UK distribution continues as Kormoran exits DACH region
Although Michelin is withdrawing its Kormoran brand from several European markets next year, sales of Kormoran tyres will continue in the UK.
Although Michelin is withdrawing its Kormoran brand from several European markets next year, sales of Kormoran tyres will continue in the UK.
With multiple sources suggesting that the online tyre business broke new ground during 2020, but with data illustrating that trend less easy to come by, Tyres & Accessories caught up with Micheldever Tyre Services (MTS) wholesale director Graham Mitchell in order to get a leading tyre wholesaler’s perspective. Starting by setting the company’s recent online tyre business performance into the context of its recent history, our interview looks to the future of the online tyre business and touches on the importance of search engine marketing in the tyre trade.
Falken Tire Europe GmbH has now announced in a letter to its business partners that it is implementing new price lists effective 1 January 2022 for both the Falken brand and for Sumitomo tyres. The price increases are considerable and extend well into the double-digit range. At the same time, the manufacturer is revising down certain price adjustments announced in September for the new year. However, both sets of price increases are limited to the German-speaking markets with Falken/Sumitomo Rubber representatives confirming to Tyres & Accessories that the price increases do not apply in the UK.
The complexity of the UK tyre wholesale sector has certainly ramped up considerably thanks to what may be termed an almost perfect storm of external factors relating both to the Covid pandemic and Brexit. With retail margins on consumer tyres already very fine, the wholesale sector has been key in keeping price increases under control, especially considering the spiralling cost of shipping. But as those in the sector know, the value wholesalers add within the distribution chain is a considerably wider subject than purely price. Arguably, the service dimension has never been more important than in the last 18 months, as retail businesses adapted to a market transformed by externalities. Tyres & Accessories asked Graham Mitchell, Micheldever Tyre Services wholesale director, about how the business is faring in 2021, starting with its performance this year.
80 guests became the first European customers to test drive the new GT Radial SportActive 2 and FE2 at GT Radial’s first Mira Drive and Ride event for almost two years. Potential new dealers, supported by select GT Radial Performance Centre (GTPC) owners, got back on track under Covid secure conditions over two days, during which GT Radial’s exclusive UK distributor over the last decade, Micheldever Tyre Services (MTS), presented the brand’s product portfolio. All attendees were invited to experience high speed circuits in the new BMW 5 Series of Giti Tire’s country manager – UK, Brian McDermott who put his own car on the redline.
Micheldever Tyre Services has almost doubled its sales of BFGoodrich tyres since becoming the brand’s official 4×4 wholesaler in the UK at the start of 2020. The agreement sees the Winchester-based business – which has established a wholesale distribution network of 15 sites around the country, supplying more than 6,000 retailers nationwide – stock a large selection of BFGoodrich’s All Terrain T/A KO2 and Mud-Terrain T/A KM3 ranges, helping to ensure excellent product availability throughout the year.
General Tire’s Altimax One S is the heritage-rich Continental group brand’s successor to the Altimax Sport, offering reliable dry performance, increased wet grip, and higher mileage due to its silica enriched rubber compound. The tyre is available in the UK from exclusive distributor Micheldever Tyre Services in a broad range of 15 to 20” sizes, approved for speeds of up to 186 mph.
Phil May, owner of Strood based RM Tyres, passed the million-pound milestone at the end of February, the peak of 12 months during which his company has seen an unprecedented increase in online sales. For all of the tyre sales processed by RM Tyres through TyreClick, 28 per cent have come in the past 12 months, an indication of the surge in consumers opting to buy their tyres online.
Micheldever Tyre Services (MTS) reports that it is offers a “gripping” SUV proposition for retail customers in 2021, with a range of new products available to its tyre retailer network. According to the company, MTS supplies SUV tyres to over 6,000 customers, including a national network of over 250 independent 4×4 and SUV tyre specialists. Changes include new upgraded patterns, helping to bolster MTS’s range of SUV tyres – for both for on and off-road usage.
Falken Tyres will sponsor a series of television programmes on UKTV’s entertainment channel, Dave. The first national TV advertising campaign for the Sumitomo Rubber Industries global tyre brand was developed by the brand’s UK distributor Micheldever Tyre Services and its partner agency Spark Foundry. Falken idents will appear before and after selected programmes – collectively called “Characters on Dave” – between February and November 2021. These programmes include the popular entertainment shows QI XL, Travel Man, and Would I Lie To You?
Micheldever Tyre Service’s wholesale team covered almost 2000km by foot and bike in raising £11,000 for men’s health charities in November. The 28-strong team is sending the funs to organisations involved in providing support and raising awareness for prostate and testicular cancer, mental health, and suicide prevention. Various team members also sported newly grown moustaches for “Movember”. Readers can find the MTS team fundraising page here.
A couple of weeks after the end of the UK’s second lockdown, Tyres & Accessories spoke with Micheldever Tyre Services wholesale director Graham Mitchell. Since Mitchell was part of the panel in our inaugural “Kickstarting your tyre business” webinar in May 2020 at the end of the first lockdown, we thought it would be good to catch up at the end of the year and compare the differences between the first and second lockdowns. In short, while many shops closed during the first lockdown, the vast majority were open for business during the second. We also discussed 2020 as a whole and looked forward to 2021.
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Micheldever Tyre Services (MTS) has expanded its tyre distribution capacity with the addition of a new warehouse in Exeter and the expansion of its Nottingham and Walsall sites. The new 22,078 square foot Exeter location became fully operational in the summer. According to the company, the site expands stock-holding capacity by roughly 50 per cent from 11,000 to 16,000 tyres, whilst also providing an improved stock-keeping unit (SKU) range of 2,518 SKUs.
The Micheldever Group recorded its tenth TyreSafe Award in 2020, as Micheldever Tyre Services (MTS) and Protyre recorded their respective third and seventh consecutive victories in their categories. MTS won Wholesaler of the Year, while Protyre retained the Large Retailer of the Year accolade. Micheldever also paid tribute to MTS customer Stone Tyres, which swept the board at this year’s event with a hat-trick of awards.
TyreSafe usually presents its awards at a Gala ceremony, but the Coronavirus Crisis has made such an event unviable. TyreSafe has instead announced its award winners via social media and video presentation by its chair and chair of judges, Stuart Jackson. Tyrepress previously revealed the winners of the Tyre Manufacturer of the Year Award and the Innovation & Use of Technology Award, but the full list of the winners joining Hankook and Bridgestone is reproduced below. Additionally, you can view the judges’ review of submissions for several of the awards on Tyrepress below, or on TyreSafe’s YouTube channel.
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