Low prices are just a result. Do tire companies choose low prices because of arsenic or honey? The torrential storm in the tire industry in recent times can also give people the answer. No matter how gorgeous the word "high cost performance" is, consumers still leave the stereotype of "low quality and low price"; just like some people are willing to offer cheap price Those who follow the golden rule do not think that "good quality and low price" is a good word.
1. Fledgling, taste the sweetness
The road to low-cost long-distance running with domestic tires has to be talked about 20 years ago. In the past two decades, the development of Chinese tire companies can be summed up in one sentence: some people live in tall buildings, some are in deep trenches, some are shining, and some are covered in rust. In general, birth and death, glory and decline are intertwined and intertwined...
For example, China's largest tire gathering place also developed rapidly around 2000. In 2002, Guangrao County vigorously developed radial tires. In less than ten years, it became an important base for the production and export of radial tires and the largest rubber industry cluster in the country. This has also accelerated the pace of low-price competition for domestic tires.
For the development of Chinese tire companies, 2008 is a relatively important time node. In 2008, affected by the financial crisis, the profit of China's tire industry in 2008 fell by 50.9% compared with 2007, and the curtain of reform in China's tire industry has been opened since then.
In 2009, the price of rubber was only about 8,000 yuan at the beginning of the year, and by the end of the year it rose to about 13,000 yuan, an increase of 50%! The domestic tire market is in strong demand, and the truck, bus and sedan market has become popular. The annual production of radial tires reached 300 million, a year-on-year increase of 18%!
2. The tide recedes and begins to reflect
When the time came to 2011, the price of natural rubber dropped sharply. Compared with two years ago, the output of radial tires in China in 2011 increased by 30% with 398 million pieces, but the price of synthetic rubber has risen by 35,000 yuan per ton. In this year, the overall revenue of tire companies increased by 22.4% year-on-year, but profits fell by 15%, and the industry profit margin was only 2%!
At this time, some tire company leaders began to reflect: I have worked so hard to make tires, why can't I make any money? At that time, it coincided with the crazy growth of non-three packs of tires, and almost all domestic enterprises were increasing.
When it came time to hand in the test papers, I found that although there were a lot of words on the paper, there were very few really correct ones; even some tire companies started to lose money. During the same period, foreign-funded enterprises all made profits and made a lot of money.
Seeing this, it seems that it can be linked with the 2021 tire market in time and space. In the first half of this year, many tire companies had predicted that the second half of the year would be difficult, but they did not expect such a disastrous failure in the third quarter. After the wave passed, it was discovered that the clown was actually ourselves.
In the third quarter of 2021, Fengshen Tire’s operating income was 1.249 billion yuan, a year-on-year decrease of 14.96%; net profit was -16 million yuan, a year-on-year decrease of 122.85%. In the same period, foreign tire companies not only increased their sales, such as Goodyear, but also saw a small increase in their net profit.
This year is similar to 2011. The price of natural rubber remains high, the price of carbon black is skyrocketing, the price of synthetic rubber is at a new high, and the price of oil is uncontrollable. In addition to the impact of the epidemic, production and power restrictions, price increases seem to be the life-saving straw for tire companies.
If you continue to pay attention to this year’s prices, you will find that in the first half of this year, foreign-funded tire companies have already raised prices globally, and the Chinese market has also increased prices many times in the third quarter; while domestic tire companies have concentrated their price increases in October, and the pressure began in May. The time for the price increase has been repeatedly delayed. The reason is only "dare to increase the price" to explain it, but it has to face the dilemma of "have to increase".
Seeing this, many people may be wondering what does this have to do with low-cost long-distance running? Pulling through the layers of fog, I saw only the four words "low-end, low-price" between the lines. This is also the reason why Chinese tire companies are most affected this time. There is no trusted brand, and the quality is a mess.
What do we love you with, made in China, blindly pursuing profit, brand is the biggest profit.
3. Low-price competition, multilateral encirclement and suppression
In the morning of July 14, 2015, the United States voted on the anti-dumping and countervailing duty investigations on Chinese cars and light truck tires. The tariff rate was determined by the Ministry of Commerce (documents) on June 12, 2015. Tires hurt the American market. In 2015, the total domestic production capacity of tires was about 800 million, and the total output was 565 million, ranking first in the world for ten consecutive years.
Prior to this, bankruptcies, bankruptcies, and reorganizations were spreading like serious illnesses in the tire industry. Private enterprises were facing a broken capital chain and the state-owned tire company market was gradually being eroded. In 2015, ChemChina, behind Aeolus, tried to spend huge sums of money to acquire Pirelli in Italy in order to make a breakthrough.
4. Redefine and be carried forward
If the "double reverse" in the United States is just for tire companies to start building factories overseas in order to save the country, then the thunderstorms of De Ruibao and Yongtai have caused many tire companies to re-examine their internal reasons.
Are Deruibao and Yongtai not strong? When they were brilliant, even some of the listed tire companies could not even look down on them. Did it end badly? Perhaps only the stone lion at the gate of Yongtai can understand the taste of going from full of guests to the door. That is, from 2017, tire companies started to deploy their own brands.
If you don't understand, then learn from foreign brands. Drift racing, cross-country events, and football team signings do not fall, and gradually realize the importance of original tires. Some car companies look down on their own brands, so we start with spare tires; gradually accepted by some low-end cars , The original small size gradually has some domestic tires.
If you want to equip a high-end car, you don't just need to make the size bigger. Tire companies have also begun to gradually build their own high-end series. Although the price is not as good as Pirelli, it is still comparable to ordinary tires from Michelin and Goodyear. Although it is difficult to be accepted at first, if you want others to remember you, you have to brush up on your sense of existence over and over again.
The big-name and big-name duel will basically not involve domestic tires, and domestic tires will be tied to the big-name tires during the evaluation, constantly narrowing the distance between them.
In the development of domestic tires in the past 30 years, the most impressive moment by others is not how to produce tires, but how to operate the brand.
Of course, research and development is the cornerstone of brand operation. As a university professor once said: Around 2000, my country needed to import a certain raw material for 20,000 yuan/ton, and he bought all the best raw materials together, and the effect was better than imported ones. Even better, the cost is only 7,000 yuan/ton. When constrained by others, some external conditions have become empty talk.
Trying to shake the centuries-old foundation of others with 30 years of development is simply idiotic. Domestic tires still have a long way to go. Foreign tire companies are not only strong in tire sales and net profit, but the brand is also one of them. The most important thing to create a brand is the heritage of the tire company.
There will only be more and more low-cost long-distance runners behind, and there will be no shadow of the word "cheap" left behind!
Disclaimer: The picture materials and articles on this platform are from the Internet, so the copyright belongs to the original author. If you infringe your copyright and interests, please contact us. We apologize and delete it quickly. Source of the article: Tire Business
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