·The international market reflects a good double reaction, prompting domestic enterprises to go out

At the “National Tire and Related Industry Operation and Export Work Conference” held in Shanghai, Wang Mei, a senior tire export trader, was interviewed. She gave her own opinions on the current Chinese tire industry's export, marketing model and overseas construction. view.
Reporter: You have been engaged in tire export business for 19 years. What is your personal feeling about the image of Chinese tire brands abroad?
Wang Guomei: In general, the international market is still very accepting Chinese products, especially tire products, because the quality of Chinese tires has been continuously improved in recent years, and the market feedback of domestic tire brands is also good.
Reporter: How do you think about price wars? What impact does the price war have on Chinese tire companies?
Wang Guomei: Enterprises produce products with added value and profit, but some enterprises use price wars to get the orders and catch customers, and let the profits they deserve, that is, "strong men break the wrist." This directly leads to no profit for the company. How to survive without profit? The company is going to close down.
Price wars are also extremely detrimental to corporate branding. Tire prices are too low, others will think that Chinese tires are low-end brands. In fact, many Chinese tires should be able to sell higher prices. Once the price is depressed, it will be difficult to raise.
Building a factory abroad is to avoid "double opposition"
Reporter: Some Chinese tire companies have already set up factories abroad. What prompted them to go out?
Wang Guomei: The main reason is to avoid "double opposition." Because some countries do not recognize China as a market economy, they need to find a third-party reference country, such as Thailand.
Thailand's labor costs are higher than China's. They are strictly eight-hour work. China's labor costs are very low. Of course, it is not really low. It is just that Chinese factories often work overtime and do not pay overtime.
In addition, raw materials are also on the one hand. For example, some countries in Southeast Asia are rich in natural rubber, but the cost impact of natural rubber on tires may be only 10%-20%, which is not decisive.
Reporter: Is it related to the overcapacity in China?
Wang Guomei: I don't think it has much to do with. The main problem facing Chinese tire companies is the trade barrier. For example, after the United States launched the "double opposition", Europe and even the Middle East countries should follow suit.
They believe that Chinese tires will be "flooded" like floods, especially in countries with a tire industry in China. Even in countries like Saudi Arabia, there is no tire industry in China, but they feel that there are so many influxes of Chinese tire products that it is difficult to distinguish between good and bad. Therefore, it is necessary to pass regulations to exclude products of poor quality from the country.
E-commerce will not subvert the traditional marketing model Reporter: How do you view the transformation of Chinese tire companies from the traditional marketing model to the e-commerce model?
Wang Guomei: The traditional marketing model has been extended for decades or even hundreds of years. E-commerce is only an auxiliary sales method, and it must be supported by offline stores. It is impossible to subvert the traditional marketing model.
As early as 2006, there was a tire e-commerce in Germany, when the doubts were heard. In fact, its sales are very good, but it is always inseparable from offline support. E-commerce should sign a contract with the offline store, the user will go to the store to pick up the goods, the store will provide tire change service, and charge a certain service fee.
Reporter: But at present, the traditional marketing model has encountered a lot of problems, do not need to keep up with the times?
Wang Guomei: It is necessary to keep pace with the times, specifically to gradually reduce the intermediate links in sales.
For example, Bridgestone's acquisition of the Pep Boys chain is to control the sales terminal. The future trend is that the product goes directly from the factory to the sales terminal.
Only when the intermediate links are reduced, the profit margin will be large, and then the company will increase advertising and let more consumers know its brand. This is a virtuous circle.

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