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

Hankook Tire positions itself at 2018 IAA

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Presenting itself as a global, top-tier truck tire manufacturer, Hankook Tire has started preparations for this year’s 67th IAA Commercial Vehicles show, taking place in Hanover, Germany between September 20th and 27th.

Hankook will be premiering a new tire line-up for mild on- and off-road use. These tires are engineered for ultimate steering, driving, trailer axle. In an outdoor exhibition area, the company will be highlighting further brand activities.

Read the source article at Autosphere.ca

Conti e.MotionPro – Continental’s “starting point” for electric CV tyre development

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A good concept vehicle shouldn’t just be stuffed full of forward-thinking technologies and ideas, it should also look as if it’s absconded from the future. The CitE – MAN’s vision of the “future of city delivery transport” – ticks both boxes. Currently on display at the IAA Commercial Vehicles show, the all-electric CitE displays the truck manufacturer’s latest ergonomic and safety concepts. The tyres are also a one-off, made especially for the CitE by Continental.

Read the source article at Tyrepress

SRI doubles planned capacity for Brazil truck tyre plant

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An additional investment is being made in the Sumitomo Rubber do Brasil factory in Fazenda Rio Grande, Brazil, which is scheduled to begin producing truck and bus tyres next March. This investment of BRL 153 million (£28.7 million, US$37.6 million) builds upon the BRL 312 million investment Sumitomo Rubber Industries (SRI) announced in July 2016 for setting up bus and truck tyre production equipment in Fazenda Rio Grande.

Read the source article at Tyrepress

Hankook expands SmartWork tyre line

The range of Hankook tyres for construction site applications has been expanded through the addition of new mixed on/off-road patterns to the SmartWork line. These are the SmartWork AM11 steer axle tyre, DM11 drive axle fitment and TM11 trailer tyre.

Read the source article at Tyrepress

Giti Tire Co-Sponsors Campaign to Recognize Women in Trucking

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Giti Tire (USA) joined other trucking industry leaders and celebrities this month in sponsoring Mediaplanet’s “Empowering Our Female Truck Drivers” campaign to recognize the hard work and commitment of professional female truck drivers.

The month-long campaign, which kicked off on in conjunction with National Truck Driver Appreciation Week (September 9-15), involves a print ad campaign in USA Today (in the Houston, Dallas, Nashville, San Francisco, Cincinnati, Chicago, St. Louis and Kansas City markets) with an estimated readership of 750,000. A comprehensive social media campaign is also delivering this important story across the nation.

Main campaign topics are centered …

Read the source article at Tire Review

TST on a roll with intelligent tire machinery

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TST is on a roll. Adapting to the latest revolutionary trend of Industry 4.0 in tire manufacturing, this trend-setting Chinese tire machinery major is forging ahead developing automation, intelligent and informational tire equipment and internationally advanced intelligent tire production equipment and production workshops in a bid to stay as a front runner in the global tire machinery industry

Read the source article at Rubber Asia

Bridgestone, Cooper raising aftermarket P/LT tire prices Oct. 1 in U.S.

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AKRON — Bridgestone Americas Tire Operations and Cooper Tire & Rubber Co. plan to increase replacement market prices Oct. 1 on passenger and light truck tires sold in the U.S.

Read the source article at Tire Business

Conti celebrates 20 years of Slovakian truck tire plant

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Puchov, Slovakia – Continental AG has celebrated the 20th anniversary of truck tire production at its location in Puchov, where it claims to manufacture one-third of its total truck tire volume.

The event marked Continental’s partnership with Slovakian truck tire maker Matador in 1998, which led to the formation of Continental Matador Truck Tires sro.

Read the source article at European Rubber Journal

Bridgestone Recalls 2,700 Commercial Truck Tires

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Bridgestone Americas Tire Operations and Bridgestone Canada collectively are issuing a voluntary noncompliance recall of approximately 2,700 certain all position, wide base radial commercial truck tires in size 425/65R22.5.

The recall includes the following tires: …

Read the source article at Tire Review