The web shop for vehicle consumables and supplies are now ready for launch. Now we will increase the attraction value, increase marketing, become profitable in Sweden and then grow internationally.
Branch: E-commerce: for motocross, enduro, construction, agriculture, workshops, washing facilities and other consumers
Product: Equipment, accessories, spare parts and consumables
Target group: Drivers, users and companies for motocross, enduro, construction, agriculture, workshops, washing facilities and other consumers
Region: Sweden, other Nordic countries and the UK. In the near future, Germany, France, Holland, Belgium, Spain and Italy. Then the expansion into the Baltic countries, Poland and eventually all of Europe
The company was founded in June 2013.
The company offers via its web shop equipment, accessories, spare parts and consumables to the motocross and enduro industry, construction, agriculture, workshops, washing facilities and other consumers. The products include, for example, decals and seat cover, personal equipment such as helmets, clothing, accessories, tools, accessories, sunglasses, oils, sprays, chemical products, fats and detergents. For the future, there are plans to expand its range of products. The Company’s Board are already in discussions with potential suppliers, but will not proceed until the good bargains with smart logistics solutions can be realized. It is important to ensure the possibility of further competitive advantages. Xtreme365 currently sells parts of 36 different brands. The ambition is to expand the number of brands further gradually. Xtreme365 also has a number of products, some of which are unique, under their own brand names “2bros” and “one 28” which is expected to be launched in 2015..
Xtreme365 AB is an exciting young e-commerce company in an interesting industry. We started our business with the focus on sports and leisure sector. The sector’s fastest growing e-commerce environment, with increases of up to 30 percent per year. First sales segments was equipment and spare parts for motocross and enduro market. During 2013, we developed the basics of web shop, and promoted it throughout Sweden on training courses and in the Swedish Championship series for motocross with our own racing team. The market for spare parts and equipment for motocross, enduro and ATV market is very large. We estimated it around EUR 130 million per year in Sweden and a total of EUR 4 billion per year in Europe. We have now made a change of strategy, a broadening of the product range and the new agreement, so we will achieve considerably larger groups of customers than before. In addition to the motocross and enduro industry, we will reach the much larger customer groups, construction, agriculture, workshops, washing facilities and other consumers. We will reach a market larger than EUR 107 billion / year.
Xtreme365 estimates that the annual turnover for motocross, enduro and ATV market in Sweden amounts to approximately EUR 130 million and approximately 1.18 billion in UK. Then coming expansion countries around EUR 1.18 billion and for the whole of Europe about EUR 4 billion. If we then add our new segments lubricating oils, greases, cleaning equipment the market in Sweden increases to more than EUR 6 billion. The total market is significantly larger in both Sweden and Europe as a whole, roughly in proportion to population. We appreciate it more than EUR 107 billion/year.
Sales of products via the Internet Providers are manufacturers and wholesalers Nothing own large stock (suppliers stock) Logistics Structure (clear to all of Europe) Small administration Highly automated The market reached via Google AdWords, Facebook, mailings via e-mail, flyers, ads, Team Driver, Visibility into place at competitions, exhibitions, etc. Customer service via the website, Email and phone. Two languages hitherto
How we will use the money
Issued liquidity will be used for marketing and improved layout of the web shop to increase the attraction value, but also to to open a physical store in Osby. There we have our operational office and interim storage facility for Sweden market. It is natural and we have customers who requested it. We will also employ a field sales person on a commission basis to visit and make agreements with major customers and starting up ordering procedures via our web shop. In our plans for the future included also start a cooperating or buy into an existing web shop England (pulseracingproducts.co.uk) .
Our plan also includes a public listing, but first we want to achieve positive results.
An investment with potential
Xtreme365 offer, without preferential rights for existing shareholders the opportunity to subscribe for a total of 7 000 000 shares. The subscription period runs from July 9th 2015 until September 9th 2015. Shares will subscribe in blocks of 6 000 shares as per item at a price of EUR 0.0538 per share. For each subscribed shares follows a warrant TO2 with the right to subscribe for one additional share of EUR 0.0753 / each. up to November 30th in 2016. The business is in a build-up and growth phase, positioned with an effective business model and clear intentions to make the company public. This means good opportunities for potential capital appreciation for investors. A perfect opportunity to get some of the e-commerce industry’s big potential. We want a broad ownership, and to be prepared with a sufficient number of shareholders prior to a listing, and partly to eventually become a company with many shareholders that promotes trade in the shares. We sell out 52.29% of the company, but where maximum can subscribe for 14.94%.
• The global economy is weak but consumer trade is expected to increase as the economy recovers
• E-commerce is in time, the industry’s profit increases every year – especially in the Company’s investments. The expanded range of the company as well as plans for
further expansion in the future of the product range is timely.
• E-commerce is a perfect solution for the Company’s target market. Customers can conveniently and at any time of day and year, search and shop their needs for equipment, accessories, spare parts and consumables and get it straight to their door.
• Xtreme365 offers a price that is more attractive than competitors without compromising on quality and delivery.
• Administrative and overhead costs effectively limited due to the business model, providing good profit margins.
• The market is large even though it is niche market.