Definitively winning terminal Multinational deciding terminal Multinational tire companies staged an expansion drama staged an expansion drama


Working overtime and working hard to expand capacity and compete for time to expand channels, the decline of the upstream auto industry has not only stopped the expansion of multinational tire companies, but has become a catalyst for its crazy expansion.

In an increasingly harsh living environment, in order to get rid of the cost pressure brought about by rising raw material prices, more and more tire companies follow the upstream vehicle companies and move to China, India, Brazil, Thailand and other emerging markets with huge development potential.

At the same time, in order to seek greater benefits, these multinational tire companies are constantly adjusting their product mix, adding high-end products, in addition to maintaining the supporting relationship between the upstream vehicle, but also stepped up the expansion of retail terminal channels.

This expansion "big play" is rapidly increasing among multinational tire companies such as Michelin, Bridgestone, and Hankook.

Strategic shift

Due to the sluggish economic growth in Europe in recent years, the manufacturing industry is in a difficult situation, and the automotive industry is in a weak market. Sales of multinational tire companies such as Michelin, Giti, and Goodyear have dropped sharply in the European market. Among them, as for Michelin's global sales, the year-on-year decline in the European market in 2012 was particularly severe in 2011, and all types of tire products had negative growth year-on-year.

In the face of an increasingly severe living environment, multinational tire companies are also rapidly making strategic adjustments, and they are making unanimous choices in shifting to markets with great potential and raw material advantages.

Tire is inseparable from automobiles. Where the auto industry “fires”, it can drive tire companies to get together. As emerging economies such as India, Brazil, Russia, Turkey, and the automobile market have developed economically, there is a large market demand, or there are no independent car brands, and other reasons, many car dealers have begun to turn to these well-developed countries to find a way out. With the continuous deployment of automotive companies, tire companies are also trailing.

According to network statistics, tire companies that have invested in or expanded production in the above areas in 2012 include Sumitomo Rubber, Continental Group, Yokohama Tire, and Delta Group.

In addition, as the most important raw material for tire manufacturing, the cost of rubber accounts for more than half of the total tire cost. Under the pressure of raw material costs, it is a short-cut for companies to reduce the cost of raw materials by building a tire factory in the main producing country of rubber.

Southeast Asia is the largest rubber raw material production base. For tire companies, this provides unique geographical and price advantages for companies to transfer production. Southeast Asia has gradually become the target area for the "strategic transfer" of Chinese tire companies.

According to rough statistics, in 2012, tire companies that built or expanded production in these areas mainly included: In March, Bridgestone announced that it would build a plant in Thailand, and that Japan's synthetic rubber Thailand joint venture will also start construction in the same month; in July, Pirelli The construction of a plant in Indonesia was approved, and the Bridgestone Vietnam Sedan New Plant commenced construction at the same time. In October, Hankook started production of a tire plant built in West Karang, Indonesia.

Accelerated network expansion

In addition to expanding production capacity in these emerging markets, their network layout is also expanding at an alarming rate. take China as an example. It is reported that Michelin has created sales channels in China since 2003. As of now, China has more than 760 Chijia stores and thousands of designated service retailers of different levels in all major provinces in China. Rapidly. Bridgestone has also actively built sales networks throughout China since 2003. At present, it has established more than 270 car wings and image stores, and the entire core family network has reached more than 2,000.

Compared with the above-mentioned enterprises, Pirelli's development speed is relatively slow. In order to cope with competitors' seizure of the Chinese market, it decided to expand retail stores from less than 1,000 in 2011 to over 3,000 by 2014. The first, second and third-tier markets will be laid out in a ratio of 3:4:4.

Although Jiatong Tire started relatively late in channel construction, it has developed rapidly. It is understood that at present, Jiatong has more than 7,000 professional retail stores, and its service network is all over the country. Among them, there are nearly 1,700 service stations with the most comprehensive service types, covering all provincial capitals and first-tier cities.

The related person of Jiatong Tire said that in the future, Jiatong Tire will continue to increase the development of channel construction and plan to achieve the goal of building 10,000 professional retail stores nationwide within 2-3 years.

Winning terminal

In addition, increasing the proportion of high-end products has also become a strategic means to gain more benefits. Kumho Tire Co., Ltd. announced that it will seize 15% of the market share of China's high-end tire market from the day it announced its entry into the high-end tire market. To this end, Kumho has increased its efforts in channel development. Based on the existing 2,150 high-end image stores, it will open 350 new stores in 2012.

With high profits and high sales, the retail tire market is an attractive profit growth point for any tire company. At present, the profit space of the accessory tire market is becoming increasingly limited. The profit of the replacement tire market is usually 2-3 times that of the original market, and it is a more attractive battlefield.

At present, the retail battle in the tire market is actually a platform battle. Whoever has a sound and rich retail channel will be able to occupy more market share. Channels mean lifelines, and all brands want to show their weight in this market and occupy a higher market share, so channel competition has become more intense.

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