Eric Idema started EasyToys sixteen years ago in his attic room. Now he is at the helm of an erotic multi-million dollar multinational, which with investor Waterland on board wants to become world market leader through acquisitions. 'We are being approached by parties ourselves, because everyone wants to be part of a winner.'
Easy Toys' national fame exploded in September 2020. The Groningen-based sex toy webshop wanted to become shirt sponsor of soccer club FC Emmen. But the KNVB put a stop to it, saying it was contrary to good taste and decency. At the table of the popular television program Veronica Inside (VI), Wilfred Genee, Johan Derksen and René van der Gijp could not stop talking about it. With the necessary soccer canteen humor, the Drente dildo drama was discussed for days. A national dis cussion ensued, with Lower House questions being asked about EasyToys' sponsorship. And even newsreels in Japan, Canada and the United States, among others, paid attention. But the erotica chain received massive popular support. As a result, that week the Veendam business saw its website traffic increase no less than one hundredfold (!) to 20 million page views.
Eventually, after some wrangling, the KNVB agreed. Three years ago, EasyToys was still dismissed by the KNVB as a "small sex shop," but now it is an erotic multinational with revenues of 182 million euros that is active in ten European countries and, with an investor on board, wants to continue to grow through mid del of acquisitions. The wrangling with the KNVB is one of the moments in the history of EDC, the parent company of EasyToys, which founder Eric Idema describes as a turning point. In 2007, he founded the webshop from his attic room with the mission "a pleasurable sex life for everyone. With currently more than 100,000 visitors a day and a range of more than 14,000 erotic items, EasyToys is the largest webshop in the Benelux. But back then there was still a considerable taboo on discussing life between the sheets, let alone ordering sex toys online.
Idema: 'In that period, with the intended sponsorship of FC Emmen, we were the subject of discussion for weeks and everyone thought something about it. At VI the topic was talked about for a year. By nature, those were golden times for us. Not only because our name recognition went up, but also because the subject of sex was taken out of the taboo, the shame was removed. That brought us a lot in the long run.
You once said that there should be something from Veendam on every bedside table. Has that goal already been realized?
'In the Netherlands and Belgium we have come a long way. But there is still a world to be won in the other eight countries where we are also active. But in every country you do see that the discussability of this subject is going up, because the new generation is dealing with it much easier. Having fun in the bedroom is simply a part of life that you can share. The taboo is coming off more and more.'
Was that also your personal drive, to take the subject of sex out of the taboo?
'Not necessarily. I actually rolled into it. Before EasyToys, I worked at an Internet provider, where I saw a lot of data. As it turned out, searches were mainly on erotica. When that business was sold, I started thinking about what I wanted to do with my own life. That's how I started an online store. Without an idea, without a plan. I just started working and it grew out of control. But at the time, I was mainly trying to survive, to generate money for my slightly overpriced mortgage.
In that respect, you started at an ideal time. You experienced the whole rise of online ordering.
'True, I was in the era of the Internet and online ordering was becoming more and more normal to do. Moreover, the Pabos and Beate Uhses were not represented online at all. Those were still plenty in brick-and-mortar stores or had catalogs. We started from the beginning with experienced online people. That's where we immediately made a difference. Looking back, it's a success story, but you have to do it all.
Where does that inner drive come from with you?
'Something happened in the private situation of my wife and me, because we lost our first daughter just before giving birth. That was a very tough period for us. But after a week I thought: I have nothing left to lose, I will take all the risks. From that moment on, I wanted to achieve something no matter what. From there I started making strides, through a combination of bluff, guts and entrepreneurial spirit.'
Since the end of 2022, visitors to HEMA have been able to put a vibrator or vibrating egg in their shopping basket in addition to the smoked sausage. That collaboration with the department store proved a success, because within 48 hours all the sex toys were sold out online. You were exceptionally proud to have EasyToys products on the shelves at HEMA.
'For me personally, HEMA is true Dutch glory. That we are allowed to produce our own sex toy line in cooperation with HEMA, I find that really special. The fact that we were discussed at VI was the first step in breaking the taboo. The collaboration with HEMA is the second step. Because if anything proves that sex toys are now a socially accepted phenomenon, it is that they are on the shelves of HEMA. And we as a business very much want to move in that direction. We have been at an Etos or a Hunkemöller for longer. But the more we move toward the mainstream, the more we are accepted.'
So what is the next step on becoming more mainstream?
'We are already at a lot of gas stations in the south of the country, on-the-go. We work with hotel chains, where we have vending machineswith products you might need during your stay in various hotels. Or a QR code in the room, so guests can order easily and quickly. Since October, as a trial, we have been in two Jumbo supermarkets in Groningen with our sex toys for three months. These are all steps of that mainstream approach. Currently we are also looking at delivery of our products via flash deliverers. Imagine you've just met someone nice and are taking them home, but you've run out of condoms. Then you just order a package and have it delivered right away by someone who also drives around meals.'
Further evidence of you becoming more accepted is the fact that investment company Waterland Private Equity Investments stepped into EDC in late 2020. Although at first it was not clear who the investor was...
'They were indeed a bit cautious to bring that out. But now they are proud of their investment and we are often put forward by Waterland as an example case.'
The corona crisis and the measures instituted by the government ensured that your business experienced strong growth and was seen as one of the winners from that crisis. Investors must have been on your doorstep every day in Veendam for coffee?
'I can't deny that the corona crisis worked out well for us. You couldn't go to work, you couldn't go to the pub, you couldn't cheat.... So you saw more attention to each other or to yourself. There was no distraction, you could only order online. In those two years, we experienced tremendous strength growth. But I was never that into the whole world of investors, until I was approached via LinkedIn in 2020 by several private equity firms. Earlier that year, I did have evaluated the past 15 years with EDC for myself. I had made my first acquisition of Beate Ushe and Pabo in 2019, and that did taste like more. But how am I going to do that? Am I going to take all the risk myself again? And am I going to do it all on my own again? So when I was approached by investment companies, I did think: this might be a wise move, Idema. So I started looking into the world of private equity.'
Why did you choose Waterland?
'It is a Dutch party and one of the best-known investors in Europe. In the end, I chose Waterland because they had the best plan. I had a very good feeling about that. I went off on my gut feeling, within three months the deal was also done.'
And what is that plan?
'Waterland approached me and Eropartner Distribution, one of Europe's largest wholesalers of erotic products, at the same time. Both businesses merged into the new combination EQOM, of which I am a director. We did negotiate several times about what my new role would be. Because I did want to remain at the helm. Together with Waterland, we will continue to build the business through a buy-and-build strategy. And nowadays it is easier to take over a business abroad than to push through your own brands. Before you're number one in a country yourself, that's a very long road. And a costly road. Then you are better off acquiring a business with much more history and authority in that country itself. The goal is to become a world player in erotic products with EQOM and achieve revenue of 500 million euros by 2025. Ultimately, I want to surpass the British global market leader Lovehoney, which is twice our size.'
You have already made a number of acquisitions, including Christine le Duc, Norwegian Kodomorite and German Amorelie. Who comes up with potential acquisition candidates, you or Waterland?
'Waterland is largely leaving it to us. Together with Chris Bakker of Eropartner Distribution, I made a shortlist of interesting businesses. We also have a B2B branch. Then you already get to know many businesses, you know how those businesses are doing and you know where the good entrepreneurs are. That's how we started approaching entrepreneurs on that list. We invite the entrepreneur for an interview and Waterland is among them.'
Do you immediately put all your plans on the table?
'Yes, it's better to be open and transparent. We tell how we see it with a possible acquisition of their businesses. Is that something for you or not? Some think it's a good idea right away, some say "no" right away, and others come back to it later. But then the seed has been planted. They know we are in the market to buy. And as we get bigger, we are also approached by parties ourselves. Because everyone always wants to be part of a winner.'
You closed all the deals in the middle of the corona pandemic.
'That was a strange sensation, because you are basically buying a multi-million dollar company online. From the initial exploratory talks to signing the deal went completely digital. I put my signature on the purchase agreement with DocuSign. But at least it was efficient, haha. A next acquisition will fortunately be physical again, because you also want to know if there is a personal click with the other entrepreneur.
The next acquisition is a while away, the last one dating from 2021. Why have no new acquisitions been announced yet?
'We made three acquisitions in one year. A hectic year. You see that each business has its own IT platform and everyone has the best platform.... We are currently moving toward a common IT platform on the back end. That is really a radical and long journey. On the front end, the businesses keep their own name and identity, because a lot of money has been put into that. But on the back end, manageability is incredibly important to us, because we are a data-driven business. So we now have the full focus to optimize the internal organization, that's also where the synergy benefits are. But if something interesting comes along, we'll definitely listen. And a business must also add something to our combination. You can take over businesses with five million euros in revenue, but they are in a different phase than we are. Then you have a lot of work, while it adds relatively little to the big picture.'
The goal is to achieve revenue of half a billion by 2025. Are you on track?
'If you look at where we are now, we won't make that 500 million euros without several more acquisitions.'
Investment companies are known to shake things up sometimes. How do you like the cooperation with Waterland?
'Don't forget that I always did the entrepreneurship alone. With a good team, but in the circle of EasyToys, Eric was always alone in the middle. I am now learning an awful lot from Waterland. I myself am someone who undertakes with feeling and emotion. But these guys largely base their business on substantiated data. And that mix is working very well so far. I can say that I have become a better entrepreneur since they stepped in.'
Can you give an example of that?
'Still hire a more expensive person, because he also brings more qualities. I was much more careful about that. Or, for example, continuing too long with the bookkeeping myself. For years I sat on weekends checking all the bank statements and processing every invoice. That's false economy. Was I distracted for a week as a result, when I would have been better off putting my energy into growing the business further.'
Partly due to the corona crisis, the business's growth accelerated. How do you manage that rapid growth?
'In my view, it's all about one thing: the people in your organization. You have to deal with many and rapid changes and some cannot grow in that. Those are painful decisions, but you have to make them. As long as you are visible as an entrepreneur, explain decisions, are honest and don't do anything behind their backs, then it's easy to manage. But you have to keep looking each other in the eye. And you also have to grow yourself in a growth company. Because if you can't change with them, then it's your turn too.'
In these types of deals where an investor steps in, the entrepreneur usually also receives a portion in cash. Is that the case with you as well?
'I was indeed able to secure a piece of capital privately.'
Does that make you more comfortable doing business?
'No, I don't feel that way. The money happened to me, that was never a goal in itself. I was always frugal, I invested every euro back into the business. Money has never been my motivation. For example, I still enjoy a sloop on the Zuidlaardermeer more than a yacht in the Mediterranean.
