Report: China's Tire Industry Market Concentration Analysis


First, the industry concentration is low

The degree of market concentration is usually calculated based on CR4 (ie, the market share of the top four corporate brands in the industry) or CR8. The degree of industrial concentration reflects the monopoly and competition in the industry and is a key indicator for analyzing the environment and development stage of the competitive industry. CR4?60 can be regarded as a high market concentration industry, 30%? CR4? 60% for the market concentration industry, CR4? 30% for the low market concentration industry.

The number of domestic tires and related companies is as high as 1,000. According to the following table, the market share of the top four manufacturers is 18.5%, indicating that the Chinese tire industry is in a low market concentration situation.


Second, the competition of the cluster

The industry's competitive cluster analysis is based on the analysis of certain economic characteristics by dividing competing firms into several competing groups. The key competitors of the same competition group are willing to be similar in terms of competition strategy, scope of competition, product line width, degree of vertical integration, distribution channels, technical methods, product quality and price range. The competitive community has a phased nature, and the intensity and competition of competition within and among groups are different at different stages. Enterprises in the same group are the most direct and fierce in competition; different groups of companies may change their position through competition.

From the perspective of the comprehensive competitiveness of enterprises, domestic tire companies can be divided into three matrixes: The first matrix is ​​an international multinational company represented by Michelin, Bridgestone, Goodyear, etc. Its advantages lie in cars, The lighter-body radial tire market and high-end, high-speed radial tire markets, etc.; the second-party array is represented by Hangzhou Zhongce, Triangle Group, Linglong Group, Qingdao Double Star, and other well-known domestic enterprises, its advantages are mid-range cars, light trucks. The radial tire market, etc.; The third-party array is a large number of SMEs in China, and its competitive advantage is limited to occupying part of the market at a low price.

Third, the tire industry competition key factors (a) price

With the fierce competition, prices have become a key factor in the domestic tire industry competition. In the face of numerous tire companies, there are many choices for downstream users, and lower-priced products are more likely to allow users to purchase. Therefore, the lower delivery can obtain more users, increase the market share of enterprises, and thus increase the competitiveness of enterprises.

(II) Product Quality

Product quality is also a key factor affecting competition. Users tend to choose high-quality, high-performance products, so high-quality products can attract more users to purchase, improve product market share, thereby enhancing the company's competitiveness.

(III) Brand

In the increasingly tire-prone tire industry, the benefits that brands bring to businesses have become more prominent. A good brand can get users' trust more. From the user's point of view, a good brand means high-quality products and high-quality services, and users will increasingly favor well-known brand products. Therefore, establishing a good brand image and increasing brand awareness is an important means to improve the competitiveness of enterprises.



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