Swedish e-commerce trade magazine: Demand is falling in several sectors, but nicotine products are going strong
Due to the recent inflation figures and the increased policy rates by central banks worldwide, Haypp Group now comments on the effects on the company in Ehandel.se.
Sweden's inflation stands at a sky-high 7.2 per cent, against the inflation target of 2 per cent. This is the highest inflation level since 1991, when a financial and real estate crisis hit the Swedish economy hard for a few years.
Markus Lindblad, Head of External Affairs, comments on the impact of the inflation on Haypp Group in the Swedish e-commerce trade magazine Ehandel.se. So far, the rising inflation has had a minimal effect on Haypp Group's business.
“The cost of production for our manufacturers constitutes a small part of the final price that meets the customer, which reduces the need for our manufacturers to raise their prices towards us as retailers”, says Lindblad.
Haypp Group has seen some inflationary impact on its logistics costs, mainly driven by increased energy prices.
"However, one should keep in mind that logistic costs are a minor part of our total cost base, and Haypp Group is well-positioned to pass on cost increases to the customer and charge more for our freight", Lindblad tells Ehandel.se.
Lindblad concludes the interview by saying that consumers do not reduce nicotine consumption when the economy is down. Instead, they look for cheaper products.
"Nicotine pouches are in a good spot with significantly lower prices than cigarettes, and e-commerce is generally well-positioned compared to traditional retailers", he says.
Read the article here (Swedish)
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