E-commerce Escalation Stagnates Retail Sales

E-commerce Escalation Stagnates Retail Sales

However, the huge effort to support the automotive and tyre sectors could not prevent a dramatic 20% drop in demand for consumer tyres, which of course had an impact on retail. The repeated closures, coupled with the economic crisis and the closure of some factories due to mobility restrictions have had a major impact on the tyre industry in terms of sales and job losses.

The lockdown has changed shopping habits and the number of trips has declined in all countries. Driving less means fewer new tyres sold. This means that the industry's revenue growth is expected to stagnate over the period 2020-2022 as the pandemic effect continues to dampen the flow of motor vehicles lowering demand. In fact, weaker demand for tyres is expected to bankrupt some small tyre dealers, with small non-employer businesses being the most vulnerable.

Changes in the way tyres are distributed also affect the tyre dealer. Gas stations and auto repair shops are becoming less and less important in terms of sales. This trend is expected to continue. Differences in wholesale, price, service, warranty and performance are no longer essential keys to staying competitive.

During lockdowns, small businesses in particular found themselves in unpredictable circumstances and many had to close their doors. However, the pandemic has created more than just disruption and uncertainty. It sparked a new spirit of persistent creativity.

The pandemic effect has actually changed the way business is done. The market value of e-commerce will be four or five times that of any country in the coming years.

Some tyre retail authorities are confident that it will not be out of reach for the industry to return to 2019 levels in 2021. If possible, how will this be achieved, as habits and opportunities purchasing have changed dramatically. They assume that in 2021 it will only be a question of achieving a “return to normal.” In fact, defining “normal” is the hardest part, although 30% of Western tyre replacement markets are still covered by Southeast Asian tyre manufacturers.

The pandemic effect has actually changed the way business is done. First, consumers have chosen to shop online more than ever. The future of retail emphasises the digitalisation of the world. Cashless and digital payment is becoming consumer behaviour and increasingly relies on digital payment. We are seeing a recovery in the e-commerce sector.

We know that the number of “buy now, pay later” platforms has increased dramatically in some countries. Consumers can visit and compare online e-commerce stores in seconds. Marketing a product has never seen such great competition. The market value of e-commerce will be four or five times that of any country in the coming years.

E-commerce service solutions are gaining importance as online tyre sales offerings become available.

The five largest tyre manufacturers offer motorists online shopping experiences. Customers can buy the products and reserve the assembly through their selected local dealer. Customers can therefore buy tyres directly online, either on a computer or on a mobile phone. The online store provides the tyre options available as well as clear information needed in the selection process to guide consumers to the specific tyre that meets their needs.

At the same time, the fitting network is directly connected to the store via the online planner and allows the consumer to directly make an appointment for the fitting of tyres. Another benefit for consumers is that all tyre and installation costs are paid online and in advance so they can easily show up at the scheduled installation time. This may enrich the activity of some tyre dealers as a member of the e-commerce solution partner network.

Most customers, however, want the approval and perspective of a qualified tyre professional. There is a common belief that tyres are sold, not bought! This nuance focuses on our view that consumers ultimately want to consult with someone who knows how these tyres fit, how they react and most importantly their quality, before making the purchasing decision. Conversely, how will this aspect of customer habits affect the e-commerce tyre network?

On the other hand, it takes huge finished product SKUs and huge warehouses for e-commerce operations to handle thousands of orders every day. Therefore, we are usually talking about a high amount of logistics costs, which represent about 6 to 10 percent of total sales. E-commerce service solutions are gaining in importance as online tyre sales offerings become available.

2020 has been an interesting year for e-commerce in general. Large companies have improved their skills in this regard. Overall, more and more consumers are turning to online sellers, as many tyre manufacturers have seen. However, careful analysis of consumer transactions and changes in customer behaviour must also be done in the everyday environment, including other brands, and the huge data centre entrances must be analyzed very well. Rigorous processes and close cooperation are the best ways to ensure the integrity and quality of sensitive and valuable products.

Therefore, agility and adaptability will be of crucial importance in the global supply chain for mobility in the years to come. Remaining flexible is the effective response to this growing complexity by optimizing current operations while remaining sufficiently adaptable and scalable to meet future demand peaks. To do this, tyre manufacturers need to work closely with their logistics service provider to present and implement powerful new approaches to tyre logistics.

For small and medium-sized enterprises, the message of the past few months is clear: bold strategies are required to survive and thrive in the current economic downturn, and those strategies should include a robust e-commerce plan with a strong cross-component.

It is certain that “online sales” will become more popular in the years to come. Therefore, innovative e-commerce solutions will never stop. In any case, nothing is immune from fierce competition. Businesses of all sizes need smart recovery strategies. Those who are more diligent and see future opportunities are better prepared to survive.

So, it is certain that “Online Tyre Sales” will become more popular in the years to come. Whoever has a robust e-commerce plan is diligent and agile will win in the market. (TT)

Smithers Earns ISO 17025 Accreditation For Texas Proving Ground

Smithers Earns ISO 17025 Accreditation For Texas Proving Ground

Smithers, a renowned provider of testing, consulting, information and compliance services, has announced that its proving ground at Treadwell Research Park in Pearsall, Texas, has achieved ISO 17025 accreditation.

Operated on behalf of Discount Tyre, the facility’s accredited scope currently covers wet grip testing and tyre buffing, with plans to expand accreditation to include rolling resistance and pass-by-noise testing. The site boasts diverse paved and off-road test surfaces for comprehensive tyre performance validation. Additionally, it complies with UNECE Regulation No. 117 for Wet Grip and Pass-by Noise standards. This accreditation underscores Smithers' commitment to delivering high-quality testing services in the tyre industry.

Sean Connolly, Director of Test Track Operations at Smithers Winter Test Centre/Pearsall Test Track, said, “The tyre industry is currently focused on a variety of sustainability initiatives, such as reducing the rate of tread wear to extend the life of the tyre. Understanding tyre performance at varying levels of tread wear is critical for tyre manufacturers looking to get the most out of their designs.”

Jim Popio, PhD, Vice President, Smithers Materials Science and Engineering Division, North America, said, “We’re incredibly proud that our existing processes and procedures meet the rigorous requirements of ISO 17025 accreditation. Accurate data, on time, is central of the Smithers promise on a global scale, and we strive to go above and beyond our clients’ expectations with exceptional service as well.”

Michelin Launches Maiden Experience Store In Nashik, It’s Biggest Facility In India

Michelin Experience Store

Michelin, a leading tyre technology company, has launched its first Michelin Experience Store in India, in partnership with Bharat Tyres. The facility spread across 25,000 sqft is located in Adgaon on the Mumbai-Agra highway, Nashik and is Michelin’s largest store in the country.

It is designed not only to provide a premium experience, but also showcases the company’s global legacy through the Michelin Wall. Customers will also be to experience the Heritage Wall that visualise the heritage of both Michelin and its local dealership partner.

The Michelin Experience Store also has a Display Zone that showcases Michelin’s innovations in electric mobility, materials science and environmental responsibility.

The dealership also includes service areas for cars and trucks, PPF coating, precision wheel alignment, advanced balancing services, innovative puncture repair solutions, professional car detailing and a wide array of car accessories. 

Shantanu Deshpande, Managing Director, Michelin India, said, “We are proud to unveil Michelin’s first Experience Centre in India. The sole purpose of this store is to go beyond traditional tyre retail and provide customers an immersive experience of the brand, of our dealer partners and of the technological prowess of our tyre solutions that are safe and sustainable. Nashik, a key hub with growing premium vehicle ownership, is the first of many such centres that will further strengthen our footprint in the western region while providing state-of-the-art experience and services to evolving customers.”

Finnish Olympic Champion Sami Jauhojärvi Is Radar Tyres’ Official Brand Ambassador

Finnish Olympic Champion Sami Jauhojärvi Is Radar Tyres’ Official Brand Ambassador

Radar Tyres, the flagship brand of Omni United, has appointed Sami Jauhojärvi, Olympic gold medallist and one of Finland’s most celebrated cross-country skiers, as its official brand ambassador.

Jauhojärvi's sporting excellence – built on resilience, performance and a profound connection with nature – mirrors Radar Tyres' commitment to delivering premium-quality tyres across all seasons and terrains at accessible prices. The brand's comprehensive range includes Summer, All Season, Winter and specialist Ice tyres, designed to meet diverse driving needs with reliable performance.

This collaboration represents a strategic alignment as Radar Tyres expands its European and UK presence. Jauhojärvi will serve as brand ambassador, featuring in marketing campaigns, digital initiatives and local events while sharing his expertise to support Radar Tyres' mission of making high-performance tyres available to all drivers.

G S Sareen, Founder and CEO of Omni United, said, “We’re excited to welcome Sami to the Radar family. Sami’s authenticity, credibility and strong connection with his audience make him an ideal partner for us. He embodies the spirit of perseverance and performance – the same qualities we build into every Radar tyre. As we continue to grow our brand across Europe, partnerships like this play a key role in building deeper connections with consumers. We’re excited to build on this momentum with more such collaborations in the near future.”

Jauhojärvi said, “I am thrilled to represent Radar Tyres, a brand that has a remarkable mission to make premium quality and performance accessible to all and also has deep-rooted values of giving back to society via various initiatives it has undertaken over the years such as supporting breast cancer research. I’m sincerely surprised about the performance and silence of my Radar Tyres and happy to deliver this feedback to all the people.”

Kenda Tires Celebrates Dan Vanden Heuvel's Hall Of Fame Nomination

Kenda Tires is celebrating Dan ‘The Flying Dutchman’ Vanden Heuvel's nomination to the Off-Road Motorsports Hall of Fame's Class of 2025, recognising his legendary 49-year career as both a champion racer and community leader.

Since entering his first race at age 15 in 1977 at Crandon International Raceway, Vanden Heuvel has become one of off-road racing's most respected figures. His aggressive driving style earned him 20+ Pro-Class wins, five Crandon World Championships and a PRO-2 title. As owner of Flying Dutchman Racing, he mentored numerous drivers including his son Mikey, who secured Kenda Tires' historic first PRO-2 victory.

Beyond competition, Vanden Heuvel's greatest impact comes from his tireless community work. He co-founded the Midwest Off-Road Racing Association, created the Short Course Kart Series for young racers and established the MORR Injured Driver Fund with his wife Nancy. His hands-on approach – from building tracks to mentoring drivers – has shaped generations of off-road enthusiasts.

Now as Kenda Tires' Product Display Manager, Vanden Heuvel continues supporting the sport, assisting drivers across multiple series while representing Kenda at events nationwide. His dedication embodies the brand's values of community and passion for motorsports.

The formal induction ceremony will be held on 2 November 2025 in Las Vegas. This honour celebrates not just Vanden Heuvel's remarkable racing achievements but his enduring legacy as an ambassador who has profoundly influenced off-road culture.

Brandon Stotsenburg, VP of Automotive Division, Kenda Tires USA, said, “Dan is more than a legend – he is a mentor, a servant-leader and the beating heart of the off-road community. He helped deliver Kenda’s first PRO championship and still shows up for others every single weekend. We are honoured to have him represent Kenda and even more proud to call him family.”