Can domestic sales of tires break the sales predicament?
With the rapid development of the Internet, why is it that the sales of tires on the Chinese market are so few people?
Consumers do not buy it
The Bridgestone Tmall flagship store that collapsed in 2016 sold only 107 tires for the best selling tires for almost three years.
Bridgestone tires
Bridgestone (China) Chairman Shino Kojiwara once said: “China is a very fast-changing country. We must maintain good communication with stakeholders, be keenly aware of changes, and continue to improve through ourselves and society. The pace of development is consistent."
In China, from Alibaba's birth to Jingdong, Jumeiqin went hand in hand, and the online shopping platform developed rapidly and became self-contained. One of the reasons why consumers favor online shopping is that they can get more affordable prices than physical stores.
Although the online shop saves the operating costs of offline stores, due to the lack of effective management and control methods, there are many fake products on the line, and the after-sales service is not perfect.
Therefore, consumer acceptance of tires for online sales is not high, and there is widespread skepticism. If online tires do not significantly reduce prices, consumers still tend to go to physical stores to purchase the same products.
In addition, the transparency of online product information is high, and it is more convenient for consumers to shop around. In order to attract customers, major shops can only stimulate sales through endless price wars.
Moreover, online retail customer groups are scattered, subscriptions are small, orders are not stable, and shops have few opportunities to obtain large orders.
Price and sales pressure on these two mountains has led many tire brands to feel that they have outweighed their losses. They have closed down their online stores and instead developed more stable store operations.
E-commerce platform needs development
In recent years, the “Our Business Tide†of the Internet O2O platform has risen in China.
However, most tire e-commerce providers lack experience and uncertainty about the consumer mindset. They have not found a suitable development route for the Chinese market. The entrepreneurial fever has not been maintained for a long time.
According to analysis, at present, China's car ownership keeps a high-speed growth trend, and the demand for tires is huge.
Domestic tire demand is huge
This means that the market urgently needs branded and credible tire electricity providers to optimize resource allocation and fill market gaps.
Take the example of a domestic electricity supplier that has a good momentum of development. They use an online booking + offline installation integrated sales model, establish cooperation with major third-party platforms, and create an independent supply chain and pre-sales service system.
This greatly improved the consumer's buying experience and also opened up a new road for the development of China's tire electricity supplier.
In 2016, the company’s operating income was more than 2 billion yuan.
Break the dilemma or just around the corner
The stable development of e-commerce companies such as Thompson provides a reference for tire companies to develop online sales platforms.
In addition, the fiery situation in the sales of tires in Europe and the United States, let more Chinese tires people see the good prospects of e-commerce.
As early as 2014, the replacement tire sold by the United States through online sales channels already accounted for 21% of its total sales.
In Europe, sales of tires through e-commerce accounted for 9% of its total sales, and accounted for 10%-15% of the local auto parts market's online sales.
The violent impact of e-commerce has also led to the bankruptcy of Reifen Ihle Group, the largest tire wholesaler in Germany.
China is the world's largest tire market. If companies can optimize the integration of resources and rationalize the needs of their industries and customers, then breaking the online sales predicament or just around the corner.
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