NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 26
NWG // SPORTS & LEISURE
26%
Net sales
per sales channel
Promo
Retail
74%
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 resellers.
The segment has most of its sales in
the Nordic region and North America,
but Central Europe is also an important
market and then mainly Germany 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. However, the Group has the
distribution right for the brand Speedo on
the Scandinavian markets.
026 // ANNUAL REPORT
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 (74 %). Trademarks
such as Craft, Seger, Clique Retail and
Speedo have an established position
within the sports trade and Cutter & Buck
and AHEAD in the golf sector.
”In the Sports & Leisure
segment, New Wave Group
offers clothes and shoes
for the active consumer
from several fully-owned
brands. ”
The products are also sold in the promo
sales channel and mainly to sports associa-
tions. Promo sales are expected to increase
as Craft’s focus on new products for associa-
tions and clubs has developed well. The
promo sales channel places demands
on high service level and availability. 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 Group cannot deliver 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 inventories is relatively
high, but differs somewhat between the
sales channels.
In the retail trade, sales are largely
done 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 65-70 % of
sales in the retail trade take place through
pre-orders. In connection with orders