How To Spend The Transition Period?

- Dec 30, 2018-

On October 24th, at the "New Trade Environment Tire Marketing Market Forum" held in Chengdu, China Rubber Association Marketing Working Committee invited Zhengxin Tire, Guizhou Tire, Bridgestone, Fengyuan Tire, Nuoji Tire and Yinbao The market leaders of six large tire companies in the tires participated in a roundtable discussion on the construction of sales channels for tire factories.


Zhang Chuanshun, deputy general manager of Zhengxin Tire, pointed out that the rapid development of the tire market has led to an over-representation of dealers. However, at this stage, manufacturers will adopt a conservative attitude towards sales channels. Traditional dealers are still the mainstream of choice for manufacturers for some time. However, the rapidly changing economic situation has also put new demands on dealers. Tire companies hope that dealers can increase the application of new marketing models and use new technologies and new ideas to improve sales efficiency.


The responsible persons of Bridgestone, Fengyuan Tire and Nuoji Tire all convey the same voice. Dealers need the same innovative business model as tire companies. They cannot use the idea of “old Chinese medicine” to cope with market changes. To provide consumers with more diversified services to increase brand penetration, in the new situation, we should also pay attention to the optimization and stability of the supply chain, so as to maximize the benefits.


Zhang Hao, Minister of the Tire Marketing Department of Guizhou, and Zhu Daolong, Sales Director of Yinbao Tire, both agree that manufacturers and distributors should cooperate sincerely. I hope that both parties can take advantage of his ideas, change the mentality of mutual game or opposition, and stand on cooperation. From the perspective of partners, we will consider development and achieve “like-mindedness and precise marketing”.


The excellent domestic distributors have revealed the fact that they are facing tremendous pressure. The shrinking gross profit of tire sales has brought challenges to the company. At the same time, the task given by the tire factory is not easy to complete, and the high inventory has caused difficulties for the company's capital turnover. They called on production plants to communicate with dealers on an equal and effective basis, and work together to make products more widely available.


Lei Changchun, secretary general of the China Rubber Association Marketing Committee, said that tire dealers will not have major transformational changes for a period of time due to their own attributes, but they can start from their own management and reduce their operational efficiency. Cost, by increasing the efficiency of capital operation to obtain more profits. In addition, increasing the training of employees' work skills to increase per capita sales, increase the attraction of diversified talents, and improve the service level of enterprises are also the focus of dealers.


He added that dealers should be rational after they become bigger and stronger, and should not blindly invest in industries that are not fully understood. The precedents of many failed enterprises tell us that operators should not think about horizontal expansion at a glance, but should clearly define their own positioning and properly lay out the product "combination boxing" under the premise of vertically strengthening the main business operation capability.


Lei Changchun finally said that the dealer is the key link in the tire production and sales chain, and the manufacturer is the consumer. The counterfeit products in the offline and online markets have caused losses to factories and dealers. Operators should have a sense of regulation on their own behaviors. In the future, the association will increase the blow to these chaos. It will also play the role of a wind vane, and the industry can develop steadily after eliminating market irregularities.