NWG // GIFTS & HOME FURNISHINGS
Sales channels
Most of the segment ' s sales are in the retail sales channel( 77 %). Swedish retail is undergoing 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 evolving trading patterns require a completely different accessibility than previously. 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 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 gifts of high quality craftsmanship. Sagaform ' s products are in demand as Christmas and summer gifts for employees and customers. The majority of D & J Home and Gifts ' 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. The Group ' s objective within promo is to deliver 98 % of its products within 24 hours in order to remain competitive and not lose customers to another supplier.
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 top selling product series such as Château, Intermezzo, Difference, Line and others, which in many cases has a product cycle of more than 20 years. This limits the risk of obsolescence. For the part that is not
self-produced, 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 further minimizes product risk. Price adjustments for changed purchasing prices are made continuously and the currency risk can thus be limited.
Sales are made to selected retailers and therefore credit losses are low. However, there is a higher concentration to a fewer number of retail customers compared to the promo market. In 2024, the confirmed credit losses in the operating segment amounted to 0.28( 0.08) % of sales.
ANNUAL REPORT // 035