Digital commerce is a small channel for lubricant manufacturer WD-40 Co.
But the maker of the iconic of WD-40, a multi-purpose product that can be used as a lubricant, rust preventive, penetrant, and moisture displacer, will use ecommerce to grease the wheels for successful future business development.
Steve Brass, CEO, WD-40 Co.
“Our fourth and final must-win battle is to accelerate digital commerce. Global sales within the pure-play ecommerce channel in fiscal year 2024 were up 12% compared to the prior year,” CEO Steven Brass told analysts on the company’s recent year-end earnings call. “The strategy associated with this battle is not just about driving online sales.”
The manufacturer and marketer of industrial and residential lubricants, degreasers and cleansers is making progress on its four “must-win” competitive market battles:
- Geographic expansion worldwide.
- Increasing premium product sales.
- Growing its specialist product line for mechanics and other professionals.
- Accelerating digital commerce.
Although Brass listed ecommerce fourth on the company’s must-win list, he said it was critical to the other three.
WD-40’s Repair Challenge online marketing campaign
“It’s about accelerating all our other must-win battles — digital commerce intersects with all our must-win battles, much like the central overlap in a Venn diagram. As part of our digital commerce strategy in 2024, we continued our global online marketing campaign, the Repair Challenge,” he told analysts. “We are now in the third year of this promotional effort, which motivates millions of doers, makers, fixers, and builders across more than 40 countries to extend the lifespan of their tools and equipment.”
The WD-40 Repair Challenge is a competition where people submit projects showcasing how they used WD-40 to repair or restore items, encouraging the practice of fixing things instead of replacing them, with the goal of reducing waste and preserving resources; participants can win prizes by demonstrating their repair skills using WD-40 product.
The contest was a big hit with marketers and consumers online and offline, according to the company. In FY 2024, our Repair Challenge websites attracted over 2 million visitors, with more than 10,000 projects submitted,” Brass said. “These projects aim to prolong the life of tools, worn-down equipment, bicycles, cars, and just about anything else, helping to keep them in circulation longer.”
WD-40’s fiscal 2024 sales grow 10% to $590.55 million
WD-40 does not break out specific ecommerce metrics. For the fiscal year ended Aug. 31, WD-40 reported 2024 sales of $590.55 million, an increase of 10% over sales of $537.25 million in fiscal 2023. Net income was $69.6 million compared with $65.9 million in the prior year.
The company has said its sharpest growth is via ecommerce sales through such business-to-business ecommerce sites as Grainger.com, MSCDirect.com, GlobalIndustrial.com, Fastenal.com and MotionIndustries.com and such online retailers as Amazon, Ace Hardware, and Aubuchon Hardware. WD-40 customers can link directly to these ecommerce sites from WD-40.com.
In its 2024 annual report, WD-40 says: “We view digital commerce as the accelerator for all our other must-win battles. Our digital commerce strategy is not just about driving online sales; it’s about building our brand in the digital space and accelerating all our other battles.”
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