The rise of raw materials to the rubber industry kicked off at the beginning of the year, and the “overcapacity†was again turbulent. This year, China’s tire industry business warfare is still surging. In 2007, driven by the Chinese automobile market, domestic tire sales reached 330 million, an increase of 18% year-on-year, ranking first in the world. Experts predict that in 2008 China's auto sales will exceed 10 million, and tire growth will exceed 25%. Full expansion of foreign brand building network Capacity expansion, the major tire production giants have not stopped for a moment. Foreign companies such as Michelin, Bridgestone, Hankook, Kumho and Jiatong all stated that they will target the first goal of the Chinese market, namely, more than 20%, which means that the four foreign brands want to divide 80% of China. market. In 2008, the competition in the tire retail market was heating up. Jin Hengtai, general manager of strategic planning at Hankook Tire’s China headquarters, clearly stated that he had entered the new field of Chinese tire market. “What is certain is that we will enter the field of economical cars,†said Jean Dominique Senard, CFO of the Michelin Group. On the same day, Michelle Helene, president of the Michelin Group, said that the production capacity of the two plants in Shanghai and Shenyang will more than double. Another tire-producing giant, Goodyear, also announced at the same time that in 2008 it will be the Passat B6. "In order to consume the ever-increasing production capacity, manufacturers have begun to compete for network wars at no cost." Industry insiders expect. It is understood that sales in the tire retail market account for two-thirds of all tire sales. The market share of enterprises in the retail tire market depends to a certain extent on their network coverage. Especially in the case where the top ten international tire companies have entered China, the establishment of a larger sales network has become a means for tire manufacturers to compete. Goodyear, after turning its sales strategy, sales model, and after-sales service in recent years, began to announce the establishment of a national unified standard authorized auto service network in China, aiming to change the operating mode of traditional tire retail stores and provide one-stop service for consumers. As a result, they set up 300 retail franchise stores in just six months, setting a stunning record of setting up almost two new stores each day. Another multinational tire company, Michelin, has invested more than 400 million U.S. dollars in China. Today, Michelin has factories in Shenyang and Shanghai, with more than 300 dealers, and is growing at a rate of 100 new dealers each year. Bridgestone’s investment in China has also been no less favorable. It has become the world’s largest tire company to build factories in China; only investing 5 billion yuan to build a factory in Huizhou, the industry is quite shocked. Hankook also regards China as the world's most important tire market and has established factories in Jiaxing and Jiangsu. In 2007, the 100 million tires produced by Hankook in China went offline and entered a new period of development. At present, Hankook has the highest share of the Chinese passenger car tire market, but this does not satisfy its appetite for expansion in China; the company is planning to introduce its local service approach to China and strive to establish 300 franchise stores within five years. Competition with Michelin and other manufacturers for the retail tire market. The development path of multinational large-scale tire enterprises began at the same time from the high-end to the low-end, inextricably squeezing the market share of local companies. "In 2007, after the foreign giants release their production capacity, they will greatly impact the domestic tire market. Its development path is from the high end to the low end," said an expert from China Construction Machinery Network. Although large multinational tire companies have severely polluted the environment in China, they continue to launch "green" tires. This has made them more competitive in the Chinese market, which is increasingly focusing on automotive environmental protection. [next] Local company Jedi counterattack seeks breakthrough In the face of a huge market, China's domestic tire companies are undoubtedly in a weak position. The six major self-owned brand products recommended by the China Rubber Industry Association this year to the community include Wanli, Triangle, Linglong, Luck, BCT, and Haida. The total output and market coverage only account for 25% of the country's total. The weak foundation, backward technology, and insufficient funds have made it difficult for local companies to struggle in the fierce competition. At the beginning of the new year of 2008, local companies accidentally encountered variables. According to reports, in the case of a 10% increase in the cost of raw materials such as steel, signing a year's worth of orders ahead of schedule is a good thing for rubber companies, but now it has become a heavy burden. If rubber companies cannot transfer costs, the gross profit margin will drop by about 5%, and the net profit margin will drop by about 3%. Therefore, if no measures are taken in 2008, the domestic industry will suffer serious losses. The appreciation of the renminbi and the growth of lending rates have also directly affected the profits of rubber companies. In just over a year, the appreciation of the renminbi has reached more than 10% and the upward trend has not diminished, which has a direct impact on the momentum and profits of China's rubber exports. According to the 6% appreciation of the renminbi this year, China's rubber exports 100 million U.S. dollars a year, which will affect the profit of rubber companies by about 40 million yuan. In addition, the national tightening monetary policy may affect the rapid development of China's tire industry investment, and thus affect the demand for rubber, this point must also cause the rubber company's attention. The good news is that domestic tire companies are actively seeking to seek breakthroughs In two to three years, Chinese enterprises had a peak in the production of skewed giant tires, which greatly eased the global shortage of tires. According to preliminary statistics, the annual production capacity of China’s skewed giant tires currently reaches 200,000. In 2008, the transition from rampant giant tires to giant tires began. Although industry experts have begun to call for investment overheating, they need to be robust. Since 2007, some local tire companies have stepped up their efforts to enter the domestic market. South China Tire Corp officially announced that it will gradually increase its development efforts in the domestic market, shift its strategic focus from overseas to the domestic market, and launch a series of marketing strategies. Industry analysts pointed out that with more domestic tire leaders switching to the domestic market, the tires, foreign brands in the high-end market competition will increase. “The blind worship of foreign brands by foreign consumers in the domestic market will become a major obstacle for local companies in exploiting the market.†Yan Hongzhen believes: “Actually, the quality of tires produced by domestically produced high-quality tires and the top ten tire-brand companies in China are compared, The gap is not big.†He believes that to change this kind of consumption bias depends on domestic companies to consistently provide high-quality products, stand the test of the market, and form a good reputation, allowing consumers to voluntarily support the national industry. Antimony Trioxide,Antimony Trioxide Powder,Environment-Friendly Antimony Trioxide,Flame Retardant Synergistic Agent HUNAN ZHONGNAN ANTIMONY&TUNGSTEN TRADING CO.,LTD , https://www.zhongnanat.com