All say that to succeed, one needs favorable conditions of time, place, and people. The same applies to doing business. The tire industry is facing challenges in all three aspects, and turning the tide will not happen overnight!
On the battlefield, "time" often refers to weather and climate, while in the market, it encompasses the entire market environment.
Tyre distributors know the market situation best. It is not feasible to raise prices, and even if they were to do so, a slight increase would be ineffectual. China's tire industry is still under siege, and many companies are making every effort to adapt to the market. But for tyre distributors, they have to endure and wait until the market recovers.
"Advantageous environment" can be interpreted as a favorable geographic location, a good shop location that attracts foot traffic. However, the tire market is a market with many wolves and little meat. Nowadays, a favorable location might not necessarily reap much benefit. The market competition is fierce, and tire prices are the primary consideration for consumers when choosing tyre distributors. Coupled with various interpersonal factors, debts, and industry-standard insider rules that everyone knows, occupying a good geographic location might not guarantee victory in the tire market battlefield.
However, that is still a necessary factor. The phenomenon of having a tire shop every 50 meters has made limited markets even more limited.
We can say that it has reached the point where either we perish or they do. When the timing is not right, and the location cannot exert its advantages, tyre distributors can only rely on people and interpersonal factors.
As the saying goes, "Time and environment are not as important as people." No matter how good the market environment or geographic location is, it is challenging to make progress without good interpersonal relationships.
In terms of the tire industry, interpersonal relationships mostly refer to the interaction between buyers and sellers. For tyre distributors, in addition to having the passion to strive and learn incessantly, they also need the industry to form a healthy order.
The current price war in the tire industry is undoubtedly a self-inflicted injury. In addition to making the entire industry disrespected and its status difficult to improve, it harms others while hurting themselves.
It is said that the current state of the tire industry is probably caused by internal personnel. Whether it is the quality or quantity of tire products, if China wants to compete with other international brands and make the market more standardized and profitable, the tire industry must constrain itself.
As for buyers, factors such as focusing only on the price, not on quality, making purchases on credit, and not returning payments have also played a role in exacerbating the current market situation.
Increasing Chinese consumers' knowledge of tires, making the tire industry more respectable in their eyes, and enhancing the status of big truck tires may be the panacea that can change the entire market. This is a process that may take time, but it requires joint efforts from all parties.
In short, a weak market is not created in a day or two, and it cannot be turned around so easily either. Time, place, and people are all essential factors!
AULICE TYRE is a renowned Chinese tire company providing a wide range of reliable tires to customers worldwide. We specialize in producing superior quality tires for passenger cars, light trucks, SUVs, and commercial vehicles. All of our tires are made with advanced production technology, high-grade materials and strict quality control. Our products are designed to provide customers with reliable performance, superior comfort, and excellent safety. We are committed to delivering the highest quality tires at competitive prices to ensure the best customer experience. Please feel free to contact us for more information.