On June 27, 2008, the Dean brand of Cooper joined hands with the mainland's largest independent music company's 13-month record to launch the North show season. This was the debut of the National Truck Race in Xiamen in May this year. With the ups and downs of high music, the dream of Cooper and Chinese users also started.
During the event, the reporter interviewed Mr. Alex Koi, the head of Cooper Tire China in Singapore. How does he understand China's replacement tire market? What is the philosophy of tires in his strategic plan? Let us solve it one by one.
"Cargo Vehicles": In April 2006, Cooper officially entered China. Some people say that the Chinese market has unlimited business opportunities but it is complicated. Do you agree? How do you see the current market competition pattern and its own advantages?
Yu Sili: As the world's eighth and North America's second-largest tire company, Cooper is very important to develop the Asian market. Undoubtedly, China will be an important part of the international market except North America and Europe and the fastest growing market. The Chinese market is huge. We understand that not only is the population base large, but also the level of consumption and consumers are highly educated. Chinese consumers are smart and they know that good things will be tried.
From the time of intervention in the Chinese market, Cooper is indeed a newcomer, not a giant. If Cooper is only an antelope compared to giant companies such as Bridgestone and Michelin, the ability of the antelope to adapt and respond quickly is one of Cooper's core competitive advantages. In addition, past experience tells us that anyone who knows and uses Cooper's products will eventually be attracted to Cooper's outstanding places. In Australia and North America, Cooper's users have once again purchased 60% of their products, ranking first, which is higher than the industry average of 42%. Therefore, we believe that users in the Chinese market will not be an exception.
"Cargo Vehicles": What are the considerations for positioning "replacement tire specialists"?
辜 辜 历 : : : : : : : : : : : : : : : : 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜 辜We do not ask how much application there is, but we need to be precise. Among the top 10 tire manufacturers in the world, Cooper is the only tire supplier to replace the tire market as the main battlefield. In the course of nearly 100 years of development, it has always been determined to become the leader and expert in replacing the tire market. Did not enter the OE (original equipment) market. This is the embodiment of Cooper's spirit of innovation and pursuit of extreme standards. It is also a hope for Cooper to replace the tire market and the modified car market. At the same time, from the point of view of profitability of the company, tire prices in the retail market are at least higher than those in the matching market. 10%; In addition, Cooper does not only want a simple tire production and sales company, but also hopes to be a consumer education company. Now more and more owners are no longer superstitious about their original tires, and they are willing to put forward higher and better requirements on tire safety, comfort, and speed. This is what Cooper likes to see.
"Cargo Vehicle": What is your marketing strategy for the Chinese market? What are your Chinese strategies? Please tell us about it.
Si Si Li: From the aspect of product adaptability, Cooper and Chinese consumers are closer than any other competitors. This is the inherent advantage that Cooper has decided to replace the tire market. Then, according to Cooper's observation of the truck tire market, with the development of the automotive market and post-market, the needs of users have become more refined. In fact, China’s road transport industry is undergoing rapid changes. The increase in the mileage of graded roads, the deepening of governance, the increase in the radius of road transportation, and the new situation in which modern logistics requires transportation equipment to run in a hurry, have resulted in many new demand. It is precisely based on the need to enrich the Cooper line and cater to changes in the Chinese road freight market, Cooper has launched the Dean Truck Tire product line.
In terms of brand marketing strategies in China, our actions will lead to odds and victory, and environmental entertainment and events. This new business model of tire-to-door and cross-border marketing of entertainment and environmental protection should be regarded as the unique business approach of Cooper.
In terms of channel construction, Cooper takes the model of environmental protection stores and retail stores at all levels in order to maintain a closer supply and demand relationship with end users. Cooper always pays attention to helping dealers to improve profitability and service professionalism. Our requirement for sales personnel is not how many customers you see, but how many tires you help customers to sell, which is why we believe that newcomers can still The source of confidence. In the commercial vehicle business, Cooper will help dealers and teams to better expand their business. Like a batch of Cooper Eco-friendly stores that we launched in May this year, we have considered our distributors in terms of environmental protection, power saving, and cost savings. The goal of Cooper's expansion of retail stores this year is to reach more than 500 companies on the basis of more than 300 companies.
"Cargo Vehicles": At present, the overall cost of tires has risen by at least 40%, but the increase in sales prices has to be controlled within 7%. In the face of long-standing problems, what is Cooper's strategy and high cost of digestion?
Rui Si Li: First of all, Cooper will have reservations in terms of cost control and price increase plan. Cooper will never give up the idea of ​​end-users. We know that many companies are investing heavily in innovative R&D expenditures, but they are truly less than 17% of consumers' final acceptance. Cooper's approach is to help users avoid unnecessary research and development through close understanding of user needs, such as conducting test drive experience activities for users, obtaining primary information from users, and cooperating with freight forwarding companies and their transportation companies and logistics companies. The cost is wasted to better control the price of the end product. In addition, we recommend that Chinese truck users should consider and select the tire products that are suitable for themselves when selecting tires from the perspective of “overall costâ€.