China tires of flowers and traps

China's hot in the automotive industry, vehicles equipped with tire by-products are also full of the smell of gunpowder into a new category.

With the world's fourth largest tire giant German license Ma tire announce by the end of 2007 is about to set up factories in China, the world's top 10 Chinese giant factories all the dust has settled, the Chinese tire industry, "excess capacity" was once again to wave, the more To the more in the factory and a pile of tires, has been transferred to the channel.

Retail tire dispute over the territory of the market is increasingly heating up.

The tough new entrants

Although the new plant to two years before it is put into operation, but the mainland Ma licensing tire Trading (Shanghai) Co., Ltd. has begun Kerui Bo, general manager for the next 4,000,000 capacity to digest in preparation.

For the current dependence on imports, domestic package business, only BMW Brilliance of the tire manufacturers, the retail market to open up its network to become the main area.

Ma currently has licensing tires 100 authorized dealers, with a longer time to enter China's Michelin, Bridgestone, Goodyear, Hankook, as well as South Korea, Kumho compared to the shade and so on. And in a year will double the network to expand the number of people who have full layout of the market, their faces will be a fierce battle for the channel.

In fact, the Chinese tire market has been troubled.

At present, the Michelin Chi increase the number of stores has more than 300, and still plans to increase the number of 100 per year. At present, Goodyear will reach about 800. Bridgestone and all forms of retail stores in China had reached 1,500.

In addition, the second-line brand Hankook Tire, Kumho, is also new to be outdone, Hankook Tire to build the T-Station car Chi-yi planning over the next five years the development of 300.

As entered, Ma is clearly a brand licensing tire vulnerable. However, Kerui Bo said, have been completed in the distribution of 100 stores, there are many, including Michelin, Bridgestone and Goodyear, the three major brand dealers.

"After entering, we have developed a differentiated marketing strategy." Ma's license does not require food outlets only sell products licensed horse, and food outlets to more freedom and room for profit.

Tire industry and the flowers trap

Chinese tire market, there is a great temptation.

First, the past three years, China's original tire market is growing. To take a new car with a 5-child basis, in 2007 in accordance with 8,880,000 vehicles sold, more than 4,000 digestible out 10,000 tires.

Secondly, the "cars in China for the surge in births to shorten the average period of" child-for-all means that the next round of the emergence of a peak. Chinese car owners to replace tires, the average period from 5 years to 2.5 years in some areas and even in 2 years, for steady improvement in the frequency of child. In other words, after-sale market will quickly usher in a new round of the peak period for births.

In addition, China is becoming a global tire production base. A large number of tire companies increasing share of exports, local brands, such as two-tire money, and so on the rapid export of the United States are solid platinum, and other domestic tire set up export-oriented tire factory.

But behind these flowers, and perhaps more cruel traps.

As of the end of 2006, foreign investment enterprises in China Tire 19, a total of 36 factories. In 2005 the National Tire production has reached 318,000,000 on the basis of the tire companies have embarked on a new round of investment heat. According to the authority of the agency predicted in 2010, the Chinese tire market in aggregate demand can only be reached 300,000,000, the Chinese tire market, signs of excess production capacity have emerged.

In addition to the new entrants licensed horse, in April 2008 to start the second phase of the factory three Jiaxing plant expansion project is completed, Jiaxing Hankook Nissan plant capacity will be available on the basis of 44,000 to more than 50,000 articles . In the first half of 2008, Kumho Tire investment of 156,000,000 U.S. dollars in the third plant built in Changchun, as planned, the plant by 2008 to achieve an annual output of 3,150,000 cars with tire design capacity.

Michelin Group Chairman Michel Rollier said that the "Shanghai, Shenyang, the two factories will expand the scale of production more than doubled." Goodyear Dalian plant has been expanded in 2004 to invest Bridgestone 300,000,000 U.S. dollars In Huizhou, the establishment of new factories in operation in 2008.

"In order to consume the growing production capacity, manufacturers began to be carried out at the cost of running the network war."

The industry expects about tire giant's sales channels for the next growing, and this will also be affected in the future giants of the divided territory.