Heuver Tyrewholesale has upgraded its Tyre app, calling it “an essential part of the company’s multi-channel strategy”. The app now allows tyre orders to be placed from any location, online and offline, as a response to customer feedback.
In October 2014’s Wholesale feature, Tyres & Accessories asked whether Europe’s independent tyre wholesalers still have a future in the context of the German company Ihle Baden Baden’s failure and subsequent sale to Michelin. Pointing to the lightening of the business due to such factors as the price transparency offered by e-commerce (and online marketing) we wondered whether the value of the relationship between customers and their suppliers had become more tenuous, relying only on price and reliability of deliveries. Should these two considerations become the only weapons in a wholesaler’s arsenal, T&A suggested that their role becomes more akin to a specialised freight forwarder.
Bristol’s Unity Tyre distributes budget brand tyres in the UK, having established itself as an independent wholesaler with the objective of providing a “one-stop-shop” service. Unity’s spokesperson said the company works closely with “tyre manufacturing suppliers including SD International to ensure we meet the demands of our customer base with continuous quality products.” Unity also commented on major issues in the UK tyre wholesale sector covered in October’s Tyres & Accessories feature, and suggested that further volatility could lead to its contraction in the near future.
Speke-based tyre wholesaler Kirkby Tyres is not concerned with the high production levels and low prices currently coming out of China at the present time, not least because it does not play a role in the car tyre market. The OTR specialist comments that it expects “more and more tyres to come in at lower prices” within the PCR market, but adds, categorically, that: “we have absolutely no interest in buying or adding budget Chinese tyres to our brand offering” within the segments in which it does operate.
Micheldever Tyre Services’ wholesale business, worth £230 million in annual sales, has taken significant steps to support the on and offline operations of its independent tyre dealer customers in 2015. The added value of MTS’ services has become increasingly important in the light of continued growth in the number of retail branches controlled by the top 20 multiples (as noted in our Tyre Retail feature in the May magazine), and the increased online competition provided by internet specialists, big retail brands from within and outside the traditional tyre sector, and now, with Michelin’s acquisition of Blackcircles.com, major tyre manufacturers themselves. Alan Baldwin, sales director at Micheldever Tyre Services, told Tyres & Accessories, “I’m confident that there isn’t another wholesaler, distributor, and in many cases, manufacturer, in the UK that invests as much money, time and resources in supporting dealers as we do.”
Kings Road Tyres has added the Blacklion passenger car range and new Turf/ATV tyres from its Kingstone house brand to its portfolio. Already the exclusive distributor of Blacklion’s TBR range, KRT has extended its stock with the Sailun-produced brand’s PCR products. KRT describes Kingstone, first introduced in 1987, as being among the very first house brands developed exclusively by a UK wholesaler. The development of a new range of 50 turf and all-terrain vehicle tyres is a reflection of KRT’s strategic decision to grow its business in this specialist market.
Stapleton’s investment in recent years has been focused on its nationwide distribution operation – including new regional hubs and a larger delivery fleet – the wholesaler said. “It’s all been in response to the retailers’ needs – and we’re gratified by their response to the flexible and responsive operation we’ve created, with faster and more frequent deliveries,” comments Nigel O’Hara, Stapleton’s wholesale director. Retailer feedback has confirmed Stapleton’s customers want to stock a variety of tyre solutions at every price point, but especially in the fiercely competitive mid-market sector. The wholesaler has a range of exclusive brands in this segment, including Maxxis, Nexen, Matador, Event and Riken.
Specialising in the production of solid and pneumatic industrial tyres and operating out of a warehouse in Manchester, Wholesale Industrial Tyres (WIT) was set up to offer more value and choice for businesses with large fleets of warehousing vehicles. WIT is the exclusive UK distributor for Sri Lankan materials handling tyre manufacturer Global Rubber Industries (GRI), importing a range of tyres suitable for heavy duty warehousing tasks. WIT currently employs five people.
Oak Tyres has undergone some dynamic changes this year as it adapts its business to a shifting wholesale landscape. The most radical of the company’s developments in 2015 has been the launch of its fully owned private brand Davanti, which Oak’s management most recently supported at CITExpo 2015 in Shanghai. To accommodate operations associated with the new brand, Oak Group Holdings was formed, with the Oak Tyres 100 per cent wholesale business now under this umbrella alongside Davanti Tyres, and promotional merchandise producer Davanti World. With the Davanti product designed as “an opportunity for margin”, in the words of general manager Larry Cross, Oak Tyres’ brand portfolio has increased its scope. Stating that “we have a very clear, defined brand strategy at Oak, which we have refined continuously over the past five years,” Peter Cross, commercial manager at Oak Tyres, told Tyres & Accessories a bit more about the company’s current outlook, and how the second tier “exclusive brand programmes” are offering customers the opportunity “to maximise their profits”.
Derby’s Eden Tyres & Servicing (ETS) holds over 60,000 tyres in stock for immediate delivery. The family owned and managed business commenced trading in 1981 at its headquarter base in Codnor Gate, Ripley. Leigh Howes of ETS said: “One of our most established partnerships has been with Chinese based contract tyre producer SD-International. We have been purchasing their popular Zeta range for the past five years both as a wholesale brand and through our thriving ten retail outlets throughout the East Midlands. We stock the Zeta brand on an exclusive basis for a number of reasons including the extensive range available and because of its competitive pricing structure.”
Asia-Europe container transportation rates are currently at a deep low (see graph), but the obvious price benefit to importers of tyres from South-East Asia is mitigated somewhat by volatility in shipping conditions, which affects punctuality and reliability of tyres’ delivery. Shipping lines’ over-estimation of the market potential has led to artificial capacity restrictions used to mitigate over-capacity, and in some cases, cancelled shippings. With these factors fundamental to UK tyre wholesale, Tyres & Accessories asked freight forwarder Maritime Cargo Services partner Rob Shelley about the issues currently at play in this market.
Grouptyre says that “continued investment” by its members is one of the primary reasons for its 2015 growth following a period of consolidation. With a turnover fast approaching £310m, Grouptyre, which comprises 10 strong regional wholesalers, has seen further investment in warehousing, delivery vehicles and therefore availability of product and an increase in delivery drops to its retail customers. Currently Grouptyre has 40 strategically located distribution points, with more expected to be added, and 440 delivery vehicles nationwide.
Membat, a tyre brand designed in Barcelona, recently launched a new website in order to offer users “an easier, intuitive and interactive navigation”. The company reports that this was achieved by incorporating “the latest technology” and as a result customers will be able to find out more about the brand and its positioning. The new site is organized into five main sections: about us, products, Membat quality, news and contact.
Heuver Tyrewholesale says that many companies normally only think about winter tyres in October. In the past, this would have been too late to guarantee availability. However, Heuver has boosted the number of Aeolus ASW80 (steer axle) and ADW80 (drive axle) winter tyres that it holds in stock. As a result, once customers place an order, they will normally receive their tyres the next day, thanks to ample stocks at Heuver’s distribution centres in the Netherlands, Germany and France.
Following the successful debut of TGI dealer meeting entitled “Mission: Happiness”, in Punta Cana, Dominican Republic in 2013, Tire Group International hosted its 2015 equivalent – “Mission: Happiness 2” recently.
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