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.

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. 

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.

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.