About

Our business modell

The Group is organised in three distinctly positioned business areas, where assortment, price and customer experience vary according to each business model and category.

• Home Improvement offers customers the market’s broadest and most relevant assortments of DIY products. Customer value is created through availability, choice and competitive prices, made possible through a drop shipping model with low tied-up capital, price matching and a growing share of proprietary brands.
• Value Home offers affordable, highly functional furniture with a modern design, giving the customer more value for money. The customer offering is made possible by a value-oriented business model without intermediaries based on proprietary brands, large-scale purchasing, low tied-up capital, and an efficient warehouse and logistics structure that ensures high availability, rapid deliveries and cost efficiency throughout the chain.
• Premium Living makes Scandinavian design accessible for a global customer base. Customer value is created through exclusivity, design and a secure shopping experience. This is made possible by a business model that focuses on strong external brands, a growing share of proprietary brands, international reach and a customer experience with excellent service.

A DECENTRALISED MODEL

The Group’s decentralised structure fosters the independence and entrepreneurial spirit of its market-leading online destinations while facilitating partnerships and continuous improvements to support growth, boost efficiency and improve the customer experience. Our targeted multibanner strategy, focusing on specialised online destinations, allows us to reach additional highly relevant customer segments and categories, thereby building strong positions in the product categories where we operate. This model provides us with unique potential for rapid, scalable growth with low tied-up capital. The structure also makes it possible for synergies to be realised at Group level as well as within each business area.

At Group level, the platforms become more competitive through bolt-on acquisitions, strategic initiatives, benchmarking and sharing of best practices as well as data analysis and insights. A significant portion of the cash flow generated is reinvested in M&A and prioritised growth initiatives, where we continue to see excellent potential in the form of expansion, both of the assortment and in terms of geographic reach.

Clear synergies in revenue and costs are achieved in the business areas through tactics such as joint purchasing, assortment sharing, inventory consolidation and coordinated IT solutions. The focus on a market-leading cost structure is key to the strategy, not only to ensure scalability but also to provide the best customer offering in the market.

Our Strategy

BHG’s overall ambition is to make life easier for our customers, according to our vision: “We making living easy.” As the Nordic region’s leading e-commerce company and one of the strongest players in DIY, furniture and home furnishings in Europe, BHG is well positioned to take advantage of the long-term structural migration from offline to online in categories that remain underpenetrated.

With a focus on profitable growth, the aim of our strategy is to strengthen our category leadership, capture market share in strategically selected markets and gradually reach our target of an adjusted EBIT margin of 7%. The strategy is based on a business model driven by technology, data and AI as well as scalable platforms and a decentralised structure that combines entrepreneurship with Group-wide synergies. Sustainability is a central part of our business, and we have established new targets which we elaborate on in our sustainability report.

During the year, the strategy for profitable growth was translated into tangible initiatives with clear results structured around three layers: Operational Excellence, Strategic Initiatives and M&A

OUR THREE STRATEGIC LAYERS

Operational Excellence

Operational Excellence is the foundation of our strategy and includes our day-to-day work to improve the customer experience in our platforms. This is based on each online destination’s business model and customer needs, with clear decentralised responsibility and continuous assortment development. The focus is on developing the range, continued international expansion, driving traffic, streamlining operational processes and gradually improving the customer experience. Continuous improvements in processes, technology and partnerships create the conditions for scalability, a high level of delivery precision and a competitive cost structure.

Strategic initiatives

Strategic Initiatives refer to Group-wide focus areas that are deemed central when it comes to having competitive platforms and driving profitable growth. They are implemented and prioritised at Group level and carried out in close collaboration with the platforms, taking advantage of joint resources, skills and technical solutions. Several initiatives were introduced during the year with good results, including more accurate price matching, fully automated customer service functions and continued work on warehouse automation.

The focus going forward will be on increasing the share of unique assortments, improving automation and efficiency to ensure a competitive cost structure, and continuing to implement, test and evaluate new AI solutions. The goal is to make even better use of the vast quantities of data generated in order to drive growth, efficiency and the customer experience.

M&A

M&A is an important part of BHG’s strategy for profitable growth and is carried out at Group level with a focus on value creation through selective bolt-on acquisitions among the existing platforms. The goal is to strengthen the offering, supplement the assortment and market position, and create synergies with limited integration risk. This work is proactive and characterised by a high degree of financial and strategic discipline, with clearly defined processes for identifying, evaluating and integrating acquisitions.