Delticom AG again surpasses expected sales
Tyre dealer increases revenue for 2001 from 18 to 21 million Euros
Winter tyre business results in a sales incease of 175 percent in the fourth quarter/Further international expansion planned
Hanover, 01.02.02 The Hanover-based tyre dealer, Delticom AG, has again surpassed sales expectations for the past financial year (31.12.2001). Last October the company increased its revenue goals from 15,2 million to 18 million Euros. The numbers now show, that Delticom has increased its revenue to over 21 million Euros (financial year 2000: 6,9 million Euros). "This means that revenue has tripled in comparison to last year", commented Dr Andreas Pruefer (38), Managing Director responsible for E-Commerce. Delticom employed 22 people in 2001 compared with 12 in 2000. The final financial report will be available at the end of March. In 2002 Delticom plans to reach a turnover of 25 million Euros. This would mean a revenue increase of 20 percent.
"We had a very positive increase in winter tyre sales", explained Rainer Binder (44), Managing Director responsible for tyre wholesale. In the fourth quarter of 2001, Delticom had a turnover of about 7,7 million Euros. This corresponds with an increase of 175 percent in comparison to same period in the previous year (fourth quarter 2000: 2,8 million Euros). The revenue distribution between the two business units remains the same: two thirds wholesale and one third e-commerce. For its second financial year the company is again reporting a profit.
In 2001 the company launched online tyre shops in Switzerland, Great Britain and the Netherlands, as well as an online shop for motorcycle tyres. To do this Delticom founded two subsidiaries: Delticom Ltd. in the U.K. and Delticom B.V. in the Netherlands. For 2002 Delticom plans to open at least two other online shops in Europe. Further plans exist to expand the Business-to-Consumer motorcycle tyre shop to Austria and Switzerland. The Business-to-Business portal (www.autoreifenonline.de), which up to now concentrated only on the German market, will be extended to other countries and provide additional products and services.
On 15th January 2002, Delticom was online for exactly two years. In the past twelve months over 12.5 million hits from over 50 countries were registered on the various platforms. The highest number of hits on a single day was 150.000 registered on the 12th of November 2001. The success of the shops is based on its stringent orientation to customer service. For example, Delticom keeps data size and page loading times to a minimum, and avoids the excessive use of advertising banners. "For usability reasons, we deliberately do without advertising revenue", Pruefer explained.