Fact: This is how the sales of more expensive Swedish brands go
The net turnover for Svenskt Tenn was SEK 421 million in 2022, which can be compared with SEK 405 million in 2021.
For the clothing company Acne Studios, the corresponding figures were close to SEK 2 billion in 2022 and around SEK 1.7 billion in 2021.
The bag company Palmgrens showed a net turnover of close to SEK 12 million in 2022, while the corresponding figure was close to SEK 11 million in 2021.
For Hästens sengar tillverkning AB, however, net sales have decreased slightly, to close to SEK 292 million in 2022, from just over SEK 300 million in 2021.
Sources: Annual reports for 2022 for the respective companies.
While many companies in the trade are currently experiencing tough times, companies that offer slightly more expensive goods seem to be standing firm in the headwinds.
Based on annual reports from Swedish companies such as the interior design company Svenskt Tenn, the clothing company Acne and the bag company Palmgrens, all increased their sales last year compared to the previous year.
Maria Veerasamy, CEO of Svenskt Tenn, does not believe that a tight economy is at odds with the demand for quality goods. On the contrary.
— When you get a little more strained finances, you might buy goods with a longer life, she says, but admits that the company is not immune to rising raw material prices and inflation.
Less price sensitive
However, Maria Veerasamy cannot say how much Svenskt Tenn has raised its prices in line with inflation in the past year.
But as the company – once they find quality in material – buys it and plans production for a long period ahead, it becomes less exposed to capricious raw material price increases.
— We are not as price sensitive as companies that buy new every time they start production, and all our production is done by smaller craftsmen in Sweden.
The increasing turnover is also not about a recovery after previous falls. The company has increased its sales for several years, and attracts new customers to a great extent, she states.
About ten percent of the interior design company’s customers are international and largely from the United States. For them, the weak krone exchange rate will soon be positive, she points out.
Long-termism is the main reason why the company increases sales despite tough economic times, according to Svenskt Tenn’s CEO Maria Veerasamy. Polarized economy
Américo Fernández, private economist at SEB, is surprised by the increased sales of Swedish luxury companies, but emphasizes that it should not be interpreted as representative of how households generally consume. During shifts in the economy, the tendency is also often for society to pull in different directions, he states.
— Those who have a tough time financially will have it even tougher, while those who have good margins are not affected to the same extent.
Middle layer is selected
In economically tough times, it will therefore be both low-priced goods and premium goods that get wind in their sails, confirms Viktor Schmidt, press manager at Swedish Trade. Companies that offer goods that end up in the layer in between, however, take the hard hit.
— We save on what we can, but many still want to treat themselves to a little extra. Then you may instead have to save for sporadic purchases, such as white goods, furniture or paint, he says.