May 11, 2024

Fast-growing 10 strong solid platinum tires sales will reach 1 billion US dollars

North America's second-largest replacement tire brand, Cooper Tire, has grown rapidly in China. In early December 2010, Cooper Tire, which was stationed in China in 2006, was awarded the "Rapid Growth Top 10" by "China's 100 Fast Enterprises."

Timely intervention

The Chinese auto industry has been developing for 20 years, and especially after 2003, private cars were blowouts. Until today, the Chinese auto market has become the world's largest producer and sales of 13 million. This also directly stimulated the development of the tire industry. But during this period, Cooper, one of the top ten tire brands in the world, did not rush to intervene. It was later in the Michelin and Goodyear brands before it entered China in 2006. This seems to be the best time for Gu Sili, general manager of Cooper Tire China, “The private car market in China is starting to take off around 2003, after which there will be a large number of replacement tires in two to three years. In addition, Cooper is the only one among the top ten tire brands in the world that only focuses on replacing tires. It is useless to enter too early.

The numbers prove that this is Cooper's accurate understanding of the Chinese market. Replacing tires with mature markets in Europe and America has accounted for two-thirds of the entire tire market share. Replacement tire market is still in its infancy in China. Even in 2010, there are probably only 55 million markets in the country. This is only 1/5-1/6 of the more than 28 million U.S. dollars in the United States. According to China's current growth rate of car ownership, in the next 3-5 years, the Chinese tire market, especially the replacement of the tire market, will truly usher in the growth peak.

Fully adapt

After entering China, Cooper first acquired the third-largest tire manufacturer in the country, Chengshan Group, adhering to the latter's experience and advantages in the R&D and manufacturing of passenger car tires, focusing on the production of high-performance passenger car radial tires, truck and passenger car tires and engineering. The tires, more than 10 million annual production are mainly used to supply the domestic market. Subsequently, in early 2007, Cooper and Taiwan’s Jianda Tire Co., Ltd. established a joint venture in Kunshan, Jiangsu Province, with an annual output of more than 3 million tires for passenger cars, all of which are exported to the North American market. At the same time, Cooper also insists on "cost innovation" and "technological innovation" to ensure high quality and low cost of products to meet increasingly demanding market demands. It is reported that at the beginning of 2010, Cooper will introduce new products that are currently being introduced in the US market, which is characterized by lower rolling resistance compared to existing products. Due to the use of new materials, the service life of tires can be extended by 5%.

Excellent complementary advantages and innovative strategies have enabled the rapid growth of the business. Cooper has maintained a double-digit growth rate for three consecutive years since entering the Chinese market. Now the Chinese market has also occupied 20% of Cooper's global share. At present, Cooper Tire has more than 420 franchised stores or designated retailers in China.

Blend of ideas

Five years ago, in addition to full-time drivers such as trucks and buses, few people would care about tires, a cold, bulky rubber product, because they are almost useless. Even if a private car owner faces the problem of tire replacement, there will be a 4S shop to solve it. However, in the three years after the arrival of Cooper, the tires were transformed into cartoon characters such as fat rabbits in the comics, the backstage of rock concerts, and the necessary equipment for racing games, as well as the emerging private car owners, ie, replacement tires. The target consumer group reached a happy and interesting mutual integration. In this process, Cooper's brand philosophy has been naturally and smartly released, and it will do more with less.

It is worth mentioning that Cooper's innovative marketing has also been recognized by all sectors of the community. While being among the "100 Fast Enterprises" and winning the "Rapid Growth Top 10," Cooper also received the 2009 Marketing Innovation Award. In the list of “China 100 Fast Companies” selected in the first three years, including big companies such as Lenovo, GE, Volkswagen, China Southern Airlines, Shanshan, and UPS, which have unrivalled comprehensive competitiveness but are committed to continuous change, It also includes expert companies such as Li Ning, Mengniu, AsiaInfo, Alibaba, SOHO China, Shangri-La and Ernst & Young who have demonstrated rapid response capabilities, and Wall Street English, Red Kids, Boloni, Winssoft, and Deqingyuan rely on rapid growth. It has emerged as a pioneering star for many investors.

According to the current data, in 2010, the sales of Cooper's tires for passengers can reach 45% growth over the previous year, which is 5% more than expected growth, and the sales of truck tires also usher in double-digit growth. The Chinese market currently accounts for 20% of Cooper's global share. Talking about the achievements made in the past three years, Alex Koi, general manager of Cooper Tire China, appeared calmer than he had hoped. On the other hand, when talking about the development strategy for the next 3-5 years, Miao Sili showed unquenchable excitement and self-confidence: In the next 3-5 years, China's replacement tire market will grow threefold on an existing basis. At that time, it was also the time for the industry to reshuffle.

It is reported that since 2012, European and American markets will have more stringent standards for tires , such as the importance of wetland tires detection, reducing rolling resistance and carbon dioxide emissions. As the most in the global automotive market, China's manufacturing requirements for the tire industry closely related to automobiles are bound to maintain the same level as European and American countries. Therefore, nearly 300 domestic tire production companies will face the cruel survival pressure of the survival of the fittest. In response to this, Cooper Tire proposed a new concept of "Made in China" and "European and American standards" to actively prepare for the battle. Although the dull quality data is boring for consumers, Cooper , who is a long-sleeved company, will continue to use comics, online games, music and other more interesting media to make its global synchronized product quality live and vivid.

At the dealership level, based on the existing distribution network of more than 420 franchised stores and designated retailers, Cooper will create an American-style network layout that “expands a tire shop from one city to multiple cities around it”. With a view to fully recovering from the "shuffle" process in the tire industry. In response, Cooper has full confidence: "China's tire production is the fastest growing market in the world. In the next 3-5 years, sales of Cooper tires in the Chinese market (including internal sales and exports) are expected to increase to US$1 billion. ”

For the longer-term situation, in 10-15 years, China's replacement tire market will reach the current capacity of the United States, or about 280 million. At that time, the image of Cooper's meticulous "Global Replacement Tire Expert" must have been deeply engraved on the hearts of 200 million Chinese car owners.

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