming years?
We operate at the crossroads of various sectors, emphasizing interconnectedness. Instead of relying solely on our own innovations, we harness collective strengths to be agile and responsive to market needs. The beauty industry is intricate, with large brands managing their complexities. But for mid-sized and smaller brands, navigating this terrain can be challenging. Our proposition, especially to these businesses, is a simplified route to secure packaging that meets future sustainability regulations. Furthermore, our academic partnerships help us keep a long-term view of the future on various fronts, from regulatory and digitalization impacts, to evolving workforce aspirations. We also foster young talent through mentorships and trainee programs, which in turn give us insights into new generational thinking.
Can you share some insights in how to create strong, strategic partnerships?
Success in partnerships begins with humility. In industries where intellectual property and internal resources are paramount, thinking outside the box can be challenging. Our model revolves around identifying the right partners and nurturing win-win relationships, always considering how we can mutually benefit. This agility and determination to find solutions form our foundation. Coupled with our intent to act responsibly – our purpose is taking care and giving back for future generations – this partnership-centric approach and commitment to impactful business practices form our "secret sauce".
Considering the dynamism and resilience of the cosmetics industry, what concerns you the most?
The cosmetics industry is ever-evolving, driven by innovation, creativity, and consumer behavior. What excites me is the continuous momentum and the industry's growing focus on sustainability. Earlier, aesthetics overshadowed sustainability, but this perspective has transformed. Our industry's transition, with a focus on recyclability and localization, among other trends, is exhilarating. However, the challenge lies in ensuring responsible transformation while staying attuned to shifting consumer demands.
With Quadpack’s notable growth over the past decade, both organically and through acquisitions, what key commercial milestones can we expect in the near future?
Our vision for Quadpack’s growth is multifaceted. Firstly, we aim to establish a "Creative Hub" to boost our innovation and connect more deeply with brands. Customer journey enhancement is another priority, ensuring we provide the best experience and solutions to the brands we serve. Central to our strategy is our partnership model. We plan to launch a partnering hub in 2024, a space (either virtual or physical) for collaborative efforts, ranging from co-creation to co-selling. Lastly, our entrepreneurial foundation remains crucial. We'll introduce "growth capsules," internal projects focusing on nurturing innovative ventures, and fostering entrepreneurial talent within the company. These pillars will guide our journey in the upcoming years.
