NWG // SPORTS & LEISURE
31 %
Net sales per sales channel
Promo Retail
69 %
Sports & Leisure
Our offering
In the Sports & Leisure segment, New Wave Group offers clothes and shoes for the active consumer from several fully-owned brands. The range is adapted to different uses and activities, from basic garments to high-tech products for extreme exercising. Most of the segment ' s sales are to the retail trade, such as sports, golf, hunting, fishing, shoe and fashion trade, but sales are also made to promo retailers.
The segment has most of its sales in the Nordic region and North America, but also Central Europe is an important market and then mainly Germany, France and the Benelux area.
New Wave Group has a portfolio of strong sports brands within different areas. The Group’ s main strategy is to own and hence develop brands, which is why licensing and distribution rights have not been part of the core business historically.
Sales channels
All brands in the operating segment have the retail trade as their natural channel to meet the market.
It is also here that the segment has most of its net sales( 69 %). Trademarks such as Craft, Seger, Tenson and Clique Retail have an established position within the sports trade and Cutter & Buck and AHEAD at golf facilities. The products are also sold in the promo sales channel, mainly to corporations and sports associations. Craft’ s focus on new products for associations and clubs has developed well and promo sales are thus expected to increase.
” The range is adapted to different uses and activities, from basic garments to high-tech products”
The promo sales channel demands high service level and availability than the retail sales channel. A company or association that, for example, orders promowear is dependent on the supplier being able to deliver a full size sorting and the right colour. For example, if New Wave cannot deliver size medium or the
end customer ' s colour choice, then they will choose another supplier. The Group ' s objective within promo is to deliver 98 % of its products within 24 hours.
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 segment ' s capital tied up in stock is relatively high but differs somewhat between the sales channels.
In the retail trade, sales are to some extent made through pre-orders compared with the promo market where delivery is made directly to orders. This means, for instance, that the retail customer places orders in the spring for goods to be delivered in the autumn. Approximately 55-60 % of sales in the retail trade take place through pre-orders. In connection with orders from customers, the Group places orders at the factory, which significantly limits the obsolescence risk. The remaining sales in the retail sector, so-called complementary sales, are mainly basic goods with a limited fashion risk.
026 // ANNUAL REPORT