What effect will tyre labelling have on consumer tyre pricing?
Messe Essen’s Reifen 2012 expo was something of a première for the new EU tyre labelling legislation, since it was the first large gathering of the business since the voluntary introduction period began on 31 May. While the preceding year was filled with knowing winks, tapped noses and polite refusals to reveal label performance predictions, the curtain was well and truly lifted on labelling during the show. What was revealed by manufacturers’ stands visited by Tyres & Accessories was the varying, and not necessarily expected, approaches and explanations for each company’s views on tyre labelling. The experience was like seeing a dress rehearsal, appropriately enough for this voluntary introduction period from which T&A writes, except some major players looked to be still learning their lines, while some of the assumed understudies were more ready to take up the challenge than many assumed they might be. Another assumption that has the potential for being rebutted was that labelling will protect the price premiums of established, mature market brands; in fact, it has begun to look like labelling could shake up the existing three tier pricing model.