Annual Report 2012/13 - Clas Ohlson

environmental properties of products are approved and
meet all of our requirements.
600 suppliers in 30 countries
Clas Ohlson purchases products from some 600 suppliers
in 30 different countries. During the fi nancial year, Swedish
suppliers accounted for 55 per cent of our purchasing and
direct purchasing from Asia for 37 per cent.
The major Swedish suppliers are trading houses or agents
that hold import licenses or type approvals for various products.
The country of origin for these products is usually in
Asia or Europe. Combined with direct purchases, the proportion
of products manufactured in Asia was 67 per cent, which
remained unchanged compared with the preceding year.
Clas Ohlson is working to reduce the number of its suppliers
and increase the proportion of direct purchases. The
objective is to reduce the company’s purchasing costs and
strengthen partnerships with both suppliers and manufacturers
in Europe and Asia. This will enable greater control
over product design and quality and help to verify compliance
with the company’s Code of Conduct.
Positive trend for own brands
In recent years, we have focused increasingly on our own
brands, which currently account for 25 per cent of sales.
The strategy for our own products is to offer high quality at
attractive prices and to maximise value for money for our
customers. The combination of own and other recognised
brands offers customers a wider selection and allows them
to choose the price and product features that best suit their
needs.
Purchasing policy
The company’s purchasing policy stipulates that Clas
Ohlson is to purchase products as close to the manufacturers
as possible to avoid costly intermediaries.
Direct purchasing without intermediaries
Asia, and China in particular, is Clas Ohlson’s most important
purchasing market. To strengthen the company’s competitiveness,
Clas Ohlson formed a purchasing company with
one offi ce in Shanghai in 2008, and opened an additional offi
ce in Shenzhen in 2011. By combining purchasing through
our offi ces in Shanghai and Shenzhen with agents in Asia,
our purchasing processes become even more effi cient.
The agents we work with have experience and contact
networks that generate added value for Clas Ohlson. Clas
Ohlson’s purchasing strategy also includes the continuous
evaluation of products that are manufactured in Asia but
sold via intermediaries in Sweden and Europe to identify
possible alternatives for purchasing directly from Asian manufacturers.
This is crucial to offering the lowest possible
price to our customers. Our increased presence in Asia,
with our own personnel in place, also presents greater opportunities
for verifying and infl uencing working conditions in
the manufacturing facilities.
Outsdoor
equipment
Hand tools
Kitchen utensils
Fishing gear
Aquatic sports
equipment
Telephony, video
and audio
Lighting
Power tools,
batteries and
electrical components
Countries of origin
Other, 3% Asia, 67%
Rest of Europe, 20%
Sweden, 10%
Countries of purchase
Other, 1% Sweden, 55%
Rest of Europe, 7%
Asia, 37%
Domestic appliances
Watches
Artist's material
Operations 21