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Tires - China - June 2016

Published By :

Mintel

Published Date : Jun 2016

Category :

Tyres

No. of Pages : N/A

Despite the pressure on supply side, domestic passenger car tire market is expected to thrive again, driven by continuous growing car parc and increasingly knowledgeable consumers. Opportunity lies in providing professional consulting service through both online and offline channels, as well as applying differentiated marketing strategy based on target audiences’ lifestage and residential area.

Table of Content

Overview

What you need to know
Covered in this report

Executive Summary

The market
Figure 1: China passenger car tire market volume forecast, 2016-21
Companies and brands
Figure 2: China tire market share, by total production volume, 2013-15
Figure 3: China PCR tire market share, by sales value, 2015
The consumer
Figure 4: Tire purchase consideration factors, weighted average of importance, November 2015
Figure 5: Average price willing to pay for one tire, by car owner groups, November 2015
Figure 6: Tire purchase channel perception, November 2015
Figure 7: Tire purchase channel preferences of different car owners, by car price, November 2015
Figure 8: Tire purchase channel perception comparison, by car owner groups, November 2015
Figure 9: Relationship between pre-sales consulting service satisfaction and tire price, November 2015
Figure 10: Tire purchase consideration factors, by age group, of total saying “very important” and “important”, November 2015
Figure 11: Average unit price of tires willing to pay, by city, November 2015
Figure 12: Brand awareness and penetration, November 2015
Figure 13: Brand penetration and average price willing to pay for one tire, November 2015
Figure 14: Selected brand penetration across cities, November 2015
What we think

Issues and Insights

Where is the future for local tire manufacturers?
The facts
The implications
What is the right strategy for online presence?
The facts
The implications
How to market effectively and efficiently?
The facts
The implications

The Market – What You Need to Know

Stagnation in market growth
Multiple barriers
Yet more market drivers
Market to thrive again

Market Size and Forecast

A dominant player of world tire market
Slowing down production
Figure 15: China passenger car tire production volume, 2011-15
Estimated to thrive again
Figure 16: China passenger car tire market volume forecast, 2016-21

Market Factors

Supply-side structural reformation
Overseas import investigations
Figure 17: China passenger car tire exportation volume, 2012-16 (est)
The growth in car sales
Figure 18: China new passenger car sales volume forecast, 2016-20
The awareness of drivers
The developing online tire sales platforms

Key Players – What You Need to Know

Overseas brands rule passenger car tire market
Channel integration
Comprehensive marketing activities by market leaders
Feature reinforcement or product revolution

Market Share

The glory of local players in production
Figure 19: China tire market share, by total production volume, 2013-15
Overseas brands rule in sales
Figure 20: China PCR tire market share, by sales value, 2015

Competitive Strategies

Sports sponsorship
Online retailing
Product segmentation
Social media campaigns

Who’s Innovating?

Revolutionary product
Go smart
Crossover marketing
Leveraging the influence of KOL

The Consumer – What You Need to Know

Quality over price
Low switching costs between channels
Yet channels are perceived distinctively
Target the right age group
Pay attention to regional difference

Tire Price

Experienced drivers tend to buy better tires
Figure 21: Average price willing to pay for one tire, by car owner groups, November 2015
Geographic reasons affect tire selection
Figure 22: Average unit price of tires willing to pay, by city, November 2015

Purchase Channels

Traditional stores remain in high consideration
Figure 23: Tire purchase channel consideration, November 2015
Nearly half are willing to try internet purchase
Channel preference varies
Figure 24: Tire purchase channel preferences of different car owners, by car price, November 2015
Limited channel loyalty

Channel Perception

Clear differences perceived
Figure 25: Tire purchase channel perception, November 2015
Luxury car owners prefer offline channels
Figure 26: Tire purchase channel perception comparison, by car owner groups, November 2015
Pre-sales consulting service drives online sales
Figure 27: Relationship between pre-sales consulting service satisfaction and tire price, November 2015

Key Consideration Factors

Safety as top concern
Figure 28: Tire purchase consideration factors, weighted average of importance, November 2015
More products with discounts are expected from online channels
Focus on features varies by cities
Diversified demands of age groups
Figure 29: Tire purchase consideration factors, by age group, of total saying “very important” and “important”, November 2015

Brand Awareness and Penetration

Marketing efforts pay off
Figure 30: Brand awareness and penetration, November 2015
Be selective on cities
Figure 31: Selected brand penetration across cities, November 2015
Different stages of brands
Figure 32: Brand penetration and average price willing to pay for one tire, November 2015

Attitudes towards Tires

Better understandings on tires
Figure 33: Attitudes towards tires, November 2015
Brand selection changes with channel
Figure 34: Attitudes towards tires, by channel, November 2015

The Consumer – Meet the Mintropolitans

Higher online purchase willingness
More demanding than others
Figure 35: Tire purchase consideration factors, by mint and non-mint, November 2015
Better knowledge on tires

Appendix – Market Size and Forecast

Figure 36: China PCR tire market size and forecast, 2011-21

Appendix – Methodology and Abbreviations

Methodology
Fan chart forecast
Abbreviations

List of Table

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