Rugvista's business model

Our business model is a Direct-to-Customer (D2C) model without intermediaries in the value chain. Key components of our D2C model include our in-house design and product development, where we collaborate directly with various producers for the manufacturing of our proprietary assortment. We then sell our products directly to the end-customer through our web stores. This business model enables us to offer high-quality rugs at competitive prices while maintaining a good gross margin. Our ambition is for our web stores to provide a world-class customer experience that continuously evolves to meet changing customer needs and expectations.

Internal processes, systems, and infrastructure are continuously adapted and optimized based on the business to ensure operational efficiency and, above all, the best possible experience for our customers. The scalability of the D2C business model is a further advantage. It is a flexible model that requires only modest investments in production facilities and personnel. Instead of owning and operating our own production facilities, we collaborate with leading producers, primarily in India, Egypt, and Turkey. We can adjust the selection and number of producers we work with as our requirements evolve and change. The business model, combined with our position as one of Europe’s leading online rug retailers, also provides economies of scale in the form of favorable purchasing terms, more efficient marketing investments, operational efficiency, and leverage on fixed costs

Strengths and competitive advantages

We have a strong track record of profitable growth since our inception in 2005. Along the way, some years have been more successful than others. 2025 was a year in which we, despite continued global uncertainty, again saw solid organic growth following some challenging years where European households were pressured by significant uncertainty, high inflation, and high interest rates.

One explanation for our history of profitable growth lies in our strengths and competitive advantages, which also serve as the starting point for our vision to become 'the go-to brand for quality rugs.' Below, we further elaborate on our primary strengths and competitive advantages.

Customer Offer

We continuously develop our customer offering based on trends, data, and evolving customer needs. Some of the key components of our customer offering include:

• A Broad range of design and traditional rugs across various categories, styles, colors, and sizes
• Affordable and high-quality products within our assortment of unique traditional rugs as well as within Rugvista Essentials, Rugvista Core, and Rugvista Premium
• A Convenient and seamless digital shopping experience with a focus on user-friendliness
• Free shipping and free returns with locally adapted delivery options
• Free and accessible customer service in approximately 20 different languages
• A high trust factor thanks to excellent customer and product reviews
• Collaboration with reputable suppliers
• Locally relevant and secure payment options

Rugvista's D2C – model

Proven product and assortment expertise

We possess extensive experience and expertise within the rug product category. This enables us to develop and offer a broad and relevant range of high-quality, affordable design and traditional rugs. The purchasing power resulting from our scale allows us to procure products at favorable prices and terms. We can then pass these benefits on to our customers, which is a key reason why our products offer such high value for money.

Rugvista’s assortment is developed for and adapted to customer needs, expectations, and current trends within the home interior category. Customer surveys and sales data, combined with trend forecasting, are used to continuously refine and adapt the assortment as preferences, trends, and needs evolve.

World-class customer satisfaction and a growing customer base

After every order placed, we ask our customers for feedback through a survey regarding the customer experience to measure satisfaction. Following the delivery of products, we also follow up on customer satisfaction at a product level. We are very proud of our high average customer satisfaction rating of 4.6 and are dedicated to maintaining and strengthening this score.

Ensuring that our customers are satisfied after making a purchase from us is our highest priority, and we view satisfied customers as a fundamental prerequisite for our future profitable growth.

During 2025, our customer base grew by approximately 270,000 individuals. We consider our growing customer base a vital asset for future growth, particularly given the high level of customer satisfaction we maintain.

Leading position in a market where scale is key

We are one of the leading players in the European online rug market. Our scale and digital business model provide significant economies of scale compared to physical rug stores and smaller digital competitors. These advantages include the ability to negotiate favorable prices and terms for the procurement of products and services, more efficient marketing, the capacity to offer a broader and more comprehensive assortment, and the ability to attract and recruit top-tier talent.  

High cash generation

Our ability to generate positive cash flow enables continued investments in an improved customer offering and business development  aimed at further enhancing our long-term prospects. During 2025, the company carried out a significant investment in fixed assets related to the establishment of our new office and logistics center. In a normal year, the investment requirement is substantially lower, meaning that the business generates strong operating cash flow and exhibits high cash conversion.

Tailored infrastructure, technical platform and data-driven organization

Our overall technology platform primarily consists of proprietary software combined with third-party components. This has enabled us to maintain a technology platform tailored to our specific needs and processes. The platform is based on open-source technology and utilizes Amazon Web Services (AWS) as its operating environment. This overarching technical architecture is intended to make our technology platform scalable, reliable, and future-proof.

We view technology and data as levers to drive further development and efficiency improvements across both operational and commercial processes. We utilize data to better understand customer needs and trends, as well as to identify improvement opportunities in our offering and other commercial processes. Functionality and algorithms have also been developed to automate, optimize or support recurring internal processes, which has resulted in efficiency and quality improvements within several of the company's functions.