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