Recently, the reporter learned from the tire market that almost every brand has a lot of new products that have just been introduced. There is a lot of room for choice and it can make the selection more difficult. Why does the tire market appear with the "prosperity" of this new product?
The original equipment era is getting farther
In 2003, when the automotive industry entered the golden era, the fight between tire manufacturers also began. Two-thirds of Michelin's business revenue comes from supporting the entire vehicle, and one-third comes from retail store sales. Goodyear established Dalian Goodyear Tire Co. in China to design original tires for it. It can be seen that these tire manufacturers have attached great importance to the matching market in the year.
By 2005, the domestic automotive industry ushered in the first shock, the overall profit margin gradually shrank, the major manufacturers also began to “tightenâ€, and the profit of the tire's original equipment (OEM) business also decreased. At this point, the tire manufacturers began to shift profits to the replacement tire market for the consumer masses.
The Michelin store was established from the first store in China in January 2003 and the 400th store in 2007. Bridgestone’s Wings has settled in China since August 2003 at a rate of 50 each year. Increased, by 2010 will achieve 500 goals. The fast-paced expansion pace of tire manufacturers is amazing.
Replacement of the main source of profit
Before and after 2003, although major tire manufacturers expanded their domestic production capacity through self-built new plants, annexation, and cooperation, the three factors of revenue, profit, and cost must be maintained in a balanced state to ensure the steady development of the company. With relatively limited production capacity, how to increase profits has become a problem that needs to be weighed again and again in front of tire factory managers.
A senior executive of Yokohama Tire, who asked not to be named, told reporters that the profit of replacing the tire market is usually two to three times that of the original market. This is due to the fact that the replacement tire market is directly oriented toward consumers, and there are many links in the middle. In particular, the lack of a vehicle manufacturer's consideration of lowering the price of tires for cost considerations is conducive to the replacement of tire manufacturers to invest more in tire R&D and production. .
Group "Wolf" Disputes Wise Winners
In the face of two or three times higher profits than the matching tires, Bridgestone, Michelin, and Goodyear started planning and expanding various types of retail stores four or five years ago. It stands to reason that they should enter a relatively stable period of development. , But the Dunlop, Kumho, Hankook and other brands of wolf rations have exacerbated the competition in the tire retail market. They each played their cards and took every opportunity to fight the market.
At present, the domestic tire market, especially the replacement of tire market, is far from mature in European and American markets. It is in such a market environment that tire manufacturers must realize that in the next “profit†dispute, we must understand the strategy of linking macro and radical, micro-prudential, and siege, in order to ensure that they ride the waves. Not satisfied with land and water.
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