This wave of "price rise" does not just happen this year. Since last June, some tire enterprises have started to raise their product prices, and the increase rate is basically between 3% and 5%. It seems that the price rise that has lasted for one and a half years is different from that in previous years. Even Bridgestone, Michelin, Hantai, Youke Homer and other international brands have officially announced price increases. In addition to the factors of rising raw material prices, the tire market has also made a great push this year. Moreover, not only China's tire prices are rising, but also the global tire prices are rising. The profits of tire enterprises also have a little profit space depending on the price rise.
It is not uncommon for tire enterprises to raise their prices. At least, people publicize the news that tire prices will rise on the Internet every day. In fact, for the tire industry, the increase of raw materials is large, profits are further compressed, and price rise is an inevitable trend. However, for some small and medium-sized tire enterprises without strength, there is a greater crisis behind the price rise.
The "closure tide" of tire enterprises
Nowadays, the tire market is sluggish, and the income cannot make ends meet. In addition to the rise of raw materials, the enterprises only issue the notice of price increase to conform to the market trend. In order to ensure the normal operation of the enterprises, can the price increase really protect the enterprises from the market downturn? Facts have proved that the market demand has been greatly reduced, and from upstream factories to downstream dealers and retailers, no one has been spared. Of course, the market downturn has emerged in the past few years, but this year's epidemic has become even more severe. As business becomes more and more difficult to do, many enterprises have to declare bankruptcy, so the "bankruptcy tide" has become a trend.
"Natural selection, survival of the fittest" has always been the survival of the society, as is the case with the tire industry, which will be overwhelmed if it can not withstand various pressures. Up to now, 21 related enterprises in the tire market have gone bankrupt. Among them, there are many old factories that have operated for many years, or because of poor management, or because of the difficult market, it is inevitable that tire enterprises will go bankrupt under the influence of various big environments!
When enterprises close down, tire stores are also the casualties: in 2020, 3.1 million physical stores in China closed down; In 2021, more than 10 million physical stores will be closed; 2022, I'm afraid that this data will be increased.
There are hundreds of tire factories in Shandong, which are slowly growing, but some small factories are just blindly operating and developing. Due to the low level of education of the person in charge of the enterprise, the industry awareness of the brand and the future of the enterprise is very weak, which can barely maintain in the early stage of the industry development, but with the increasing competitiveness of the industry, these enterprises are doomed to be eliminated.
In recent years, the tire industry has been reshuffled more and more rapidly. Especially in this year's situation, the eliminated enterprises and factories will be faster and more, which has led to a sharp increase in the competitive pressure among enterprises. However, through reshuffle, we will eliminate tire enterprises with backward production capacity, make the industry more standardized, and better serve consumers, so as to truly achieve sustainable development.
Disclaimer: The image materials and articles of this platform are from the network, so the copyright belongs to the original author. If it infringes your copyright and interests, please contact us, and we apologize and delete them quickly. Source: Tire Business
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