NWG // CORPORATE
1 %
Net sales per sales channel
Promo Retail
99 %
Sales channels
The segment ' s products are primarily intended for the promo sales channel , where the majority of sales are also found ( 99 %). However , the products can also be sold in the retail sector , as many of the products are in common . The promo sales channel demands high service level and availability . For example , a company that orders promowear in their company ' s colour to its employees or customers , depends on the supplier being able to deliver a full size sorting and the right colours . For example , if New Wave Group cannot deliver products in the size medium or the end customer ' s corporate colour , the company will choose another supplier . The Group ' s objective within promo is to deliver 98 % of its products within 24 hours .
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- organized in Southern and Central Europe . Distributors who market brands that they do not themselves own often have substantial influence in the market . The American market is more developed and the distribution chain resembles the Nordic market .
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 United States . 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 also common that retailers also print , embroider and engrave in order to have a more complete offering .
Workwear has traditionally been sold via specialized 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 promo dealers . Those who sell workwear operate together with the already established brands or by developing their own brands and collections . The market for workwear for the public has also increased , which has led to an increase in the range of workwear at specialist retailers that target private individuals .
Capital tied up
The capital tied up in stock is relatively high , but is a prerequisite for success in the promo sales channel . The customer is dependent on the supplier being able to deliver full size sorting and in the right colours , otherwise another supplier is chosen . However , the risk of obsolescence is low because a larger part of the range is timeless basic products that there is a need for season after season . Many of the products are common to both the promo and retail channels , which offers significant risk diversification and means that catalogues can also be common . Adjustment for changed purchase prices is made continuously as it is about immediate sales and the currency risk can thus be limited . When it comes to capital tied up in accounts receivable , sales are made to selected retailers and credit losses are relatively low . In 2020 , the confirmed credit losses within Corporate amounted to 0.12 ( 0.06 ) % of sales .
ANNUAL REPORT // 023