How will this round of price increase impact on tire companies? The reporter conducted a questionnaire survey through the website and the WeChat platform at the same time. Survival and upgrade are equally important The survey results show that different companies have taken different approaches to deal with price increases. Twenty-nine percent of respondents believe that to establish a flexible pricing strategy, first ensure that they survive. Another 29% tend to adjust the product structure and eliminate backward production capacity. Obviously, for tire companies, the cost will increase and the profit space will be squeezed first. At this time, if we increase the price, we may lose our original price competition advantage; if we maintain the original price, we will face increased costs and squeezed profits. This requires companies to assess the situation, adopt flexible pricing strategies, and seize the opportunity to break through. On the other hand, stress can also be turned into power. If some small and medium-sized enterprises can innovate and change in a difficult situation and adjust the product structure in the tide of price increases, they may develop into elite enterprises. In addition, 25% of respondents chose to increase brand awareness and influence. Those who agree to dig into their own potential and reduce costs and increase efficiency only account for 17% of the surveyed population. Some tire companies said that due to the added value of their products, their brands are competitive with other similar brands. With brand advantages, such companies appear to be calm when they deal with tire inflation. Take the quality route or become inevitable In terms of the competitiveness of Chinese tires, the respondents showed great differences of opinion. On the one hand, 42% said that the quality of Chinese tires has been substantially improved. Respondents who hold this view mainly focus on large-scale tire companies that insist on taking the quality route and actively adjusting their own structure. In recent years, these companies have invested heavily in the introduction of advanced foreign equipment to create modern high-tech tire projects, and pay attention to increase technical research and development, and constantly adjust the product formula. After years of hard work, the quality of tires has been greatly improved. "Now the tire production line is to produce a low-quality tire is difficult." An industry insiders said when evaluating their own tires. At the same time, in order to enhance their competitiveness, these tire manufacturers will deliberately avoid malicious low-price competition in the market to produce high value-added tires. On the other hand, 39% also believe that the competitiveness of Chinese tires is gradually declining due to the loss of price advantage. This view is mainly aimed at small and medium-sized tire companies with extensive development, technological progress, and slow product upgrades. Most of its products are oriented to the low-end market and rely on low-price competition to gain market share. According to analysis, the price difference between low-end products and mid- to high-end products has been greatly reduced in this round of price increases. When consumers choose products, they naturally give up small brand products without price advantage and instead choose large brand products. Intense competition, price war is no longer "king" At this stage, China's tire products are mainly concentrated in the low-end market, mainly small and medium-sized enterprises, the main means of competition is to fight the "price war." In response to the “risk of rising prices for the tire industry,†most respondents believe that the industry will usher in a new reshuffle. Among them, 36% said that SMEs that are deeply stuck in the “price war†will be eliminated; 26% believe that the strong will be stronger and the industry concentration will be improved. The two add up and account for 62% of all survey respondents. All along, some small and medium-sized tire companies rely on bank loans to survive, and their own liquidity is limited. Coupled with insufficient credit, these companies have difficulty obtaining higher credit lines. For this part of the tire industry, on the one hand, the price of raw materials is continuously rising. On the other hand, after the price increases, the products lose their original competitive advantages and continue to lose market share. The financial difficulties caused by these two aspects may have become the "last straw" for them. The collapse of a large number of small and medium-sized tire manufacturers will inevitably increase the market share of the “strong†and increase the degree of industry concentration. In addition, 28% of the respondents believe that the domestic market competition will be even more tragic; 10% said that exports will be more difficult. 5 Gallon Paint Bucket,Paint Bucket,Metal Bucket,Tinplate Metal Pail Guangzhou Futen Plastic & Metal Products Co.,Ltd , https://www.futencan.com
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