In the first edition of the “China International Conference on Tyre Industry Cooperation & Developments”, a forum for the tyre sector in China, which will take place on the 29th of November during Automechanika Shanghai, some of the most reputable experts from the sector will offer their points of views on some of the challenges which the industry is having to face up to, such as: exporting, recycling, research and development, brand awareness and knowledge, globalisation in premium markets and competitiveness.
The China International Conference on the Tyre Industry
Divided into 6 talks, with each of them addressing a key theme for the sector, the “China International Conference on Tyre Industry Cooperation & Developments” has been born through the collaborative support of 3 entities. These organisations are as follows: Automechanika Shanghai, the main trade fair for the automotive sector in Asia, Valebridge Media Services, a British communications agency and Cheycheyz.com, an online Chinese information platform. This is all with the objective allowing the forum to become an event whereby some of the most prominent leaders and experts of the market share their knowledge and tackle the possible avenues that the industry in China can confront the obstacles that they are having to confront.
The panel of 6 prestigious professionals that will participate in this first meeting has recently been updated with the inclusión of Huixing Shen, the President of Shanghai Quyang Tyre and since 2011, the President of the Shanghai Tyre Association. With more than 40 years of experience in the tyre work, he founded the company Quyang Tyre in 1994, entering the market to form a part of the first generation of tyre distributors in China. Moving forward 10 years, in the midst of the complete transformation of the sector, he created Che Ju Jia, his network of tyre shops. In 2006, he partnered with China Telecom to develop the first management system for tyre shops. Shen has been the President of Shanghai Quyang Tyre, a company specialising in the distribution, fitting and maintenance of tyres since 2010.
Given the proximity of the conference, the speakers have expressed some of their expectations regarding this first conference. Firstly, Qun-Lian Hong, Director and Deputy Researcher of the Industrial Economic Research Institute of the National Development and Reform Commission commented: “Automechanika Shanghai is a leading trade fair of automotive parts, equipment, accessories and services, it is influential in both China and overseas countries. Chinese government plays an important role on the automotive industry development. I hope to let more audiences learn about the current development of Chinese automotive and parts industry, the economic situation and the impacts of the industry under country policy changes. We hope this show could bring more concern to the industry, and more investors, entrepreneurs and technicians will devote to the industry development and contribute to the international competitiveness of the Chinese tyre industry.”
David Shaw, Owner and General Director of the company Tire Industry Research (TIRes), aims to fully understand the Chinese tyre market, “I hope that I can bring some of this inside knowledge to Chinese tyre makers to help them compete better against the big-name brands. If I can learn from Chinese tyre makers about the current situation in China, and how the industry will consolidate in the coming months, that will be a good reward”, stated Shaw.
During his presentation entitled “How to sell more tyres in Europe”, Shaw will explain how selling by price has driven the current situation in China, whereby there is no brand loyalty on the part of the consumers and the distributors amongst other circumstances. The objective must be, in the opinion of the director of TIRes, establishing specific distribution organisations in the target country, with a local workforce.
The expert most recently incorporated into the panel of renowned speakers for the “China International Conference on Tyre Industry Cooperation & Developments”, Huixing Shen, in his talked named “Transformation of Tyre Distribution in China and its Future Trends”, will take a look at growing importance of e-commerce platforms in the sector. In his view, “the tyre supply chain is not simply about bidding on prices, but We have to provide the related professional service for tyre maintenance and installation. This has explained why the current e-commerce operation does not play the expected role in the tyre industry.”
How to take the appropriate steps in very mature, highly competitive markets and innovative markets such as the ones we find in Europe is the objective of the presentation named “Optimising the Tyre Brand for Western Markets” by Sandro García-Salmones, Project Manager for Valebridge Media Services.
“Europe is the biggest and most advanced tyre market in the world, where the consumer is well-informed, has access to tremendously varied product offer, can demand solutions specifically adapted to the characteristics of the national market, which are very different to Asian markets or even North American ones,” comments the expert, known for his implementation of Chinese brands on the old continent. “A potent marketing strategy and an offer of quality should be the keys for any Asian brand trying to do business abroad with success in the most challenging tyre market in the world,” concludes García-Salmones.
For the Senior Vice President of Ji Yi Bing Ding, Zheng-bo Zhao, “The market changes every day, traditional tyre businesses are facing a big challenge under the impact of internet. They could no longer gain profits by relying on the price differences. Therefore, with the presentation “The prospects of tyre e-commerce business in China”, we will explore how factories, suppliers, stores could develop even further.
For Zhao, the keys for electronic commercial development in relation to the “The key is the government’s full support on the e-commerce development. The driving forces for e-commerce development include the acceptance from consumers, the emergence of large e-commerce enterprises, advanced internet technology and the formation of supporting industries.”
“I see opportunities for Chinese tyre recycling companies in progressing from thermal to material recycling” explains the expert and specialist in alternative rubber fillers and tyre pyrolysis, Martin von Wolfersdorff. As the consultor will explain in his talk “Tyre Recycling of the Future”, Chinese companies will have to walk the same path that western markets in Europe and the USA have already covered. “Many of the required technologies already exist. What is missing is industry over-arching experience in tyre collection, recycling, refining and marketing of the products. This is specifically for recovered carbon black from tyre pyrolysis, as there are good opportunities in China due to coal tar cost and hence carbon black prices are continuing to rise,” summarises von Wolfersdorff.
The first “China International Conference on Tyre Industry Cooperation & Developments” will take place during Automechanika Shanghai, the main automotive trade fair in Asia. Organised by Messe Frankfurt (Shanghai) Co Ltd and China National Machinery Industry International (Sinomachint), is one the 17 trade fairs that Automechanika hold in Africa, Asia, Europe and the Americas. The edition this year will be held from the 28th of November until the 1st of December, occupying 350,000 square meters and will welcome 6,250 exhibitors, who will be displaying their products and services to 140,000 visitors that will be attending the trade fair on this occasion.