On August 26, 2008, Michelin China Investment Co., Ltd. delivered a Michelin green energy-saving tire, XZA2+ Energy, to its customer, Beijing Xianglong Alsek Co., Ltd. in Beijing. This is also the start of the sales of Michelin trucks in the Chinese market in 2006. Ten thousand tires since the green tires. Michelin China announced that in order to meet the growing market demand, in 2008 it further enriched the specifications of its energy-saving tires and provided complementary products for more models. So far, Michelin is the only tire manufacturer in China's card and passenger car tire market that can provide green and energy-saving tires. This reporter interviewed Mr. Ke Situ, Vice President of Card Passenger Car Tire Market and Sales of Michelin (China) Investment Co., Ltd.
Effective cost control achieves 20% energy savings
Tire energy saving is about 2%, and the target is even higher on the test card, even reaching 20%. This 2% is already very great, so it brings a question: whether or not further energy-saving in the future will result in higher and higher integrated costs, making tire manufacturers more and more, and the overall benefits become lower and lower. Ke Situ explained this, saying that 2% energy saving is actually a very conservative statement. The use of green tyres for passenger cars is based on the comparison of Michelin's green tyres with Michelin tyres. If our tires are compared with other ordinary tires, our results may be better. For example, if we go to develop more products, it will not result in an increase in prices. From the perspective of future technological development, we cannot say what the future price trend will be. We can develop products. After using this product, he will save his cost. Regardless of price or mileage, the final customer gets a tire that is more product-saving. In addition, with the increase in costs, there will be some adjustments in prices. Actually, from another point of view, we will provide customers with such a product. We will increase production efficiency, reduce costs, and minimize the impact of cost increase on users. . Ultimately, we want to bring the lowest cost products to users. They are not paying for the cost of Michelin, but the value obtained from Michelin. This is the most important.
Mr. Kesitu continued: Therefore, it is concluded that it is cost-effective to quadruple this figure to 20% within five years, and this technical point of view falls on the technology. For example, to France to interview laboratories, someone mentioned plans to save 20% on fuel consumption. This result has been passed through raw materials, and other recipes can be used in rubber to bring more contributions. Not only this, but also a very complicated contribution, even the design of the tire itself. As for what is the last, it may be technical. Temporarily unable to provide specific information, but one thing is very clear, in order to achieve this goal, certainly combined many aspects, the use of raw materials, including the tire structure, the final design will come to such a result.
The overall reduction of operating costs is the promotion point
If faced with a direct user, selling XZA 2+Energy tires, it is assumed that Michelin will use lower unit costs or more fuel-efficient fuel as a publicity point, and Kesitu believes that there is no one more important: actually when we When a salesperson visits a customer, their main goal is to understand the customer's needs, provide an optimal solution, and use the tires. The ultimate goal is to help customers reduce operating costs. To achieve this goal, we will have tires saved, other services and products. All of these are not to say which one is the most important, all of which can help customers reduce operating costs. In fact, every item will play a vital role and can help our users.
Michelin believes that the key is to reduce operating costs as a whole, because now the global transportation company, the only factor that can ultimately win the only comprehensive operation is the lower operating costs than others.
Ke Situ further emphasizes: First of all, promoting such a product is through our sales staff. Michelin has a very strong sales force. They face customers every day and talk face to face with customers. This is the best link and way. We can introduce products to customers.
The second is sales channels, partners and operators. We train them to let them know about such products and introduce them to users through them. All these operators partners, channel partners will help us to promote these products.
Third, a large number of contributors come from the media and have the opportunity to communicate with the client area, deliver information, including other marketing activities, and communicate information to users through cooperation with others to increase their awareness and understanding of the product. Including users, including for the environment, this product can bring any contribution.
In addition, a number of associations and cooperation, because many associations they have a lot of members are a large fleet, by working with them to promotional products. In the past, we also talked on some occasions. For example, we cooperated with road transport associations and vehicle expert committees and participated in some tests and competitions that they did, such as fuel saving. We used this occasion to prove our products and promote our products. .
The export volume of Chinese tires has dropped this year. In July, it decreased by 0.7%. The growth of the entire tire exports from January to July also showed a slowing trend. This year, the domestic market is facing more severe competition. China's card and passenger car tire market is now difficult to promote even with tubeless tires. This seems to bring more obstacles to the promotion of green tires by Michelin. However, the benefits of green tires to China are unspeakable and of great significance. significant, China's market is very large. How to promote better products than tubeless tires? Kestu describes Michelin's marketing strategy: First, I have never underestimated or underestimated the rate of development of the Chinese market. For example, in terms of market merging rates, the market for tubeless tyres has grown very quickly and very rapidly in recent years. Our customers, compared with customers in mature countries in the world, have common needs, which is to reduce costs. From this perspective, the market prospects are very good. This market development is very fast, and the user's demand growth is also very fast.
In addition, when it comes to this product, it is not used in high-speed operation. Generally, if the car is running at high speed, the car condition is relatively good and the model is relatively modern. From this point of view, our customers have many needs to use better products to help them reduce costs. Today we witnessed the delivery of 100,000 tires. Through the development of sales, we have also proved that our customers have more and more demands to seek such products. Regarding the market competition that you just mentioned, exports have reduced the impact on market competition. In fact, the competition we face is different everyday, but all the competition is good for us, and we also respect the competitors. This competition will prompt us to make faster progress.
Thirdly, through the discovery in China in recent years, the maturity of Chinese users is also constantly improving. Many users are increasingly mastering this knowledge, that is how to measure the performance of tire savings, including how to help tires through better use of tires. He saves costs. From this point of view, I do not think that price or strict price competition will slow down the development of the Chinese market. In fact, the customer is more concerned with how to reduce the overall cost. From this point of view, the performance of our products is consistent with their needs.
Rich product spectrum to achieve diversified needs
According to reports, this tire is more used for highway conditions. Many of the freight vehicles are in the west, and it faces no highway conditions. Michelin has fully prepared tires that require highly demanding transportation.
According to Kesitu, first, this product can certainly be used on passenger cars as well as on trucks. Just said that if you want to use it on trucks, the effect will be more pronounced. Because passenger cars only have six tires, actually rolling resistance is directly related to how many tires are in contact with the ground. If it is a trailer with a trailer and a shaft, there will be 22 wheels, the effect will be more obvious, which means that it will save more fuel.
It is true that this tire is mainly used in long-distance and high-speed environments, but it does not mean that other users of Michelin are not on the highway and go on the national road or on the dirt road. Michelin has not provided some tires with low roller resistance. Upper Michelin is also constantly improving our products. Bring more energy-efficient fuel in their environment.
Different customers have different needs for tires because they are transporting in different environments. In that environment, customers are more concerned about fuel savings than there are other requirements, and our products have to meet their needs.
Kesitu is very confident about the truck market. Michelin's sales growth is very fast and faster than the market, including market expectations. From this point of view, we are still confident to grow our business.
Green concept runs through every link
Now that green tires are mainly fuel-efficient, including the emission reduction of carbon dioxide, Michelin's green concept is reflected in other aspects. According to Ke Situ: With the reduction of tires and weight reduction, it also brings green to customers. What we call “green†is more of users, not their own internal production. More is the contribution of users by saving fuel and reducing carbon dioxide emissions. We pay more attention to this green tire.
The contribution or effect of the contribution that green tires can bring is reflected in the use process. Because you are using this tire, you can save on fuel consumption. This savings is much greater than the effect of making it, which is why we are more concerned about how much green the tire brings during use.
The development of green tires is very rapid, but whether or not they will replace the ordinary tires as the main body of the market, Ke Situ can not be asserted. First of all, green tires do not mean that they will replace the use of all user tires in the future. Different users have different requirements for tires depending on the condition of the tires used and the location of the environment. Our green tires are mainly products for long-distance running customers on high-speed roads. Other users have suit their needs and products are provided to them. This is not the purpose of Michelin, so that all users provide such products on all occasions.
At present, under long-distance and high-speed use, this market is developing very rapidly. China will also need to expand the development of expressways in the future. More and more customers will use this product in the future. From this point of view, the market development is also very rapid and there is a large market space.
Sales growth is faster than market growth
According to Michelin's plan, in the future development of the Chinese market, the goal is to grow every year, and this growth is faster than the market growth rate, and it is necessary to increase market share every year. This is the most important goal of Michelin. One thing is certain: During the development of the entire Michelin Group, Michelin saw China's development is very fast and played a very important role in this process.
Michelin is global, and now trucks are playing an increasingly important role in development. This importance is not only reflected in the sales volume. The more important aspect is that when the former had the opportunity to interview the president of the global product line, he used it. In a word, China is changing Michelin. This means that all the challenges we face in the current Chinese market and some of the problems encountered are actually helping Michelin to continuously improve and improve. Through this process, we can make progress faster and develop faster.
In terms of the card and passenger car market, China is already the world's largest card passenger car tire market. This market is also developing very rapidly. It is a very large market and it is a growing market. As Michelin, our goal is to become a very important player in such a market. I am very confident, and I believe that in the next 5 or 10 years, Michelin's market in China will become the largest market for the entire Michelin Group.
In the card and passenger car tire market, in addition to the Chinese domestic manufacturers, more and more foreign tire manufacturers have begun to notice this market, and increased the market's efforts. Does Michelin have a good way in the card and passenger car market to adapt to more intense market competition? First of all, Ke Situ emphasized that in the Chinese market, whether it is domestic companies or foreign companies, it is competition for us. Opponents, for whom we are equal, first we have to compete with them, and secondly we respect them. In the process, we will make continuous progress on our own. Speaking of how to gain a competitive advantage in this market, Michelin certainly has its own strengths and methods. For example, there are advantages, the first is the product, Michelin has the best products, including green tires and other tires today, we continue to provide innovative products, allowing us to have more advantages in this market. The second is the services we provide. Through the service network, they can get good products and provide the best services. Thirdly, it is also a very big competitive advantage, that is to say, there is no competitor in the country. It is our sales team. Our sales team is in direct contact with users, provides services, and understands the needs of users. This is also Michelin. The greatest competitive advantage. Integrated products, services and sales teams can be said to be our core competitiveness. This is a very crucial part of our ability to achieve competitive advantage.
Speaking of services, in addition to the traditional services just mentioned, such as this year we have also promoted a new service platform for customers in the market, namely, a worry-free card and passenger car membership club. Customers can receive six additional services, including redemption of points, visits by Michelin sales representatives on site, access to rescue services, participation in membership activities, and more. All of these are the concepts that we provide our customers with better service. It also proves that we can provide users with better services to help them achieve value.
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