NWG // GIFTS & HOME FURNISHINGS
Sales channels
Most of the segment ' s sales are in the sales channel retail ( 71 %). Swedish retail has for some time undergone and undergoes a major restructuring in which the consumer ' s interest in the traditional glass and porcelain trade is diminishing in favor of design and interior stores . The development of e-commerce is another strategically important part where the customer ' s changed trading patterns require a completely different accessibility than before . Brands such as Kosta Boda , Orrefors and Sagaform have an established position in the retail sector and have the opportunity to make sales both in the traditional way and through e-commerce . A growing part of the segment is Destination Kosta , where all sales belong to the retail sales channel .
Part of the Kosta Boda , Orrefors and Sagaform sales are made in the promo market , where the products are used as everything from simple gifts to exclusive gifts for jubilee or memorable occasions . Kosta Boda and Orrefors retain their position as interesting brands on occasions when you want to show appreciation with objects of more high-quality character . Sagaform ' s products are in demand as Christmas and summer gifts for employees and customers . The majority of D & J Frantextil ’ s sales are to the promo market , where part of the sales is made via gift cards . The promo sales channel demands high service level and availability . For example , a company that orders Christmas gifts for its employees or customers depends on the supplier being able to deliver on time . If New Wave Group fails to do so , then the customer will choose another supplier . The Group ' s objective within promo is to deliver 98 % of its products within 24 hours .
Capital tied up
Production for Orrefors and Kosta Boda takes place throughout the year , while sales mainly take place during the second half of the year . Capital tied up is thus greatest during the first part of the year . Most of the production is classic and great-selling product series such as Château , Intermezzo , Line , Mine and others , which in many cases has a product cycle of more than 20 years , which limits the risk of obsolescence . For the part that is not selfproduced , most of the purchases are made against stock for resale to customers . It normally requires a higher capital tied up in stock for promo , as this is a prerequisite for success within this sales channel . However , the risk of obsolescence is low as a larger part of this range is timeless basic products where there is a demand season after season . Most of the products are also common to the sales channels promo and retail , which contributes to a risk spread . Price adjustments for changed purchasing prices are made continuously and the currency risk can thus be limited .
Sales are made to selected retailers and credit losses are low . However , there is a higher concentration to a fewer number of retail customers compared to the promo market . In 2020 , the confirmed credit losses in the operating segment amounted to 0.39 ( 0.48 ) % of sales .
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