Whether you are selling toothpaste or tyres, you must first ensure that customers know your product exists and then convince them that your product is the best value!

The US tyre retailing, like other industries, will benefit from rising business activity as the economy recovers from the downturn resulting from the Covid-19 pandemic. Relatively high levels of consumer spending are anticipated to return this year, and demand for replacement tyres is projected to grow over the next five years in line with the overall economy. At present, the US tyre retailing industry comprises about 39,000 businesses with over USD 40 billion in annual sales. The global tyre sales are estimated to be approximately USD 270 billion in 2022.

The tyre retailing industry is highly competitive, as product choices are limited, and services needed by customers are often identical. Tyre dealers end up competing based on brand offering, service reputation, price, location and other incentives. 

Most tyre retailing is done through independent shops, both privately-owned small businesses and large corporations who own a chain of stores. Independent dealers can sell every line of tyres available, fulfilling customers' desire for choice. A few OEM-owned tyre shops, such as Bridgestone/Firestone and Goodyear stores, and auto dealers also try to sell replacement tyres. While privately-owned small outlets offer more personalised service, large chains benefit from marketing support, purchasing power, consumer financing options, and other benefits supplied by the corporate umbrella.

The trend seems to be that the number of purely independent small dealerships will decline. Consider the rising expenses just to stay up to date, including the tools, talent, training and technology required to continue to service increasingly sophisticated vehicles. The increasing pressure on small retailers is viewed as a natural evolution of any industry, forcing owners and managers to make necessary changes – and tough decisions – to survive and thrive. As a result, regional and national mega dealerships are continuing to expand their footprints through acquisition or starting new sites.

Marketing

The sustainability of every retailer depends on marketing. First, your customer needs to know that you exist, and for that, you need to advertise. There are many ways of advertising – direct mail, ads in print/audio/video and social media. Advertising costs money and the effectiveness of an ad campaign should be measured through the bottom-line result it generates. One 30-second TV ad during the American Super Bowl game in February 2022 cost each advertiser a cool USD 6.5 million! But considering that the ad reached 112.3 million TV viewers, it could be considered a good ad value. On the other hand, if a retailer spends even a dollar for an ad but does not reach a single potential buyer, it has cost too much!

While a well-designed website is a must, how do you ensure that your website pops up prominently when a potential customer is searching for the type of product or service you offer? Search engine optimisation (SEO) is the practice website owners need to use to rank higher in the search engine's ranking process and draw more traffic to their website. After you have the attention of potential customers, educate them about the value you offer and convince them that they would lose if they do not use your product or service.

One success story

Bruce T Halle opened his first Discount Tire store in 1960, renting an old building in Ann Arbor, Michigan and began as the sole employee with a six-tyre inventory. His founding principles – treat people with respect and fairness, care for those in need, always do what is right, work hard, be responsible and have fun – have helped the chain grow to be the largest independent tyre and wheel retailer in the US, operating more than 1,100 stores in 35 American states. The chain claims they will not be undersold and strives to deliver the lowest price on all tyres and wheels they carry. When a customer finds a lower price, they beat the competition's lower installed price and ensure that the customer gets the best deal. The chain works hard to provide unexpected experiences that delight their customers and thus keeps them coming back. All tyres sold come with FREE prorated coverage, meaning that the customer gets credit towards a new tyre when a tyre has become non-repairable due to a road hazard. Customers also get FREE lifetime rotation, balancing and repair. Additionally, they offer a customer-friendly tyre replacement programme called the Certificate for Repair, Refund or Replacement. With this certificate, when a tyre fails within three years of purchase due to a defect or a non-repairable road hazard damage and still has legal tread (3/32") remaining across the tyre, the customer gets a refund of the full purchase price, with the option to purchase the same new or comparable tyre at the refund price. With all these delighters, no wonder this tyre retailer has seen solid growth. 

Every retailer, no matter what it sells, must strive to delight the customer with 'extras'!

The future

The Covid-19 pandemic has caused supply chain issues and forced all industries to overhaul their information-technology systems for better customer service and inventory management. While this is an added cost of doing business, it could be offset through better productivity. Additionally, tyre OEMs and retailers need to be ready to tackle the upcoming market disruption – electric vehicles – which needs specialised tyres to begin with; moreover, these tyres are expected to wear faster due to higher battery weight and quicker acceleration of these vehicles. 

JK Tyre & Industries Ltd has strengthened its position as a leader in sustainable tyre technology and a conscientious partner in India's green industrial journey by commencing production of its ‘UX Royale Green’ passenger car tyres at its Chennai Tyre Plant using ISCC Plus-certified sustainable raw materials.

Developed in August 2023, the UX Royale Green is made with 80 percent sustainable, recycled and renewable materials and was put to rigorous evaluation and testing. The sustainable tyre is the product of more than 10 years of diligent study conducted by the Global Tech Centre of JK Tyre. The company's research and development team has been concentrating on creating sustainable alternatives to traditional petroleum-based products. The certification confirms the usage of traceable, ethically obtained renewable and recycled raw materials and is given under the internationally recognised International Sustainability and Carbon Certification (ISCC +) system. Certified raw materials for the UX Royale Green include steel wire, recycled polyester, recovered carbonaceous black, bio-attributed polymers, renewable oils and recycled rubber powder. All of these products are sourced using circular methods.

Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd, said, "The commencement of sustainable tyre production represents a defining step in JK Tyre’s journey toward environmentally responsible innovation. We are pleased to set new industry benchmarks that balance high performance with ecological responsibility. This milestone reflects our ongoing commitment to driving responsible mobility – anchored in green technology, circular economy principles and the delivery of world-class, low-impact products. At the same time, innovation, quality and safety continue to be foundational to our operations."

Apollo Tyres has launched the ‘Apollo Tyres Healthcare Express’, a mobile medical unit designed to monitor the health of truckers and the surrounding community. C Thomas Mathew, Unit Head, Chennai Plant, Apollo Tyres Ltd, flagged off the unit, which would service major transport hubs within a 50-km radius, including Madhavaram, Manjambakkam and Poonamallee, serving a population of over 10,000 truckers.

For a small consultation charge of INR 10 per visit, this mobile medical unit will offer essential healthcare services to the trucking community. It will provide a wide range of services, such as general medical care, screenings for certain diseases and preventative and awareness programmes. Additionally, it will increase knowledge of important health concerns including HIV/AIDS, STI prevention, vision care, tuberculosis and non-communicable illnesses like diabetes and hypertension. A team consisting of a medical officer (MBBS), a pharmacist, an optometrist, outreach workers and a project coordinator will run Apollo Tyres' Healthcare Express.

Over 12 million people have benefited from the Apollo Tyres Foundation's healthcare initiative for the trucking community since it began in 2000. The organisation reached out to more than a million people in order to raise awareness during the Covid-19 outbreak. In partnership with local authorities, it also made it easier for over 10,000 people to get tested for Covid-19 and for over 150,000 people to get vaccinated.

World-class cyclist and multiple Tour de France champion Tadej Pogačar has joined Continental as its new global ambassador.

This new collaboration with one of the best contemporary cyclists is a logical continuation of Continental's longstanding reputation as a reliable brand in both the automotive and cycling industries. The long-term relationship will place special emphasis on fostering mutual respect and understanding between bikers and drivers. Pogačar and Continental are both dedicated to enhancing communication between drivers and boosting everyone's safety.

In 2024, Pogačar, 26, created history by winning several Monument races and placing first in the Tour de France, the Giro d'Italia and the Road World Championships. Only two riders in history have accomplished this feat. In addition, he earned victories in Liège-Bastogne-Liège and Strade Bianche. He is committed to developing future cycling talent in Slovenia and abroad through his foundation and the ‘Pogi Team’ development squad.

For many years, Continental has maintained a strong presence in the cycling industry. Not only do all of the support cars of the Tour de France use Continental car tyres, but numerous elite teams, including the 2024 winning squad, also use Continental bike tyres. Additionally, Continental is a major sponsor of the Giro d'Italia, providing its automobile tyres to all official support vehicles to increase safety on the difficult 3,000-kilometre course.

Pogačar said, "Top performance is not only the result of talent, but also of the pursuit of continuous development. Continental and I share the ambition to always make the most of our possibilities – both in terms of sport and development. So this partnership was an obvious choice. As a professional cyclist, I know how crucial it is to trust your tyres. Without the right equipment, I wouldn't have become the rider I am today.”

Egemen Atış, Head of Strategy, Analytics & Marketing at Continental Tires EMEA, said, "Tadej Pogačar and Continental both stand for exceptional performance but above all for safe driving. Risky manoeuvres, misjudging situations and thinking only of oneself doesn't win races. Tadej’s ability to see the bigger picture, alongside his extraordinary talent, makes him not only the best cyclist in the world at the moment, but also the perfect partner for Continental."

Indian tyre manufacturer Apollo Tyres Ltd reported a 3% increase in annual revenue to INR 261.23 billion for fiscal year 2024-25, while its net profit fell 35 percent from the previous year.

The company, which markets its products under the Apollo and Vredestein brands, saw its operating profit decline to INR 35.71 billion for the full year, compared with INR 44.47 billion in the previous fiscal year.

For the fourth quarter ended March 31, Apollo Tyres posted a revenue of INR 64.24 billion, up 3% year-on-year, while quarterly net profit dropped to INR 1.85 billion from INR 3.54 billion in the same period last year.

"We acknowledge that our performance over the past few quarters has not met industry benchmarks and our own expectations. After a thorough internal review, we have identified the key challenges that contributed to this underperformance," said Onkar Kanwar, Chairman of Apollo Tyres.

"With targeted strategies now in place to address these issues, we are confident in our ability to deliver stronger results in the coming quarters," he added.

Apollo Tyres, which has manufacturing facilities in India, the Netherlands and Hungary, distributes its products in over 100 countries.