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With the increasing uncertainty of the economic situation, tire dealers that are dependent on tire manufacturers have expressed that they must work together with tire companies. They proposed that the scattered and scattered marketing pattern must be transformed into a “vine-string†type of joint marketing model of mutual benefit and unity and cooperation in order to maintain the tire market order and achieve a win-win situation for production companies and distributors.
Li Demin, chairman of Shanghai Heying Trading Co., Ltd., said that after April of this year, the tire dealers’ operating situation has declined, and inventory reached a new high in May. With the increase in stocks and lagging sales, manufacturers and distributors are facing serious financial problems. Once the funds are cut off, the consequences are disastrous. In the interview, the head of the China Rubber Association, Pei Hongzhen, said that if the situation of rapid increase in stocks cannot be reversed in the short term, the production and marketing of tires in the next year may face a more serious situation. Potential, production and marketing companies will suffer a greater impact.
Tai Yuen Tian Rui Trading Co., Ltd. Chairman Gu Yuxi, Hubei Tianli Tire Co., Ltd. General Manager Yang Nianfeng told reporters that the soaring prices of raw materials caused domestic tire companies to continue to increase the ex-factory price. However, multinational corporations have not only failed to increase the sales price of their products in China, but also rely on technology, cost advantages, and mature marketing models to carry out frequent promotional activities. In the past, the price of all-steel trucks for foreign brands was at least 20% higher than that of domestic brands, and the spread was more than 500 to 600 yuan/bar; now the price difference between the two sides has been reduced to 100-200 yuan/bar, and some have even The difference between each tire is only tens of dollars. Foreign brands have exerted tremendous pressure on domestic brands, and domestic brands have become more difficult to sell.
It is understood that the marketing competition at this stage has evolved from simple product competition to one-stop integrated technical service competition. However, the domestic tire manufacturers often go their own way in marketing. There are many dealers, different types of companies, different sizes, and the pattern of small sales of tires has not yet been broken. Therefore, the early implementation of integrated CHAIN services, build their own sales team or sales alliance, to get rid of the dilemma of the general decline in operating conditions, breaking the existing sales pattern of foreign brands in the high-end market, become the common voice of tire dealers.
Wei Ping, chairman of the China Rubber Association’s marketing and working committee, said that establishing a business alliance can better standardize the market and safeguard the common interests of manufacturers, distributors, and consumers, and achieve a win-win situation for manufacturers and distributors. Leading distributors in all provinces and cities are like trunks, leading a series of small and medium-sized grape dealers, and combining small and scattered “grapes†into “vine clustersâ€. Creating sales alliances and nurturing honest tire dealers can continuously improve the quality, business philosophy, service quality and popularity of tire dealers; actively nurturing and developing brand names in tire distribution teams can better create a harmonious and healthy tire marketing environment. Good service for consumers. He said that tire dealers are generally based on sales in the province, where conditions permit, the provincial distributors have agreed to communicate timely information, priority alliance.
Tire sales want to get out of the woods with the “wine bunch†model
Since April, domestic tire sales have shown a downward trend. The latest statistical data of the key member companies of the China Rubber Association tire Tire Association shows that from January to April this year, the tire inventory of 46 member companies increased significantly year-on-year, an increase of 6.7 percentage points from the first quarter. In addition, the average price of major raw materials rose by more than 20%, and the profits of tire manufacturers generally declined.