Long ago, Shen Jinrong, the chairman of China's tire industry leader Zhongce Rubber, said, What I want to do in my life is one thing, to change this phenomenon - that is, now foreigners use Chinese tires, and Chinese people use foreign brands."
Shen Jinrong's words have broken the deformity of the current tire market, as a Chinese, we do not trust and support domestic tires, on the contrary, in foreign countries, domestic tires rely on excellent cost performance, exported to the world.
According to the export data released by the General Administration of Customs in 2022, China exported 552.55 million new inflatable rubber tires in 2022. From January to December, China's cumulative export volume of rubber tires was 7.65 million tons, an increase of 4.7% compared to the same period last year. The export value was 131.418 billion yuan, up by 16%. Chinese car tire exports to the United Kingdom, Mexico, Germany ranked in the top three. In May 2022, for example, car tires exported to the United Kingdom were 14,283.5 tons, Mexico 10,685 tons, and Germany 10,241.4 tons.
But at the same time, domestic tires in the domestic market share is not high, only about 20-30%, more than 70% of the market is occupied by foreign brand tires, and domestic tires in the domestic price is far lower than foreign brand tires, 2021 data show that the average price of Chinese brand tires is less than 380 yuan, while the average price of foreign brand tires is 770 yuan. Almost twice as much as domestic tires.
What in the end caused the domestic tire in the domestic people do not trust, but in the overseas market is hot sales situation? Is the Chinese worship foreign, or domestic tires really inferior to foreign tires?
The first point is because foreign brand tires are preconceived and have established market understanding first.
Cars began to enter a wide range of ordinary families in China in 2009, and China's passenger car tire industry also started at about this time, when overseas brands of tires have established brand awareness in advance, Michelin, Ma brand, Bridgestone and other brands of tire advertising is overwhelming, consumers naturally think that foreign brands of tires better, In the purchase time will also be more inclined to foreign brand tires.
The second point is because the current domestic tires are indeed inferior to foreign tires in high-end products.
According to the data in 2021, although the price of foreign brands is high, the gross profit margin is only about 15%, although the price of Chinese brands of tires is low, the gross profit margin is not low, and the single gross profit rate reaches 30%, which also reflects the problem to a certain extent.
The reason why domestic tires are popular in foreign countries is that domestic tires have excellent wear resistance, low price, cheap and durable, so they are very popular with some foreign salarymen. Their pursuit of tranquility and comfort is higher than that of Chinese people, which is more pragmatic. On the contrary, in recent years, consumerism is prevalent in China, and they are more inclined to choose high-end tire products with better comfort and tranquility. In terms of high-end tire products, there is still a certain gap between domestic tires and foreign brand tires.
The third point of channel construction and brand construction, no foreign tire brands do well.
In terms of brand building, it is obvious that foreign tires do better, Michelin and Horse brand many classic tire advertising, impressive, and even many domestic tire brands do not have a special Marketing Department, brand marketing work is almost outsourced, or to the sales department to do, so in brand awareness, foreign brand tires are obviously better.
In terms of channel construction, foreign brand tires should also be more perfect, the distributor system at all levels, the sales channel construction of the network platform, etc., are one step ahead of national tire enterprises. Because of the weak strength of domestic tires, in terms of channel construction, it obviously lags behind foreign brands.
To be realistic, although domestic tires and foreign tires, there is still a gap in the strength of high-end products, but in low-end tires, domestic tires do not do worse than foreign tires, but many consumers even when choosing low-end products, still only recognize international brands, which is worth thinking about. Domestic tire products may not only have to catch up with foreign brands in research and development and production, but also need to match international manufacturers in brand building and channel construction.
