Tyre Retail Is Joyful, Except For The Dealers

Tyre Retail Is Joyful, Except For The Dealers

As e-commerce becomes more relevant and vehicle types change drastically, the younger generation may never go to the tyre shop.

Do you remember when you bought your first new tyres? Middle-aged people used to change their car tyres every four to six years. Do you think the younger generation who has never been to a shop will ever visit a dealer and change their car tyres? Probably never, but they have been able to acquire precise knowledge and enough experience to buy the best tyres. What innovations are there in the tyre trade? What will inspire the younger generation to be more aware and better informed?

If the airless tyres are widespread and cover a certain part of the market, do we need to go to the shop? We probably won’t! Or what will be the responsibility of the people when driverless autonomous cars become more popular? Let’s just think. We should keep in mind that many shops have at the same time a traditional car care service outside of tyres for main parts of internal combustion engine cars. The typical large car dealership generates 55 percent of its sales from tyres and related services and 44 percent from automotive services. We know that the market penetration of electric cars is increasing enormously, and essential systems for vehicles with internal combustion engines are missing. Do you think electric vehicles with no fuel system, complicated transmission or exhaust system pose no challenge for dealers and suppliers?

The way tyre retailers do business is changing dramatically; showroom design and product presentation cannot compensate for the overwhelming influence of e-commerce.

OEM sourcing never makes the manufacturer the market leader. Retail, consumer, and commercial sales account for nearly 80 percent of the global market. In this sense, as essential suppliers, manufacturers have always pushed dealers to favour points of sale that strengthen customer loyalty. The lighting of the product and, the showroom, the colours of the decoration allow customising the customer’s look. Showroom smell is also important, which is why some dealers prefer to keep a limited number of tyres in the showroom. Well-ventilated showrooms lead to better sales practices.

Customer trust begins with impressions from the parking lot even before entering the store. Clear and clean windows are always an advantage when the customer starts walking through the store. Worker and employee uniforms as image-bearers keep them customer-oriented. Customers always judge the seriousness and strengthen their loyalty.

These tips for tyre dealers are applied in whole or in part in different ways. However, as technology advances, expectations change dramatically. Today, with a simple touch on a tablet or smartphone screen, a basic operation of a dealer or wholesaler is done in seconds via e-commerce software.

Tyre retailers need to combine and enrich their current business with the latest software tools for inventory organisation, store management and e-commerce tools running on mobile devices.

If you look at all sectors and not just the trade, some customers see e-commerce as a contactless shopping option rather cautiously. However, every day it becomes standard in many ways. It’s trendy and admirable because everyone discusses or talks about what they bought online and how it was suitable, cheaper or quick with happy results. Online shopping is not always successful, and there are always dissatisfied customers. Yes, e-commerce is tough but popular and promoted on all social media platforms.

The incremental growth rate of e-commerce will remain the fastest-growing sales channel; it is already called the ‘online to offline platform – O2O – as new online marketing. Nearly one billion shoppers used e-commerce platforms to find and buy the best in 2020. In the industry, 55 percent of buyers research product lines online before purchasing, and around 15 percent of them are already shopping online today. To the extent that online sales channels can schedule appointments at the fitting station, the rate of online sales will increase. This is also the reason why people no longer have to go to a shop to buy tyres.

Online and custom e-commerce programmes are now integrated and include cloud-based web applications running on mobile phones, tablets, PCs, laptops and smartphones through various interface modules used at points of sale, order management, inventory, accounting and marketing and in particular, the e-commerce needs of retailers and wholesalers of all sizes.

Mobile phones are mainly used for online shopping, with a total share of 73 percent. When open, 56 percent of shoppers are happy to visit a store to check quality and shop on the mobile app for the best price and options via ‘Check price and availability.

Current e-commerce techniques are rapidly being restructured by combining physical and digital experiences online.

 

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Retailers should be prepared for possible and repeated store closures. Customer preferences are direct online platforms that offer physical environments and integrate physical and digital experiences through a new generation of digital channels.

The latest trend is ‘live streaming selling’, which is already popular and being adopted by well-known retail giants. Current online retail programmes allow online shoppers to see a visual preview of exactly how the tyres will look on their vehicle with a simple click. Live streaming takes the guesswork from customers who don’t have face-to-face interaction with the product. This is solved with a real person showing you the tyres and answering your questions in real-time. Personal and unique interactions with consumers via social channels are also proliferating.

‘Live streaming selling’ is presently the latest point before augmented reality is streaming on retail shops. These two latest trends explain why the younger generation does not have to go to dealer retail shops to buy a new set of tyres. 

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The coming energy crisis and war-related economic sanctions, together with the e-commerce appetite of major tyre brands, bring new days of disaster for tyre retailers.

Dealers around the world are usually second or third generation and have seen many disaster days in the past. Sales volumes have yet to fully recover to the pre-Covid level; on the other hand, soaring energy and fuel prices and unstoppable inflation rates are leading to new economic uncertainties, less travel and lower demand.

Due to the invasion of Ukraine, a further decline in demand is expected. The inevitable impact of economic costs will further slowdown economies. Sanctions on transactions and logistics will bring uncertainty. Toughest days are coming in world trade. Therefore, European production and small retailer activities will be very vulnerable.

Major tyre manufacturers have launched online retail programmes to sell passenger tyres directly to consumers. The programme is explained in response to changing consumer behaviour and the ongoing transition to e-commerce. They say the programme is bringing in additional customers for dealers rather than bypassing them. Under this programme, tyres are provided by the manufacturer while dealers remain as e-commerce partners and are paid for tyre fitting labour. The other big brand’s “Rolling Programs” covers sales and assembly at the address is built in.

Given that the new economic difficulties are weighing on everyone, we understand that the tyre retailing will always be in a good mood, except for the dealers.

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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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