e-commerce and online tyre business news
How the tyres a business sells perform on the road has always been important, but these days how they perform on-line is equally so. E-commerce is now a well-established aspect of the trade and retail tyre business, and in October Tyres & Accessories reports on this ever-evolving business tool.
Internet tyre retailer Delticom has released news that, in spite of the general market slowdown, Europe’s number one e-tailer continues its impressive record of growing revenues. The first six months of fiscal year 2008 have seen the company storm to 121.5 million euros, preliminary figures reveal, showing a proportional increase of 19.1 per cent on last year’s H1. The news displays an impressive Q2 for Delticom, having returned a 9.4 per cent rise in Q1.
Even the chilly early-spring’s assault on the summer tyre market hasn’t been able to dent Delticom’s progress because the May heat in Western Europe and sales in other regions continued to lift figures, thanks to the international nature of Delticom’s e-commerce. In fact, sales in other regions accounted for 65 per cent of H1 revenues, allowing the company headroom in markets where units could not be shifted as quickly.
The Reifen Essen Show, arguably Europe’s most prominent tyre event, is still fresh in our minds, and participants are taking stock of the week’s activities. One company that has already reported a successful week is Antwerp, Belgium based Deldo Autobanden N.V., a veteran of numerous exhibitions in Essen. This year the company notes that, thanks to its sizable 140 square metre booth, Deldo held a prominent position during the May 20 to 23 show. Deldo adds it is very happy with the show’s organisation, the number of visitors and the exhibition’s overall results.
During the show several new products were launched. An additional exclusive budget range for Europe, Rockstone, was amongst these new offerings, and Deldo states that now all exclusive and private brands (Wanli, Roadstone, Fortuna, Minerva and Rockstone) can offer a total range in summer and winter tyres. Today, Deldo is preparing the winter season, and will – as in previous years – hold a very large stock of winter tyres.
MAM Software, a leading UK provider of aftermarket IT solutions, announced on March 28 that three aftermarket automotive suppliers – Pearl Automotive, Solid Auto (UK) Ltd and Sovereign Rotating Machines are installing MAM’s Autonet B2B Seller electronic trading solution to power their e-commerce initiatives. Their participation takes the total number of suppliers Autonet-enabled to almost 70.
Autonet B2B Seller will integrate with each supplier’s existing MAM Autopart systems and allow them to trade electronically with their individual motor factor customers. Autonet B2B Seller is fully compliant with the recently announced PACT protocols and will, says MAM, allow communication with most systems currently used by motor factors, including MAM’s own Autopart.
When online tyre retailer Blackcircles.com launched its new Meinreifen.de website for German consumers this month, you could be forgiven for interpreting the move as a strategically aggressive act. Hannover-based Delticom AG has been selling tyres online in Germany (and 29 other countries) for years and if its latest financial results are anything to go by, they have been making a rather good job of it. However, Tyres & Accessories has learnt that Blackcircles has been researching a possible entry into the German market for the last three years. So, could we be witnessing the start of an online tyre war?
Back in 2006, G. P. Automotive set out on a mission to create an industry-leading logistics infrastructure, capable of moving parts along the business to business supply chain quickly and efficiently. Central to this vision was the installation of a new MAM Autopart computer system and Autonet e-commerce portal that would help drive the business forward. A year later, this software is managing the internal operations of the business and supporting an e-commerce operation that represents 20 per cent of the company’s total business.
In July Tyres & Accessories examines a business tool of increasing importance to those in the trade and retail tyre business. Our July E-Commerce feature contains news and interviews from those who have benefited from taking their businesses online and useful information to help you make the most of the opportunities offered by the internet.
Make sure your business looks after its tomorrow by keeping pace with changing business practices – read all about it in our E-Commerce feature.
Blackcircles.com’s rapid success, gained through adapting dotcom technology to suit the tyre business, is well documented. According to Plimsoll’s 2007 analysis, the online tyre enterprise is the 32nd fastest growing company in the UK tyre business and blew away industry sales averages by posting sales growth of 80 per cent. So what’s the secret? The ever-increasing number of “fitting stations” listed as Blackcircles franchisees is one reason for the business’ rapid growth, but the company’s use of conventional media strategies appears to be another way it has kept traffic coming.
As Blackcircles prepares to sign-up its 300th franchise garage, the company has also launched a service designed to give consumers instant access to mechanics across the UK. The move follows the launch of www.mechanic-torque.co.uk in which consumers can post queries about their car and receive an expert answer from a Blackcircles franchise mechanic. Since launching in early 2006, the Blackcircles franchise network has spread across the UK. The franchise arrangement sees local independent garages retain their identity, but gain access to Blackcircles’ stock checking and ordering systems. Blackcircles plans to increase the number of franchises to 500 by December and 800 within a year.
The idea of an online tyre replacement market might sound like a less-than-significant niche to you, but when you consider that the UK and Germany are not only the most “wired,” but also the two of the continent’s largest tyre markets, it is clear that this means a lot of tyres and potentially a lot of money. The total online shopping market is currently worth £21 billion and is expected to triple in the years to come. As far as tyres are concerned, the leading online players are banking on the increase in broadband availability bringing extra customers organically, but one report Tyres & Accessories has seen suggests the poor communications skills of some conventional businesses are handing e-tailers even more opportunities.
Netherlands based Van den Ban Autobanden has re-launched its website (www.vandenban.nl). This new e-Commerce site allows customers to order tyres on-line 24 hours a day/seven days a week. The new site is also considered to be even more responsive and user friendly with all stock and prices being consistently current.
First reactions from clients to the new website have been very positive and VDB’s Managing Director, Frans P. van Lenten states: “Ongoing improvements to our client base has always been a very important issue to the company and I believe this latest e-Commerce service further emphasises VDB’s strong position in the market as an international ‘total tyre supplier’.”
Innovative tyre retailer Blackcircles.com has announced two new additions to its executive team as it prepares for another year of exciting growth. Launched in 2001 by managing director Mike Welch (28), the online tyre retailer has set a new quality standard for the tyre industry and strong sales in 2006 has seen it create the two new posts of commercial director and head of finance.
One of Europe’s leading international tyre wholesalers, Van den Ban Autobanden, have announced the launch of their all-new website www.vandenban.nl The new site features an e-commerce capability allowing for online ordering 24 hours a day, seven days a week. Stock levels and prices are constantly updated and the company state that the site has already gained positive feedback regarding its user friendliness.
According to Van den Ban, initial reactions from clients have been very positive. The company’s Managing Director, Frans P. van Lenten, commenting on the new site, stated that “Ongoing improvements to our client base has always been a very important issue to the company and I believe this latest e-Commerce service further emphasises VDB’s strong position in the market as an international ‘total tyre supplier’.”
(Akron/Tire Review) The Automotive Industry Action Group (AIAG) and the Society of Automotive Engineers (SAE) of China signed a memorandum of understanding (MOU) in Beijing to promote dialogue and collaboration between the North American and Chinese automotive industries in the areas of technology, management and standards development, AIAG said.
The agreement establishes a foundation for both associations to work together in support of their members’ needs for standardised processes in quality, materials management, logistics and e-commerce, the statement added. The MOU will initially focus on channels of communications for sharing information between AIAG and China’s SAE.
1) If you can’t get big, get niche
The web is huge, but you can be successful by being different. Maybe you can offer a range of specialist products that is hard to find elsewhere.
2) Learn from others
Absorb the lessons from case studies. Let other people make the mistakes for you.
During July and August Tyres & Accessories is giving away 25 copies of Chris Barling’s book “Over 120 Top Tips for Running an E-commerce Web Site.” For your chance to win one send your email address and contact details to theeditor@77.237.250.82.
For the other eight top tips we are giving away to subscribers, simply click more
Online retailing has come of age and UK consumers are leading the way. Conservative calculations suggest UK e-shoppers bought some £6.9 billion worth of products online in 2005. This year IMRG, the professional body representing online retailers, expects sales to increase to around £30 billion because 45 per cent of shoppers are looking to increase their online spending this year. Despite this, government figures suggest that only 15 per cent of tyre related businesses are represented online. And the 2006 NTDA/Trend Tracker Tyre Wholesaler survey found that over half of respondents described the Internet as “not important” when it came to their part of the business. Tyres & Accessories spoke to Internet specialists from both inside and outside of the tyre trade and found out that fresh business is there for the taking.
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