China is the main worldwide manufacturer of packaging machinery with around the 23% of the market share and almost a complete control of the affordable machinery sector. Its competitiveness is based on low prices supported by its inherent minor labour costs. This situation has pushed the reduction of the European market share from around 45% by 2007 to the current 20% nowadays with a total loss of the low-end segment. In order to recover this lost of competitiveness, Mac Due has been developing a new business model for the packaging machinery sector which pivots on the sales of equipment as assembling kits. This manner, the assembling cost are transfered to the regional dealers and automatically adjusted to the destiny country, circumventing the labour cost issue while it keeps the manufacturer margin profit. Besides, the dealers' role is upgraded to become the providers of post-sale services and maintenance, generating new revenues streams for them. This impact is finally translated to the end-user which can obtain savings of up 35% thanks to the previous cuts. With this project, Mac Due aims to offer a reliable alternative to the European packaging machinery sector whose success will open new opportunities to the whole machinery industry.
Fields of science
Call for proposal
See other projects for this call