On 3 September Amazon said it will create an extra 7,000 UK jobs this year to meet growing demand. Prior to this, the online retail giant had already added 3,000 roles in 2020. So, by the end of the year, it will have created a total of 10,000 new jobs. At the same time, the company has increased its involvement with the tyre market. While online tyre retail is about far more than Amazon, the news reflects increased demand both for online ordering in general and for online tyre sales in particular. But it is not just Amazon that has noticed this trend. Speaking during a webinar in June, GfK analysts highlighted how online tyre buying is increasing as a function of lockdown and the increased take-up of online shopping in general. Their thesis? More tyres will be sold online and the budget tyre sector will be the beneficiary.
This article, including three charts support the analysis, appears in full in the October edition of Tyres & Accessories. Not yet a subscriber? You can change that here.
4×4 tyre sales may have fallen due to the effects of coronavirus and lockdown, but prices in certain key sizes are actually higher than they were before those challenges presented themselves at the start of the year. Tyres & Accessories spoke to tyre market and pricing data experts Encircle Marketing in order to learn the details.
When you break the data down by size, a number of interesting trends are immediately identifiable. Firstly, there was a clear pre-lockdown price fall in February. The average price of a 255/55 R19 V tyre, for example, fell almost £6 from £138.10 to £132.86 between January and February. However, the average price of this size recovered to a point higher than the January starting point in March (£138.90).
4×4 tyre sales may have fallen due to the effects of coronavirus and lockdown, but prices in certain key sizes are actually higher than they were before those challenges presented themselves at the start of the year. Tyres & Accessories spoke to tyre market and pricing data experts Encircle Marketing in order to find out more.
This article will appear in full in the September edition of Tyres & Accessories. Not yet a subscriber? You can change that here.
Looking at the market as a whole, online tyre prices have fallen on average since the start of 2018. According to the latest data supplied by market research specialists at Encircle Marketing, online tyre prices in August 2018 were 1 per cent lower on average than in January. However, the data is not uniform across the sector and different online tyre retailers (otherwise known as e-tailers) have different pricing policies.
Earlier research based on point of sales system-based sell-out data shows that mid-range all-season tyres are leading market growth, followed by premium tyres (see “Mid-range all-season tyres lead market growth” for more on this). At the same time 4×4 and SUV tyres specifically appear to be driving growth. Both facts point to the hypothesis that market growth is being driven by high-value products, which makes both all-season tyres in general and SUV/4×4 all-season tyres in particular attractive parts of the tyre business to engage in. But what evidence is there that this thesis is supported by sell-out pricing?
A year after we predicted that car tyre prices would rise during 2017 as part of last year’s car tyre feature, the latest data provided by tyre market research specialists Encircle Marketing shows that prices are indeed recovering. However, while tyre prices recovered to 2016 levels during 2017, there is still some way to go before average prices reach 2015 levels. Encircle’s latest figures examine the shape of the traditional tyre retail market and the online tyre market.
While it was once known as the bastion of bargain basement tyre prices, the cost of car tyres in the UK online retail space has increased significantly since the start of 2017. According to the latest data compiled by industry analysts Encircle Marketing, the average online tyre price increased 7 per cent in the eight months between January and August 2017. On average every segment was up by at least a couple of per cent, but in August specialist products (such as run-flats) were being sold at prices 8 or even 9 per cent higher than in January 2017.
With raw material prices reaching the sky-rocket part of their lifecycle, as well as realisation by some Chinese tyremakers that unrealistically low prices can’t go on forever, all in the presence of the now ubiquitous post-Brexit vote uncertainty, many industry observers have suggested that tyre prices – including those for passenger car applications – are likely to rise during 2017. Tyres & Accessories spoke with Encircle Marketing’s resident industry analysts David Myers and Jason Cunningham in order to find out more.
While it was difficult to predict the outcome of June’s EU referendum, it is even harder to predict what the resulting Brexit vote means for the tyre business. Much of the discussion relating to the post-Brexit tyre market has focused on the legislative changes that may be coming. However, just over three months after the Brexit vote, the latest pricing data from market insight specialists Encircle Marketing appears to suggest that while UK sterling tyre prices are going up, exchange rate effects mean theses same UK prices are moving in the opposite direction when converted into euro equivalents.
…but price erosion has forced mid-range prices down too Elsewhere in this feature we have examined sell-out data, which revealed a growth trend in the UHP segment as well as details of which UHP sizes are most popular. However, this dataset was not designed to show the prices consumers are being quoted in relation to […]
Last month’s leader “Pumping up” discussed how a number of key economic and tyre market indicators are pointing to better days ahead in the tyre market. Then in mid-April ETRMA reported that its members experienced double-digit increases in (sell out) sales during the first quarter of 2014 compared with the low first quarter of last year. But how does this translate into retail demands and what strategies are tyre retailers adopting to make the most of any consumer pickup coming through? Here Tyres & Accessories analyses the latest research from Encircle Marketing in light of recent macro-economic indicators.
Compliance to tyre labelling legislation is lower one year on from its introduction than it was in the opening months of the rules. According to research conducted by market analysts at Encircle Market, the amount of labelling talk has actually decreased since tyre labelling was introduced in November 2012. The research also reveals a number of other details demonstrating relative some degree of inertia when it comes to the subject of tyre labelling.
Encircle Marketing recently added automotive aftermarket servicing & MOT data to its pool of research. According to company representatives, the company now offers: robust and actionable analysis by each of the key vehicle classification segments (A-E + MPV/ SUV); head to head level analysis of relative cost elements attached to servicing/MOT; and an examination of regional variations. The project will issue monthly data from January 2010, when the company will start conducting a monthly monitor across all key channels in the market. Headline figures are to include individual quotes for a first major service (three year old vehicle), price for an MOT, various service elements provided as part of a service (free courtesy car/valet service) and promotional offers.