Efficient global distribution network

The Group has over many years developed a comprehensive distribution network that today constitute a significant competitive advantage. The dealer and retail channels are the primary sales channels. In both channels prospects are good for growth, provided that one can provide attractive and relevant products, services and brands.

Distribution channels

The Group's forest, park and garden products are sold primarily through dealers and retailers. Dealers consists of thousands of small, local, independent specialty stores selling a more sophisticated product offering and usually offer also service of the products. Retailers sell both branded products and private label and focuses primarily on consumer products, spare parts and accessories in the medium to low-end segments.

The dealers and retailers sell the products to end-users which are consumers and various professional groups such as landscape architects, park workers, gardeners, forestry workers and arborists.

The Group's products for the construction industry are mainly sold to rental companies, specialized dealers and directly to contractors.

Increase the share of sales through the dealer channel

As prices and margins are higher in the dealer channel, increased sales to dealers is a high priority. This is especially true in North America where the Group's position in the dealer channel is not as strong as in Europe. In the retail channel margins are prioritized over sales growth. Overall it dealer channel sales accounts for 51 percent of Group sales, retail channel sales accounted for 43 percent and the remaining 6 percent are for sale through the channels used by the construction part of the business.

To recruit new dealers and subsequently also maintain good long-term relationships, it is important to provide a wide range of competitive products, availability of spare parts, training and service programs for products and punctual delivery. Brand-building measures such as customized shelf system exposure of the Group's products, are also important.

Sales by distribution channel, 2013

  

Priorities

  • Improve the mix by increasing the share of dealer channel sales.
  • Implement a new dealer pricing model.
  • Improve after-sales solutions through a wider range of and increased availability of replacement parts.
  • Utilize online and webtools to further improve contact both with consumers and end-users.