Tire dealers are experiencing "injury" and "pain"

Recently, the reporter has communicated with many domestic tire agents. They all expressed concern about the current status of the agents.

At the new session of the China Rubber Industry Association Marketing Working Committee, Bao Renqiao, Chairman of Wuhan Tianli Group, was re-elected as Chairman of the Marketing Working Committee.

In his view, the domestic tire agency industry is at a critical moment of change, and the drawbacks of the traditional business model have been fully revealed.

Injured in price fluctuations

According to the Tire World Network, traditional agents generally make a living by eating the difference, so they are very sensitive to market prices.

Since last year, the domestic tire industry has experienced two price increases. A large number of tire agents have suffered in this process.

“The surge in prices has come, making up for the madness; the prices have fallen and mourned all over the place.” A tire agent stated that the price of tires fluctuates violently, and the biggest injury is the agency.

According to statistics, the recent two price surges, the maximum price fluctuations in tires more than 30%. Such dramatic price fluctuations are very rare in the tire market.

The above-mentioned agent complained to Tireworld.com that the price had risen too fast, one price per day, forcing the merchant to borrow money to make up the inventory; and when the price fell, the stock would be directly in the hands.

It is reported that tire prices caused dealers to make up for the madness, and the most direct result is reflected in the capital chain. Many agents have problems and are concerned with this.

"Dealers now have increasingly thin profits, and some conditions in the capital chain are inevitable," said Bao Qiao.

However, in the view of Lei Changchun, secretary general of the marketing committee of the China-ASEAN Association for Marketing, agents with problems in the capital chain are often accompanied by management problems.

He believes that the deeper reason is the development of the tire agency industry and has reached a period of urgent need for "change."

Choice is a kind of "painful" bitterness

According to the Tire World Network, for the "change" that Lei Changchun said, domestic tire agents are forming consensus.

Chen Bin, general manager of Nanjing Ninglun Co., Ltd. believes that tire agents should not just be simple porters. Their value lies in the control of channels and services.

Pan Zhuoqiang, chairman of Beijing Zhengqiang New Century International Trading Co., Ltd., said that prices have become increasingly transparent and that agents are not able to return to the era of profit-earning profits.

Tire World Net understands that at present, many domestic large-scale tire dealers are born from “dust legs”, and they do not have much culture. In the face of the ever-changing new situation, they are somewhat incompetent.

Lei Changchun said that it is easy for the agents to form a consensus, but it is really difficult to change it.

Nanjing Ninglun shares are the first domestic tire agents to land on the new board. Entering the capital market has opened up a new development path for this company.

In Chen Bin’s view, relying on traditional business models, companies can only destroy themselves. Agents need to sink channels and use their resources in exchange for living space.

However, Nanjing Ninglun shares only tested water in front, and its road is still being explored. For other agents, this path is not reproducible.

"Transformation is risky. It does not change. It is a painful choice for tire dealers." A company official said.

Lei Changchun believes that regardless of the choice of method, the first thing the tire agency should do is to make themselves stronger. Because this industry will not die, someone must survive.

"Everyone is very confused and is susceptible to pessimism. I think we should still strengthen our confidence and do our own business," Lei Changchun said.