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Cybergun Launches Direct Online Airsoft Sales In Europe And U.S.A.

Master Chief

If many in the airsoft community have not heard about this move by Cybergun to conduct direct online international airsoft sales, well, we cannot totally blame them. Cybergun usually makes announcements to financial news outlets rather than to their actual customers given that they are the only airsoft company that is public traded. Any disclosure in company plans, including earnings announcement, are made to financial markets and government regulators.

Popular Airsoft reader Jim Mcgee sent us a link about the plans of Cybergun in the USA, but following the link, it is a plan to do direct online sales with their latest acquisitions on both sides of the Pond, Shorty USA and AD1 Airsoft in France.

Here is the rough translation using online tools of the press release by Cybergun last 9 June 2016:

EUROPE: THE INTEGRATION OF THE VALUE CHAIN IN ADDITION TO THE CURRENT DISTRIBUTION NETWORKS

The European strategy of direct sales on the Internet, which will revolve around the site AD1 now available in France and gradually deployed on the target countries, aims to control the value chain, especially for the sake of better control of the sale price . This policy must be twofold effect improved margins while supporting current product distribution networks by creating a uniform price reference for the group's products.

In parallel, the new version of AD1 website will create an experience "phygitale" by combining online purchase and delivery shops. CYBERGUN be able to strengthen traffic in the Group's customer distribution networks. These partners may include offering service benefits and thus retain their level of end customers increasingly demanding in terms of price and service.

The new version of AD1, ergonomics and design completely redesigned to optimize the user experience and translated into several languages will be available during summer 2016.

Hugo BRUGIERE, Vice President and CYBERGUN CEO, said: " With the acquisition of AD1, CYBERGUN stepped into the digital age that should have been at the heart of its strategy for 10 years. Part of the delay is being filled. Now, we move forward on this new playground and go compete live those who do us harm us but to all our customers for many years. It is indeed for us to support our network of existing customers who also suffer enormously face to sites for dumping of Airsoft. A regular working contact with our customers to adjust the strategy and ensure that everyone is a winner!"

UNITED STATES: A POSITION TO PROMOTE AGGRESSIVE COMMERCIAL OFFERS


Regarding the strategy in the United States, CYBERGUN group intends to use the site SHORTY USA including a 100 000 fans on Facebook and present client portfolio in all United States. Again, CYBERGUN fills a gap by becoming a full player in the market of online sales.

On this market, besides the strategy deployed in Europe (new price reference system, integrating margin distribution and support network of distribution partners), the Group also provides for the establishment of an offer OUTLET popular locally. This offer will accelerate inventory turns on some end of life products.

Alongside this announcement, Beatrice BOLLING, Director of Marketing CYBERGUN group, said: " We now have a powerful tool to facilitate the destocking operations while preserving our margins on the one hand and to actually take the place of ours on the second web. This strategy is obviously a more global vision of conquest social networks and viral communication. "

TWO NEW REVENUE SOURCES OF 2016

The two websites - already operational - were recently bought by CYBERGUN and contribute to the turnover of the Group on year just to open on 1 st April 2016 .

CYBERGUN redeemed Dolomède, publisher of the site AD1, based on an enterprise value of EUR 600 000 paid mainly by conversion of debts.

Hugo BRUGIERE concludes: " With both, our internal resources and our external partners, we are passing a new milestone. Having on our side to Dominique Board ROMANO, whose knowledge of the keys to success on the Internet is well established, has a real chance. It is also the administrator in charge of monitoring the case and we are delighted."

The big question is if this strategy by Cybergun will be welcome with open arms by their resellers in North America and Europe given that they will be in direct competition with them (most probably not).  This usually creates some tensions between manufacturers and their distributors or resellers that some may just drop Cybergun products from their shelves and would rather deal with other airsoft companies that are not in direct competition with their retail sales.

With setbacks in previous years such as dwindling revenues and losses in their previous attempt in the video game market, Cybergun, under its new leadership, will need to find revenue sources to make their shareholders happy.

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