The rise of the tire industry to protect Kumho free replacement highlights the "localization"


China's auto ownership keeps growing and the after-sales service market has a promising future. Tire companies are not willing to seize the market afterwards. At present, the first and second tier tire companies in China have collectively sold the cards. Michelin, Goodyear, and Kumho Tire have all launched after-sales protection services to attract consumers in the retail market (replacement of the tire market) in the fierce competition.

According to the “2012-2016 China Tire Industry Production and Sales Demand and Investment Forecast Analysis Report” analysis, the domestic tire market is divided into three major tiers: The first tier mainly consists of Michelin tires, Bridgestone tires, Goodyear tires and other wholly-owned or joint ventures. Its advantages lie in the radial tire market such as cars and light trucks; the second echelon is Hankook Tire, Kumho Tire, and Gyton Tire, which are wholly-owned or joint ventures. Its advantages lie in mid-range cars and light truck radial tire markets; the third echelon is domestic In tire companies, low prices are still their main competitive advantage. At present, the first- and second-tier wholly-owned or joint-venture tire companies have turned their attention from supporting vehicle markets to supporting and aftermarket.

For example, Michelin has played a membership service card. It is reported that after the launch of the Michelin “Follow Yourself” 24-hour national road rescue service, the cumulative number of “according to you” members nationwide exceeds 2.4 million, and the free roadside assistance service network covers more than 230 cities across the country. More than 3,200 homes. Another example is Goodyear, which has taken the approach of helping customers to respond to unexpected failures to win the market. Kumho Tire was the first to introduce a free replacement policy. According to the “VIP Safeguard Policy” of Kumho Tires, a variety of tires satisfying the following conditions can enjoy free replacement, that is, purchase of tire treads with tire treads and tire cord cuts that are damaged due to roads within one year; Peripheral drums with a wear rate below 50% due to impact; manufacturing defects with a pattern depth of more than 1.6mm (inclusive) within five years from the date of production. In addition, Kumho Tire has extended the “three guarantees” time from the three-year period generally implemented in the industry to five years.

The drastic changes began in crisis. After the 2011 crisis, Kumho Tire has undergone major changes in China. Lee Han-hyun, chairman of Kumho China, who was hardly Chinese at the beginning of 2011, could already speak in fluent Chinese. Li Hanxi attributed it to localization. In fact, the 3.15 crisis in 2011 completely changed the trajectory of Kumho Tire in China. In 2012, Kumho Tire began to make strategic adjustments. Lee Han-ho said, “Kumho Tire has changed its goal from improving its market share in the past to a benign market that pursues customer satisfaction and quality first. Continuously enhancing customer satisfaction is a top priority for Kumho."

Insiders pointed out that in the future, Chinese tire companies will rise to pay attention to the after-sales service. In addition to fierce market competition, policies have also become promoters. In accordance with the “Regulations on the Management of Defective Automobile Products Recall” implemented on January 1, 2013, the tires were included in the recall scope for the first time.

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