KVD is Sweden’s largest independent online marketplace offering broker services for second-hand vehicles. The company has two business areas, Cars and Machines & Heavy Vehicles, and operates the auction sites kvd.se, kvdnorge.no and kvdauctions.com where trading in cars, heavy vehicles and machines takes place on a weekly basis. KVD handles the entire transaction from client order to end customer as well as guaranteeing the quality of the brokered item. KVD is independent (does not own the item itself) and represents both buyer and seller in the transaction. The aim is to offer the most secure and effective process with the lowest risk for both parties. The company also offers additional services such as guarantees, insurance, financing and transport. Revenues comprise commission on brokered sales and services, and the sale of additional services.
KVD’s marketplaces have about 200,000 unique visitors per week and KVD has facilities at 16 locations in Sweden and one in Norway. The company includes Sweden’s largest valuation portal for cars, bilpriser.se. In 2015, the valuation service was launched for the Norwegian market, too. The company has approximately 170 employees.
The market for company cars is stable where car dealers comprise the largest competing channel for sales to end customers. KVD also competes with auction companies that sell only to dealers. KVD has a market share of approximately 10% in the segment for sales of second-hand company cars (primarily leased cars) in Sweden and is therefore the market leader. Since 2012, KVD has also brokered cars owned by private individuals and thus more than doubled the potential market in Sweden. Competitors in brokerage of private cars are primarily traditional car dealers and private-to-private sales via digital advertising. Greater digitisation and greater demand for fast, reliable management of the buying and selling process are key drivers. Within Heavy Vehicles, KVD’s current market share is approximately 7%. The machine market is highly fragmented both in terms of brokered items and alternative sales channels.
The year in brief
In 2015 KVD proceeded with a number of growth initiatives such as the launch of a new valuation service in Norway, a new auction site for professional users in Machines & Heavy Vehicles, expanded marketing activities, continued process automation and the opening of more drop-off points.
Sales were stable during the year. Cars showed strong development with a growth of 76%. The number of cars brokered for private individuals amounted to about 20% of the total volume of cars compared with 12% in 2014. The trend in Company Cars and Machines & Heavy Vehicles was weaker, and stable in Norway.
Establishment in the Norwegian market and restructuring in Machines & Heavy Vehicles are charged to the year’s earnings.
In January 2016, Torbjörn Wik assumed the position as CEO.
KVD’s business concept is to offer an efficient, transparent process for brokering second-hand items, which in turn leads to more efficient use of resources and a more sustainable society. To be the leading marketplace requires confidence and transparency, which is the basis for the company’s internal business ethics process. KVD also works to gradually make its operations more environment friendly, with focus on the company’s local test facilities.
KVD has a highly competitive business model, which was the main reason for Ratos’s original acquisition of the company. We also saw potential to expand both inside and outside Sweden and through a broadening of the offering. Since the acquisition the company’s business has been streamlined, brokerage of privately owned cars has been initiated and KVD has also established itself in Norway. In recent years the company has made significant investments in technology, marketing, facilities and customer offerings.
During 2015, focus was mainly on a considerable growth in private car volumes. In the future, we foresee vast potential for growth within privately owned cars because the market share is small and there is consumer demand for this service. Focus will also be on developing strategic partnerships, automating processes, developing value-adding add-on services and benefiting from the digitisation trend.
KVD has a good platform for continued, strong organic sales growth.
(Mainly from Ratos's annual report 2015.)