"As the world's largest auto market, China's annual sales volume of replacement tires is about 100 million. After 5 or 6 years, it will even reach 200 million." Talking about the potential of China's replacement tire market, the mainland horse brand Deng Jie, General Manager of Tire Trading (Shanghai) Co., Ltd. is full of passion. As the largest tire manufacturer in Europe and the fourth largest in the world, the German horse brand entered China in 2006. As the original tire market has just started, the German horse brand will focus on replacing the tires in the automotive aftermarket, and the rapid expansion of three new stores a day. "Authorized retail stores are mainly engaged in tire overhaul and replacement business. The location is generally close to the residential community, hoping that China's tire consumption concept can continue to mature." Deng Jie said so. At present, there are more than 3,800 authorized retail stores in China for horses across China. In addition, the BestDrive flagship store, which can provide vehicle maintenance and a one-stop service model, is also accelerating its network construction. At present, there are 18 Best World flagship stores, covering 15 cities including Beijing, Shanghai and Guangzhou. In fact, China, with more than 100 million car ownership, is becoming the world's largest auto aftermarket gold rush. Michelin, Hankook and other multinational tire giants are accelerating the staking in the Chinese market. According to statistics from the China Automobile Dealers Association, China's after-sales market will still maintain a growth rate of around 20%, that is, it will increase output value by 100 billion yuan each year, and it is expected to reach an output value of more than 800 billion yuan after three years. Therefore, all parts and tire companies have begun to accelerate the pace of the Chinese market layout. Deng Jie said that the rapid expansion of the authorized license stores and best flagship store is the horse brand tires deep into the Chinese automobile after-market tentacles, for this purpose, the horse brand set up a retail commission, held a meeting every quarter to discuss the market Changes in the company and keep investigating strategies. Since 2012, Deng Jie, who is based in Shanghai, has continuously conducted research between provinces and cities in China to understand the user's habits and dealers' marketing conditions. He laughed and said, "I have been running in China for two years more than in the United States for 10 years." Compared with other competitors, the German horse brand strategy in the Chinese market can be described as “precision farming†or “quick playâ€. In September 2009, the German horse brand's first factory in China settled in Nangang Industrial Park, High-tech Zone, Hefei City, with a total investment of 319 million euros, of which the first phase project investment was 185 million euros, and the designed annual production capacity was 4 million tires; The project was launched in March 2012 with an additional investment of 134 million euros and an annual production capacity of 8 million tires. In May 2013, the horse brand released the special tire SCL CCCLX2. Obviously, the continuous growth of the SUV in the Chinese market has made it possible to see the long-term “money sceneâ€. At the end of November 2013, the first batch of domestic air-conditioned tires (hereinafter referred to as "explosion-proof tires") were formally rolled out at the Hefei factory. The Hefei plant has also become the fourth company in the world to have the capability to independently manufacture SSR explosion-proof tires. It is expected that the annual production capacity of SSR explosion-proof tires in this plant will reach 340,000 in 2015 and 510,000 in 2015. According to relevant responsible persons, the Hefei factory's products not only supply the Chinese market, but also some of them are exported to markets such as the United States. “China is not only an important market for German horse brands, but also a key production base for us,†said Xin Luo'an, executive vice president of the Asia Pacific Replacement Market Division of the Continental Automotive Tire Division. “The continuous expansion of production capacity at Hefei and its products The continuous extension of the line is a testimony to our enhanced introduction of high technology in the Chinese market." “We will introduce the latest technology to the Chinese market as quickly as possible.†Deng Jie said that since the repair technology will soon enter China, that is, when tires are punctured by nails, the tires will be automatically repaired quickly. Seal the hole. "China is our future," Deng Jie said. In August 2013, Dr. Kang Ruifan, who is a member of the Executive Board of the Continental Group, assumed the status of the new China and served as President and CEO of the Continental Group in China. This is the only senior member of the board of directors who is assigned to take charge of the regional business. The Continental Group is The importance of the Chinese market is evident. In the original tire market in Europe, one in every four newly-manufactured cars is equipped with horse tires. However, in the Chinese market, the original tire market has just started. Therefore, the replacement market is the focus of recent horse brand tires. Deng Jie said that China's replacement tire market is still at a very early stage, still need to continue to nurture in the terminal market, including to tell consumers what kind of tire is really suitable, what kind of service is thoughtful. This is one of the reasons that the license will be authorized for retail stores near residential areas.
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March 30, 2023