Efficient global distribution network

The Group's forest, park and garden products are primarily sold through two distribution channels - retailers and dealers. The retail chains focus on consumer products in the mid- and low-price segments as well as spare parts and accessories. Dealers which include thousands of small, local, independent, specialty stores, sell a more advanced range of products, spare parts and accessories to professional users and customers with a high demand on performance. Most dealers also offer servicing.

The Group holds strong positions in both channels selling to about 25,000 dealers and to most large retail chains. Products under the Husqvarna brand are primarily sold through dealers and, to a lesser extent, by retail chains in the U.S. Sales to the dealer channel accounted for 47% of Group sales, sales to the retail channel 47% and sales to other channels (rental companies, sawing, drilling and demolition contractors, and stone quarry customers) accounted for the remaing 6% of group sales. Products for the construction industry are mainly sold to rental companies and specialized dealers, as well as directly to contractors. Husqvarna Group's comprehensive distribution network has been developed over many years, providing a substantial competitive advantage.

Imcreased sales to dealers

There is good potential for growth in both distibution channels, on the condition that the Group can offer appropriate product ranges and efficient service to the respective channels.

Increase sales to dealers is a top priority, especially in North America and Latin America, where Husqvarna Group's position in the dealer channel is not as strong as it is in Europe. In addition to offering a wide range of products, availability of spare parts, product training, service programs and timely delivery are all important factors in recruiting new dealers. Brand-building measures aimed at dealers such as customized shelf systems to display Husvqarna Group products, are also important.