The product portfolio of Aurora is huge and encompasses antennas, audio and video products, products for professional use, car hi-fi equipment, data devices, electrical products, mobile and PDA devices, photo and telecommunication articles, vacuum cleaners, and white goods. Accounting for around 30% of the company’s overall business volume, the telecommunications sector is a mainstay of the business, especially products for smartphones and gaming.
Contributing another 25 to 30% to the total turnover, home office and entertainment products are a second pillar of the business and growing fast. While some years ago, brown goods made up half of Aurora’s revenues, they are now at around 25%; white goods contribute another 25% to the company’s turnover. Third-party products account for 82% of sales while own brand sales account for 18% of turnover.
Targeting the retail and e-tail markets, Aurora offers around 8,000 different products and replaces around 2,000 products every year. “We are always searching for new brands,” says CEO Henrik Finnedal. “At present, the gaming market keeps growing as well as the market for headphones. Also, there is increasing demand for accessories for smartphones and tablets. In the Nordic region, the e-commerce sector keeps growing at around 20% every year. We provide the logistics for that growth. Aurora is the link between the brands and the customers. We take on brand management including categorization, marketing and key account management. We also cover the whole logistics chain – ordering and invoices, warehouse operations, purchasing, finance, parts and transport. Last but not least, we offer in-store solutions. We follow up the company’s sales performance, carry out sales and product training, and take care of the interior and shelf presentation.”
At present, the company’s B2C retail clients are Aurora’s most important target group of contributing 85% to the company’s annual turnover. B2B sales to distributors and wholesalers contribute 15% altogether. In line with the overall trend, Aurora’s etailing activities keep growing. The company closely cooperates with the IT departments of its clients. Together, they develop the respective e-commerce channel.
“Aurora stands for the alliance of IT and marketing,” says Mr. Finnedal. “This clearly distinguishes us from other competitors and is an important competitive advantage for us.” Aurora services clients all over the Nordic region and is the fastest growing e-commerce company in Sweden. “Our three-area service including brand management, logistics and in-store solutions is a great asset,” Mr. Finnedal explains the company’s success. “Also, our product program is unparalleled. In the Nordic region, there is only one Scandinavian competitor with a comparable offer.”
2015 is set to be a watershed in the company’s history as it marks a par¬ticularly significant anniversary. “In 2015 we celebrate our centenary by looking back on 100 years of con¬stant change that has taken us from a seller of motorcycle parts to where we are today,” says Mr. Finnedal. This year, the dynamic business aims to speed up its activities in the market as time-to-market becomes ever more crucial.
“You need to have the right products at the right time, or the show is over,” says the CEO. “Here, the integration of IT, marketing and shipment will help us. I am positive that the e-commerce sector will continue to grow in the coming years. The Nordic market will consolidate, and the bigger companies will get even bigger. I believe that the smaller players are facing hard times. I am positive that we worked out the right strategy to stay competitive in the long run and to enhance our market position in Scandinavia.”