Continue to grow in premium
Since the premium segment has higher gross profit margins and higher anticipated market growth, the Company will work to ensure a continued share increase of sales within the premium segment. This comprises expanding the product portfolio in the premium segment to new products such as textiles, which were launched for Cole & Son in the summer of 2019.
The strategy includes acquisition of players in the premium segment that complement the existing portfolio. The most recent acquisition was Pappelina, which was completed in January 2021. Pappelina designs and sells exclusive plastic rugs and contributes to the Group’s premium segment sales with approximately MSEK 45 in sales.
Increased international sales
Embellence Group’s home market comprises the Nordic region, with a focus on Sweden and Norway.
Embellence Group is therefore endeavouring to further increase its share of international net sales through a combination of organic expansion to new markets, but also through acquisition of international players.
Growth through acquisitions
Embellence Group aims to continue to supplement its portfolio of brands through acquisitions to drive growth through geographic expansion, complementary designs and brand niches, as well as an expanded product range in, for example, textiles. The Company conducts several continuous dialogues with potential acquisition targets and local financial advisors have been instructed to drive dialogues with these companies. As of now, approximately ten potential targets with sales of MSEK 100–400 have been identified as particularly interesting and local advisors have been mandated.
Closer customer relationships through digitalisation
Boråstapeter launched the mobile application Wonderwall in 2020. Through augmented reality the user is able to experience how the brand’s wallpapers would look in a certain room.
Furthermore, Wall&decò has launched the virtual museum WeMu where it is possible to view the brand’s design in a virtual environment.
Wall&decò has also launched a chat-service which offers consumers the possibility to communicate directly with the brand in real time. During the end of 2020, Cole & Son launched e-commerce in London and the Company’s ambition is to be able to offer e-commerce for the majority of the brands in the portfolio.
Pappelina has an established model for sales direct-to-consumer as the brand started its e-commerce platform in 2019.