Pneu-Stössel AG (Schlieren) has sold its eight outlets to the strongest independent tyre dealer organisation in Europe, Danish Viborg Gruppen. With its subsidiary Pneu Matti AG (Dietlikon), Viborg Gruppen was already one ofthe leading Swiss tyre dealers. Integrating Pneu-Stössel creates Switzerland’s market leader among independent tyre dealers with 21 outlets and more than 140 employees.
The slogan was “Service Makes The Difference”. Consultants MMS GmbH, together with the German dealer association BRV (which claims to be the “centre of competence”), organised this interesting seminar. Regrettably, representatives from only about 30 independent tyre dealers attended, with the majority of the 150 delegates coming from the tyre industry and their equities. Hubert Hannezo, Michelin’s Worldwide Marketing Manager for passenger car and light truck tyres, made a very informative speech and explained to the audience what is going on, for example, in the USA and what might become popular here very soon, and why. A totally new form of service is developing through the internet, and specialists from Continental enlarged on this in detail. Larry C. Morgan, a big tyre dealer from the USA, explained his growth philosophy. He is confident that his group will sell around ten million tyres a year from 2005 on. One of his statements was “Bigger is better, only if big is better” and “If it is to be, it is up to me”. Finally, keynote speaker Sir Tom Farmer used the opportunity to explain again what Kwik-Fit is, how it has grown, and for what it stands. One criticism of the seminar might be that there was no opportunity to ask questions, nor to initiate any discussion.
“Tomorrow already, today will be yesterday” – there is hardly anything else coming so close to this fact than the internet. Whereas two years ago in Germany, the percentage of people being connected to the internet was around 9 per cent, this figure went up to 16 per cent in the last quarter of 1999 and achieved more than 20 per cent, i.e. 13.4 million online users by the end of March 2000. And, relying on market researchers, the peak is still far away. It is supposed that in Germany another 10 million people will use the internet by the end of the year. Thus, probably the number of people with particular homepages will continue to rise very quickly. Meanwhile, this fact has also got about in the tyre business, which can be underlined by the variety of companies who presented their websites on the REIFEN 2000 in Essen. Would it now be possible – after books, software and music – to download tyres, too? Of course, tyre dealers still have an advantage: there must always be someone for mounting the tyres. For certain reasons tyre dealers do not really want to get to like being in this position, as they often feel to be “degraded to service operators”. In this case, however, they should realize the opportunities of the internet for being able to “distinguish themselves as service operators”, although there is hardly anyone today, who can foresee the development of the tyre dealers’ business over the next five or ten years. Find out more in the November issue of NEUE REIFENZEITUNG.
At the recent conference of the UK National Tyre Dealers Association (NTDA), Chairman of Council Ashley Croft announced that the Rapid-Fit chain of retailers had applied for membership. Rapid-Fit consists of 300+ fast-fit depots, owned by individual Ford car dealers. This will bring the number of centres in NTDA membership to more than 2,000.
The monthly census of the German tyre dealers association BRV showed the following results for May 2000: Compared to May 1999 the turnover of German tyre retailers decreased 0.9%. In the passenger car tyre segment the decrease was 5.4% and retreading business had to face a decrease of 9.6%. Only the light truck and truck tyre segment showed an increase (+ 2.7%).
As the 14th annual meeting of the German tyre dealers association announced, the turnover of passenger car tyres increased 44 p.c. over the previous year. Responsible for this positive development was the winter tyre segment which increased 14.8 p.c. to 17 million pieces. In spring 2000 43 percent of all passenger cars had been equipped with winter tyres. This year the association expects – in contradiction to the positive prognosis – a stagnant market. Reason: the bad results in the passenger car sector during the first months of this year.
The two cooperatives team Reifen-Union/Top Service Team KG (currently about 400 outlets) and Vereinigte ReifenFachhändler GmbH (VRG; currently about 200 outlets) have agreed a far-reaching cooperation on all levels, including the servicing of large customers and fleet management. An important ingredient is the immediate creation of a company called “Team Reifen Partner” GmbH + Co. KG (TRP), which will gradually incorporate both VRG and new companies as members. VRG members will still have to approve this measure officially in a meeting at the end of January. The team group, to date with a membership of 25 regionally successful tyre traders and as such the number one marketing group in the tyre market, will thus embrace also smaller and medium-sized tyre trading companies, whose members have already given their official consent to the plan. The new group based on the team/VRG cooperatives with more than 600 outlets is set to expand its base. An essential precondition for tyre dealers with local and regional operations and aspirations also to serve trans-regional customers, especially fleets and leasing companies, is full geographical coverage throughout Germany. At the same time the new partners want to coordinate their procurement and stocking policy and improve their purchasing terms and conditions.
During its 14th annual meeting, the German tyre dealers association BRV voted for an intensified cooperation with the association of the German passenger car dealers and manufacturers (ZDK). The aim of this cooperation is to increase the political influence and to enlarge the knowledge base. The BRV currently has 1,150 members and the ZDK has 48,000.
Surprisingly, Team and VRG could not come to an agreement in some major topics concerning the co-operation of the two German groups of tyre dealers. As a result VRG ended the consultations for the present.
According to Peter Hülzer, CEO of the German national tyre dealers association BRV, the Exhibition “Tyres 2000” in Essen attracted a total of 15.000 visitors. This is 1,100 visitors fewer than for the ’98 exhibition. The main reasons for this development are reckoned to be the later-than-usual date of the exhibition, the start of the holiday season in some parts of Germany and in a period of very hot weather during the exhibition.
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