Efficient global distribution network
Husqvarna Group’s extensive distribution network has been developed over many years, which today represents a significant competitive advantage. There is good potential for growth in both distribution channels if the Group can offer each channel relevant products, brands and services.
The Group’s forest, park and garden products are sold primarily through two distribution channels - dealers and retailers. The dealers and retailers sell the products to end customers who are consumers and various professionals such as landscape architects, park workers, gardeners, foresters and arborists.
Dealers consists of thousands of small, local, independent specialty stores that sell a more sophisticated product range and usually offer also service the products. Retailers sell both branded and private brands and focuses primarily on consumer products, parts and accessories in the medium to low end segments. Construction Products are sold primarily to rental companies, specialized distributors and directly to contractors. Online sales directly to end customers will be an important new sales channel.
Increased sales through dealers
Prices and margins are higher in the dealer channel than in the retail channel why 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. Overall, dealers account for 50 percent of group sales, retailers account for 45 percent and the remaining 5 percent are sale through the channels used to sell construction products.
A wide range of competitive products, the availability of replacement parts, training and service programs for products and timely delivery are all important factors to be able to recruit new dealers. Brand-building measures aimed at dealers, such as customized shelf systems to display the Group's products are also important.