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Analysis of the current situation and prospects of e-commerce in China's tire industry
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Analysis of the current situation and prospects of e-commerce in China's tire industry

  • Categories:Company News
  • Author:
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  • Time of issue:2019-08-09 10:55
  • Views:6

(Summary description)  The rapid development of the Internet and e-commerce has brought market and profit margins to many companies, changing the traditional marketing model and changing the way companies operate. In recent years, in the face of increasingly competitive traditional markets, many tire companies have joined the Internet to test water and electricity.
  Transforming traditional sales models

Analysis of the current situation and prospects of e-commerce in China's tire industry

(Summary description)  The rapid development of the Internet and e-commerce has brought market and profit margins to many companies, changing the traditional marketing model and changing the way companies operate. In recent years, in the face of increasingly competitive traditional markets, many tire companies have joined the Internet to test water and electricity.
  Transforming traditional sales models

  • Categories:Company News
  • Author:
  • Origin:
  • Time of issue:2019-08-09 10:55
  • Views:6
Information
  The rapid development of the Internet and e-commerce has brought market and profit margins to many companies, changing the traditional marketing model and changing the way companies operate. In recent years, in the face of increasingly competitive traditional markets, many tire companies have joined the Internet to test water and electricity.
  Transforming traditional sales models
  Tire as an industrial product, for a long time because of its particularity, the marketing model has been used by manufacturers to wholesalers to retailers, and finally into the traditional mode of owner users, but this sales model needs high gross margin to support. In today's increasingly fierce market competition, the profits of tire wholesalers have become lower and lower.
  The traditional tire marketing model requires profit for each level of agents, so consumers pay a higher transaction cost for this, and consumers' consumption information is difficult to feedback to the manufacturers, resulting in distortion of industry information transmission. With the current increase in production capacity in the tire industry, the market has entered a stage of full competition. The profit of tire wholesalers may only be 2%. In addition, the purchase channels of consumers increase, the bargaining power increases, and the existing sales model must change.
  Tire e-commerce should go O2O
  It is understood that in the European market, tire companies accounted for 9% of total sales through e-commerce, especially in the Netherlands and Germany. Compared with foreign countries, the online trading volume of China's tire industry is still very small, and the sales of e-commerce may not be 5% of the total market.
  However, industry experts also believe that the concept of regionalization will be slowly broken in the future tire sales, like the concept of regional agents in the US tire industry. The channel level of future big brands will be further reduced, and the value of retailers will be further enhanced. Thanks to the strong appeal of the brand among consumers and the distribution and installation services supported by many brand dealerships nationwide, the strong e-commerce platform led by strong manufacturers will develop rapidly. At the same time, the tire trading service type platform will also have great development opportunities. Because there are many brands of Chinese tire manufacturers, weak brands can only survive and develop by significantly shortening the channel links, which provides opportunities for e-commerce intermediary platforms.
  The future competition will break the tradition and break through the convention. The profit of tire companies will depend on the innovation of business model and thinking mode. The O2O e-commerce model should be realized, that is, the seamless connection of “online + offline” integration. The opportunity for offline business is combined with the Internet, making the Internet a front-end for offline transactions. In this way, the offline service of the tire enterprise can be used to collect customers online. Consumers can use the online to filter services, and the transactions can be settled online, and soon reach the scale.

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