SALES CHANNELS
The Swedish retail sector is undergoing a major reconstruction
where we see consumer interest in traditional glass and ceramics
falling in favour of design and home decorating shops. The
expansion of online shopping is another strategically important
aspect where the shift in customers’ buying patterns demands
completely different availability than previously. Some of the
Kosta Boda, Orrefors and Sagaform brand’s sales activities target
the promo markets where the products are used as everything
from simple gifts to exclusive anniversary gifts and mementos.
Kosta Boda and Orrefors uphold their position as an interesting
alternative for occasions warranting high-class objects. Sagaform’s
products are popular as Christmas and summer gifts to employees
and customers.
NET SALES PER
SALES CHANNEL
CAPITAL TIED UP
Production in Orrefors Kosta Boda is conducted throughout the
entire year, while sales occur primarily during the second half
of the year. Consequently, tied up capital is most considerable
the first part of the year. Most of the production involves classic
and popular products like Château, Intermezzo, Line, Mine and
others with a product cycle in excess of 20 years, which reduces
the risk of obsolescence. For the part not in-house manufactured,
most purchases are made against stock for later sale to customers.
New Wave Group limits its foreign exchange risk by hedging
about 50–80% of the purchasing costs. Sales are made to selected
retailers, which limits bad debts. However, there is a higher concen-
tration to fewer customers in the retail segment compared with the
promo segment. In 2017, confirmed bad debt losses in the Gift &
Home Furnishings operating segment made up 0.28 (0.42) % of
sales. Many of the products are the same for both the promo and
retail sales channels, which provides a significant spread of risk.
PROMO 13 %
RETAIL 87 %