HouseHold Direct.com, Inc. Targets New Market And Increases Revenue Projections
NEW YORK, Oct. 20 /PRNewswire/ -- HouseHold Direct.com, Inc. (OTC Bulletin Board: BYIT - news). HouseHold Direct announced that as a result of detailed planning with its investment banking advisors, a priority target market for its services will be the existing 60 million members of the public wholesale shopping clubs.
These clubs, namely Costco, Sam's Club and BJ's Wholesale, already generate $64 billion in revenue, which is projected to grow to $86 billion in 2003. The projections are based on estimates from Warehouse Club Industry Guideline, an independent industry research group. As a result of this material change in corporate marketing emphasis, the revenue projections of HouseHold Direct have been increased to $835 million for the year 2005. This revenue target could be achieved with a membership base of 3.9 million, which would represent a market penetration of only 6.5%.
The shopping platform supporting this implementation includes the previously described ``brick and click'' approach. It also provides substantial product purchase and fulfillment capacity for third party organizations, including those mentioned above. Testing of the new Internet-based shopping platform will begin on November 15, 2000 as part of a well coordinated marketing and operations rollout strategy.
The initial public membership system test includes a special ``courtesy membership'' which will be offered to Company shareholders. This membership is priced at $49.95, but does not include the monthly debit of $9.95 for the first year of membership. Each shareholder will also be able to purchase up to ten (10) additional memberships with the same price advantages for use as Holiday gifts.
The ``courtesy membership'' will carry a ``double the difference'' guarantee. If products are found elsewhere at a lower price, HouseHold Direct will refund twice the difference to the member. This ``courtesy membership'' will have a limited number of price requests and purchases during the first three (3) months of activation while the Company is testing the fulfillment and delivery systems prior to the full public launch of the expanded new Web Site scheduled for January 17, 2001.
The mission of HouseHold Direct is to empower consumers by creating the largest and most powerful private wholesale consumer-buying network in the world. HouseHold Direct is pursuing a market consolidation strategy within the wholesale membership industry through its ``brick and click'' shopping platform. Central to this strategy is the ability to offer direct manufacturer and distributor pricing, extensive information, merchandise expertise, fulfillment capabilities, in-home delivery and quality customer service to our members. This superior personalized shopping environment and consumer experience creates the ability to ``live much better for much less.''
Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, risk inherent in the company's domestic and international operations, imprecision in estimating product reserves and the company's ability to replace and expand its holdings.
CONTACT: E-mail: infohhd@householddirect.com
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SOURCE: HouseHold Direct.com, Inc.
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