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February/March 2011

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Reason for Xco Sports’ success:
  • Their main benefit is their well-established infrastructure and capital resources, says Ferreira. “It is not difficult to devise a similar retail concept, but you need the infrastructure to ensure that you can fill the orders and deliver when needed.”

  • They now have two local factories that manufacture exclusively for them. This enables them to develop products for a specific market, and deliver exactly what customers asked. “We do not have to stand in line at another factory awaiting our turn for an order to be made up; we can determine the priorities at our own factories. If we need something tomorrow, we have the night shift to cover.”

  • They offer an in-house, one-stop solution for schools. They not only make team wear to order and the customers’ designs, but also offer equipment from most of the top brands at all price points.

  • Delivery is their prime concern. “We found that price is less of an issue for our customers than the knowledge that they will receive their goods when needed,” says Ferreira.

  • They focus on their core market — teams — not individual elite athletes. They therefore have a clear picture of the sporting goods that will be needed.

  • They believe they have the right team that offer a friendly, efficient service, as borne out by testimonials from satisfied customers. The company culture is unique, says Ferreira. “We do not have a massive corporate culture, but the team members are all hand-picked because they have special qualities.”

  • Unique retail concept that works

    Five years ago Xco was founded as a new concept in retailing: instead of customers visiting the store, their representatives visit customers, who order team wear and sports equipment from catalogues. They now supply end-users across the country and as far afield as Botswana and Kenya
    Xco

    XCO Sport was founded five years ago as a unique response to an identified opportunity: to supply equipment and team wear to schools, clubs, sports federations etc. countrywide and across the border to Namibia.

    It was the natural evolution for a business that has shown that it is able to adapt to changed trading conditions.

    By the end of the previous century the small factory making team wear and tracksuits and a general sport store founded by Otto Maree in Pretoria North in 1987, had evolved into a thriving sportswear and silk-screening factory, with well-known rugby icon Sportoria becoming the retail face of the company.

    In 1994 Martin Ferreira, formerly with TotalSports, was recruited by Otto’s son Hugo, now MD, to develop team wear sales to the (very important) schools market.

    Ferreira’s enthusiasm and the help of a network of agents rapidly grew this division and soon they were supplying schools with everything they may need. With more and more schools from further away placing orders, the schools division took on an identity of its own, separate from Sportoria.

    Thus, XCO Sport, a BEE compliant company, was born on March 1, 2006.

    Today, XCO Sport retails sports equipment and clothing to 3 500 schools, 240 clubs, 180 corporate companies, various sport federations, government departments, technikons etc. across the country. They are also an official supplier for SASCOC, Netball SA, SA Schools Netball, SA Schools Hockey, and SA Schools Football. In addition, they have an online design facility where schools or clubs anywhere in the country can choose designs and order their team wear.

    Like any brick and mortar retailer, they stock products from well-known brands across all sporting codes — but instead of displaying goods on shelves in a store, they are displayed in catalogues, some exclusively dedicated to popular school sports like rugby, soccer, cricket, hockey, etc. Instead of customers visiting the stores, XCO Sport representatives visit the customers.

    They are backed by an impressive infrastructure, which includes 110 people to ensure that the right goods arrive at the right institution at the right time, with team wear in the right colours and with the right emblems. The head office personnel also negotiate supplier contracts and publish the catalogues.

    They now have 25 representatives across the country. “Each of our reps visit about eight schools per day,” says Ferreira, who is clearly touched by the glowing testimonials they received from customers impressed with their prompt delivery and service.

    They also established a franchise dealership programme last year, whereby dealers pay a royalty to use the XCO Sport infrastructure and catalogue in areas like Cape Coastal, KwaZulu Natal and across border Namibia, Botswana and Kenya.

    Their involvement with the grassroots sports market does not end with supplying products — the coaching clinics they facilitate with top coaches sharing their expertise with other coaches or athletes, have become a valuable tool for schools to improve skills.

    They also support the work of the Sports Trust — who provide sports goods to underprivileged areas — by supplying them with clothing and equipment.

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