LOOKING TOWARDS THE FUTURE

Duell determines its main addressable market to consist of the onroad motorcycle and offroad motorcycle spare parts, accessories and gear market segments in Europe, which it estimates to be worth approximately EUR 6 billion in 2023. According to Duell, the Powersports Aftermarket is relatively stable in cyclical downturns and highly unexpected events, such as the COVID‑19 pandemic, due to the large existing motorcycle fleet and rider base. Duell believes that its main addressable market is undergoing a gradual shift from traditional brick‑and‑mortar shopping to online shopping. As one of Duell’s strategic priorities is being a trustworthy partner for online dealers, Duell is well‑positioned to benefit from the expected growth in online shopping. Duell also believes that the role of large distributors will increase in the coming years.

Duell is, according to its estimate, a leading distributor in the Powersports Aftermarket in the Nordics and the Baltics, that forms a solid foundation for its operations and provides it with pricing and negotiation power with suppliers and customers as well as scale benefits. Duell believes that it is one of the few companies in its industry in Europe that are truly international players with a broad product offering and that it has potential to further grow in Europe in accordance with its growth strategy. Duell plans to focus on further accelerating its growth in the markets outside the Nordics and aims as part of its long‑term strategy to be an active player in the consolidation of the market. 

As at August 31, 2023, Duell’s brand portfolio, including both third‑party and own brands, consisted of more than 550 brands. The brand portfolio has expanded significantly through acquisitions, and Duell intends to manage and optimize its brand coverage in accordance with its brand strategy. Duell believes that dealers prefer distributors that are capable of stocking and supplying a broad one‑stop‑shop offering of brands. Maintaining an extensive coverage of relevant brands is a competitive advantage in acquiring new customers and retaining old ones and Duell’s extensive one‑stop‑shop brand portfolio makes Duell an attractive partner for dealers. Furthermore, Duell believes that its extensive one‑stop‑shop brand portfolio and well‑stocked unique offering and broad brand offering might lead to dealers favoring Duell over distributors that are unable to supply brands exclusively offered by Duell.

Duell aims to maintain a solid network designed to support every aspect of its operations: from purchasing and warehousing to logistics and sales. According to Duell, many brands and manufacturers do not have the necessary resources to distribute their products to dealers or end customers cost efficiently, and brands and manufactures benefit from Duell’s scale and access to markets that they would otherwise have difficulty reaching. Duell believes that it is also a valuable partner for dealers as it consolidates a highly fragmented market of suppliers. Duell’s overall sales strategy is to provide dealers a broad and significant product offering at competitive prices with a one‑stop‑shop approach, efficient electronic ordering process and stock availability and strategically placed warehouses that enable fast and reliable deliveries. Duell believes that the most important way to bring value to both directions of the value chain (i.e., to both brand owners and dealers) is through economies of scale and quality service to both brand owners and customers.

Duell has a wide customer base in the Nordics and rest of Europe and it has approximately 8,500 active customers. Duell’s customer base is diverse and highly fragmented with customers comprising offline dealers (i.e., retail shops, specialty shops, repair shops and powersport manufacturers) and online dealers. Duell is not dependent on any specific customer or group of customers. Of Duell’s net sales for the financial year ended August 31, 2023, approximately 20 percent was generated by ten of Duell’s largest customers and approximately 10 percent by its top two largest customers in total. Duell’s value proposition to both offline and online channels has been tailored to meet different channel needs. Duell has gained experience in meeting the requirements of various sales channels via its long-standing customer relationships and strong market presence. Share of online stores of Duell’s net sales was EUR 29,302 thousand for the financial year ended August 31, 2023, representing 24.7 percent of Duell’s net sales.

Duell has a diversified supplier base and a purchasing process to cater to the demand and needs of its customers. Duell has in-house capabilities and control over purchasing, warehousing, logistics, pricing, and sales in the value chain. Agile logistics and optimized delivery enable deliveries within 24 hours for approximately 95 percent of the products distributed by Duell in countries where Duell has its own logistics centers. Duell believes its operational set up enables it to operate as one of the leading distributors in the Nordics and the Baltics.

Duell’s management team has extensive understanding of the powersports aftermarket as well as operational, managerial and financial experience within various other industries. Duell’s management team also has significant experience in executing acquisitions and integrating acquired businesses. Employee turnover is low and share of powersports enthusiasts is high. The strong commitment, powersports background and long experience of Duell’s personnel supports Duell’s key strategic objectives to become the best partner for dealers and brand owners throughout Europe and strengthen its market position in the existing markets where Duell operates.