Parts of the e-commerce sector face tough times, but Haypp Group sees benefits in more challenging economic times
Concerns in the e-commerce sector are growing ahead of the autumn. However, Haypp Group's Head of External Affairs believes several factors could benefit the nicotine market in more challenging economic times.
High inflation, energy prices, and declining consumer spending cause concerns in the e-commerce sector. In an interview in the trade magazine Market, Markus Lindblad, Head of External Affairs at Haypp Group, gives his views on the topic. Lindblad believes that some e-retailers could face a tough time this autumn and winter.
"Many companies have bought a lot for the autumn in order not to be without goods due to lessons learned from the world's covid shutdowns and logistics problems. But the situation is different now. Consumption is slowing, and many will be left with large stocks after the third quarter. It won't be pretty. Lack of liquidity means that the situation must be saved by selling off the products at heavy discounts. Then the bankruptcies come next year in quarter one and quarter two", says Lindblad to Market and continues:
"However, the countercyclical companies with a sustainable business model and a stable balance sheet will not be affected similarly."
Lindblad points out several factors that could benefit the nicotine sector in more challenging economic times.
"Consumers will continue to use nicotine but choose cheaper products to some extent. The habit is still there, but people may move to a lower price segment. More people will also enter the product category due to the high costs of smoking."
Lindblad also points out that Haypp Group turns over nearly all its stock every fortnight while maintaining a solid balance sheet.
"That's a good foundation to stand on in these times", Lindblad concludes.
Read the full article (in Swedish) here.
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Haypp in brief
The Haypp Group is spearheading the global transformation from smoking to risk-reduced product alternatives. With origins in Scandinavia, our extensive experience from pioneering markets in smoke-free alternatives, as well as being a leader in the e-commerce sector, is now bringing our vision to a global scale. With ten e-commerce store brands, the Haypp Group is present in seven countries where we served more than 680,000 active consumers during 2021.