Torp Computing Group ASA

8 MARKET OVERVIEW
66
INFORMATION MEMORANDUM
Merger of Komplett ASA and Torp Computing Group ASA
8.1 Strong overall consumer electronics market
The Norwegian consumer electronics market has enjoyed strong growth in recent years following
the dotcom crash at the turn of the century. A strong Norwegian economy and low interest rates
have been the main drivers. Furthermore, the launch of popular electronic devices and data
equipment affect market growth from time to time. Portable PCs are an example of a growth driver
in recent years. The sale of flat screen TVs is also booming. The Company believes the trends
supporting the growth of the Norwegian consumer electronics market will continue to create a
healthy overall market climate for consumer electronics.
Figure: Norwegian retail consumer electronics market development
NOK million
30,000
25,000
20,000
15,000
10,000
5,000
-
1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Norwegian Consumer Electronics Trade Foundation
Consumer electronics market revenues, Norway Growth y/y
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
The retail market for consumer electronics in the retail channel in Norway grew 12 percent to NOK
28.5 billion in 2006. In addition, there are markets for other product areas such as white goods
and home and leisure products and to the professional market with business to business sales and
Komplett estimates the total market size for its products to be around NOK 41 billion in 2006. A
significant share of the products are sold directly from the manufacturer to the dealer and hence
not through any distributor. Komplett estimates the Norwegian wholesale market to be around 15-
20 million NOK.
Komplett estimates that the overall market in Sweden is roughly twice the size of that in Norway,
while the overall UK market is believed to be about 10 times larger than the Norwegian market. As
a sales/distribution channel, ecommerce is expected to grow significantly in the years ahead.
8.2 Competitive environment
The Market for computers, consumer electronics and white goods in most countries in Europe have
been growing steadily over the last years, and in most countries larger retail stores are the major
player. In Norway the largest players are Elkjøp, Expert and Elprice, and in Sweden Elgiganten
(Elkjøp), Expert, Siba, Mediamarkt, NetOnNet and OnOff. There are also a vast number of
companies focusing on sales to the professional (corporate and public sector) market like Ementor,