To be prepared for further growth, EDC Wholesale, is investing almost 4 million euros in expansion. With the construction of two new halls totaling more than 3000 square meters and the arrival of an extra packing machine, the storage space will be increased significantly, and the production capacity will be doubled. The extension will employ dozens of employees.
The company wants to be ready for future growth. Last year, EDC Wholesale already had a turnover of more than 33.4 million: a growth of more than 50 percent compared to 2018, when 21 million was converted. Further growth is expected in the coming years. For example, the Beate Uhse label – EDC took over the online activities of the German erotic group last year – has grown considerably. In 2019, the turnover amounted to about five million euros, for this year the target is around 18 million euros. “The return of the Beate Uhse brand has had a huge impact,” said EDC Wholesale CEO Eric Idema.
In addition, the current corona period has provided the company with important insights. Due to initial supply problems from China and the boom in orders, the crisis was a logistical challenge. At times there was a sales growth of 162 percent. EDC had to make every effort to process the orders.
“Corona has taught us how important it is to anticipate changes in the market and to have the ability to build up a larger inventory. We want to be prepared for a possible second wave. In this way we are also less dependent on any problems with suppliers,” explains Idema.
Finally, EDC wants to respond better to seasonal peaks. “We see sales increase around the Christmas period. The sales are usually already increasing around the eroFame Trade Convention in October and continues to increase in November before Black Friday. The Advent calendar, a surprise box with, among other things, all kinds of toys, is a seasonal product and requires a lot of space.”
The erotic business has outgrown its current warehouse, a building of approximately 8,000 square meters. That is why two halls will be added in Veendam. The first hall, measuring 650 square meters, will be built this summer and should be ready in September. The second hall will be built next summer and will be significantly larger with 2,400 square meters.
The expansion allows EDC Wholesale to store a much larger stock of erotic articles. Idema: “It offers space for many thousands of pallet places. This gives us enough space for a stock of one year instead of three months. That measures up to the intended growth and objectives for the coming years.”
Not only the storage space, but also the production capacity is expanded. Currently the erotic company uses one packing machine and one packing street, soon that will be two packing machines and two packing streets. The production capacity is going to be doubled. In addition, larger boxes can be packed. 95 percent of all orders will soon be packed by machine. “Our logistics department is operational 24 hours a day, so that the machines are used optimally,” says Idema.
The expansion is expected to employ some thirty to forty employees. They will work in the new halls that are built in the most sustainable way possible. Ultimately, the halls must be self-sufficient and generate as much energy as they consume. Solar panels are placed on the roof for this purpose. Due to the insulation, heating in the hall is not expected to be necessary.