New strategy for Avanquest
Ambition 2017: sales surpassing €140M and double-digit profitability
Following its shift to online activities, which helped maintain its sales above €100M (with more than 45% of that online), Avanquest is today introducing its strategy to bring the Group into a new cycle of value creation in a constantly evolving digital marketplace.
Since Pierre Cesarini came aboard as the Group’s CEO, the management team has made some changes which should put it back on the path of sustainable performance and strengthen its position as a leading player in the sector.
This new strategy is intended to:
- Refocus the Group on its growing activities and promote their organic growth
- Concentrate its future developments in significant strategic markets
- Return to a product culture within the company, based on innovation and differentiation
- Capitalize on its advantages: innovation, international dimension and multichannel distribution network
One focus in two markets: Personalized Digital Creativity and Connected Devices
As part of this strategy, the Group has identified its future growth drivers in two high-potential markets:
1. By relying on its solid positions in the area of personalized digital creation (€30M in sales for financial year 2012-2013) and especially web-to-print (remote photo printing services), Avanquest has anticipated the mobile revolution in this sector and invented the concept of mobile-to-print – the easiest and least expensive way to print your smartphone phones.
- Today 1.4 billion photos are taken each day with smartphones, but they are almost never printed. That is why Avanquest developed FreePrints, an application that lets you print up to 1,000 photos from your mobile phone.
- This completely unique and innovative concept has already been launched in the United States, where 3 million photos were delivered in 3 months. The FreePrints application is now available in France on iOS and Android and will be launched in the United Kingdom and Germany in early 2014.
- With a business model based on the monetization of these new clients, especially with the complementary offer of web-to-print services and the sale of photo software and accessories, FreePrints enables Avanquest to present a unique offer that makes it stand out in the global personalized digital creation market, which will be deployed worldwide.
2. Backed by its historical expertise in utility software (more than 10 million euros in sales) and synchronization tools (more than 40 million telephones sold each year with an Avanquest software), Avanquest is taking advantage of the opportunities offered by the boom in connected devices (computers, tablets, mobile phones as well as televisions, game consoles and, tomorrow, connected watches and glasses etc.) to offer – for the first time – a solution for managing all connected devices through the Cloud.
- A first solution, MyFix-it, will be launched in early 2014: this software platform enables users to optimize the performance of all their connected devices (PC, Mac, iOS, Android), to activate an antivirus or do a backup in the Cloud of the content of all their terminals.
- MyFix-It will target both the consumer market and small and medium business, as well as B2B market (electronics manufacturers, distributors of digital equipment and telecom operators). It will be marketed as a subscription or OEM contracts. In both cases, customers will be offered additional services (such as phone support and data hosting for instance).
To support this new strategy, a new organization has been set up throughout the entire worldwide Avanquest Group. This involved a thorough reallocation of resources toward the two markets which are now the Group’s priorities: Personalized Digital Creation and Connected Devices
A new strategy supported by ambitions of growth and sustainability
With the implementation of this strategy, the Group’s ambition is to achieve sales of between €140M and €150M by 2016-2017, with most of this growth coming from the sectors that the company wants to focus on: Personalized Digital Creation and Connected Devices This objective will be reached through organic growth and the migration of online sales towards these two priority strategic focuses. At the same time, the Retail business will shift toward the distribution of connected devices in order to stabilize its sales in keeping with this new vision. This return to a solid growth dynamic will probably not be fully operational until the 2014-2015 financial year; to make this change a success, this year will be one of launches and investments.
Our growth ambition is accompanied by the objective of sharply raising our operating profitability, which could exceed 10% of sales for the 2016-2017 financial year.
“Avanquest has solid competitive advantages for initiating a new growth cycle by refocusing on high-potential markets like mobility and connected devices. This new strategy, which makes products and innovation our core priority, should enable us to demonstrate our capacity for opening up a new growth cycle. There are many opportunities in our industry; with this strategy, Avanquest is returning to its vocation as pioneer,” according to Pierre Cesarini, Group CEO.
“This new strategy, which I fully support, marks a new departure for Avanquest based on innovative concepts, effectively relying on the Group’s worldwide strengths. Through it, our ambition is to return to the levels of growth, profitability and development that we experienced in the past,” concluded Bruno Vanryb, Chairman of the Board