HOUTEN, the Netherlands – Retail organization Biretco will invest 0.5 million euro next year to improve bicycle distribution in the Benelux. This is part of the Formula 2010 Strategy, presented by Henk De Vreeze, MD of Biretco, at last week’s dealer buying event.
The Formula 2010 Strategy enables Biretco’s dealer/members to order private label and A-brand bikes on demand. Just in time (within 48 hours) delivery is guaranteed as the bikes are kept in stock. According to De Vreeze, this strategy will improve the solvency of the Biretco dealer/members as all bikes are to be paid after delivery.
The starting point of this approach is the strategic study presented by the Dutch dealer association BOVAG in 2006. Henk de Vreeze has been inspired by this study.
Biretco’s new strategy is based on a core collection of private label bicycles, consisting of only eight models. Most of these models will be produced in the factories of the Accell Group. The remaining part is made by the small Dutch manufacturer Pointer.
In addition Batavus, Gazelle and Sparta will produce twenty models, including e-Bikes, exclusively for Biretco. For all bikes, including the e-Bikes, the same margin structure is applicable. These A-brand bikes will also be included in the annual agreements made by the bike manufacturers and the dealer/members of Biretco.
Terms and conditions for the Biretco dealers are that they have to present an annual forecast and they are obliged to order that number of bikes. The bikes involved are not delivered to internet retailers.
“Don’t let me come across one of the bikes on the internet”, said a combative De Vreeze. “If so, we have a serious problem with that partner. I don’t accept that and I will take action.”
“What we present here is unique to this industry, because the Biretco dealer/member does not have to invest anything, he does not have to keep stock and yet the bikes are available within two days. The only thing he has to do is making clear business decisions.”
In this context De Vreeze praised the support of Batavus, Gazelle and Sparta.
- For related items on Biretco, click here
- For related items on Accell Group, click here
- For related items on Gazelle, click here
- For related items on Batavus, click here
- For related items on Sparta, click here
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