Distributors
Björn Borg’s wholesale channel strategically distributes our comprehensive range of products through a robust network of retailers and distributors worldwide, effectively increasing brand reach and market penetration.
65%
Of Group's net sales in 2023
+7%
Increase in sales 2023
577m
SEK revenue in 2023
How distributors at Björn Borg works
The process
Björn Borg sells its products in bulk to third-party retailers, which include department stores, specialty stores, and sports apparel chains. These products are then sold by these retailers to the end consumers. The company provides these partners with marketing support and sometimes exclusive merchandise to boost sales.
How is the money made?
Björn Borg makes money by selling its products at a wholesale price, which is usually lower than the retail price to allow margin for the retailers. The volume of sales through these channels is typically high, compensating for the lower per-unit profit margin.
Wholesale example
Björn Borg signs an agreement with a major European department store chain to stock its new line of performance sportswear. The company supports the launch with co-branded marketing materials and promotions designed to drive traffic to the stores and increase sales volume.
Key facts
Hybrid Distribution Model
Björn Borg uses a mix of in-house and external distribution networks. This hybrid approach allows for a balance between direct control over brand management and leveraging external expertise for market penetration.
Geographical Diversification
The brand strategically distributes its products across a wide range of markets, including established and emerging regions, ensuring widespread availability and brand presence. This geographical diversification reduces market-specific risks and capitalizes on global opportunities.
Flexible Supply Chain
Björn Borg’s distribution strategy is supported by a flexible supply chain that can quickly adapt to changes in demand or market conditions. This agility is crucial for maintaining efficiency and minimizing costs, especially in fast-changing fashion and retail environments.
Experienced Partner Network
The brand collaborates with experienced distributors who are familiar with their local markets. These partners are carefully selected based on their capability to handle logistics, marketing, and sales, ensuring that the brand’s standards are upheld.
Strategic Local Warehousing
By strategically locating warehouses and distribution centers, Björn Borg ensures that products are closer to key markets, which reduces shipping times and costs, and improves the responsiveness of the supply chain.
Sustainability in Distribution
By strategically locating warehouses and distribution centers, Björn Borg ensures that products are closer to key markets, which reduces shipping times and costs, and improves the responsiveness of the supply chain.
Our 2 distribution methods
Own distribution
To a growing degree distribution is managed through companies within the Group. In the main areas of underwear and sports and performance apparel, Björn Borg is responsible for distribution in Sweden, England, the Netherlands, Belgium, Germany and Finland with its own sales organizations in these markets. Distribution of footwear in Sweden, Finland and the Baltic countries is also managed by the Group.
External distributors
Björn Borg collaborates closely with external distributors to market and sell its products across various regions. These distributors, crucial to building the brand locally, handle sourcing, sales support, inventory management, and regional marketing, while Björn Borg aids them with joint marketing and PR campaigns. Distributors must meet specific sales and investment targets, with the potential for contract termination if these are not met. Regular feedback from distributors informs ongoing product and marketing adjustments. To foster this partnership, Björn Borg hosts periodic sales meetings to discuss new collections and strategies, evaluate market performance, and ensure alignment with overall brand expansion goals.
Continuous improvement & feedback
Marketing and sales feedback from distributors to Björn Borg and the licensees is important in order to continuously develop and adapt the collections and marketing activities. Several times a year Björn Borg brings together all its distributors for sales meetings, where new collections and marketing campaigns are shown and strategies and planning are discussed. The performance of each market is evaluated as well. This close cooperation in the network is important to the successful expansion of the brand.
Distributor responsibilities
Sales and Distribution
Distributors are tasked with selling and distributing Björn Borg products to retailers. They play a key role in building the brand within their markets through effective sales organizations.
Operational Responsibilities
They are responsible for sourcing, sales support, inventory management, and ensuring products are available and adequately marketed in their regions.
Marketing and Promotions
Distributors handle regional marketing, media planning, and training, tailored to fit the needs of their specific markets.
Support from Björn Borg
Joint marketing and PR campaigns.
Björn Borg provides support and guidelines in the form of joint marketing and PR campaigns among other resources. This collaborative approach helps ensure that marketing efforts are aligned and effective, leveraging both Björn Borg’s brand strategy and the distributor’s local market expertise.
Regular sales meetings and strategy sessions.
Björn Borg frequently organises sales meetings with all distributors to discuss and showcase new collections and marketing campaigns. These meetings also serve as a platform for strategy development and performance evaluation, highlighting the collaborative nature of the relationship between Björn Borg and its distributors.
Feedback & development
Marketing and sales feedback from distributors to Björn Borg is crucial for continuously developing and adapting product collections and marketing activities. This feedback helps the brand stay responsive to market changes and consumer preferences.
Growth strategy
Geographic and market expansion
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Enhancing Distributor Engagement
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Operational Efficiency and Flexibility
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Sustainability in Distribution Practices
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Our 5 operations
Wholesale
Wholesale involves selling Björn Borg products in bulk to various retailers who then sell these items to their customers. This allows the brand to reach a wide audience without directly managing numerous retail outlets.
325,253 TSEK in January-June 2024
Own ecommerce
E-commerce refers to selling Björn Borg products directly to consumers through the brand’s own online platform. This channel offers convenience to customers by allowing them to shop from anywhere at any time and often provides access to a wider range of products.
81,405 TSEK in January-June 2024
Own stores
Own Stores are retail outlets directly owned and operated by Björn Borg. These stores provide a controlled environment to showcase the brand’s full product range, deliver a consistent brand experience, and directly interact with customers.
50,682 TSEK in January-June 2024
Distributors
Distributors are external partners who help Björn Borg extend its reach by selling its products in various markets where the brand does not have a direct presence. Distributors are typically responsible for managing the sales and logistics in their designated areas.
22,561 TSEK in January-June 2024
Licencing
Licensing allows Björn Borg to expand its brand into new product categories or markets without directly managing manufacturing and distribution. In this model, external partners produce and sell products under the Björn Borg brand in exchange for a fee or royalties.
1,701 TSEK in January-June 2024
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