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 2024, the confirmed credit losses within Corporate amounted to 0.04( 0.17) % of sales.
ANNUAL REPORT // 021