April 05, 2020

Malkis Tire Breakout Force Replacement Market (1)

Maggie Tire Breakout Force Replacement Market (1)

Majis tires from Taiwan entered the Chinese mainland in 1997 and began to establish sales channels in 2000. After the title of the Shanghai Men's Basketball Team at the end of 2009, the brand “Maggies” became known to more people. Prior to that, it had sponsored the NBA Rockets, the Lakers and the Premier League Liverpool, and also had two teams on the China Rally Championship (CRC): the Margis Tire Rally Team and the Margies Tire South China Tigers Team.

The cooperation of the Shanghai Men's Basketball Team under the name of Maxi's tires Yao Ming has increased the popularity of the Maggies brand. In recent days, with the help of Yao Ming's return to China, the “2010 Biggest Tires Environmental Action” was launched across the country. At the event, Margies and the Shanghai Men’s Basketball Team represented by Yao Ming jointly advocated “low-carbon emission from the start of inflation” and provided tire pressure detection and inflation for owners at more than 700 service centers nationwide. Car owners who participated in the testing at the event also had the opportunity to obtain Yao Ming’s autographed basketball.

Over the past few years, Maggies has grown from a simple title sponsorship to a storefront event that has spread across the country. The promotion has grown from small to large.

As Zhengxin Rubber's mid-to-high-end brands, from the date of its birth, Marx, who was positioned in the mid-to-high-end market, quietly took a solid market share and started to establish a brand with great fanfare, even though this model of Maggies is difficult to obtain. Recognized by mainstream marketing experts, they even believe that branding can be done before the product is born.

In response, Luo Cairen, chairman of Zhengxin Rubber (China) Co., Ltd., explained to the "Automotive Business Review." "We have limited resources. If we both do it, we are afraid that both will not be good enough. We will choose to do it first. After the channel reaches the scale, the brand will be pushed again, allowing consumers to see where they want to buy it.”

Carefulness, pragmatism, and low-profile may have caused Maggie to lose some opportunities, but at least let them achieve the top three rankings in the Chinese market, and have a solid foundation for better performance.

Subversion fate

The biggest revelation that Magis brings to the tire industry is not the balance between channels and brands, but how to achieve global leading results without the support of local large-scale vehicle companies.

The tire companies that look around the globe have both depended on their own strong automotive industry and developed with large domestic automobile companies. German horse brand, Michelin of France, Pirelli of Italy, Goodyear of the United States, Bridgestone of Japan, Kumho of South Korea and Hankook, all behind the backing of domestic large-scale car manufacturers, through supporting the development and expansion of these companies, and following the vehicle Business expansion goes global.

As a Taiwanese tire company, Maggies has no local auto giants to rely on. It can only rely on the quality and cost-effectiveness of a bit of food to support the market. After consumers use the brand, there is no shortcut.

General car companies are biased toward supporting their own country's tire products, but there are also differences between the country and the country, companies and enterprises. In the early days, Magisi focused on supporting companies that have looser alliance relations, and then relying on word of mouth to expand results.

"Like most Korean companies, it basically uses only its own domestic brands, and it is very difficult to make inroads. However, US companies are not like this, such as GM. It is relatively open. If your quality is really strong and the price advantage is obvious, It will be willing to use your product." Luo Cairen said to the "Automobile Business Review."

Shanghai GM's first-generation Regal once matched 80% of a domestically produced brand of tires. At that time, the quota for Magisi was 20%, and it was supplied at a price lower than the cost price. After some time of cooperation, due to vendor standards and customer feedback, Margis's quota rose from 20% to 100%, and the price did not fall.

Luo Cairen said: "Because we started at a loss, we were able to afford to lose a small amount. We couldn't afford to lose a large quantity. The manufacturer also recognized our quality. Therefore, the price is higher if it is larger."

Supporting automobile manufacturers can promote the development of tire companies. The vehicle manufacturers will test the performance of the products and raise higher requirements for tire companies. This will promote tire companies to continuously improve their technical standards, improve their research and development, and purchase more advanced equipment. The level of technology and product performance will be formed. Virtuous cycle.

Especially when entering the mainland market in the 1990s, the overall level of domestically produced tires was not yet high, providing a rare space for growth and growth for Magisi, and Maggies had a firm footing in expanding the supporting market.

Overseas, it is even harder for Asian tires to enter the European and American markets. Margis only makes sacrifices in exchange for prices. When the quality of products is confirmed by customers, sales will slowly increase. Germany is the first battlefield in which Magis enters Europe, winning Germany with the largest sales volume and the most stringent quality requirements, and other countries will naturally take a turn for the better.

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