Analysis of the current situation and prospect of e-commerce in China's tire industry
Release time：
Jun 04,2019
The rapid development of the Internet and e-commerce has brought market and profit space to many enterprises, changing the traditional marketing model and the business mode of enterprises. In recent years, facing the increasingly competitive traditional market, many tire enterprises have joined the Internet to test e-commerce.
The rapid development of the Internet and e-commerce has brought market and profit space to many enterprises, changing the traditional marketing model and the business mode of enterprises. In recent years, facing the increasingly competitive traditional market, many tire enterprises have joined the Internet to test e-commerce.
Change the traditional sales model
As an industrial product, tires have long been marketed in the traditional mode of manufacturers, wholesalers, retailers, and car owners and users due to their particularity, but this sales mode needs to be supported by high gross profit. In today's increasingly competitive market, the profit of tire wholesalers has become lower and lower.
In the traditional tire marketing model, every level of agent needs to have profits, so consumers pay a high transaction cost for this. At the same time, it is difficult for consumers to feed back their consumption information to the manufacturer, leading to distortion of industry information transmission. With the increase of the current tire industry capacity, the market has entered a stage of full competition. The profit of tire wholesalers may be only 2%. In addition, the purchase channels of consumers have increased, and the bargaining power has increased. The existing sales model must be changed.
The tire e-commerce should take O2O
It is understood that in the European market, the sales of tire enterprises through e-commerce accounted for 9% of the total sales, especially in the Netherlands and Germany. Compared with foreign countries, the online transaction volume of China's tire industry is still very small, and e-commerce sales may account for less than 5% of the overall market.
However, industry experts also believe that the concept of regionalization will be gradually broken in the future tire sales. For example, there is no concept of regional agents in the U.S. tire industry. In the future, the channel level of big brands will be further reduced, and the value of retailers will be further enhanced. Benefiting from the strong appeal of brands among consumers and the support of distribution and installation services provided by numerous brand distributors nationwide, e-commerce platforms dominated by strong manufacturers will develop rapidly. At the same time, the tire trading service type platform will also have great development opportunities, because there are many brands of Chinese tire manufacturers, and weak brands can survive and develop only by significantly shortening the channel links, which provides opportunities for e-commerce intermediary platforms.
The future competition will break the tradition and break through the convention. The profitability of tire enterprises will depend on the innovation of business model and thinking mode. The O2O e-commerce model, that is, the seamless connection of "online+offline" integration, should be realized. The opportunity of offline business has been combined with the Internet, making the Internet the foreground of offline transactions. In this way, offline services of tire enterprises can attract customers online, consumers can screen services online, and transactions can be settled online, which will soon reach the scale.
Change the traditional sales model
As an industrial product, tires have long been marketed in the traditional mode of manufacturers, wholesalers, retailers, and car owners and users due to their particularity, but this sales mode needs to be supported by high gross profit. In today's increasingly competitive market, the profit of tire wholesalers has become lower and lower.
In the traditional tire marketing model, every level of agent needs to have profits, so consumers pay a high transaction cost for this. At the same time, it is difficult for consumers to feed back their consumption information to the manufacturer, leading to distortion of industry information transmission. With the increase of the current tire industry capacity, the market has entered a stage of full competition. The profit of tire wholesalers may be only 2%. In addition, the purchase channels of consumers have increased, and the bargaining power has increased. The existing sales model must be changed.
The tire e-commerce should take O2O
It is understood that in the European market, the sales of tire enterprises through e-commerce accounted for 9% of the total sales, especially in the Netherlands and Germany. Compared with foreign countries, the online transaction volume of China's tire industry is still very small, and e-commerce sales may account for less than 5% of the overall market.
However, industry experts also believe that the concept of regionalization will be gradually broken in the future tire sales. For example, there is no concept of regional agents in the U.S. tire industry. In the future, the channel level of big brands will be further reduced, and the value of retailers will be further enhanced. Benefiting from the strong appeal of brands among consumers and the support of distribution and installation services provided by numerous brand distributors nationwide, e-commerce platforms dominated by strong manufacturers will develop rapidly. At the same time, the tire trading service type platform will also have great development opportunities, because there are many brands of Chinese tire manufacturers, and weak brands can survive and develop only by significantly shortening the channel links, which provides opportunities for e-commerce intermediary platforms.
The future competition will break the tradition and break through the convention. The profitability of tire enterprises will depend on the innovation of business model and thinking mode. The O2O e-commerce model, that is, the seamless connection of "online+offline" integration, should be realized. The opportunity of offline business has been combined with the Internet, making the Internet the foreground of offline transactions. In this way, offline services of tire enterprises can attract customers online, consumers can screen services online, and transactions can be settled online, which will soon reach the scale.
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