Get ready for hard times. China truck tire market has changed!

write at the end

The all-steel tire market has changed, and everyone is ready for hard times.

Difficulty will change, change will pass, and general will last. When a business is or may be in trouble, only flexibility can last. The market has changed, and operators need to follow the changes.

In the present, only transformation can lead to a way out. Whoever succeeds in the transformation first and who starts the new strategy first will have a place in the new market environment.

When will the all-steel tire market improve? When will it end? Is the future better or worse? To clarify this issue, it is necessary to analyze the factors that affect the all-steel tire market.

Short-term factors: the new crown epidemic, no epidemic will not pass, three years after the big epidemic, the current trend of the epidemic has entered the end stage, and it can be overcome no matter how hard it is to bite the bullet.

China truck tire market has changed

In fact, the relationship between economic development and tire demand is very close, such as the three major carriages of the Chinese economy, infrastructure, consumption, and exports.

Infrastructure construction: road construction, bridge construction, high-speed rail, water conservancy projects, etc., raw materials need to be dug out by mine trucks, transported by transport vehicles to the processing plant, and then transported from the processing plant to the construction site, all of which are inseparable from the wear and tear of engineering tires and all-steel tires.

Consumption: The two major parts of consumption are real estate and automobiles. Needless to say, a car needs to be equipped with 4 tires. If there are too many cars, there will be another wave of demand in the replacement market after a few years. Real estate is similar to infrastructure, and it is inseparable from the wear and tear of engineering tires and all-steel tires. Real estate makes money. People are rich and can’t get the whole car? Got 4 more tires.

Export market: China is the world’s factory and the world’s largest tire exporter. More than 50% of China’s tires need to be exported overseas.

Why is the tire business not doing well this year? Mainly because the “three carriages” of the Chinese economy have all experienced problems.

Export: The export market is currently the best market among the three major markets, but with the inflation rate hike in the United States and the conflict between Russia and Ukraine, the global economic recovery is facing challenges.

Infrastructure: traditional infrastructure construction of roads, bridges, high-speed railways, water conservancy projects, all of which should be built. The current advocacy is new infrastructure, 5G, big data centers, artificial intelligence, industrial Internet, UHV, new energy vehicle charging piles, urban rail transit, which have low demand for tires.

Consumption: First of all, the epidemic has suppressed the demand for tires in the short term. The long-term impact is that the real estate has continued to decline since the second half of last year. The thunderstorms of real estate companies in various places have increased sharply, and the owners have cut off the supply.

Real estate has not been able to drive China’s economic development. High housing prices have seriously suppressed the consumption power of Chinese people. If the bubble rises again, it will cause even greater harm.

Zhang Guangqiang of Pingdingshan Hongshun Tire Firm believes that the all-steel tire business is dependent on the real estate business, and the real estate business is gradually declining, and the all-steel tire business will not be much better.

Having said that, I want to tell you that the tire demand is sluggish, the epidemic is only a short-term factor, and the long-term is China’s economic transformation!

The logic of tire demand has changed, old infrastructure has become new infrastructure, real estate has ebb, etc. It is undeniable that even if the epidemic passes and the economy recovers, it is difficult for the tire demand market to return to the past, and the biggest impact here is the all-steel tire market.

How tire operators break out of the siege?

As the saying goes, the market is not good or bad, only those who do well and those who do not. Even in the worst markets, there are good operators.

Mr. Zhang of Hongshun Tire Company believes that no matter how bad the school is, there are still good students, and no matter how difficult it is to do business, there are some people who do better than their peers. If you find out the good peers, you will find that they have some things in common. Features, you just do it.

At present, the operation of all-steel tires is developing towards these trends.

Marginal multi-category operation

In the past, tire shops only sold tires and nothing else. In the future, all-steel tire stores will develop towards comprehensive service stores just like car tires.

Grease, batteries, air conditioner filters, brake fluid, coolant, wipers, floor mats, etc. will become the products of tire shops.

Mr. Zhang said that the stores with good business now have more types of products, and they are all marginally diversified operations. They sell large tires and small tires, as well as electric vehicle tires and agricultural tires. The production for the surrounding people, daily Travel services and get paid accordingly.

Increase service capacity

When the product falls into low-price competition and it is difficult to make a profit, service upgrade is a good way out. When product sales are difficult to survive, many operators will improve service levels to build a competitive moat.

There are two main purposes of increasing services, one is to retain customers, and the other is to create more profit points.

For example, it has opened up businesses such as rescue, electric welding, and quick repair and quick insurance, provided tea services for passing drivers, and built a space for drivers to rest and entertain.

Write at the end

Truck tire market has changed, and everyone is ready for hard times.

Difficulty will change, change will pass, and adapt will last. When a business is or may be in trouble, only flexibility can last. The market has changed, and operators need to follow the changes.

In the present, only transformation can lead to a way out. Whoever succeeds in the transformation first and who starts the new strategy first will have a place in the new market environment.