The rapid development of the Internet and e-commerce has brought market and profit space to many enterprises, changing the traditional marketing model and the business mode of enterprises. In recent years, facing the increasingly competitive traditional market, many tire enterprises have joined the Internet to test e-commerce.

Transforming traditional sales models

As an industrial product, tires have long adopted the traditional marketing model of manufacturers, wholesalers, and retailers to enter the car owner user market due to their special characteristics. However, this sales model requires high gross margins to support it. In today's increasingly competitive market, the profits of tire wholesalers have become lower and lower.

The traditional tire marketing model requires every level of agent to have profits, so consumers pay high transaction costs for this. At the same time, it is difficult for consumers' consumption information to be fed back to manufacturers, resulting in distorted industry information transmission. With the increase in production capacity in the current tire industry, the market has entered a stage of full competition, and the profit of tire wholesalers may only be 2%. In addition, with the increase in consumer purchasing channels and bargaining power, the existing sales model must be reformed.

Tire e-commerce should move towards O2O

It is understood that in the European market, tire companies account for 9% of total sales through e-commerce models, especially in the Netherlands and Germany, which are very mature. Compared with foreign countries, the online trading volume of China's tire industry is still very low, and e-commerce sales may account for less than 5% of the overall market.

But industry experts also believe that in the future of tire sales, the concept of regionalization will gradually be broken, and there is no concept of regional agents in the tire industry in the United States. In the future, the channel hierarchy of major brands will be further reduced, and the value of retailers will be further enhanced. Thanks to the strong appeal of the brand among consumers and the support of numerous brand dealerships nationwide for delivery and installation services, e-commerce platforms dominated by strong manufacturers will experience rapid development. At the same time, tire trading service platforms will also have great development opportunities, as there are numerous brands of Chinese tire manufacturers, and weak brands can only survive and develop by significantly shortening their channel links, which provides opportunities for e-commerce intermediary platforms.

The future competition will break through tradition and routines, and the profitability of tire companies will depend on innovative business models and ways of thinking. The O2O e-commerce model should be achieved, which is a seamless integration of "online+offline". The opportunity of offline business has been combined with the Internet, making the Internet the foreground of offline transactions. In this way, tire companies can attract customers through offline services, consumers can use online screening services, and transactions can be settled online, quickly reaching scale.