Business base

BoConcept A/S is an international retail-oriented concept holder with a full product range comprising furniture and lifestyle products for private homes.

With its core competencies in design, branding, store management, sales model optimisation and supply chain management, the company concentrates on developing, providing support to and supplying goods to its global franchise-based retail chain, which at 30 April 2012 consisted of 255 BoConcept Brand Stores and 40 BoConcept Studios in 58 markets.

Design and product development

Controlled from the company's head office in Denmark, BoConcept's store and product concepts undergo constant development in order to ensure that its defined target group perceives the chain as attractive at all times. Training and support for the Brand Stores are also controlled and co-ordinated from here, important aspects in ensuring that the store concept is uniform, up-to-date and staffed by highly qualified sales personnel at all times.

Rolling out and continually adapting the design and concept development of BoConcept is a key element of our strategy. In the development phase of the furniture and accessories collection, the important thing is to ensure that the products have a high design content and are trendsetting, commercially viable and affordable. With a view to ensuring that our customers' needs are met, we renew our collection every year in September, which means that roughly 20-25% of the collection is replaced annually.

Brand and communications strategy

A strong and uniform global brand which clearly reflects our concept values becomes ever more important in the battle of attracting the right customers to BoConcept Brand Stores worldwide. The definition of the brand and the creation of the marketing and concept tools intended to build brand value relative to target group are controlled from our head office, but implemented nationally and locally via our national market organisations in order to ensure the effective utilisation of our marketing resources.

Production and supply chain management

Basing its business on the role of concept holder, sole supplier and international distributor of a complete product range of branded lifestyle products for BoConcept Brand Stores, BoConcept focuses on sourcing, cost-effective production and optimisation of the company's supply chain as value-adding elements.

Product range and sourcing

To ensure that the design and quality of each element in our product ranges satisfies BoConcept's strict requirements and is independent of production location, BoConcept works closely with suppliers and its own production facilities in the development and creation of new collections.

BoConcept's manufacturing and sourcing strategy is to maintain a competitive own-production output in core production areas while purchasing other processes from subcontractors. BoConcept endeavours to develop few but meaningful and close business relationships with suppliers who ensure a critical mass and make close integration of interest to all parties involved. By adopting this strategy, BoConcept expects to be able to reach the group's supply and quality objectives and provide a flexible and cost-effective supply setup as a basis for future growth and expansion without having to invest more heavily in capacity increases, etc.


It is BoConcept's declared objective to complete the delivery of 95% of all orders at the confirmed time. This delivery service is a valuable asset for Brand Stores and Studios, which are in a position to serve end-users with some of the most competitive times of delivery in the industry without being stockists. This means stores can allocate resources to and focus on selling and providing service to end-consumers.

BoConcept handles the delivery of complete customer orders to the delivery hubs of Brand Stores and Studios. The Brand Stores and Studios themselves handle the last stage of distribution to end-consumers as well as after-sales-services.

BoConcept's channels of distribution and franchise concept

The group's products are sold through BoConcept Brand Stores and Studios.

Brand Stores are individually run franchise stores, typically with a floorage of between 400 and 800 m2, located in high traffic locations; Studios are typically shop-in-shop units with a floorage of between 100 and 400 m2 and located in well-established furniture stores where BoConcept brands and products and those of the local furniture chain complement each other.

BoConcept's franchise model

BoConcept bases its franchise model on a well-tested concept, and the close screening, evaluation and selection from among many potential franchisees takes place at group level, taking into consideration factors such as the individual skills and competencies of the franchisee, and assessing and approving the business plan of that particular unit, its location, and its operating and financing budgets.

The franchise agreement, which typically has a term of five years with the option of renewal, implies, among other tings, an entrance fee and a marketing agreement as between the parties. In addition, it is the franchisee's obligation to invest in setting up a Brand Store in accordance with guidelines dictated by BoConcept. The franchisee is the one who holds the lease.

Franchise rights are granted in accordance with a cluster strategy in which franchisees are typically granted the right to a geographical area with a potential of two to five Brand Stores. This ensures maximum synergy gains as regards logistics and marketing.

Sales optimisation and training

In today's Brand Stores, BoConcept's primary focus continues to be the optimisation and growth in same-store-sales. Same-store-sales are driven by the traffic to the stores, the hit rate and the order size, and they are registered in the Brand Stores that today use BoConcept's ERP system, Axapta. The system is now fully integrated with BoConcept's other IT tools, and this facilitates order flow control, follow-up on same-store-sales via a data warehouse module, etc.

BoConcept University, the centre for chain staff training and development, is key to improving customers' shopping experience and thus increasing same-store-sales. Customised training programmes for salespeople, store managers and retail operations managers have been set up and are continually being improved.

Market allocation

The expansion in BoConcept Brand Stores primarily focuses on ten selected A markets; France, USA, Spain, Germany, Japan, Denmark, Norway, UK, Sweden and China.

At 1 September 2013 there were BoConcept Brand Stores and Studios in 59 countries; this wide spread across the market reduces sensitivity to regional market fluctuations.