SALES CHANNELS 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 organised in South and Central Europe . Distributors who market brands that they do not themselves own often have substantial influence in the market . The North American market is much more advanced and the distribution chain resembles the Nordic market .
NET SALES PER SALES CHANNEL
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 USA . 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 equally common that retailers also print , embroider and engrave in order to have a more complete offer .
Workwear has traditionally been sold via specialised 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 profile dealers . Those who sell workwear , operate together with the already established brands or by developing their own brands and collections . In recent years even the market for workwear to ordinary people has increased , as interior decorating , gardening and DIY programs have become commonplace in TV schedules . Due to this , there has been an increase in the range of workwear within the retail trade towards private people .
PROMO 97 % RETAIL 3 %
CAPITAL TIED UP A company that orders promowear in its corporate colours for its employees or customers relies on the supplier ’ s ability to deliver a full range of sizes and correct colours . For instance , if New Wave Group cannot deliver products in a medium size or in the end customer ’ s corporate colours , the customer will turn to a different supplier . The Group ’ s ambition is to deliver 98 % of its products within 24 hours . The risk of obsolescence is low since most of the collection comprises timeless basic products for which there is a demand season after season . Adjustments for changes in purchasing prices are made continuously since sales are instant which limits the currency risk . Sales are made to selected retailers , which limits bad debts . Confirmed bad debt losses within Corporate Promo amounted to 0.08 ( 0.36 ) % of revenues in 2017 . Many of the products are common to both the retail and promo sales channels , which offers significant risk diversification . The catalogues may also be common to both sales channels .
PRICE SEGMENT
WORKWEAR PROMOWEAR
PROMOTIONAL GIFTS
20 | NWG 2017