New Wave Group AB Annual_report_2018_EN_HQ | Page 26

NWG // SPORTS & LEISURE
27%
Net sales
per sales channel
Promo
Retail
73%
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 profile
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 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 (73 %). Trademarks
such as Craft, Seger, Clique retail and
Speedo have an established position
within the sports trade and Cutter & Buck
and AHEAD at golf facilities.
”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
associations. Promo sales are expected
to increase as Craft’s focus is on new
products for associations and clubs.
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 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.