New Channel Coffers, Crisis Approaching Dealers

- Dec 30, 2018-

With the rapid development of e-commerce, many tire manufacturers are willing to try this new "crab", Bridgestone, Michelin, Continental Horse, Goodyear and Cooper have entered the e-commerce field. Among them, Michelin has gone the fastest and farthest. The company has already acquired several tire e-commerce companies in Europe in recent years. The relevant person in charge has said that e-commerce is not a “flooding beast”, but a future development trend, offline. Distribution needs to be effectively coupled with online e-commerce to make product sales smoother.

For the dealers, this fresh market is not much to be seen, and its arrival has more or less put pressure on the operators. First look at a group of the latest data, this year's "Double 11" period, the tire sales of the Tuohu car online platform increased by 83% over the same period of the previous year, is expected to be more than 400,000; Jingdong self-operated tire shop sales compared to the previous year During the same period, it increased by 256%.

Online shopping is increasingly meeting the needs of today's fast-paced life. All products can be displayed on the Internet in the form of pictures, videos, etc. Consumers can quickly and comprehensively understand product information, and can also understand tires through user evaluation. Real driving feeling.

In addition, the shopping experience of anytime and anywhere is unsatisfactory for dealers, and the search function of brand and performance is also favored by consumers. E-commerce gives them a clear and intuitive and controllable consumer experience.

It can be said that if there is no e-commerce, the purchasing power of this part of the growth should have been divided by the dealers. However, the development of the tire e-commerce is indeed uncontrollable by the traditional dealers, and the profit level of the decline is also uncontrollable.

Dealers have always been the profit model of “making a difference”, but the emergence of e-commerce makes the price of tire products more and more transparent. It does not need warehousing all over the place, multi-level agents that do not need to divide profits, and do not need to open expensive. The storefront, the need to hire too many employees, etc., this part of the cost advantage will be reflected in the lower prices.

In addition, the "bold and bold" string of goods behavior also allows e-commerce to be more profitable than dealers. No matter which age group or consumer level purchaser will give priority to affordable products, e-commerce is superior in price competition because of low cost, and multi-level, high-cost dealers can't do anything about it.

However, some dealers have concluded that tires have a fixed replacement cycle as non-fast-moving consumer goods. Such on-demand purchases with complex installation and maintenance processes will not become mainstream on the Internet. At the same time, the quality of online products is uneven, and the chaos caused by grinding tires and counterfeit tires also causes consumers to return to the offline market. The non-standard e-commerce market still needs a long way to go. "It won't come soon.

It is true that online shopping tires have forced many manufacturers to rectify, and eight Chinese brands such as Double Money, Linglong, Wanli, Zhengxin and Fengyuan have issued a document saying that they will not provide after-sales for tires that are not authorized to be sold online. Guarantee, many of which directly indicate that they have not cooperated with any e-commerce platform, online shopping tires are unauthorised products.

In order to solve the chaos in the e-commerce market, the Marketing Committee of the China Rubber Industry Association held a review meeting on the Standards for the Operation of Tire E-Commerce Transaction Services in September. The previously revised standards have been published on the website of the Ministry of Commerce. Ask for advice. With the joint efforts of several parties, tire e-commerce will continue to improve in terms of quality, installation and after-sales. Online will become an important way to purchase tires in the future, and it will also provide a direction for the transformation and upgrading of traditional dealers.