Torp Computing Group ASA

67
INFORMATION MEMORANDUM
Merger of Komplett ASA and Torp Computing Group ASA
Umoe and Ergo in Norway. In addition some companies focus on distance sales through tele- and
web sales, such as PS Data, CDon, Netshop and Dropzone in Norway, and Dustin in Sweden. Most
retailers (like Siba, Elkjøp, Expert etc) and corporate sales companies (like Ementor and Ergo) also
sell their products online. Still a huge portion of sales are done by the traditional sales channel of
physical shops where the customer shows up in the retail store and buy the goods from a person.
The Internet shopping sales channel are growing and Internet shops are partly new market players
and partly a new a complementary sales channel for existing traditional retail stores.
Earlier Komplett operated both retail stores and Internet shopping in this market. In 2003 the
retail stores were sold in a management buyout and Komplett now focus 100% on growing the
Internet shopping sales channel in the market for computers, computer components, consumer
electronics, white goods and related products.
8.3 E-commerce
E-commerce was one of the most hyped buzzwords during the IT and Internet stock market mania
in 1999-2000. Although the share prices of most e-commerce companies has since come down
from ludicrously high levels, the market trend has more or less developed as expected. According
to US Department of Commerce statistics, US e-commerce retail sales have grown at a rate of
around 20-25% y-o-y in recent years. As a share of the overall US sale value (excluding food), ecommerce
has grown from 0.9% in Q2 2000 to 3.2% in Q1 2007. Although growth has been
impressive, note that the e-commerce share of US retail sales is still very low.
Growth Y/Y
80%
70%
60%
50%
40%
30%
20%
10%
0%
US e-commerce retail sales and Y/Y growth rate
Q100
Q300
Q101
Q301
Q102
Source: US Census bureau
Q302
Q103
Q303
Q104
Q304
Q105
Q305
Q106
Q306
Q107
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
USDm (seasonally adjusted)
US e-commerce share of total retial sales
8.4 Attractive macro drivers
There are several macro drivers that make e-commerce attractive, these are among others:
8.4.1 Price
Products sold over the Internet are often priced more cheaply than in traditional stores, due to
more efficient logistics/lower distribution costs (it costs less to run an Internet-based shop than a
physical store).
8.4.2 Convenience
Shopping on the Internet is normally less time-consuming than traveling around in crowded cities
from store to store.
8.4.3 Flexibility
You can shop whenever you wish, irrespective of opening hours. No need for logistics related to
shopping as products can be delivered directly to the customer.
Q100
Q300
Q101
Q301
Q102
Q302
Q103
Q303
Q104
Q304
Q105
Q305
Q106
Q306
Q107
3,5 %
3,0 %
2,5 %
2,0 %
1,5 %
1,0 %
0,5 %
0,0 %