Flexibility key to success at Van den Ban

Following the crazy scramble for tyres in the winter of 2010/11, when availability was low and some sizes couldn’t be purchased at any price, in 2012 the European market now faces the reverse situation – tyres are there to purchase but unsold stocks are spoiling many people’s appetite to buy. To retain a competitive edge in such changeable conditions requires flexibility; and this is precisely the quality that Dutch wholesaler Van den Ban prides itself in possessing. Flexibility in its various forms was a key theme when Tyres & Accessories recently spoke with commercial manager Cyril Versteeg and Kees Nieuwland, who is responsible for the company’s UK and Ireland sales during a recent visit to the company’s headquarters in Hellevoetsluis, not far from the major port of Rotterdam.

Nieuwland describes last year’s availability and supply situation as an abnormal one. “Following a busy winter period in 2010 with a lot of demand in spring last year there were big gaps with shortages.” So far, so good for the tyre market – an avoidance of the previous season’s shortages must surely be a good thing. Yet, as Versteeg notes, the winter we’ve just had was different to the previous two. “It came very late, and everybody knows how the market works.”

More than just tyres

The weather has thrown the market a surprise and as Versteeg comments, Van den Ban “must and will be very efficient during this time and ensure our customers get their orders at the right time.” The commercial manager’s confidence that the wholesaler will achieve this is based upon Van den Ban’s ability to respond quickly with what he calls its total logistical solution, namely the efficiency of its warehouse handling and loading system and its own transport fleet. “We have invested in logistical solutions over the years, and logistics is becoming an increasingly important issue,” he shares. “We call ourselves a total tyre supplier and the word ‘total’ is much broader than just physically delivering tyres. It also includes factors such as logistics, marketing and IT. The market demands this from us as an international distributor more and more and we are very keen to deliver solutions that satisfy our customers.” Kees Nieuwland supports the commercial manager’s comments by adding that “a lot of changes occurred in the tyre market in the last year, but our main goal continues to be flexible, and not just in terms of our programme and stock. The tools we have – our own transport, our stock, our sales team – this is also flexibility. We can supply customers the tyres they want quickly. Customers are looking for a single supplier that can provide the tyres they want, when they want them, all from the one source.”

Part of the total service Van den Ban offers is to ensure its customers don’t just receive tyres, rather that they receive products that are appropriate for them. “You can have a very large stock, but if you have the wrong products you don’t sell them,” Nieuwland comments. “There are so many different brands and sizes, and when you do international business one market is different from the next. We can help customers find the sizes and products they need for their own local market. The brands we supply cover all segments in the market, from premium through to budget. This is, as our slogan says, all part of being a total tyre supplier.”

Blackstone and Novex

At present Van den Ban offers thousands of individual articles. Premium brand tyres account for the majority of sales, however the wholesaler also offers a number of exclusive and budget labels plus two private brands, Blackstone and Novex. Nieuwland says Van den Ban has a huge market share with numerous smaller clients offering one of the two brands as its own house brand, and to meet demand both ranges are continuously expanded; three new Blackstone sizes have recently been released and further high performance and van sizes are set to be introduced in mid-2012. In addition to supplying these private brands, Van den Ban supports its customers with their marketing.

The UK market

Kees Nieuwland’s area of responsibility, the UK, is Europe’s undisputed budget tyre king – estimates vary, but some believe budget tyres may account for more than half the total UK passenger car tyre market. Tyre buying habits in the UK thus differ from other European markets, and Nieuwland also sees a difference in the British approach to online business; its utilisation lags behind that seen in continental Europe. “The tyre business nowadays is a 24 hour business,” he comments. “We have the tools at our disposal to show products 24 hours a day and I spend a lot of time working with my clients on the benefits this brings. When I communicate with our UK partners, it’s not just about selling tyres, but about offering a complete programme and utilising all the possibilities that e-commerce offers.”

Cyril Versteeg reports Van den Ban was happy with its sell-out last year. Yet both Versteeg and Kees Nieuwland opine that 2012 may be a more difficult year for the tyre business. People are uncertain about the next winter season. Nieuwland shares that retailers and smaller wholesalers want to move old, unsold tyre stocks before investing in new stocks. Purchasing the right products at the right time presents a challenge, and this is certainly the case in a relatively young winter tyre market such as the UK. Nieuwland believes the best approach in the UK is to stock winter tyres early in the season and to focus more on premium winter tyres; he notes that British motorists who are interested in buying winter tyres are typically prepared to pay a little bit more.

Yet it is not all bad news when it comes to the UK and winter tyres. Nieuwland believes the British winter tyre market has the potential to even exceed that in the flat, relatively mild Netherlands, a market where one tyre major reports that one in every four passenger car tyres it sells are now winter tyres. The Dutch success story is largely the work of local industry organisation VACO, who began a winter tyre consumer education campaign several years ago; in Nieuwland’s opinion, the NTDA would also meet with similar success should it increase its promotion of winter tyres.

Tyre labeling

The other important market development this year, one that affects all of Europe, is the introduction of the tyre label this November. Cyril Versteeg comments that for Van den Ban, like for everybody in the market, it “will be a challenge to have this ready.” He expresses confidence the company will succeed at this but concedes its organisation will take time and effort. The consensus is that implementing the label will involve a great deal of work for all parties, including wholesalers, retailers or tyre associations, and as yet a lot of trade customers are unsure exactly what the label means.

The coming year

As mentioned above, Van den Ban foresees a number of challenges for the market in 2012. Cyril Versteeg opines that this year’s peak summer period will be shorter than usual, delayed by the late, milder winter. To tackle what comes, the wholesaler is prepared with the space to stock tyres and is focusing on up and coming regions, and supporting these with targeted products and staff that speak the local languages. The company is also investing in technology solutions. Versteeg shares that IT will play an even greater role in the future. “Customers will expect not just tyre supply, rather also the supply of IT solutions,” he says. “We are convinced this is a development that will continue in coming years; as part of this, Van den Ban is implementing changes to its webshop; these will be launched at this year’s Reifen show in Germany.

Nieuwland’s own goals for 2012 are to support and promote budget brands to clients, to focus on e-commerce and, importantly to increase relationships with clients. ”As a total tyre supplier we focus on several key points – to see our clients as business partners, to help them sell tyres, to support them and to be a reliable supplier. These are our main goals. We have a lot of tools at our disposal and will introduce more in the next half year or year. We will continue working on being a total tyre supplier, not only in tyres and ranges but also in support for our business partners.”

In closing, Versteeg describes Van den Ban as “very well prepared” for 2012. Kees Nieuwland says the company has the flexibility to grow if it needs to. “We have the space to stock tyres and also have the capacity to sell them – we don’t have to say no. We are doing well. The sky is the limit – we are always looking to the next level.”