China's tire industry maintained three major trends in 2018

Unconsciously, January 2018 is almost over.

In the past few days, through communication with various companies in the tire industry, the Tire World Network found that in 2018, China's tire industry has three major trends worthy of attention.

Low-priced tires are coming back

Since December 2017, raw material supplier LANXESS has issued a number of notices to increase product prices.

Tireworld.net contacted the responsible person of LANXESS. The other party stated that this round of price increase is a necessary measure taken in response to the current market situation.

According to reports, LANXESS's raw material costs and maintenance costs have risen sharply. At the same time, they are also facing pressures such as environmental protection and safety.

LANXESS prices news

LANXESS is just one example of a raw material company.

Since last year, in the face of dramatic changes in the market, there has been a major shift in the relationship between tire companies and raw material suppliers.

A white carbon company CEO said to Tire World Net that it is not the tire companies that accept the price increase of the products. Instead, they have to thank suppliers for their unaffected supply prices.

In his opinion, this supply and demand relationship will continue in 2018.

Industry insiders have made predictions that tire companies may no longer have cheaper raw materials available, and the low cost of Chinese tires is now gone.

Reshuffle after big shuffling

“In the past, if 30% of the tire companies in China were to close down, some people may not believe it. After 2017, everyone believed.”

Recently, an executive from a tire company told Tire World Net that this round of big shuffles has caused many big bosses who have been out for many years to make the tire industry feel shocked.

In his view, the big consolidation of the tire industry may be even more violent in 2018.

Experts who have long observed the changes in China's tire industry have stated that at present, the surface of some large tire companies in China is very fragile. As long as one step is wrong or there is an external force, it may fall instantly.

Zhang Hongmin, chairman of the Shandong Rubber Industry Association, also told the Tire World Net that the integration of the tire industry is still very arduous.

In 2018, you can boldly speculate that China’s tire industry will continue to see new mergers and reorganizations.

It is still worth observing whether some pre-integrated companies can operate healthily.

According to the above experts, it can be confirmed that the entire industry structure has already begun to reshape: under the trend of polarization, good enterprises will develop better.

Who can survive in 2018? Who will live better?

Brand building becomes the focus of tire companies

In the early morning of January 23, a Serie A focus war. Serie A giant Juventus 1-0 victory over Genoa.

The Chinese who watch the game on the same day and night will find that the big billboard of the exquisite tire is very “jazzy”.

Tireworld.com has learned that in recent years, Linglong Tire has been involved in brand promotion. They are the top partners of Juventus.

It has been observed that the Chinese government, enterprises and consumers have become more and more important to the brand. With the upgrade of consumption, various brand planning and nurturing projects have been launched successively.

The 100-year brand enterprise cultivation project implemented in Shandong Province has listed many tire enterprises such as triangular tires and exquisite tires as key training objects.

Zhou Haijiang, Chairman and CEO of Redbean Group's Board of Directors, said that the brand is the main chain of each industry chain, and it is only through its own brand that it can gain the initiative.

Hongdou Group owns a listed tire company - Jiangsu General Technology Co., Ltd.

Zhou Haijiang's words showed the level of awareness of Chinese companies on the brand.

In 2018, brand building will become a key task for Chinese tire companies.

According to industry insiders, from the development of price competition to brand and quality competition, it is a must for the tire industry.