OTHER SPORT BRANDS
New Wave Group has a portfolio of very strong sports brands in various areas. The Group’ s main strategy is to own and thereby develop the brands and licensing has therefore historically not been part of our core business. Below is a presentation of the licensed brand that New Wave Group have a distribution right on in the Swedish and Nordic markets.
NET SALES PER SALES CHANNEL
SPEEDO Speedo was founded as far back as 1914 in Bondi Beach outside Sydney, Australia and is the most sold swimwear brand in the world. Speedo has been a world leading racing brand for a long time and more Olympic gold medals have been won in a Speedo swimsuit than in any other brand. Speedo’ s product line has broadened over the years and the Speedo logotype can now be found on everything from swimwear to goggles and watches. Speedo’ s products are available in more than 170 countries across the world.
SALES CHANNELS
The retail sector is the natural channel for meeting the market for all the operating segment’ s brands. Clique Retail, Craft, Seger, Speedo and Umbro all have a verified position in the sports retail sector, but are also sold in the promo market and through athletic clubs.
PROMO 25 % RETAIL 75 %
CAPITAL TIED UP
New Wave Group’ s objective is to keep the stock of fashion items low since the lifespan for these items is short. The retail sector focuses on less fashion-sensitive areas, such as Craft’ s function base layers and Clique ' s base garments. In the retail sector sales consist largely of advanced orders compared with the promo market where deliveries are made directly against order. This means, for instance, that the customer places orders in the spring for goods to be delivered in the autumn. About 70 – 75 % of the sales in the retail sector are advanced orders. In conjunction with orders from customers, the Group places orders with the factory which significantly reduces the risk of obsolescence. The rest of the sales, so called supplementary sales, are primarily base items with limited fashion risks. In order to limit its foreign exchange risk, the company hedges between 50 – 80 % of the purchasing costs. Sales are made to selected retailers, which limits bad debts. However, there is a higher concentration to fewer customers in the retail segment compared with the promo segment. In 2017, confirmed bad debt losses in the Sport & Leisure operating segment made up 0.17( 0.08) % of sales. Many of the products are the same for both the promo and retail sales channels, which provides a significant spread of risk. Moreover, the two sales channels can use the same product catalogues.
NWG 2017 | 25