Recently I was talking to a tyre shop franchisee of a large international tyre company who told me that the famous old brand he sells would never be sold on the internet. Really?? I said! I asked him how he knew this and he explained that the tyre company had told him this!
In life and business, there is no such thing as never, but there sure is the old expression “that was then, this is now”. Sure, famous brands like Dunlop, Goodyear, Bridgestone, Firestone, Continental, Pirelli, GT Radials, Champiro’s, Michelin and Yokohama are not currently sold on the internet but when internet tyre sales, cutting out tyre shops, direct to the consumer attain critical mass, these tyre companies will suddenly start chasing online sales like a rat down a drain pipe.
How do I know this? Well, these tyre companies in the United Kingdom never used to allow their tyres to be sold direct to the consumer over the internet and told their retailers that they would never sell on the internet, but when online sales became too big to ignore, they ALL facilitated the sale of their tyres on the net! Online sales simply grew so large that the survival of these companies would have been in doubt had they not participated in this huge new sales category. And it is a case of every tyre brand selling on the internet through numerous online retailers.
So you think the United Kingdom is the United Kingdom and New Zealand is New Zealand? Wrong! Tyre company management here will know the tipping point that will force them to seriously participate in internet tyre sales. For sure, tyre sales volumes on the internet will continue to grow exponentially. Internet sales are already very substantial and at least two large tyre companies are already making big money from online sales.
Once online tyre sales grow almost no tyre company will be able to refuse internet sales; no business could ignore such a large market segment in our tiny country. And online tyre sales volumes are much closer to the tipping point than you may think.
The consumer can look forward to the internet tyre sales model, especially low overhead robot sites like Tyresales, driving down tyre prices. The number of retail outlets will reduce significantly and the survivors will have to slash overheads and adopt a very lean business model. Already there is a major tyre chain in desperate trouble; and the cycle of change has barely started yet!