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European market leader in online tyre sales
reports plus for 2002
E-Commerce is Delticom's largest growth engine
Hanover, 08.01.2003 A strong winter tyre business in the fourth quarter 2002 with a turnover of around 12 million Euro (Q4 2001: 7,7 million Euro) has convinced the tyre dealer Delticom AG, Hanover, that its concept of symbiosis between wholesale and e-commerce is bearing fruits. Wholesale reported a revenue increase of 20 percent, while the e-commerce unit doubled figures. In total, the European market leader earned in the past business year of 34 million Euro (year 2001: 21.7 million Euro), half of which through Internet trading. "We're counting on high growth rates in the online business this year", explained Delticom Managing Director Andreas Prüfer.
Buying tyres on the Net is becoming more common
According to a recent survey by Roland Berger Market Research, consumers buy mostly books (82 percent), music CDs (74 percent) as well as DVDs and videos (each 47 percent) by means of the Internet, but online tyre sales are gaining ground. In 2002 the Hanover-based tyre dealer registered a total of 40 million accesses at its online tyre shops in eight European countries. In addition, due to the current economic pessimism, German consumers are more price-conscious according to the results of a study "Konsumverzicht rund um das Auto" carried out by BBE-Unternehmensberatung and ABH-Marketingservice in Cologne. Close to 25 percent buy lower-priced tyre brands. The tyre dealer profits from this price consciousness. Based on a strict cost management, the company can offer tyres at lower prices. Through its wholesale activities the trader can purchase cheaper tyres, as well as well-known brands in large quantities at lower prices. During the months with the highest revenue from October to December, 1000 orders and on average 200 000 hits were registered daily at the German tyre shop www.reifendirekt.de. At this site, Delticom attains the lion share of its e-commerce revenue, the remainder is earned in other European countries.

In 2002 a further six tyre shops in Sweden, Austria, Switzerland, Ireland and France were added to the existing seven B2C tyre shops. The expansion of the B2B business was also very successful. In 2002, Delticom launched five new B2B shops in the Netherlands, Austria, Switzerland, the U.K., and in Sweden. The number of service partners increased from 1500 at the beginning of the year to 2000 at the end of the year.

New Product: Engine Oil
Last October Delticom added engine oil to its product range. The company delivers the low-priced quality oil "High Performer" within two to three days, minimum quantity being five litres. "This is a test for us. If customers buy oil at our site, we might decide to include other spare parts in our product range. The required structure is available. Currently the results are positive. This business is developing favourable", commented Rainer Binder, Delticom Managing Director.

Delticom AG
Brühlstr. 11
30169 Hannover
Deutschland
Tel. (+49 (0)511-93634960) - 14 Ct. pro Min.
Fax. +49 (0)511 87989071
URL: http://www.delti.com
E-Mail: info@delti.com