Investors

Market

Duell is a leading distributor in the Nordic and Baltic powersports aftermarket, and we are among the major international distributors. We have expanded into Central-Europe, with our logistics centers located in Finland, Sweden, the Netherlands, France, and Great Britain. The cornerstones of our growth-oriented strategy are based on expanding geographical markets, acting as an e-commerce partner, and developing the brand portfolio.

In our view, the European aftermarket has relatively high barriers to entry and is highly fragmented. Our competitors include major international distributors, large regional distributors, and small local distributors.

Market trends and growth drivers

Vehicle fleet, consumer demand and first registrations

Even if economic uncertainty does not directly affect the demand for spare parts and accessories, which correlates to the distance driven, it is likely that consumers will postpone discretionary investments in new vehicles and equipment upgrades in an uncertain market situation.

Consumer purchases of clothing and protective equipment and other discretionary items decline when disposable income decreases or there is economic uncertainty.

Structural transition to e-commerce

We believe that the main addressable market is currently increasingly shifting from traditional shopping to e-commerce, with consumers transitioning to purchasing spare parts and accessories online. We expect that the e-commerce in Europe will grow in the coming years, while the traditional retail market will lose its market position. On the other hand, several retailers have opened their own e-commerce and operate a hybrid model. We believe that the increase in online penetration is also partly driven by the market being well suited for e-commerce.

In line with our strategy, we are investing in e-commerce, as the structural shift of the market to online favors large web stores with broader target markets compared to smaller local players.

Electrification

that environmental pressure and product innovations are driving an increase in the availability of electric vehicles. The electrification of bicycles is becoming more widespread — for example, in cities where electric bikes are increasingly used for commuting — and various countries are also trying to support this shift through various forms of subsidies and infrastructure development. Furthermore, tightening emissions regulations are expected to push electrification across vehicle categories.

In the long run, we believe that electrification is likely to shift demand for spare parts from products needed for petrol powered motorcycles, such as engine parts and oils, to batteries and charging equipment needed for electric motorcycles. Electrification has also had an impact on the competence development and learning of companies servicing vehicles and their personnel.