Tyre Business Adaptation During Pandemic

Tyre Business Adaptation During Pandemic

It’s hard to imagine anyone on the planet that hasn’t been directly or indirectly affected by the Corona virus pandemic, and when it comes to industries, the automotive sector has been hit worse than most others, with the clear exception of course being the sectors related to travel and tourism. The fact is that people drive less than normally, for several reasons: many jobs have been cut, reducing commuter traffic; those that still work do it primarily from home or with less days at the office per week than before; and those long drives to visit distant relatives or go on family holidays in other countries have been reduced to a fraction of what they used to be, when they’ve been at all possible. Global automobile sales dropped around 15 % year-on-year in 2020, which is doubtless a result of the pandemic, and OE tyre sales dropped even more than that, a result of due diligence by the car manufacturers. The replacement tyre sales volume dropped also, but not as much as one could have expected – a partial explanation for this is very likely the reduced number of new cars sold, resulting in more tyres needing replacement.

But there’s nothing like a good crisis to spawn innovation. Online sales and delivery services have flourished like never before, and courier companies are busier than ever. As shops have been closed due to lockdowns or just avoided due to the risk of infections in the public space, shopping has moved online to an incredible extent. This means a lot more goods being moved around by a lot more delivery vehicles, which then consume more tyres. At the same time, those that still have their jobs haven’t been able to spend their salaries on annual holidays abroad, so their spending has shifted towards buying more consumer goods at home instead. So, it’s not just that shopping has moved from the physical stores to online shops, it’s also that the total shopping volume has increased. Luckily, most tyre retailers have caught on, and have improved their web shop portals to cater to the increased demand and take measures to stand out from the competition, such as faster delivery times, larger selection of products, and combined services.

 

Digital shopping

Keeping clients interested using digital means has become more important than ever, as people now tend to buy tyres online and go to have them fitted after the purchase, instead of the traditional way of going to the shop first and buying what the seller there recommends. That has made it extremely important to make the purchase as easy and smooth as possible for the consumers and communicate all benefits to potential clients in a clear and appetising way.

Where many tyre retailers have been locked in a mindset that a website should be set up to persuade potential clients to visit the physical shop and rely on sales being made by the staff there, now they have to make the sale in the web shop first, which requires a much better consumer experience when browsing the web shop than before. One notable method that many have adopted is what’s called “live selling,” where the customers access a video call with a salesperson, who won’t be able to see the caller, but will be able to offer guidance and advice, and hopefully close the sale. This method has proven exceptionally good for products that the customers in general don’t possess very deep knowledge of, and that definitely includes tyres. The old and very reliable rule of thumb for tyre retailers was that 6 out of 10 tyre customers would always say “I just want the same tyres fitted again,” not because they had experienced heavenly experiences riding on those tyres, but simply to avoid the risk of having fitted something that turned out to perform worse. “Good enough” is a strong force supporting habits. “Live selling” (as opposed to what, you may ask, but remember the term has been coined when physical shops have been closed down) offers retailers the chance to go for the traditional replacement sale or actively try to influence the purchasing decision by offering alternatives that might be more profitable for the seller. It’s always important to remember that even though the customer makes the purchase decision, it’s the seller that decides which options to make available as the base of the decision.

Being connected to the customers, the seller is also able to offer related services or products that on average increases the revenue per client, so there’s no doubt the strategy is sound. And there’s no reason for retailers to stop using this channel when we hopefully can go back to being able to visit the physical shops in person again, as it will be a way to catch clients that would have otherwise not visited the shop.

Apart from this, it has been a fruitful strategy for many to cater more to courier fleets and transportation companies with more tailored services and cost benefits. On-road assistance services have increased, and not just for courier vans and cargo trucks, but also for agricultural equipment such as tractors (although that would be more aptly called off-road assistance). At least, the gist of it all is that the overall trend in tyre business has been to move business closer to the customers, when customers haven’t been able to shop as they used to – and there are clear indications that the strategy has been successful.

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    Lamborghini Huracán STO to run on Bridgestone tyres

    Lamborghini Huracán STO to run on Bridgestone tyres

    Bridgestone will supply tailored-made tyres for Lamborghini’s Huracán STO, which will be launched in 2021.

    Bridgestone ensured the high-performance tyre can maximise the Huracán STO’s traction, handling, control, and extreme overall performance.

    Key to the tyre’s success in maximising the super sports car’s performance is the combination of pattern and cavity design. The Potenza tyres apply an asymmetric tread design for enhanced steering response and cornering stability, and an internal crown structure that distributes footprint pressure evenly when cornering.

    As well as the road-focused, custom-developed Potenza fitment, Bridgestone will also be providing a track-oriented, road-homologated version of the tyre that applies “race” technologies to maximise the vehicle’s track performance, especially in dry conditions.


    Steven De Bock, VP Consumer Replacement and OE at Bridgestone EMIA, said, “It’s been a pleasure for our team to work so closely with Lamborghini for the first time, and on such an exciting project. The Huracán STO is an incredible piece of engineering that deserves a custom tyre that can fulfill its full potential. I can proudly say that Bridgestone has delivered such a high-performance tyre. It has been fantastic for the team to have worked on a project that is at the forefront of technology in so many ways.”

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      Hankook Starts Operations At New Testing Facility In Spain

      Hankook Starts Operations At New Testing Facility In Spain

      Hankook, one of the major global tyre brands, has started testing and development operations at its new ultra modern facility in Spain.

      The testing facility has been set up on the premises of the Applus+ IDIADA Group and can also cater to European premium car manufacturers that have their own demanding tyre tests. The facility is completely automated and will host a 20-member team from the Spanish testing centre, which is affiliated to the Hankook Europe Technical Centre.

      Klaus Krause, Head of European Research and Development Centre, said, "With the further expansion of our testing capacities in Spain, we are reaching the next level together with our local partner Applus+ IDIADA."

      He also added, "We are confident that the newly installed testing facilities in particular will significantly improve our efforts to provide the best tyre testing conditions and services to our employees and customers. In addition, we will also be able to conduct significantly more tests on site." (TT)

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        New Innovative Construction Tyre from ASCENSO

        New Innovative Construction Tyre from ASCENSO

        ASCENSO introduced a construction tyre - BLB 730- which is used for boom lift vehicles used in construction and other industries. It comes with several features that cater to the unique needs of aerial lifting equipment.

        The BLB 730 tyre is available in different sizes to fit various boom lift vehicles. This range of sizes provides versatility and compatibility with different types of aerial lift work platforms.

        ASCENSO's BLB 730 tyre is a significant advancement in specialised equipment for the construction industry. It focuses on load capacity, stability, traction, and durability to improve the performance and safety of boom lift vehicles. Whether working at heights or manoeuvring on tough terrains, this tyre offers reliability and durability for efficient operations,” said the company in a statement.

        The BLB 730 tyre is built to handle heavy loads and stabilise boom lift vehicles. It has solid lugs and a more extended shoulder design, which ensures good traction and prevents slipping during operation. This is important for safely carrying heavy weights at high elevations. ASCENSO has used a special rubber compound in making the BLB 730 tyre, making it durable and long-lasting, resulting in less downtime and more productivity on construction sites.

        To make the tyre even better, the company has optimised its inner volume to reduce tyre fill consumption, reducing the risk of tyre punctures, minimising the need for maintenance, and keep the vehicles running smoothly.

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          Falken Named Official Partner Of Men’s IHF World Handball Championships 2023

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          Falken Tyre Europe is an official IHF Men's World Championship 2023 partner for the upcoming tournament, the company has announced. The tournament is taking place at nine venues in Sweden and Poland from 11-29 January, 2023. Falken Tyre claims that the partnership was organised by the sports marketing agency SPORTFIVE. SPORTFIVE is responsible for exclusive marketing and media rights for all IHF World Championships until 2031.

          Falken Tyre claims that this is its second agreement with the International Handball Federation. In addition to title and logo rights (Official IHF Men's World Championship 2023 Partner), the company has also secured advertising rights, including the Falken logo in each goal and centre circle of the courts, as well as the presence of Falken branding in the official tournament social media communications and print materials. According to Falken Tyre, this is complemented by 30-second video ads that will be shown on the big screens in the nine sports halls before the start of each match and at half-time.

          Sharing his views, Robert Müller von Vultejus, Chief Growth Officer at SPORTFIVE, said, “With Falken, the IHF World Handball Championships have secured a great partner who is positioned with far-reaching influence in the relevant core markets. We are delighted to have been able to bring two global partners together for one of the most exciting sporting events of next year.”

          Markus Bögner, COO and President of Falken Tyre Europe GmbH, explained, “Handball isn’t just of great importance in Europe, but all over the world, which has led us to partake in this top-level tournament once again. The fact that the international tournament is taking place in countries that are among our core markets is another great reason for our involvement. We can also look back on a long partnership with our colleagues at SPORTFIVE, who always offers us excellent opportunities that are an excellent fit for the Falken brand, which stands for enthusiasm, performance and achievement.”

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