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The Rise of Global Online Tires Market

Global Online Tires Market

Product Overview:

Online retailing has become a foremost sales channel and is expected to dominate the market over the next five years as well. Various specifications in tires makes it difficult for customers to evaluate the cost, the e-commerce platform helps to solve this problem by making it easy for customers to compare different tires and prices at same time. Value, accommodation, parts accessibility and an extensive variety of items are the most basic purposes behind clients to shop online.

The online retailing helps in reaching out too many consumers without launching stores and this results in cost benefits which are ultimately passed on to the customers. Moreover, increasing spending on e-commerce platform by OEM’s due to high internet penetration rate will drive the online tire market over the next five years as well. The e-commerce industry has a prominent hold in several countries, backed by steadily increasing internet penetration rate. The automotive industry is also utilizing the e-commerce platform to boost its sales in several countries.

Global Online Tire Market is expected to grow at a CAGR of over 7%, in value terms, over the next five years, on the back of increasing vehicle sales, increasing internet penetration, low pricing strategy and multiple online offers.

What Drives the Online Tire Market?

     Growing Internet Users:

The internet users globally are increasing every year which is attracting OEM’s to sell their product online. On Internet, the users spend a lot of time and can compare so many products at one time. The consumers find online shopping an easy and reliable source. This in turns drives the Global online tire market.

Several major companies globally are selling tires via online mode. This trend of purchasing tires online is expected to increase over the next five years as well.

Over the years, growing internet penetration has changed the business strategies for several industries, including tire. The e-commerce industry has emerged as a prominent player in the demand-supply chain, providing customers with several products to their homes.

 Growing Vehicle Production:

Prominent factors influencing the global online tire market is increasing vehicle production globally. Growing automobile production, prominently passenger cars and two-wheelers, coupled with huge vehicle fleet are the major factors aiding global online tire market.

                                                                                   Source: OICA, JATMA, ACEM, ACEA

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Growing Vehicle Sales:

Automobile sales is growing since 2012 to 2016 and is expected to grow over the next five years as well backed by growing population, increasing disposable income and increasing technological advancements. As a result, demand for online tires from the OEM as well as replacement segments globally is expected to increase over the next five years.

                                                                                      Source: OICA, JATMA, ACEM, ACEA

United States Online Tire Market Overview:

Over the last few years, growth in the e-commerce industry has majorly revolutionized the business strategies of the industries regarding the online retail chain. The e-commerce industry has grown as a key player in support of the excellent supply chain management system, providing consumers with variety of products at doorstep.

Currently, the United States tire marketing channels are divided into offline and online sales. Online sales channel consists of web portals where consumers can visit and order tires. Offline sales channel represents independent tire dealers, mass merchandisers, warehouse clubs, auto dealerships and tire companies owned stores where customers can visit personally and order tires according to their requirement and choice.

In 2016, more than 6% of total tires sold in United States were sold through online channels. In 2015, Goodyear started its own online tire sales program through which the customers could buy the tires of their choice online and pay for the same. The tires would be installed at their preferred authorized dealer, who would be part of the company’s network instead of being just delivered at their home.

Goodyear’s online sales network has initially started in 2015 with one or two markets and then extend gradually to other markets. In the United States, more than 3,000 tire stores accepted to take part in the initiative.

Michelin North America Inc. has also decided to sell its BFGoodrich tires online in Charlotte, North Carolina region. The company is actively inviting their service partners to take part in the new e-commerce network, which would have been otherwise difficult for the small-scale businesses to achieve on their own.

Tire Rack, Online Tires, Tire-Easy, etc., are other prominent online tire stores currently operational in the United States.

Conclusion:  Global Online Tire Market is expected to grow at a CAGR of over 7%, in value terms over the next five years, it is expected to see an upward trend in the searches for tires. Web indexes, for example, Yahoo, Google, and Bing are most usually utilized for examination and increase early data, while the tire producer sites are regularly gone by for data to look at and comprehend highlights. Tire company sites are very popular sites for tire research, further the customers also take advice from mechanics, friends and family, car dealers and consider online reviews. Moreover, increasing spending on e-commerce platform by OEM’s due to high internet penetration rate will drive the online tire market during the forecast period as well.

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