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Euretco Tweewielers To Sell Giant and DBG Private Labels

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BREDA, The Netherlands (June 17) – Dutch retail organization Euretco Tweewielers (286 ‘Profile’ and ‘Fietswereld’ shops) signed contracts with Dutch Bicycle Group (DBG) and Giant Europe to produce 5,000 bikes each under its private label brands for this bicycle season 2002/03. Euretco Tweewielers managing director Ron te Riele admitted, that he ended cooperation with Belgian […]

BREDA, The Netherlands (June 17) – Dutch retail organization Euretco Tweewielers (286 ‘Profile’ and ‘Fietswereld’ shops) signed contracts with Dutch Bicycle Group (DBG) and Giant Europe to produce 5,000 bikes each under its private label brands for this bicycle season 2002/03. Euretco Tweewielers managing director Ron te Riele admitted, that he ended cooperation with Belgian bike manufacturer MGI (Marcel Geurts Industries) to let produce its low-end private label Avancer by DBG. ‘A-brands are becoming more advanced and more expensive, so there is a bigger market for private labels, which always are 10% cheaper’, Te Riele said. He further explained, that its Dutch IBDs reach a 40% margin on private labels versus 32% on A-brands. “On top of this a 5% rebate has become a regular practice at Dutch IBDs”, added Te Riele. In the case of Giant, cooperation with German bike maker Mifa was ended. Te Riele: “Mifa maintained lower quality levels in bikes and logistics.” Giant Europe will start on the Dutch OEM-market in the high-end private label ATB, Trekking and City models Cougar and Grandeur. Last year Euretco Tweewielers sold some 285,000 bikes through its successful shop formulas ‘Profile’ and ‘Fietswereld’. (FN)

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