Blackcircles Aims to Take Online Tyre Sales in Germany
Online tyre retailer Blackcircles.com has launched a website aimed at German consumers called Meinreifen.de. “The decision to enter the German market was very much driven by what we were seeing amongst competitors who are growing on the back of offering customers an inferior deal,” an official statement read. Naming the site mein reifen (literally my tyres in English) together with company’s comments about its competitors offering an “inferior deal” appears to be a direct attack on German company Delticom AG, which trades as mytyres.co.uk in Britain. While both companies trade online they follow quite different business models so could we be witnessing the start of an online tyre war?
Mike Welch, Managing Director of Blackcircles.com, said: “German motorists are very particular in their choice of tyre, usually opting for Winterreifen – a different tyre in the winter, and we are delighted to be able to offer them an enhanced choice and the ability to purchase all the major brands at low cost. Our aim in Germany is to set a new standard for low cost tyres combined with high quality service.”
In the UK, the company’s fast, high quality service has ensured that 40 per cent of its monthly business comes from customer referrals. Mike Welch launched Blackcircles.com in 2001 and the company now reports turnover of around £8 million.
In January Delticom AG reported 2007 sales of 214 million euros and EBIT of up to 12.5 million euros, almost 25 per cent up on the previous year.