Deldo Focusing on Established Private Brands

After one glance at Deldo’s product and brand portfolio it is clear that the Belgian tyre wholesaler is a leading player amongst distributors of exclusive tyre brands. Since its foundation some 30 years ago the company has increasingly developed into a specialist within the budget tyre segment without neglecting the premium tyre market, and in recent times Deldo Autobanden has again focused upon the premium market segment. Due to an overall increase in sales figures the company now has decided to increase its central warehouse in Antwerp’s free harbour from a current 40,000 m² up to 50,000 m².

However, Deldo is much more than just a simple trade partner that supplies tyre dealers (and other wholesalers) with products and offers competitive conditions. Rather, the company increasingly sees itself as a “partner in business”, says Rutger Veerman. This means that Deldo can offer a comprehensive partnership that goes beyond products and prices. In addition to offering a diversified product portfolio “from under one roof” Deldo supports its business partners in terms of logistics services, marketing support, communication and other services. For example, the Belgian wholesaler has just recently launched a newsletter that will be sent to its customers in print form and electronically. By means of this communication tool Deldo points out its own strengths, new products and services. This newsletter can also be put on display in the waiting area of tyre dealerships. In fact, new sales support measures were announced in the first issue of the new Deldo newsletter, such as renewed displays for the point-of-sale or give-aways for end consumers; all these measures are deemed to support Deldo’s exclusive and private brands Wanli, Sunny, Fortuna, Roadstone and Minerva.
It is these brands in particular that have helped Deldo to achieve the position it holds today as a leading European wholesaling company. Last year, for example, it sold about 3 million budget tyres; in total Deldo reported an annual sales figure of more than 6 million units. Thus the budget segment accounts for about 50 per cent of Deldo’s tyre business. From that figure, two out of the three million tyres were produced by South China Tire & Rubber Co., Ltd., a Chinese manufacturer based in the city of Guangzhou. Deldo Autobanden has maintained good business relations with this modern state-owned Chinese tyre manufacturer for the past seven years. Within this relationship the Chinese partner supplies Sunny and Wanli branded tyres exclusively to Deldo and also produces Fortuna tyres, a Deldo private brand that was launched 2005. That Deldo still is able to grow with these brands was proven last year and again during the first quarter of 2007 when the Belgian wholesaler further increased its Sunny, Wanli and Fortuna sales, says Rutger Veerman. The reason for this growth is that more new tyre dealers have chosen to sell these Deldo brands as they are positioned in the budget segment of the market and are “very competitive” in this market, according to the company. Through “healthy margins” these brands help the dealer to achieve a good profitability. All three brands are marketed in the lower part of the budget segment.
Together with the exclusive and private brands produced in China by South China Tire the Belgian tyre wholesaler has two more brands competing in the budget segment of the market: Roadstone and Minerva. Roadstone is the secondary brand of the South Korean tyre manufacturer Nexen and is distributed exclusively by Deldo Autobanden. Minerva in turn is Deldo’s second real private brand. From next year onwards the Minerva product range will be substantially expanded. It is within the UHP market segment in particular where new dimensions will be launched, the company announces. The Minerva brand is sold in the top end of the budget market segment together with brands such as Hankook, Kumho, Marshal or Toyo. Minerva was first launched several years ago and since then has been clearly established as a “best brand at competitive prices”. The Nexen brand Roadstone in turn is based in the middle range of the budget segment and also made steady improvements in comparison with the other exclusive and private brands.

Deldo – Focusing on premium brands

However, although it was the budget tyre segment that helped Deldo Autobanden to reach the impressive size it has attained in Europe and even around the world, the Belgian tyre wholesaler is shifting its focal point more towards the premium tyre segment. “We want to focus more and more on the important tyre brands,” says the marketing manager. Even today the company stocks a vast portfolio of premium tyre brands in its central warehouse in Antwerp. In order to change its focal point Deldo intends to use “our strong relations and global sources” and thus help to supply its demand. During this year the initial adjustments towards optimising Deldo’s premium brand portfolio will be put into place. In addition to these product related changes the company is also investing into e-commerce. In April Deldo published a new online store for its customers, and the company is currently preparing to launch a completely new website. So, “Deldo is moving forward into the year 2007. But we won’t start to run before we can walk.”