Aurora Group Holding A/S (“Aurora”) and SweDeltaco AB (“Deltaco”) are two of DistIT’s subsidiaries that have historically worked with the Nordic markets in parallel with, among other things, separate sales and administration structures.
In 2019, an organiational merger of the operations within Aurora and Deltaco was carried out in order to obtain clearer coordination in order to expand market and cost synergies in the sales phase and in the support functions. In 2020, a new joint management team was put together for Aurora and Deltaco. In addition, full integration of the operations is ongoing and is expected to be completed in 2022. The new organisation will have a significantly greater market share in the Nordic market, and improved results in the future through a new common platform, new leadership, and successful restructuring measures.
BUSINESS CONCEPT AND VISION
Aurora and Deltaco’s business concept is to offer an attractive and updated range of products and accessories in IT and consumer electronics. The range consists of both own and external brands. Furthermore, the companies have costeffective offers with additional services within concepts and marketing, as well as a high level of service noth through the availability of products, as well as high expertise, and dedicated and service-conscious employees with a great interest in technology. The vision for the companies is to create value for customers and external brand owners, and become the obvious business partner in Europe with a special focus on the Nordic and Baltic countries.
BUSINESS MODEL
Through size and specialisation, Aurora and Deltaco can achieve economies of scale, have specialised employees and a high level of market knowledge, as well as provide fast and relevant feedback to customers and external brand owners.
The combination of offering both relevant own brand labels (OBL) and external brands in niche product categories that are in demand in both physical and digital channels creates additional sales with customers. The merger of Aurora and Deltaco creates even larger product and brand catalogues to offer.
With a third-party logistics solution, the companies can offer reliable and efficient distribution, with daily deliveries throughout the Nordic region; to store, central warehouse or directly to end customers via ”drop shipping”.
Aurora and Deltaco will in future have a good platform for growing organically and through acquisitions.
CUSTOMERS AND MARKET
Aurora and Deltaco have long customer relationships, create links between external brand owners and customers, and offer a wide and constantly updated product range of OBL and leading external brands. The geographic market is Europe with a focus on the Nordic and Baltic countries, and the companies target both B2B and B2C customers (B2B customers who sell to consumers).
Sales are made both in physical channels, such as retailers and wholesalers, and in digital channels, such as e-retailers and digital marketplaces. The market is in constant motion where external brand owners and sales channels want to take on different large parts of the value chain in different phases of the business cycles.
BRANDS
Own brand labels (OBL) include a basic range within several product lines where the companies create and update innovative concepts, as well as a ranges within, for example, gaming, smart homes, electric car charging, security and offices. The product categories include several price and product ranges, and handle control of final prices to ensure the right margin structures. Examples of own brands are DELTACO™, DELTACO Gaming™, L33t Gaming™ and Panzer™.
External brands cover all focus categories and are developed separately in order to maintain updated and complete brand portfolios. The companies also offer advanced services within marketing and concept services. Examples of external brands are Duracell, Aarke, Ubiquiti and Kingston.
