News from the tyre wholesale sector
Grouptyre founding member Bush Tyres is celebrating 70 years in business this year. The family-owned company has earned a reputation as Lincolnshire and East Yorkshire’s leading independent tyre specialist, in both retail and wholesale, with its place within Grouptyre helping to form a nationally successful business.
Micheldever Tyre Services has revealed a significant increase in motorbike tyre sales during 2017. In its 40th year of selling tyres for the full range of motorcycle applications, MTS said sales had increased across its range. The company serves customers from its national warehouse network of 25 sites, fully linked for stock availability and replenishment in real-time, and its dedicated online platform BikeTyreBuyer.com. With this structure, it claims to be the only motorbike tyre distributor offering UK nationwide coverage.
The UK’s largest wholesaler, Stapleton’s acknowledges this growing interest in SUV tyres while adding that uncertainty in our domestic market as inflation rises, sluggish growth, and the reduced value of the pound are adding to the case for cheaper products in the SUV/4×4 segment. The wholesaler backs up Goodyear’s point that the current market has been good for premium brands, with demand for such products strong in the SUV/4×4 segment.
Tyres in Stock’s online shop has details of more than 30 million tyres. The firm reports that it has always done its best “to make the process as quick and simple as possible”. However, recently Tyres in Stock rebuilt its online presence to accommodate the growth that the firm is expecting.450 suppliers already offer their products through Tyres in Stock, which is active in over 15 European countries. The new software allows the business to pursue what it perceives to be growing international possibilities.
A further step towards consolidation within Europe’s tyre wholesaling sector has been taken with the European Commission approving the sale of Reiff Reifen und Autotechnik to US private equity fund Bain Capital Investors LLC. The new owner states its intention to become a regional leader within this business.
Stamford Tyres (Hong Kong) Ltd., a subsidiary of Singapore-based Stamford Tyres Corporation Limited, has set up a wholly-owned subsidiary in China. The new company, Stamford Tyres Dongguan Co Ltd., was set up with a registered capital of US$1 million and will principally engage in the wholesale and distribution of tyres, wheels and automotive accessories.
The opening of the sixth RH Claydon wholesale distribution centre in the UK was celebrated on 31 July. Customers invited to the centre in Launceston, Cornwall that day were treated to local faire, including Cornish pasties and cream teas, and were entertained by an impressive display of football skills from Paris-based Guinean footballer, Iya Traoré. His presence at the opening was arranged by BKT, whose tyres are distributed in the UK by the wholesaler.
Singapore-based tyre distributor Stamford Tyres Corporation Limited has reported a 213.6 percent year-on-year increase in net profit for the 2017 financial year, which ended on 30 April 2017; compared with 2015, net profit last year was up 376.5 per cent. This profit of S$8.1 million (£4.6 million) was accompanied by a gross margin of 26.2 per cent, up from 24.7 per cent in 2016 and 22.1 per cent in 2014. Total revenue for 2017 was $235.8 million (£133.1 million), 1.7 per cent lower than the previous year. Revenue derived from the distribution of tyres and wheels accounted for 87.2 per cent of total revenue while wheel manufacturing accounted for 12.8 per cent.
According to Bertus Heuver, the construction of a new warehouse facility at Heuver Tyrewholesale’s site in Hardenberg, the Netherlands is “making significant progress.” The director comments that the shape of the 16,000-square metre building is now clearly visible, and adds that the wholesaler has acquired three new forklift trucks in preparation for its completion in September.
Following the signing of an agreement with Sailun at the Tyrexpo Asia show in April, Tyre Trading International’s Peter-Alexander van ‘t Hof has set up a tyre distribution company in Germany. The Düsseldorf-based firm is called Reifen Kraftwerk GmbH (RKW) and has been established together with Oliver Wirt, who brings with him two decades of tyre industry sales experience, most recently for Euro Tyre in Germany. As of this month, Reifen Kraftwerk is supplying the German market from a warehouse in the Rhineland.
In addition to its tyre business, Kirkby Tyres’ ISO 9002 compliant services also include the supply of commercial wheels. The Speke-based wholesaler supplies the brands Jantsa, Pronar, Mefro, GKN, Protector, Alpro, Maxion, and Accuride, with more than 24,000 wheels currently in stock.
It’s been the same old story for too long now – cheap tyres, overcapacity and low margins. For at least the last five years, Europe’s wholesalers have watched these factors eat too much of their profits. But has the page now turned? Deldo’s Tom Van Dyck thinks it has. In March, he shared with Tyres & Accessories his hope and expectation that current developments within the raw materials and logistics markets may give tyre industry players a new opportunity to make decent money.
Peter-Alexander van ‘t Hof was only 13 years old when he attended his first tyre trade show, the Reifen show in Essen. An unorthodox venue for a freshly-minted teenager to spend his free time, however van ‘t Hof says he “found rubber cool” back then. He tells Tyres & Accessories that he still does, which is a good thing indeed, as three decades later the owner and director of Tyre Trading International (T.T.I.) spends much of his day dealing with the black, rubbery rings.
Giti Tire has presented its three-year development programme for its GT Radial brand to key dealers, including UK distributor Micheldever Tyre Services (MTS). The annual PCR European Marketing Council, held in Austria, was attended by customers from across the continent. It looked at current market conditions, future trends, product development and marketing direction, including the brand proposition across advertising, point-of-sale and online activities, comprising the brand website and social media.
As a tyre wholesaler specialising in commercial tyre segments, Kirkby Tyres has progressively expanded its range of OTR tyres and wheels; the company states that its range of radial and bias tyres for earthmovers and construction vehicles is now “enormous and varied”. The wholesaler has distribution partnerships with several rising manufacturers, such as Alliance, BKT, and Double Coin, which have supported Kirkby’s competitive pricing strategy.
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