Instead of trying to compete head on with the traditional tyre retailers, TyreStore decided to use the Blue Ocean strategy.
TyreStore: The Perception of Chinese Tyres has Changed
TyreStore Sdn Bhd brought the PowerTrac brand into Malaysia in October, 2018. Today, the company is the exclusive distributor of PowerTrac passenger car radial (PCR) tyres for West Malaysia. According to TyreStore Director Ryan Yu, PowerTrac is manufactured by Shandong Haohua Tire Co., Ltd, one of the top 5 tyre companies in China. With an annual output of 33 million truck, bus and passenger car radial tyres, the company focuses on eco-friendly products that meet international standards.
“The Malaysian tyre market is expected to remain stagnant with the economic slowdown and uncertainties, as well as the influx of many players and new brands. It is declining and going through a ‘filtration’ process. Only companies that establish an edge over their competitors are able to stay afloat. We see the importance of doing business differently,” said Wayne Yu, who is also the Director of the company.
Early this year, Wayne’s father passed away unexpectedly. Wayne and his brother Ryan decided to change their career paths and took over the family business. Wayne is in the marketing field while Ryan is a chartered accountant by profession. They became a perfect team with the complementary abilities of each other. Wayne is responsible for setting marketing strategy, brand building, identifying market opportunities and gaining a better understanding of customer needs. Ryan, on the other hand, looks into financial functions related to the collection, accuracy, recording analysis and presentation of the company’s financial operations.
“Today, things have changed, almost all the brands are looking into retailing. Instead of trying to compete head on with the traditional tyre retailers, we decided to use the Blue Ocean strategy. We find ways to open up a new market space and create new demand. This was how the klinikar.com website came into play, to free us from competition in the existing market place, enabling us to pursue low cost and differentiation leadership with ample opportunity for growth,” revealed Wayne.
With 80 exclusive distributors across the world, PowerTrac tyres are sold in more than 150 countries including Russia, USA, United Kingdom, New Zealand, Saudi Arabia and Malaysia, just to name a few. Besides good quality, Wayne continued, PowerTrac offers a complete range of products that cover the various different market segments and needs, from every-day road use to high performance and off road, including run-flat and commercial tyres.”
Perception of Chinese Tyres Has Changed
In Malaysia, Ryan said, PowerTrac is positioned as a mid-range brand, and the company offers a full range of PowerTrac passenger car tyres from 12 to 24- inch diameter. The market response, he said, is good. “In recent years, we noticed a change of view on Chinese tyres that had previously been perceived as budget and low in quality. China now has some of the most advanced tyre factories and automation processes in the world. In fact, many of the ultra-high performance tyres of the major brands are manufactured in China. I believe in the next 5 to 10 years, consumers would no longer focus on the country of origin, but on the compound, quality and technology.”
Wayne added that TyreStore works with sustainable partners. He said, with advanced Research & Development capability, production technology and testing equipment, Shangdong Hanhua is able to develop tyres that are suitable for the road conditions and climate of the Malaysian market, and carry out testing before introducing PowerTrac tyres to them.
“The PowerTrac brand has gained attention and recognition from our Klinikar website with its good quality and reasonable pricing. We launched two new tyres – PowerTrac Adventure Pro A/T and Racing Pro recently at Bangsar Shopping Mall for our dealers on 23rd November. We are very proud that Malaysia has been selected as the first country to launch the new Racing Pro tyres, which show the importance of this market as well the fact that our vendor is committed in growing the PowerTrac brand together with us,” said Wayne.
PowerTrac Racing Pro, Ryan pointed out, is a tyre that is designed to meet the need of the ultra-high-performance market. It is planned to be officially launched on the market early next year.
The Birth of klinikar.com
Traditional or offline tyre sellers are facing tough competition in the market place, not only among themselves, but also from some big players that are selling tyres online, or other e-commerce websites that sell almost everything.
“We created Klinikar.com at the end of 2017 and officially started in March 2018, as it could not only help us to reach more customers, but also new demographics. It also gives our brand and product a wider audience visibility and allows us to gather data and information that could elevate marketing efforts above anything a traditional store could manage. In short, we believe that tyre manufacturers and dealers need to take the advantage of digitalisation to consolidate their market position. However, we believe that in order to gain success, on-line and off-line are equally important,” explained Wayne.
Unlike the other e-commerce platforms that sell almost everything, Klinikar is a car care platform that specialises in specialises in tyre retailing but at the same time exploring car maintenance and other services.
“It is convenient for the consumer as he/she does not have to drive all the way to the tyre shop and find out that the particular tyres required are out of stock. Our ultimate goal is to serve our e-customer like a workshop. We would give them professional advice on choosing not only the right tyres for their vehicle but also ones that are relevant to their application, providing a seamless and hassle-free service, from selecting tyres to fitment,” added Ryan.
Wayne is aware that the majority of the tyre dealers are not ready for digitalisation. “They either do not have the skill or resources to operate their own on-line retailing, or the time to manage it. We welcome independent workshops that meet our criteria to join our car care platform. “
Today, Klinikar.com has 38,000 registered users and 150,000 views per day. It has partnered with 18 workshops in Klang Valley with plans expanding to Ipoh and Seremban next year.
2018年10月，TyreStore 私人有限公司将PowerTrac 品牌引进马来西亚。如今该公司是PowerTrac轿车子午胎（PCR) 在西马的独家经销商。据TyreStore董事尤芳炜表示，PowetTrac 是由中国第五大轮胎公司 –山东昊华轮胎有限公司制造。年产3，300万条卡车、巴士及轿车子午轮胎，该公司聚焦于符合国际标准的环保产品。
“今天，事情都起了变化，几乎所有的品牌都开始关注零售领域 。 与其和传统的零售商正面竞争，我决定采用蓝海策略。我们寻找打开新市场空间和创造新需求的方式。这正是klinikar.com网站能够发挥作用的地方 ，它将我们从现有的市场竞争中释放出来，让我们能够追求拥有充足增长机会的低成本和差异化领导。”尤芳荣透露。
尤芳荣补充说，Tyrestore 与可持续性的伙伴合作。他说，有了先进的研发能力、生产技术及测试设备，山东昊华轮胎能够开发适合马来西亚路况和气候的轮胎，并在将PowerTrac 轮胎介绍给他们前进行了测试。
“PowerTrac品牌凭借着其优良品质和合理价格，从我们的Klinikar网站获得了注意和认可 。我们在11月23日于Bangsar 购物中心为代理推出了两款新轮胎– PowerTrac Adventure Pro A/T 和Racing Pro。我们为马来西亚被选为第一个推介全新Racing Pro 轮胎的国家而深感自豪，这无疑显示了本地市场的重要性，还有我们的供应商立志与我们一同携手增长PowerTrac品牌。”尤芳荣说。
尤芳炜指出，PowerTrac Racing Pro是专为高性能市场所设计，并计划于明年初推出。