SALES CHANNELS The Nordic promowear and promotional gifts market is distinguished by a clear distribution chain : manufacturer – wholesaler – retailer – end customer . The distribution is not as well organised in South and Central Europe . Distributors who market brands that they do not themselves own often have substantial influence in the market . The North American market is much more advanced and the distribution chain resembles the Nordic market .
NET SALES PER SALES CHANNEL
In Sweden , there are about 3 000 retailers of promowear and promotional gifts , a high figure per capita compared with the rest of Europe and the USA . There is a wide variety of retailers , ranging from simple sole proprietorships to large companies with high-end displays and travelling sales forces . Some retailers target one of the three subdivisions , while others work all three . Most are pure sales companies , but it is equally common that retailers also print , embroider and engrave in order to have a more complete offer .
Workwear has traditionally been sold via specialised outlets for example construction , industry and paint shops , but today workwear is sold through many other channels such as pure workwear and protective clothing stores as well as profile dealers . Those who sell workwear , operate together with the already established brands or by developing their own brands and collections . In recent years even the market for workwear to ordinary people has increased , as interior decorating , gardening and DIY programs have become commonplace in TV schedules . Due to this , there has been an increase in the range of workwear within the retail trade towards private people .
PROMO 97 % RETAIL 3 %
CAPITAL TIED UP A company that orders promowear in its corporate colours for its employees or customers relies on the supplier ’ s ability to deliver a full range of sizes and correct colours . For instance , if New Wave Group cannot deliver products in a medium size or in the end customer ’ s corporate colours , the customer will turn to a different supplier . The Group ’ s ambition is to deliver 98 % of its products within 24 hours . The risk of obsolescence is low since most of the collection comprises timeless basic products for which there is a demand season after season . Adjustments for changes in purchasing prices are made continuously since sales are instant which limits the currency risk . Sales are made to selected retailers , which limits bad debts . Confirmed bad debt losses within Corporate Promo amounted to 0.08 ( 0.36 ) % of revenues in 2017 . Many of the products are common to both the retail and promo sales channels , which offers significant risk diversification . The catalogues may also be common to both sales channels .
PRICE SEGMENT
WORKWEAR PROMOWEAR
PROMOTIONAL GIFTS
20 | NWG 2017
SALES CHANNELS
The Nordic promowear and promotional gifts market is
distinguished by a clear distribution chain: manufacturer –
wholesaler – retailer – end customer. The distribution is not as well
organised in South and Central Europe. Distributors who market
brands that they do not themselves own often have substantial
influence in the market. The North American market is much
more advanced and the distribution chain resembles the Nordic
market.
NET SALES PER
SALES CHANNEL
In Sweden, there are about 3 000 retailers of promowear and
promotional gifts, a high figure per capita compared with the rest
of Europe and the USA. There is a wide variety of retailers, ranging
from simple sole proprietorships to large companies with high-end
displays and travelling sales forces. Some retailers target one of
the three subdivisions, while others work all three. Most are pure
sales companies, but it is equally common that retailers also print,
embroider and engrave in order to have a more complete offer.
Workwear has traditionally been sold via specialised outlets
for example construction, industry and paint shops, but today
workwear is sold through many other channels such as pure
workwear and protective clothing stores as well as profile dealers.
Those who sell workwear, operate together with the already esta-
blished brands or by developing their own brands and collections.
In recent years even the market for workwear to ordinary people
has increased, as interior decorating, gardening and DIY programs
have become commonplace in TV schedules. Due to this, there
has been an increase in the range of workwear within the retail
trade towards private people.
PROMO 97 %
RETAIL 3 %
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