Factors such as innovation and intelligence will help Chinese tire companies get out of trouble

With less than 30 days remaining, we will leave us in 2015. This year, most of the Chinese tire companies have taken a tougher path, and some companies have even become fixed at some point in time. history.

This year is undoubtedly the "cold winter" of the tire industry. It must be bad in the winter! What is it like to live warmly and warmly? What will happen to the tire industry? The tire industry needs a harsh winter before it can have a bright spring. "Winter is coming, can spring be far behind?" This sentence applies only to those companies that never give up, accelerate transformation and upgrade, and stand the pain of reform.

The tire industry needs a harsh winter before it can have a bright spring
The tire industry needs a harsh winter before it can have a bright spring

In 2015, Chinese national tire companies have to face the current situation of relative overcapacity of tires and serious homogeneity of low-end products. They also have to face the slowdown of world economic development, the entry of the domestic economy into the new normal, the test of foreign technology and trade barriers, and international The market "China's tires are equal to low prices" stereotypes.

Some companies have no minimum in order to survive a price war, but only lower, “a mouse has damaged a pot of soup”, which has accelerated the deterioration of the market.

According to statistics from China National Rubber Industry Association Tire Branch, in the first three quarters, the tire industry started with a total steel tire utilization rate of about 65% and a semi-steel tire of about 67%. Sales revenue and profits fell 13.54% and 34.82% respectively year-on-year. Following the bankruptcy of Shandong Guangrao following De Ruibao Company, it was reported that some companies had cash flow difficulties and could not deliver on time.

Faced with this dilemma, what should 2016 tire companies do?

Innovation

Judging from the top 75 global tires rankings in 2015, the top five companies have sales of US$86.936 billion, accounting for 48% of the world's total tire sales. These companies have internationally renowned brands and their technology and philosophy have always led the industry.

Therefore, innovation is still an important factor for companies to enhance their core competitiveness. Chinese tire companies should also focus on innovation, eliminate homogenization through innovation, get rid of low-end, and take a differentiated path of development. In the aspect of pattern design, formulation adjustment, structural design and other aspects, new technologies are applied and new materials are tested to achieve product innovation.

However, single companies, especially private enterprises, are inherently inefficient in terms of technology reserves and investment in R&D funds. Therefore, the form of alliance or alliance among several companies may become the first choice, and the merger, reorganization, and scale development of enterprises will become new trends.

Brands

If an enterprise wants to maintain its long-lasting vitality, it must establish its own brand image and increase its brand awareness and competitiveness through continuous improvement of its brand value. At present, most Chinese tire companies have different foundry management phenomena, and their emphasis on the development of their own brands is not enough.

In the early stages of business development, OEMs can quickly increase production capacity and reduce production costs. However, as the company’s strength continues to increase, it should gradually reduce the amount of OEMs and develop the company’s own brand. Only in this way can the company be better inherited and the company not be able to Subjected to people, it is not because of the termination of the cooperation of OEM companies that the companies are in a difficult business situation.

Only one's own is a nation, and only then is the world.

green

Green environmental protection has become the mainstream of the tire industry. National environmental protection and management efforts continue to increase, tire companies must not only pay attention to energy-saving emission reduction in the manufacturing process, but also pay attention to the application of environmentally friendly materials.

the Internet

With the development of information technology and the Internet industry, the thinking of the "Internet" has received more and more attention. In the tire industry, the operation of the e-commerce platform and the application of the mobile phone APP all change the company's traditional sales model. The role of the regional agency is severely weakened, and the product price is becoming more transparent.

Therefore, companies must change the previous sales model, or use multiple sales models to co-exist to balance the relationship between companies, distributors, and terminals, expand sales channels, and increase market share.

Intelligent

With the introduction of new concepts such as Industry 4.0 and Made in China 2025, the digitization, networking, and intelligence of the manufacturing industry continues to accelerate. Tire industry production process management system, intelligent three-dimensional storage system, the use of operating robots,

As a result, the degree of automation and intelligence in tire production has become higher and higher, the quality problems caused by human factors have been reduced, product quality has become more and more stable, production costs have been continuously reduced, and product competitiveness has increased.

Therefore, intelligence will become the future direction of development.

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