The Rise of the Eco-Tyre

Anyone who attended the Essen show will have noticed how dramatically the marketing messages propagated at the show appear to have ‘evolved’ from seemingly polar positions.

Asking certain companies what their policy was in relation to aromatic oils and low rolling resistance tyres four years ago resulted in quizzical looks and stifled smiles. There may have been a few companies ahead of the game on this issue, but in general it was all about size, speed and profile. Now this remains undeniably influential, but the ‘product narrative’ has changed completely. Today’s tyres save fuel and last longer than ever, apparently.

As global consumer markets feel the pinch from the credit crunch, one can’t help wondering how long it will take the Chinese manufacturers to catch up with ‘green’ eco-technology. However, there remain both distributors and manufacturers alike that are sceptical as to the sales value of the green message. Do consumers really buy tyres because they may save them fuel?

Pirelli Tyre CEO and European Tyre & Rubber Manufacturers’ Association (ETRMA) president, Francesco Gori, spoke on a related subject during the opening ceremony. In his speech Dr Gori was “perfectly frank” in his references to planned EU directives that will require tyre manufacturers to improve wet grip performance, material authorisation and road noise properties. By way of a warning, he pointed out the consequences these regulations could have on European producers, particularly in comparison with their Asian competitors. Despite the looming threat of legislation and the cost pressure caused by rising raw material prices, the consensus from Reifen visitors is optimistic – 20.2 per cent are even expecting a strong upward trend in the economic growth of the tyre sector, this compares with 12.2 per cent who predicted this in 2006.

As far as the exhibition itself was concerned, with 20 per cent more exhibitors than last time and 17,600 visitors, Reifen Essen has obviously received the green light from the tyre trade. In fact, according to data released by Reifen show organiser Messe Essen, the 25th Reifen exhibition was actually a record breaker. 576 exhibitors (up 21 per cent on 2006) showed their tyre, wheel and chassis technology-related products and services. Visitor numbers totalled 17,600 compared with 17,100 in 2006.

Messe Essen reports that the show was also more international that ever, with 57.4 per cent (2006: 45%) of visitors originating from outside Germany. “That is an excellent value; it highlights the position of Reifen as the leading international fair in the sector,” Dr. Joachim Henneke, Chairman and CEO of Messe Essen commented. International visitors primarily came from other European countries (78.9%) and from the Asian region (11.1%).

Visitors from “the tyre trade” accounted for 34.4 per cent of show traffic, while another 26.8 per cent reportedly worked in the tyre service side of things. 51.1 per cent of visitors described themselves as amongst the top decision-takers in their companies (2006: 44.7%). Seemingly as a result, 42.1 per cent of the visitors placed orders during the show and 42.5 per cent stated that they wanted to conclude contracts after the fair. Nearly all the exhibitors (97.5%) said they had reached their intended target audience.

Keith Jarman, President of AME International, was one particularly positive exhibitor: “Our international business would not be where it is now if this fair had not existed. In spite of the worldwide economic difficulties, the tyre industry is doing fine from a global perspective. Because of the dollar exchange rate, it is absolutely sensible to be here.”

Jean-Claude de Thibault de Boesinghe, Sales & Marketing Manager for EMEA of Bandag AG, echoed this sentiment: “Reifen has gone very well for. We always concentrate all our activities on this fair and meet our dealers from Europe, the Middle East and Africa here. On a large, open booth, we have shown the newest products and technological innovations. The first day was already very busy and the second even better.”