Tyre [buyer] aging
The question of how long it is before a tyre reaches its sell by date is a familiar subject. A few years ago this column covered the rising age of tyre company directors and raised the question of what this meant for individual succession plans in particular and the market in general. But there is one specific type of “tyre aging” that we (and to the best of my knowledge) no-one has ever touched – how the tyre trade pitches its products and services towards “older” consumers.
Continue Reading![[Re]defining brand boundaries?](https://www.tyrepress.com/wp-content/uploads/2013/12/dictionary.jpg)
[Re]defining brand boundaries?
When Ashley Croft used his farewell Tyre Wholesaler Group annual chairman’s speech to ask how we define what a “premium” tyre is, he captured something of this year’s tyre industry zeitgeist (click here for full coverage of the speech). Of the speech didn’t just deal with this question – it touched on labelling, part worns and what the UK industry is doing to improve the availability of good market data too – but, if the market ruminations of a number of key players are anything to go by, Croft wasn’t the only one to have been raising this question during the last 12 months.
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Winter tyre labelling 2.0?
With memories of Nokian’sill-fated alternative winter tyre label fresh in mind, I was interested to learn that Finnish tyre and vehicle test centre Testworld is making its own ice braking test result publically and freely available. Let’s cast our minds back almost exactly a year. The new tyre labelling laws had just been introduced following six months of various manufacturers making certain data available.12 months on virtually all of that has died down and it is far from clear exactly how the market has received this concept, let alone consumers (see Labelling compliance worse..., NTDA/Lanxess labelling report and Goodyear Dunlop: Labelling one year on for more on this.
Continue ReadingTyres, magazines and the quality dichotomy
What do tyres, websites and a new cover design have in common? It is all a question of quality. In the British tyre industry everyone talks about price versus quality. Almost as often the debate broadens out before settling in the amorphous arena of “value”. More often than not this means the narrowing of the gap between two perceived opposites. In practice it could mean a customer buying a high quality product for a lower than expected price.The classic example of this is the customer that buys a higher priced product that performs beyond either their expectations or what the competition has to offer. In either case both propositions are predicated on the basis of product quality. Without this there are only short term pricing and sales strategies. And this in turn leads to the key difference highlighted by the age-old business adage: “sales are vanity, profits are sanity”. Without a properly considered quality-focused market approach, businesses struggle to make sense in the long-term, whether the macro-economic environment provides wind in your sails or an adverse gale.
Continue ReadingAn age old message?
It hasn’t been a good month for global transport’s PR. A runaway train in Canada, followed by a train crash in Spain, a bus crash in Italy and the recent head-on railway collision in Switzerland tragically broke decades long fatality records in each area. Of course mass transport in the developed world has never been safer and incidents like this are thankfully rare. And despite the innate Gestaltist tendency to draw a correlation between the random international happenings, there isn’t one. But that doesn’t stop us being all the more aware of such incidents. Just like when you buy a new car and suddenly realize how many of that make, model and colour suddenly appear despite having been on the roads all along. With this in mind, one of the three incidents that has recently caught public attention stood out particularly clearly for this tyre journalist – the Italian bus crash. Before the investigation was even carried out, my mind was drawn back to another coach crash in the UK. While it is just speculation to suggest that aging was a factor in both cases and there is in fact no clear link between them, one couldn’t help but wonder if it was another case of apparent age-related tyre failure.
Continue ReadingComment: Explosive action – a life lesson for tyre buying consumers?
To say that June was an interesting month for the tyre industry is something of an understatement. It was explosive - and in at least one case literally so. But the drama of it all offers consumers a challenging life lesson.
Continue ReadingDunlop motorsport and more [UK] market shifts?
While it sounds too dramatic to talk about seismic activity in the tyre market, the ongoing long-term effects of the various financial crises are continuing to be felt. At a continental level this has meant continued queries about how the largest tyre makers can better balance supply and demand in Europe. However it is also difficult to say how much of this conjecture is actually manifesting into any kind of practical reality. Indeed, at times like these people can get over-creative in their analyses, along with any legitimate market observations. That said, and without wanting to sound like a seventies pop song, it is as if we can feel the slow undulations of the terra firma under our feet.
Continue ReadingComment: Soft touch enforcement?
By the time you read this it will be nearly six months since tyre labelling became mandatory in the UK and across Europe. However, while the rules associated with this regulation have been anticipated for years, and indeed a rolling introduction began in May 2012, nearly a year after we all began talking about who got what label there is still something of a gap when it comes to enforcement. We have talked through the various options available to the British government in the pages of Tyres & Accessories before (see our 2012 Tyre Labelling special supplement for more on this) so there’s no-need to retrace those steps here. However the central point that rules are only as strong as their enforcement still stands. And the need is getting more urgent. As long as we don’t have an enforcement body in place there is a disincentive for dealers and other parts of the tyre trade to invest what’s necessary in systems and training to ensure labels are being talked about during the sales process. In its place all we have is de facto Andrex-soft enforcement.
Continue ReadingLevelling off or still falling?
It has been quite a month for the forecasters. Not the weather forecasters mind you – although the winter weather that has sprinkled the UK and parts of Europe with a fresh dusting of snow will no doubt have kept them busy too – but rather the market forecasters. With ETRMA reporting that tyre unit sales fell off a cliff last year, Conti saying the market is likely to bottom out in 2013 and with other analysts predicting 2013 will be a good year for tyre retailers, what is on the horizon for the next 12 months?
Continue ReadingFuelling the future
A few years ago people were asking if this fuel-saving thing is ever going to catch on. Now virtually every manufacturer has a fuel-saving line and a fuel-economy strategy – we even have mandatory product labels comparing products on the basis of this characteristic.
Continue ReadingThe beginning of the end?
While some say the Mayan’s predicted the apocalypse would take place this year, the good news is that Armageddon doesn’t appear to have taken place either literally or figuratively. Instead, as we look back on 2012 it is probably fair to say that the year has been dominated by labelling, tough tyre retail sell-out conditions and a resurgence in car sales and production…in the UK at least. Some might gloomily reflect on the fact that our economy as a whole encountered a double dip recession, but there are also signs that the bad times are slowing and in fact things may even pick up a bit in the year to come. (All these themes are followed up in this month’s Review of 2012 feature, which begins on page 40 in our forthcoming December issue)
Continue ReadingWhen it comes to takeover talk, the question is – who’s in play?
Now the dust has settled from the first suggestions that Apollo Tyres was preparing to bid for Cooper Tire, the rumour mill has slowed considerably. There are those that are saying there is no smoke without fire when it comes to the reports published in the Indian and then global press; and there are those that believe it was all a carefully orchestrated publicity manoeuvre. Whatever the truth turns out to be, the interest surrounding this story is a reflection of the facts that the global market is ripe for consolidation and that there are a lot of ambitious tyre companies in and around the top 20 aiming to make it into the top 10.
Continue ReadingWhy we need labelling enforcement
With tyre labelling virtually upon us and with TPMS kicking in at the same time (see the forthcoming October magazine's Company News section for more coverage on this), the market needs to know where it stands with regards to enforcement…as soon as possible. We know the Department for Transport has got the whole West coast rail franchise fiasco fallout to deal with, but without proper attention the strength of the imminent labelling legislation could be seriously undermined. Indeed many questions are already being raised. This point is emphasised by a photo currently doing the rounds on the Internet. It is small and of mediocre quality, but what is clear about the image is that it portrays two Chinese-produced tyres of the same size model, speed and load rating on top of each other in a warehouse. A common sight you might think until you realise that the two apparently identical products bear two different European labelling results. The first BB-71 and the second CC-71.
Continue ReadingKeeping the main thing, the main thing
Following last month’s “Panorama” which covered issues relating to illegal tyre dumping, you could be forgiven for thinking this column has gone a bit “Radio Times.” It hasn’t, but it seems tyres are getting far more than their 15 minutes of fame this summer. While last month’s piece looked at the pros and cons of the BBC’s, shall we say, variable TV coverage (which leapt from theme to theme apparently without fully thinking through the lack of linkage between them), this time it was the turn of radio.
Continue ReadingThrow the book at the bad guys…
It is not often that a tyre journalist gets to take a turn at being TV critic, but July’s Panorama documentary focusing on tyre dumping was one such opportunity. This month’s Tyres & Accessories gives the 30 minute documentary the full treatment in the UK section of the forthcoming August magazine, however the issues raised are worth discussing in more detail.
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