However, the huge effort to support the automotive and tyre sectors could not prevent a dramatic 20% drop in demand for consumer tyres, which of course had an impact on retail. The repeated closures, coupled with the economic crisis and the closure of some factories due to mobility restrictions have had a major impact on the tyre industry in terms of sales and job losses.

The lockdown has changed shopping habits and the number of trips has declined in all countries. Driving less means fewer new tyres sold. This means that the industry's revenue growth is expected to stagnate over the period 2020-2022 as the pandemic effect continues to dampen the flow of motor vehicles lowering demand. In fact, weaker demand for tyres is expected to bankrupt some small tyre dealers, with small non-employer businesses being the most vulnerable.

Changes in the way tyres are distributed also affect the tyre dealer. Gas stations and auto repair shops are becoming less and less important in terms of sales. This trend is expected to continue. Differences in wholesale, price, service, warranty and performance are no longer essential keys to staying competitive.

During lockdowns, small businesses in particular found themselves in unpredictable circumstances and many had to close their doors. However, the pandemic has created more than just disruption and uncertainty. It sparked a new spirit of persistent creativity.

The pandemic effect has actually changed the way business is done. The market value of e-commerce will be four or five times that of any country in the coming years.

Some tyre retail authorities are confident that it will not be out of reach for the industry to return to 2019 levels in 2021. If possible, how will this be achieved, as habits and opportunities purchasing have changed dramatically. They assume that in 2021 it will only be a question of achieving a “return to normal.” In fact, defining “normal” is the hardest part, although 30% of Western tyre replacement markets are still covered by Southeast Asian tyre manufacturers.

The pandemic effect has actually changed the way business is done. First, consumers have chosen to shop online more than ever. The future of retail emphasises the digitalisation of the world. Cashless and digital payment is becoming consumer behaviour and increasingly relies on digital payment. We are seeing a recovery in the e-commerce sector.

We know that the number of “buy now, pay later” platforms has increased dramatically in some countries. Consumers can visit and compare online e-commerce stores in seconds. Marketing a product has never seen such great competition. The market value of e-commerce will be four or five times that of any country in the coming years.

E-commerce service solutions are gaining importance as online tyre sales offerings become available.

The five largest tyre manufacturers offer motorists online shopping experiences. Customers can buy the products and reserve the assembly through their selected local dealer. Customers can therefore buy tyres directly online, either on a computer or on a mobile phone. The online store provides the tyre options available as well as clear information needed in the selection process to guide consumers to the specific tyre that meets their needs.

At the same time, the fitting network is directly connected to the store via the online planner and allows the consumer to directly make an appointment for the fitting of tyres. Another benefit for consumers is that all tyre and installation costs are paid online and in advance so they can easily show up at the scheduled installation time. This may enrich the activity of some tyre dealers as a member of the e-commerce solution partner network.

Most customers, however, want the approval and perspective of a qualified tyre professional. There is a common belief that tyres are sold, not bought! This nuance focuses on our view that consumers ultimately want to consult with someone who knows how these tyres fit, how they react and most importantly their quality, before making the purchasing decision. Conversely, how will this aspect of customer habits affect the e-commerce tyre network?

On the other hand, it takes huge finished product SKUs and huge warehouses for e-commerce operations to handle thousands of orders every day. Therefore, we are usually talking about a high amount of logistics costs, which represent about 6 to 10 percent of total sales. E-commerce service solutions are gaining in importance as online tyre sales offerings become available.

2020 has been an interesting year for e-commerce in general. Large companies have improved their skills in this regard. Overall, more and more consumers are turning to online sellers, as many tyre manufacturers have seen. However, careful analysis of consumer transactions and changes in customer behaviour must also be done in the everyday environment, including other brands, and the huge data centre entrances must be analyzed very well. Rigorous processes and close cooperation are the best ways to ensure the integrity and quality of sensitive and valuable products.

Therefore, agility and adaptability will be of crucial importance in the global supply chain for mobility in the years to come. Remaining flexible is the effective response to this growing complexity by optimizing current operations while remaining sufficiently adaptable and scalable to meet future demand peaks. To do this, tyre manufacturers need to work closely with their logistics service provider to present and implement powerful new approaches to tyre logistics.

For small and medium-sized enterprises, the message of the past few months is clear: bold strategies are required to survive and thrive in the current economic downturn, and those strategies should include a robust e-commerce plan with a strong cross-component.

It is certain that “online sales” will become more popular in the years to come. Therefore, innovative e-commerce solutions will never stop. In any case, nothing is immune from fierce competition. Businesses of all sizes need smart recovery strategies. Those who are more diligent and see future opportunities are better prepared to survive.

So, it is certain that “Online Tyre Sales” will become more popular in the years to come. Whoever has a robust e-commerce plan is diligent and agile will win in the market. (TT)

Apollo Tyres Ltd has secured a one-season shirt-sleeve sponsorship agreement with AS Monaco, one of French football's most successful clubs, to increase awareness for its premium Vredestein brand.

This partnership will leverage Ligue 1's ranking as the fifth most watched football league in the world to raise awareness of Vredestein's award-winning products among a large audience in France and abroad. On November 22, AS Monaco's home league game against Brest will have the new sleeve branding for the first time. The Vredestein brand will be heavily promoted at Stade Louis-II for the 2024–2025 season, including on player sleeves and LED screens around the field. Exclusive social media initiatives will further help make the brand prominent, reaching a large and interested audience.

Yves Pouliquen, Vice President – Commercial, Europe, Apollo Tyres, said, “This partnership is an exciting opportunity to strengthen Vredestein’s presence in one of our key markets. AS Monaco’s rich history and commitment to excellence mirror our focus on performance and innovation. We look forward to building a successful relationship with the club and celebrating its achievements this season.”

Thibaut Chatelard, Marketing and Revenue Director, AS Monaco, said: “We are delighted to welcome Apollo Tyres and its Vredestein brand to the family of AS Monaco partners. This collaboration makes sense in view of the values we share, such as the constant pursuit of performance and excellence. There’s no doubt that this new support will be precious for the rest of our season, which promises to be thrilling.”

Nexen Tire, a leading global tyre manufacturer, has launched the Nexen N´Blue S tyre, adding to its range of summer tyres and providing drivers with advanced safety, energy efficiency and superior driving stability in wet and dry conditions.

Developed using highly dispersed silica and equipped with an optimised structural design, the Nexen N´Blue S tyre provides reduced road noise and improved driving stability. The tyre features an innovative tread compound, formulated with hydrophilic fillers and microstructure-controlled polymers, and provides lower rolling resistance and exceptional dry and wet grip. The tyre also excelled in test results by demonstrating an 11 percent improvement in wet braking distance compared to its predecessor.

Apart from providing excellent performance, the Nexen  N´Blue S also scores high on the sustainability index. The tyre provides an eco-friendly solution for environmentally conscious drivers by minimising fuel consumption and CO2 emissions. The Nexen N´Blue S summer tyre is available in 58 sizes, which makes it compatible with different types of vehicles.

Kumho Tire Vietnam Co., Ltd. is all set to expand its investment project in Binh Duong province of Vietnam, with the phase 3 of expansion commencing in early 2025. This was discussed at a recent meeting between Vo Van Minh, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee (PPC), and Kim Hyun Ho, General Director of Kumho Tire Vietnam Co., Ltd.

The meeting was held on 13 November at the Administrative Centre of Binh Duong province, as per an official statement. Apart from the company’s investment till date and the planned investment for phase 3, the two also discussed about the challenges and obstacles regarding procedures and processes to have more land funds to expand the manufacturing plant, along with taking measures to tackle the obstacles. Kim Hyun Ho also conveyed to the PPC Chairman that Kumho Tire Vietnam Co., Ltd. belongs to South Korea's Kumho Tire Group and is currently ranked 10th in the car tyre manufacturing industry.

The company had invested in a tyre manufacturing plant in My Phuoc 3 Industrial Park in 2007 with a total initial investment of USD 308 million, which was supplemented by another USD 300 million in 2021. This extended the factory scale to six hectares and increased the production capacity to 12.5 million tyres annually. With the expansion in early 2025, the company will raise its total investment to USD 908 million and increase the factory's production capacity to 17 million tyres annually. The expanded capacity is expected to be operational by early 2026.

Yokohama-ATG, a leading manufacturer of all-terrain and off-the-road tyres, has expanded its Galaxy MFS 101 SDS range of forklift tyres with the launch of white, non-marking tyres.

The Galaxy MFS 101 SDS range consists of puncture-proof SDS tyres with extended wear limits designed for high-intensity working shifts and long durability. These are premium, solid rubber tyres developed for tough demands, a long service life and high driving comfort. The addition of white, non-marking tyres is specifically aimed at clean working environments.

Marked by a 3-stage construction process, the forklift tyres feature reduced heat build-up, effective shock absorption and minimised vibrations. The pattern design guarantees a smooth ride and good steerability thanks to its continuous centre lug and circumferential grooves. Furthermore, the flat walls and wide flat profile offer excellent stability when using a forklift for vertical stacking. The tyres are also equipped with anti-slip steel beads for improved rim fitment

In a case study on a CAT 2.5-tonne forklift that was used for handling heavy pallets on asphalt, the Galaxy MFS 101 SDS outshone the competitors with impressive performance. The tyre delivered an approximate 900 working hours before replacement against competitors’ 500 working hours.