Consumer and retail trends driving growth of tire market e-commerce

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E-commerce has been a key business disruptor across all industries and is forcing change, innovation and growth in the tire market. Still relatively new to the business-to-consumer replacement tire market, online tire sales sites have become significant for consumer research into tire types, attributes, reviews, pricing and availability. This trend and the expansion of e-commerce in general are leading to growth in online sales of tires, according to a new Smithers Rapra report, The Future of E-commerce for Tire Markets to 2023. (TRAC Members receive 15 per cent discount).

Across major tire market segments and geographic regions, the number of B2C replacement tires purchased online is estimated by Smithers Rapra at nearly 100 million units in 2018, or about 6.5% of the global market. This is expected to rise by an average of almost 19% per year to over 236 million in 2023, when the share will be nearly 13%.

 

E-commerce tire sales channel market 2015-23, by volume (million units)

 

Source: Smithers Rapra

 

Value growth will be somewhat higher, at 19.7% per year CAGR, from $7.1 billion in 2018 to $17.3 billion in 2023, faster than unit growth and reflecting modest price increases. While a degree of price competition within the online channel and versus offline retail will continue, the convergence of online and offline channels and the increasing importance of user experience relative to price will support higher prices in the channel over time.

End-use applications

Reflecting the numbers of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the passenger car and light truck (light vehicles) segment is by far the largest, at 81% of volume in 2018, followed by motorcycles (12%) and then medium and heavy trucks and buses (7%). Light vehicles have been and remain dominant in absolute value and volume terms. In unit terms, motorcycles are a distant second, but in value terms, medium- and heavy duty trucks and buses are the next most important, although a much smaller segment.

Trends driving e-commerce tire sales

 

Consumer behaviour

Consumer preferences are ultimately the main market drivers for tire e-commerce with technology and retail developments enabling the change. Consumer behaviour and retail trends behind the uptake of e-commerce in tires include price sensitivity, reduced brand loyalty, time sensitivity and, increasingly, a desire for an omni-channel, which blends features of online and offline channels (already the case to some extent due to tire installation requirements).

Fitment proliferation

Fitment proliferation, the increasing number of available tire sizes, is also contributing to the growth of tires sales via the internet. This has been driven in part by the increase in rim diameters and the greater use of high-performance tires as OEM fitments, which is putting a strain on physical showroom and inventory space. E-commerce options help retailers and customers alike with education and availability. 

Growing economies and emerging markets

General economic and demographic growth serve as top drivers for tire e-commerce. B2C replacement tire e-commerce was initially a phenomenon of developed markets, led by Western Europe, followed by the US, which still enjoy the highest penetration rates. However, Asia-Pacific has already become the largest in unit terms and is on track to pass Europe in value terms during the forecast period, due to its large population and rapidly growing tire market (mostly motorcycle tires). Greater internet penetration and e-commerce readiness in developing markets are fueling the expansion of online tire sales. Very rapid growth will come from Eastern European countries and emerging economies such as China, India and Brazil, where levels of e-commerce penetration and vehicle density are comparatively low and growing.

For more information on the Smithers Rapra market report The Future of E-commerce for Tire Markets, visit https://www.smithersrapra.com/market-reports/tire-industry-market-reports/the-future-of-e-commerce-for-tire-markets-to-2023

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Yokohama’s ADVAN A054 has been named the is the official tire for Nitro Rallycross (NRX), a new adrenaline-fueled event at the third annual Nitro World Games, taking place Sept. 22-23 at Utah Motorsports Campus near Salt Lake City.

NRX utilizes an all-new track layout that will feature some of the world’s best drivers battling for the top spot on a challenging, purpose-built track.

Read the source article at Aftermarket News

Hankook Tire Introduces Second-Generation Electric Vehicle Tire

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Hankook Tire Corp. introduced its second-generation electric vehicle tire, the Kinergy AS EV, which features strengthened handling and noise-reducing capabilities optimized for today’s electric vehicles.

Compared to internal combustion engine vehicles, electric vehicles have lower engine noise, higher initial acceleration and bodies that are 10 to 20% heavier, Hankook says.

Read the source article at Tire Review

General Tire’s New G-MAX Justice Is its First Tire for Police Vehicles

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General Tire is introducing its latest tire into the G-MAX family of ultra-high performance (UHP) tires, the new G-Max Justice.

Designed for law enforcement fleets and high-speed pursuit applications, the G-Max Justice provides a durable tire with technologies that offer precise handling, all-season traction and a longer tread life, General Tire says.

Read the source article at Tire Review

Welcome Toyo Tires New Proxes Sport Max Performance Summer Tire to the U.S. Market

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Toyo Tire U.S.A. Corp.has launched the all-new Proxes Sport max performance summer tire, now available in the United States.

The Proxes Sport creates a greater connection to the road with improved contact, improved grip and improved handling, Toyo says. The combination of proprietary Nano Balance Technology with a unique tread design delivers these enhancements in wet and dry conditions.

Read the source article at Tire Review

Global Ultra High Performance (UHP) Tire Market to 2023: Analysis by Vehicle Type, Tire Type, Demand Category, and Region

Dublin, July 30, 2018 (GLOBE NEWSWIRE) — The “Global Ultra High Performance (UHP) Tire Market By Vehicle Type (Passenger Car Vs Two-Wheeler), By Tire Type (Summer & All-Season Vs Winter), By Demand Category (Replacement Vs OEM), By Region, Competition Forecast & Opportunities, 2013-2023” report has been added to ResearchAndMarkets.com’s offering.

Read the source article at Stock Market Quotes and News

BFGoodrich Tires Partners with World Surf League

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GREENVILLE, S.C.July 26, 2018 /PRNewswire/ — BFGoodrich® Tires has partnered with the World Surf League to become the official tire of the Vans U.S. Open of Surfing July 28 through Aug. 5 in Huntington Beach, Calif. The event is the largest professional sports competition and action sports festival in the world.

As the official tire of the Vans U.S. Open of Surfing, BFGoodrich will bring surfing fans a chance to answer the brand’s big question: What are you building for?

Read the source article at PR Newswire

SUVs, CUVs could be curtailing OE tire growth

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Akron, Ohio – The share of the US original equipment and replacement tire markets held by high-performance tires — defined as H-rated and higher — has risen for eight straight years, according to US Tire Manufacturers Association (USTMA) data, to nearly 56% and 45%, respectively.

A closer inspection of the data, however, shows the share held by V- and Z-rated tires has plateaued at OE at roughly 20% but continues to grow steadily in the replacement…

Read the source article at European Rubber Journal

Michelin Dominates the Conversation Among Automotive Influencers

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In 2017 the brand that had the overwhelming share the tire conversation was Michelin with a convincing 20.15 percent of the discussion. In second was Nitto Tires with roughly half that at 11.97 percent of the conversation. The third most discussed brand at 10.76 was BFGoodrich, edging out Goodyear at 9.2 percent. Rounding out the top five is Pirelli at 8.06 percent of the conversation.

 

Read the source article at Car Reviews

Conti acquires Czech machine tool manufacturer VUK

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Continental has taken over Czech machine tool manufacturer VUK. The acquisition is said to strengthen the tire maker’s presence in Otrokovice, Czech Republic, which is also the home to Continental’s largest tire plant worldwide with 4,500 employees. Together with the new unit Conti will be driving forward the development and production of tire assembly machines to the latest standards.

Read the source article at Tire Technology International