Is the tire industry alive or dead under the hotte

2022-08-12
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Is the tire industry alive or dead under the tide of rising prices

in the first quarter of 2017, the price of raw materials upstream of tires continued to rise, forcing tire enterprises to take turns to increase the ex factory price of products. What impact will this round of price rise have on tire enterprises? Tire world conducted a questionnaire survey through the station and platform at the same time

survival and upgrading are equally important

the survey results show that different enterprises have adopted different ways to deal with the rising price tide. 29% of the respondents believed that to formulate a flexible price strategy, we should first ensure our survival. Another 29% are inclined to adjust the product structure and eliminate backward production capacity. Obviously, for tire enterprises, the profit margin will be squeezed first as the cost increases. At this time, if we raise the price to overcome the difficulties, we may lose the original price competitive advantage; If the original price is maintained, the cost will increase and the profit will be squeezed

this requires enterprises to size up the situation, adopt flexible price strategies, and grasp the opportunity to break through

on the other hand, pressure can also be transformed into power. If some small and medium-sized enterprises can innovate and change in difficulties and adjust their product structure in time in the tide of rising prices, they may develop into elite enterprises. In addition, 25% of the respondents chose to improve brand awareness and influence. Only 17% of the respondents agreed to tap their potential to reduce costs and increase efficiency. Some tire enterprises said that due to the added value advantage of products brought by brands, their brands are competitive compared with other similar brands. With brand advantages, such enterprises appear quite calm when dealing with the tide of rising tire prices

it is inevitable to follow the quality line

the respondents showed great differences of opinion on the competitiveness of Chinese tires. On the one hand, 42% of the people said that the quality of Chinese tires has been substantially improved. Respondents who hold this view are mainly targeted at large tire enterprises that adhere to the quality line and actively adjust their own structure

recently, the wire rod change experimental machine is also a new experimental machine based on new research and experiments on standardized experimental methods such as tension/fatigue, impact/fracture. Over the years, these enterprises have invested heavily in introducing foreign advanced equipment, building modern high-tech tire projects, paying attention to increasing technological research and development, and constantly adjusting product formulas. After years of efforts, the quality of its tires has been greatly improved. "It is difficult for the current tire production line to produce a low-quality tire." An insider said when evaluating his own tires. At the same time, in order to enhance their competitiveness, these tire manufacturers will deliberately avoid the malicious low-cost competition market and produce tires with high added value. On the other hand, 39% believed that the competitiveness of Chinese tires was gradually declining due to the loss of price advantage. This view is mainly aimed at small and medium-sized tire enterprises with extensive development, slow technological progress and product upgrading. How did the "packaging tax" come into being? As early as the 610s of the last century, most of the products were for the middle and low-end market, relying on low-cost competition to obtain market share

according to analysis, in this round of price rise, the price difference between low-end products and medium and high-end products has been greatly reduced. When choosing products, consumers will naturally give up small brand products without price advantage and choose large brand products instead

fierce competition, price war is no longer the "King"

at this stage, China's tire products are mainly concentrated in the middle and low-end market, mainly small and medium-sized enterprises. The means of competition is mainly to fight "price war". Yifeng county is also the area with concentrated lithium resources and the richest reserves in Yichun city. In response to "the rise in prices is a round of entrepreneurial players, many of whom are academicians of the Chinese Academy of Sciences, returnees, winners of the 1000 person plan, domestic top experts and other consequences of the tire industry", most of the respondents believe that there will be a new reshuffle in the industry. Among them, 36% said that small and medium-sized enterprises trapped in the "price war" would be eliminated; 26% of the people believe that the strong will always be strong, and the industry concentration will be improved. The sum of the two accounts for 62% of all participants in the questionnaire. For a long time, some small and medium-sized tire enterprises rely on bank loans to survive, and their own liquidity is not much. Coupled with the lack of credibility, it is difficult for these enterprises to obtain higher loan lines. For these tire enterprises, on the one hand, the price of raw materials is rising, and on the other hand, the products after the price rise lose their original competitive advantage and continue to lose market share. The financial difficulties caused by these two aspects may become the "last straw" to crush them. The collapse of a large number of small and medium-sized tire manufacturers is bound to expand the market share of the "strong" and enhance the industry concentration

in addition, 28% of the respondents believed that the domestic market competition would be more fierce; 10% said it would be more difficult to export

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