According to Japanese media reports, although China's new car market is showing signs of getting more and more obvious, the number of car ownership will continue to grow steadily in the future. The world's largest tire companies will begin to implement a new Chinese strategy. The main battlefield of tires will also shift from new car tires to replacement tires. The major tire companies are competing to increase the brand's strength, the added value of products and services to compete for consumers. The American Goodyear Tire Company will begin to formally manufacture and sell the run-flat tires that can still run normally after the flat tires. The French Michelin has built a sales network combining online stores and physical stores. Tire is about life The run-flat tires have been popular in developed countries from about 10 years ago, but they still belong to the niche market category because prices are about 20% higher than regular tires. However, a person in the tire industry stated that "consumer safety awareness is increasing and it is expected that the demand for safety tyres will increase substantially." However, tire companies are taking action in Dalian to keenly capture consumer demand. Goodyear has begun large-scale expansion of the Dalian plant. The investment amount is about 135 million US dollars. Goodyear has not announced the factory's production capacity, and it is expected that after the completion of the expansion in 2017, it can increase production of 2 million tires per year. Of these, 50,000 are "run-flat tires" that are still safe to run in the event of a puncture. In addition, Goodyear also targets high value-added products. In March, China opened its first R&D center. The Chinese market is vast and Goodyear will launch products that meet local road conditions and climate in all regions. Structural changes in the tire market The reason why tire companies upgrade their Chinese strategy is that structural changes are taking place in the Chinese tire market. The first is the slowdown in the new car market. China surpassed the United States in 2009 to become the world's largest auto market, and its market scale has grown to 4.6 times in the last 10 years. In 2014, new vehicle sales increased by 7% year-on-year to 23.49 million vehicles. However, in April 2015, it turned negative for two and a half years. The slowdown in the new car market directly hit the tire industry. According to media reports, the total sales of 46 large tire companies including foreign investment in 2014 decreased by 2%. This is because the company's inventories have increased and price competition has emerged. Another point is the increase in car ownership. According to statistics from IHS Automotive, an American investigation company, China’s car ownership is 1.6 trillion vehicles, and it is expected that in the next 5 years, 2.5 trillion vehicles that surpass the United States will be ranked first in the world. According to a survey conducted by the China Chamber of Commerce, China's tire production reached more than 1.1 billion in 2014. New car tires and replacement tires each accounted for half, and it is expected that the proportion of replacement tires will increase to 80% in the future. Consumers can't choose new car tires. In contrast, the brand strength and performance of replacement tires are crucial. The competition that once appeared in developed countries will repeat itself in the Chinese market. Tires are also sold online It is not only products that are pursuing added value. Michelin has opened an official flagship store on Tmall. Consumers can select the type and size of tires they need online. After completing the payment online, it can be picked up in about 600 stores across the country. The store will provide consumers with free replacement tires. The price can be 20% lower than usual. Michelin's online flagship store will comprehensively expand its after-sales service, including vehicle maintenance and oil replacement, to expand its customer base by increasing convenience. Bridgestone, a Japanese manufacturer, is not limited to its existing sales network and is promoting the "Wings of the Car" store. We plan to increase the current 360 stores to 500 as soon as possible, focusing on brand strength and meticulous marketing activities, thereby highlighting the differences from competing products. According to Yoshihiko Yoshihide, chairman and general manager of Bridgestone China, “The road conditions in various regions of China are very different. We will develop different marketing strategies for each region to obtain customer needs.†As China's new car market matures and competition becomes fiercer, tire manufacturers that can decisively carry out structural reforms are expected to further expand their revenues.
Specializing in the manufacturing of lost wax investment castings and finished products in carbon steel and alloy steel, our company is a world class manufacturer and supplier of investment castings in China. It consists of 2 major facilities, both Steel Casting foundry and CNC Machining factory which enable us to supply both metal castings and finished products with an annual production capacity of over 20,000 tons, and the products are mainly exported to Europe, America, Japan and other destinations around the world.
Metal Casting,Non Ferrous Casting,Plastic Casting,Ferrous Casting Baoding Henglian Mechanical Co.,Ltd , https://www.hengliancasting.com
Global Tire Enterprise Upgrade China Strategy 