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Michelin across the board layout of the Chinese market
Michelin is not respected in China rapidly expanding route, simmered stew is outside this fine French tire company's well-known general impression. But this state of patiently waiting for the opportunity to come have had to be adjusted.
Competitive pressure from Chinese vehicle market has passed to the tire market. The rapid growth of luxury cars, SUV tire products into global brands competing supporting popular market segments. Vehicle prices continue to edge lower, to the original car matching the economic opportunity offered by competitors, they began to encroach on exploratory and Michelin dominated the high-end market. As the world's most famous tire companies and a leader in the Chinese tire market, Michelin needs more products to keep and expand its market share in China.
"We're back in the joint venture brands in China has been put into operation and marketing of the brand focused on second-tier brand models," in an interview a few days ago, was vice president of Air China Investment Co. Original Michelin tire business (China), told reporters that this will be the Michelin important platform product line extending downward.
In addition to boosting the market has a deep foundation of the brand back to power came back, the new Michelin Energy orders become another growth point in China.
Back of the left hand, right hand new energy. Enter 2015, leaned down Michelin hope that the multi-brand strategy to gain more localized victories.
Pull back into the market again
Airlines have joined Michelin in the entire 15 years, responsible for Michelin's original equipment business in China (ie OEM) has been four years in, but in recent years he obviously felt the pressure surrounding it.
Original business areas in the tire, Michelin is still a distinct advantage, "Michelin specific figures in the original equipment market share is still not foreign, but it is certain that the market segments we operate is growth, but higher than the average market rate. "
But the invasion of pie momentum can not be underestimated. As noble brand tires, Michelin has never been a price advantage. But the luxury car market, the price war prompted OEMs begin to consider supporting the cheaper tires, in 2014, BMW Mercedes-Benz models have been part of the tire industry in the Third Army began to select Hankook tires.
"Indeed there are some consumers do not need this brand Michelin, for example, a large taxi market, but it does not need to Michelin. But as one of the world's largest tire manufacturer, we want to provide them with products other than Michelin "Hang on, said, back in a second-tier brand Michelin will help expand coverage in the low-end models and the four-tier market.
As China's best-known local brand tire brand, back in the same Michelin tires and has a long history. Since 1947 the former Shanghai Chint Rubber Factory production of the first tires since the tire is rooted back in China for more than half a century, back to power is the first to provide services for original equipment tire Santana Shanghai Volkswagen, Audi and other iconic models of local brands, then another for Shanghai GM, Ford, Citroen and other joint venture brands have done supporting the supply.
To this have local appeal of the brand into its Michelin brand owners and Warrior Double Coin Holdings fourteen years of running experience.
2001, double the money stock and Michelin, a joint venture Shanghai Michelin Warrior Tire Co., Ltd. (Shanghai Michelin Warrior), Michelin holding 70%, double the money stock holding 30%. In early 2010, the two sides ended cooperation, double the money to recover back to power brand, because the joint venture company has been losing money for decades.
In 2011, the cooperation restart, jointly founded by Chinese-controlled joint venture - Double Coin Group (Anhui) Warrior Tire Co., Michelin shares 40 percent in cash. The new company will produce and sell power back to sedans and light truck tires. According to the plan, 2015 will achieve 15 million production.
Michelin on the back of the dedication is not surprising. Looking at the world, which is a global multi-brand strategy Michelin continues, that "with different brands, different prices to different consumers with differentiated products." In other overseas markets, basically Michelin, BFGoodrich (Michelin Group stressed the off-road performance tire brand) along with the layout and a relatively well-known local brand market.
Michelin back to power in China is not "leaned down," the only path, "does not exclude the future we will have more second and third tier brands, this must be done. Just to be step by step. We do not want to lose any one customer, "Hang on, said," we hope that every Chinese consumers have a right to enjoy the Michelin Group's products and technologies. "
Of course, Michelin is the most urgent needs of the moment after many years away from the mainstream market, the back of how to re-establish the brand appeal in the new competitive environment.
New orders for electric cars
What new energy automobile tires, this is not a mainstream topic. But Michelin's eyes, this is a huge potential new market. For now, Michelin has apparently get a head start.
Michelin's customer list, BYD electric car "Qin" and "Don", Beiqi E series of electric vehicles, SAIC Roewe line of electric cars now use Michelin tires, BMW's local brand promise of electric cars the same Michelin tires as standard . In other words, the existing domestic autonomy and joint venture brands mainstream electric vehicles, are used Michelin green tires. "There are a lot of car companies hope for Michelin to develop their car with low fuel consumption tires, not only to the traditional diesel facilities, including electric cars." As Michelin OEM business people responsible for the addition of a business aircraft center of gravity - the promotion of electric vehicles tires.
Compared with conventional car tires, special attributes of electric vehicles determines the special requirements of supporting the tire. One hand, the electric vehicle needs to be upgraded to improve the electrical endurance performance of the tire by way of, reducing rolling resistance, on the other hand, the electric car requires the ability to achieve fast response of the vehicle driveline by the movement of the motor and the performance of the tire, to improve the grip.
It requires that both sides make technical direction stocked Michelin win. This is seen as willing to return Michelin investment in research and development, Michelin annual investment in research and development of more than 3% of total group sales, R & D investment in the first three years has been more than 1.9 billion euros, which is even higher than the intensity some car companies.
The electric vehicle matching Michelin fact already begun, in 2012, Michelin and Renault cooperation in the European market launch of the electric car Ener-gy EV, using Michelin tires, the car's mileage is increased by 10%; second product is the height of the high-end thunder Tesla electric sports car, which is equipped with Michelin Pilot Sport Cup. Michelin's next step is to go looking for more cooperation opportunities of new energy vehicles.
Airlines that seems to Michelin current strengths and aftermarket wife business up to 85% loyalty point of view, is still in the low-volume electric car business means supporting a next blue ocean.
Over the past year, the Michelin team in China is mainly engaged in new energy issues, including a few months ago in Beijing organized by the FIA Formula E Championship, sponsored by Michelin as the exclusive supplier of tires, and held in Chengdu last September 12th will be compared Gordon challenge.
In 2015, this French keen on technology innovation companies will continue to expand in China's new energy sector. Hang told reporters on Michelin brand new R & D center in Shanghai will soon be put into use, Michelin Japan R & D team will be incorporated into the full, the main directions of this research center is still in the development that is sustainable in environmental protection technology to stay ahead.