866-997-4948(US-Canada Toll Free)

TIRES - CHINA - DECEMBER 2017

Published By :

Mintel

Published Date : Dec 2017

Category :

Parts & Suppliers

No. of Pages : N/A

Generally speaking, compared to tier one city tire buyers, those from lower tier cities are more practical and proactive and should be an area of focus for tire retailers. Highlighting safety-related features, instead of comfort will be an important way of drawing in these consumers. Brand name means more to first-time car buyers and young car buyers. Livestreaming could therefore be used to target them while building up a positive brand image.

Table of Contents

OVERVIEW
What you need to know
Covered in this Report
Excluded
EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast of tire market value, China, 2012-22
Figure 2: Best- and worst-case forecast of tire market volume, China, 2012-22
Companies and brands
Figure 3: Top ten players in the tire market, by market volume, 2015-17 est
The consumer
Brand is still the first thing people pay attention to
Figure 4: Criteria of tire, July 2017
Most tires are purchased offline during maintenance
Figure 5: Tire replacement reason, July 2017
Figure 6: CHAID analysis of tire purchase channels, July 2017
Different demands of new car buyers and experienced drivers on tires
Figure 7: Gap between intended car buyers and car owners (benchmark) on the claimed importance of tire features, July 2017
Sophisticated drivers view tire brands differently
Figure 8: Gap between sophisticated drivers and general drivers (as benchmark) on tire brand perception, July 2017
25-29-year-olds are the most balanced in driving experience perception
Figure 9: Driving experience of different age groups, top two box, July 2017
What we think
ISSUES AND INSIGHTS
China tire market is stepping out of the transition period
The facts
The implications
Multiple methods of targeting consumers directly
The facts
The implications
Figure 10: Continental ‘Achieve your every single journey’ campaign on Weibo
Deliver differentiated messages to tire buyers from different city tiers
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A year of rebound
Rolling forward
MARKET SIZE AND FORECAST
A year of rebound in market value
Figure 11: Best- and worst-case forecast of tire market value, China, 2012-22
Market volume surpasses 400 million units
Figure 12: Best- and worst-case forecast of tire market volume, China, 2012-22
MARKET DRIVERS
Car parc continues to rise
Figure 13: Car parc and annual growth rate of China, 2011-17 est
Aging cars on the roads
Investigation comes to the end
Rising rubber price in 2016
Figure 14: Natural rubber price, RMB per ton, 2012-Oct2017
Environmental Protection Tax Law will be effective starting 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW
The importance of quality starts to reveal
A market skewing to consumers
MARKET SHARE
The consolidation trend
Figure 15: Top ten players in tire market, by market volume, 2015-17 est
Production capability does not mean everything
Figure 16: Top ten players in tire market, by market value, 2015-17 est
COMPETITIVE STRATEGIES
Establishing overseas factories
From B2B to B2C via sponsorship
Co-operating with leading online platforms
From ground to aerospace
Highlighting features in campaigns
Figure 17: Continental ‘Achieve your every single journey’ campaign
WHO’S INNOVATING?
Using alternative raw material
Internet of tires
Make it live
Figure 18: Pirelli Highway Zero Campaign
Figure 19: Lincoln ‘2017 North 30 Degrees’ test drive event
THE CONSUMER – WHAT YOU NEED TO KNOW
Young and tier one city buyers are appearance focused
Most purchases happen during maintenance check
Sophisticated drivers view tire brands differently
CONSIDERATION FACTORS DURING CAR PURCHASE
Brand first
Figure 20: Criteria of tire, July 2017
Young car buyers’ higher attention on appearance
Figure 21: Criteria of tire, by age group, July 2017
Practical tier two and three car buyers
Knowledgeable tier one city high earners
Figure 22: Criteria of tire, by demographics, July 2017
THE CONSUMER – TIRE REPLACEMENT REASON
Maintenance check drives tire replacement
Figure 23: Tire replacement reason, July 2017
Who are more proactive?
Figure 24: Key drivers of tire replacement reason, July 2017
The fortune in misfortune
THE CONSUMER – TIRE PURCHASE CHANNELS
Offline channel still dominates
Figure 25: Tire purchase channels, July 2017
The transition between channels
Online channel is favoured by sophisticated car owners
Figure 26: CHAID analysis of tire purchase channels, July 2017
THE CONSUMER – IMPORTANT FEATURES OF TIRES
Safe, safe, safe
Figure 27: Important features of tires, July 2017
Tier two and three city tire buyers are more safety focused
Figure 28: Gap between tier two and three city and tier one city consumers (benchmark) on the claimed importance of tire features, July 2017
Comfort for new car buyers, safety for current car owners
Figure 29: Gap between intended car buyers and car owners (benchmark) on the claimed importance of tire features, July 2017
Feature importance related to maintenance attitudes
Figure 30: Important features of tires, by maintenance service user segmentation, July 2017
BRAND PERCEPTIONS
Michelin are broadly recognised positively
Figure 31: Tire brand perception, July 2017
Continental is welcomed more by the experienced drivers
Figure 32: Gap between sophisticated drivers and general drivers (as benchmark) on tire brand perception, July 2017
The choice of between sporty and comfort
DRIVING EXPERIENCE
The ladder of driving experience
Figure 33: Driving experience, July 2017
25-29-year-olds are the most balanced on driving experience
Figure 34: Driving experience of different age groups, top two box, July 2017
Differences between car owners from different city tiers
Figure 35: Gap between tier 2&3 and tier one city car owners (benchmark) on driving experience, July 2017
MEET THE MINTROPOLITANS
MinTs are more likely to be informed during maintenance checks
Figure 36: Tire replacement reason, by consumer segmentation, July 2017
Experience in multiple terrains drives MinTs’ demand for better tires
Figure 37: Gap between MinTs and Non-MinTs (as benchmark) on driving experience, July 2017
Comfort means a lot to the MinTs
APPENDIX – MARKET SIZE AND FORECAST
Figure 38: Total market value of tires, 2012-22
Figure 39: Total market volume of tires, 2012-22
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *