We expect double-digit growth rates”

We expect double-digit growth rates”

Automotive industry: How did 2020 go for you and how do you as a wholesaler perceive the current situation in the industry? 
Bruno Göggel: More than 35 years of experience in tire wholesale paid off again for Reifen Göggel: In the extremely difficult year of 2020 for the industry, we were not only able to hold our own, but also recorded further satisfactory growth in our business. We always strive to create our own economy by doing our homework. Nothing has changed in the actual framework conditions regarding the move to digitalization in the tire industry. All companies that deal with tires could and can go about their work every day. Despite the corona pandemic, we are currently not seeing any standstill in demand.

What exactly do you expect for 2021?
After demand for consumer tires collapsed by more than a fifth in the first half of 2020, a steady upward development can be expected this year from this low market level. Any delays due to the ongoing corona pandemic are taken into account. Otherwise, we expect a double-digit growth rate from end consumer demand for the year as a whole. We at Reifen Göggel are also expecting above-average business development this year. 

You invested in digitalization and logistics at an early stage - can you say that this is really paying off now?
Reifen Göggel has had a purely dealer online shop for almost 20 years www.goeggel.com represented in the market. A five-figure amount is invested every month in the further development of its e-commerce in order to be able to efficiently serve customer requests within the scope of the supply chain. Digitalization is an important building block for growth as a wholesaler. Not only does it have to pay off for us, it also has to bring benefits for the customers. By optimizing delivery to customers using telematics software at the end of last year, customer orientation was further increased. 

Your company has developed impressively - from a one-man business to an international tire wholesaler with 250 employees. And that as a family business in a highly competitive industry in which others have to join forces in order to survive. What do you think was the key to success?
It was clear to me early on that in order to be successful in tire wholesale, the best logistics systems are crucial. Because it is important to be able to deliver comprehensively, quickly and cheaply. The success is evident in the battle of the IT systems. As already mentioned, we started our own online shop almost 20 years ago. It's not just about configuring and updating your own shop. In addition, it is important that your own warehouse, with all its procedural complexity, also optimally connects the various shipping routes in terms of IT. My decision as a Swabian wholesaler was also important, not just relying on parcel senders and freight forwarders, but also on having my own fleet of transporters. Today, customers in Vorarlberg and Tyrol are supplied daily with over 120 vehicles.

What are the most exciting trends in the industry right now?
In Austria, all-season tires were apparently the winner in the crisis year of 2020. The trend towards all-season tires can no longer be stopped, not only in Austria, but throughout Europe. The drivers are the automobile manufacturers with a rapidly increasing equipment quota and the broader offering from European tire manufacturers for this segment. The mild winter tire weather of recent years also contributed to drivers changing their mindset to only use one set of tires. In the near future, success in the battle for private customers will become more important than ever. The RKDS systems and the right choice of tires require expert knowledge in the trade. Here, anonymous online shops quickly reach their limits for end consumers. 

Do you see major differences in your various core markets or is the situation similar everywhere due to Corona?
And how are things going specifically in Austria? Our online shop's offerings are identical for all markets. The demand for winter tires is certainly more pronounced in Austria and Switzerland due to their winter tire requirement, although a sharply increasing trend towards all-season tires has also been evident there for some time. The corona pandemic has the whole of Europe under control and accordingly also had a negative impact on the tire replacement business in Austria. 

You are also a pioneer in sustainability. For example, you have had a photovoltaic system installed on the roofs of the warehouses. What are your experiences with this and are there any further plans towards sustainability?
We installed our photovoltaic system with more than 20,000 m² of solar panels on our logistics center in the spring of last year. So far our expectations in terms of power performance have been exceeded. After we began expanding our storage areas with structural measures in the second half of 2020, we will also make further investments in renewable energies. It pays off for us. Sustainable action determines our corporate culture. With Reifen Göggel's environmentally and resource-saving management, all areas of my company are affected. New battery-powered forklifts have currently been purchased and plans for electric vans are in preparation. The decisive factor here is the upcoming generation of vehicles that can ensure a sufficient kilometer range for us.