RESHORING CASE

InnovaDerma

Company details
Code: 
InnovaDerma
Company name: 
InnovaDerma
Company country: 
United Kingdom
Number of employees: 
100
Sector: 
C - Manufacturing
Sector detail: 
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
Sub-sectors: 
C21.1.0 - Manufacture of basic pharmaceutical products
Reshoring details
Reshoring announcement date: 
31/10/2016
Starting implementation date: 
November, 2016
End of Implementation : 
December, 2017
Reshored to: 
United Kingdom
Location code: 
UK
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
Third party (external suppliers)
Reasons for reshoring: 
Exchange rate risk
Lack of in-depht knowledge of offshore markets and culture
Logistics costs
Proximity to customers
Case narrative: 

InnovaDerma PLC is a British company. The company, which owns brands such as Skinny Tan, Leimo Instant Hair and Tripollar Pose, has partially moved its production back to the UK.

The company previously manufactured its products in Australia but due to the success of its Skinny Tan product – distributed via high street retailer Superdrug – has decided to relocate  manufacturing, as part of the company’s expansion plans for the UK and Europe.

The company that will handle the production of InnovaDerma’s product lines to  Prestige Personal Care  Ltd. In the short term, plans are in place to distribute to the UK only, with the intention of expanding to other markets worldwide.

According to the Executive Chairman, the strategic decision to move part of the production from Australia to the UK has been driven by two main factors: to increase the presence in the local British market as well as to save costs principally in the areas of manufacturing and logistics The depreciation in the pound sterling has made the UK an even more competitive place from which to do business, and more attractive to investors, which lends further weight to the board’s decision to grow both in the domestic market and elsewhere in Europe.

Already from the end of 2017 the decision of moving production to the UK should positively impact the company’s financial performance.

Sources: 

cosmetics business NEWS, 31 Oct 2016, p.4:-

Offshoring details
Offshoring location: 
Australia