Brand promotion into Chinese tires cannot avoid propositions
For many years, Chinese brand tires, like many other parts, have relied on low-price advantages and have been removed from the low-end market, inevitably leading to a low-end brand image.
Car tire brand image <br> <br> in supporting OEMs with them, price is not the determining factor. In fact, some international big-tire tire companies pay great attention to their own brand image and are only keen on supporting medium and high-end models.
"Tire is like a car's shoes. The tire brand will also affect the overall image of the car. Therefore, when developing new models, vehicle companies are also very cautious about the choice of tire suppliers."
A Chinese brand car company executive commented on the media.
For Chinese brands that strive to enhance their brand image, Chinese brand tires do not seem to be a good choice.
It is difficult to enter the supporting system, which is an objective reason for the replacement of Chinese brand tires.
Through intensive cultivation in the replacement market, you can also accumulate brand foundation, technical advantages, and marketing experience for entering the supporting market. However, the impact of the original tire on the replacement of market consumption habits is hard to ignore.
Extensive development ills appear <br> <br> Therefore, the brand is to enhance Chinese enterprises can not avoid tire brand proposition, and this is a continuous accumulation of a long process.
In fact, like many manufacturing industries, the Chinese brand tire industry is also facing the growing pains of overcapacity.
According to Ye Shengji, deputy secretary-general of the China Association of Automobile Manufacturers, the barriers to entry in the tire industry are low. In the course of rapid growth over the past decade, there have also been serious blind expansions.
As the economy has entered the new normal and the growth of car sales has slowed down, the ills of the past extensive development have gradually emerged.
The data shows that as of 2014, the number of enterprises in the Chinese tire manufacturing industry above designated size reached 554, of which 63 companies suffered losses.
In 2015, the domestic average operating rate of all-steel radial tires was about 62%, which was a decrease of nearly 9 percentage points from the same period of last year; and the semi-steel radial tire operating rate was about 67%, which was a year-on-year decrease of 5 percentage points.
In addition, individual companies have closed down, some companies have stopped production and maintenance, and some corporate projects have been suspended due to capital and environmental issues.
Chinese tire advantage is lost <br> <br> At the same time, in recent years intensified the "dual", had a greater impact on the Chinese brand tire business.
According to statistics from 42 tire companies of China Rubber Industry Association Tire Branch, the tire export volume in 2015 was 154.6 million, down 8.72% year-on-year; the export delivery value was 55.48 billion US dollars, down 15.81% year-on-year.
Two export indicators "double down" occurred in China's tire industry for the first time.
In addition, with the rise in raw material prices and rising labor costs, the once-low-cost advantages of Chinese brand tire companies are gradually losing.
Not long ago, a number of domestic tire companies have raised product prices in succession.
Under the above-mentioned series of factors, Chinese brand tire companies are increasingly aware of the necessity of transformation and upgrading, and the expansion of their share in the passenger vehicle tire market has also become an inevitable choice.
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