NDI – Combining flexibility and good prices

A common theme while talking with wholesalers this year has been the need for flexibility. Various companies are approaching this in different ways, and Danish wholesaler Nordisk Dæk Import, better known as NDI, has chosen a path not yet taken by any other European wholesaler. In order to offer customers the double advantage of flexible ordering and competitive prices, the company has established a new warehouse in Qingdao, China, near where its Nordexx private brand is manufactured. From this warehouse, NDI will directly supply Nordexx-brand and other products to its European and international customers; in early March the first shipment of Nordexx tyres arrived in the new Qingdao warehouse, and by April the full Nordexx range was in stock.

“We now have tyres in stock in Qingdao,” NDI export manager Carsten Andersen told Tyres & Accessories. “We are the first European wholesaler with stock in China. Having stock in our own warehouse in China means we can supply tyres, including the Nordexx private brand, to European customers within five or six weeks of an order being placed. People ordering from China usually must wait three to four months before their tyres arrive.”

Andersen acknowledges that finding a good price for tyres in China is – in theory – not particularly hard at the moment. But as he points out, there are often pitfalls that make ordering in China less attractive at second glance, particularly for smaller customers. “Everyone can buy in China, but they need to pay in advance, they need to to take care of various things and then can only buy a whole container of one size,” he explains. “We are really looking forward to the opportunities the Qingdao warehouse offers. There, with our own stock, we can mix the total programme – you can take four tyres of this size, eight of that, a hundred of that. You can mix a container as you want to. We can offer flexibility together with good prices, and we look forward to gaining a lot of business in Europe through this.”

The plan, adds Andersen, is to increase the quantity of Nordexx tyres sold in Europe. “We are well-covered in Norway, Denmark, Sweden, Finland, Germany – markets where we have our own companies. Everything is going very well in these countries. We work together with sole importer Desmond Simpson in the UK, and this is going incredibly good. But what we need to do now is focus on other European countries, including Eastern Europe. We want to focus on all European countries.”

Everything is taken care of

Following the warehouse’s opening, NDI is particularly targeting smaller and mid-size customers, offering them a complete service. “People are sometimes afraid to buy in China as they are used of orders taking three or four months – but we can supply a container in six weeks and take care of everything, such as duty and payment terms – all the things people are afraid of. That’s a big job if you don’t know it well and you can easily lose a lot of money on it. We are getting so many tyres into our warehouse now that we require a department to look after these things. So, we thought – why not also offer this as a service for our customers?”

The warehouse in Qingdao has capacity to house 100,000 tyres and the operation is headed up by Gregers Lindvig, a fluent Chinese-speaking Dane who Tyres & Accessories first met at the CITExpo show in Shanghai last September (see our coverage of CITExpo, starting on page 74 of the October 2012 magazine, for further details). Lindvig is building up the team in Qingdao and he is in charge of growing NDI’s business outside of the European/Scandinavian regions; the Qingdao operation now sells the Nordexx brand to a number of countries, including Australia, Brazil, plus several other South American and African countries.

Nordexx range to grow in 2013

“The Nordexx brand offers great potential,” comments Andersen. “We are constantly developing the programme and it now contains van tyres, winter tyres with both Nordic and European compounds, and summer tyres. We regularly study what sizes are needed and expand the range.” The export manager also tells Tyres & Accessories that further developments to the Nordexx range will take place this year. “The plan is to extend the range further. We want to grow with Nordexx in Europe, not just in passenger car.”

The Nordexx range is sold through the company’s own Super Dæk Service outlets and through independent retailers, and is also sold to wholesalers in European countries outside of its Scandinavian home market. “The market for Nordexx is growing in Europe. We are one of the largest Scandinavian wholesalers and our market share there is already very high, but Nordexx is important for the big European export markets. We want to export more in Europe.”

Within Europe, NDI is looking for “good and stable partners who don’t just want the cheapest.” The export manager then shares that the reclaim rate for Nordexx is less than for many premium brands. “We’re proud of the tyres – Nordexx is not just another Chinese brand, it’s not just budget. People who deal with us can get a good product.”

Agricultural sector booming

Passenger car tyres, including Nordexx, make up 50 to 60 per cent of NDI’s total wholesale business. The company also supplies the truck and agricultural sectors, and the company’s main agricultural brand for the Nordic countries – Norway, Sweden, Denmark and Finland – is Alliance. Carsten Andersen says agricultural is “booming at the moment.” He tells Tyres & Accessories that NDI’s agricultural sector business in the first two months of 2013 was up 40 per cent year-on-year. “We are also growing in the agricultural wheel sector,” the export manager adds. “Our AP Dual Wheels are sold through European and global importers. These are tailor-made wheels that we manufacture ourselves here in Denmark. We can produce and deliver these within ten days of an order being placed, regardless of whether it is high or low season. Clients are impressed with our delivery times. We are growing a lot because of our quality and delivery times.”

2013 outlook

Despite the economic situation in Europe, NDI is still investing in growth – as its commitment to Qingdao shows. As for what the wholesaler anticipates for the rest of this year, Carsten Andersen says that he can give no concrete estimate figures, NDI has grown every year and is expected to do so in 2013. He adds that the Danish company continues to gain new importers for its products around the world.