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Contents 1. Market analysis Overall trend: The national sales in 1998 totals 1.6 mil pieces, with 2.4% growth compared to year of 1997. The market potential also increases slightly. The demand structure continues changing and the competition is being more intense. Private autos plays a more important role. In 1998, the total amount of private cars was 0.71 mil which took up 45.51% among the total auto sales. Personal consumption increase of tires is obvious. In Beijing, the number of private cars grew 8 times between 1992 and 1995. 1. Market analysis Competitive overview Some foreign and JV brands are still in their early stage: focus on the design of POP and outdoor exhibition. The major competition comes from the brand image instead of the actual profits. It can be deducted that the real competition hasn’t arrived yet. Shuangqian and huili, two shanghai-made brands lead the national market with its stable quality, vast distribution and long history. They are not only the profit-winners, but has very good brand images. 2. Target Consumers Taxi Civil autos Cargo autos Passenger transport autos Target Consumers Tires are tools of making fortune. The lowest cost is the eventual demand. Work day and night to make living. Regard himself as ordinary workers without technology advantages. The short-term behavior is serious. Sometimes even use worn tires. Price is a major consideration. Target Consumers Their understanding to the veins are mostly restricted to the difference of bigger and smaller, deeper and more shallow. The detail of veins is meaningless and no one would choose different tires for different roads. They began to care about the quality of the raw material of tires and had some own criteria to judge the tires, i.e, touch the surface to see if it is glossy or pinch the tire to see if it is hard Target Consumers Target Consumers Target Consumers Target Consumers Target Consumers Target Consumers Background: Overload is occasional. Due
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