Triangle Tires: Destructive Innovations Change China's Manufacturing Dilemma

Ding Yuhua, chairman of the tire division of the China Rubber Industry Association and chairman of the Triangle Group Corporation, believes that domestic tire brands are currently facing enormous internal and external problems.

As the world's largest tire-producing country, China is facing a crisis of domestic brand tire overproduction. In 2009, the Double Star Group launched an annual production of 1 million sets of all-steel radial tire projects, and Jinyu Tire Co., Ltd. has an annual output of 10.5 million sets of semi-steel radial tires projects that have been partially put into production. According to statistics released by the National Bureau of Statistics, domestic tire production in May 2010 was 74.16 million, an increase of 25% year-on-year, and an increase of 1.6% from the previous month. From January to May, total tire production was 31.23 million, an increase of 31% year-on-year. At present, there are more than 1,000 tire companies in China, and most of them expand their production on a large scale. They are also eager to launch new tire projects, causing serious overcapacity of domestic tires. Many small businesses use workshop-style production and waste of pollution is serious.

The domestic tire brand has more than 40% of the market in foreign countries. Since the United States tire “special protection case” imposed punitive tariffs on Chinese tires exported to the United States, the tire brands that have been heavily dependent on exports have suffered a heavy blow. At the same time, domestic tire brands have also encountered the plight of rising raw material prices, and natural rubber and natural iron ore prices have doubled. China's natural rubber is 70% dependent on imports, and import tariffs are as high as 20%. Since August 2009, the average price of natural rubber imports in Guangdong has continued to rise, rising from US$1459.3/ton to US$24,800/ton in May 2010. Although many companies have raised the prices of tires, they have not been able to keep up with the increase in the prices of rubber and other raw materials. If the current price of raw materials is used to sell tires at the current price, the Chinese tire industry will suffer a total loss.

In the case of export obstruction, many domestic tire brands actively carry out export to domestic sales. Ding Yuhua believes that in the competition with foreign brands, the competitiveness of local tire brands is obviously weaker. The domestic brands of tire products are not of high quality, low technical content and added value, mainly concentrated in the low-end market sales, high-end market is dominated by foreign brands. Foreign brands of tires have accounted for more than 80% of the domestic radial tire market. Take passenger car and light truck radial tires as an example. In 2009, domestic car and light truck radial tire output was about 240 million, of which foreign investment accounted for about 75%. Domestically produced brand tires have previously been used on low-end models such as Xiali, but most of them can only be used in the truck and truck area, and are rarely seen on cars. In addition, the “fighting price” phenomenon of Chinese tires in the international market is very serious. In the U.S. market, domestic brands sell for only 48 to 50 US dollars for the same specification of a car tire, while internationally renowned brands can sell for more than 170 US dollars. Even the international brands that do OEM production in China are still 50% more expensive than local brands, even though they come from the same production line as local brands.

Founded in 1976, the Delta Group currently has a total of RMB 6 billion in company assets. It is already China's largest tire manufacturer and supplier with a total production capacity of 30 million units. It serves consumers in more than 160 countries and regions, and has more than 2,000 annually. Ten thousand products are sold worldwide. The current subsidiary companies of the Triangle Group mainly include Triangle Tire Co., Ltd., Triangle (Weihai) Huasheng Tire Co., Ltd., Triangle (Weihai) Huada Tire Recovery Co., Ltd., Triangle (Weihai) Huatong Machinery Technology Co., Ltd., and Triangle. (Weihai) Huaan Logistics Co., Ltd., Triangle (Weihai) Huaping Integrated Services Co., Ltd. and Triangle Group Huamao Company. The main business of subordinate enterprises is the production capacity of tire-related industries, followed by the development of active die and mold shells for production of high-performance tires, engineering equipment manufacturing and installation, and the third is the timely delivery of triangles by distributors or customers across the country. The logistics company of the product is finally the enterprise's tertiary industry service project. From the perspective of the value chain, the most profitable product design, brand management, and marketing network are not yet the company's core business and competitiveness. In particular, the triangle does not have the ability to control the supply of raw materials produced by companies such as natural rubber. It is subject to changes in raw materials in the international market.

For Delta Group, building the entire industry chain or controlling the high-end link of the industrial chain is inevitable in the future to enhance the core competitiveness of the enterprise. However, this is bound to be a long and arduous exploration process and it cannot be accomplished overnight. The strength of the Delta Group is much lower than that of COFCO. Before it controls the high-end profit chain of the industrial chain, it is not destined to carry out all-round operation and construction of the entire industry chain. At the same time, the entire industry chain also contains huge operational risks. If a problem arises, it will lead to a total loss.

Triangle tyre brand's "disruptive innovation" conjecture

If you want to build a long-term foundation and maintain the long-term competitiveness of your company, there is no way out for copying your competitors' strategies and you must innovate. When this impetuous social innovation has become a slogan, few companies are truly able to innovate. Most of them are shouting the slogan of innovation and walking the closed road.

To market without factories, the current business model of the Triangle Group is completely destructive innovation. For production enterprises like Delta Group, in the case of a serious surplus in China's tire production industry, the production capacity is not important. As long as there are good brands and a large market, there is absolutely no need to invest too much in their own factories. Business OEM. Because the triangular tire manufacturing industry is upgrading upwards, it must have a higher added value, which means that the triangle needs more research and development capabilities and intellectual property rights, establish a high-end tire manufacturing industry image, not to take advantage of opportunities such as capacity restructuring, corporate integration, etc. Instead of industrial upgrading, it is through research and development, through innovation, investing in the future and maintaining a leading position in technology and operations. In the industrial upgrading of triangular tires, in addition to the improvement of skills, channels, management, marketing, human resources, production and other aspects, the most difficult is the brand promotion.

Triangle tires still have a lot of "disruptive innovation" opportunities in setting up high-end brands. A rising star who wants to overtake the industry hegemon in the short term will have to take an unusual path. In the current Chinese market, not only the brand positioning is homogenized and it is easy to imitate, and the promotion methods are also imitated. For the leading global triangle group in product quality, how to break through the traditional thinking of the past and create a new one outside the current brand High-end tire brands, so that triangle tires in their homogenization to reflect their unique difference?

"Disruptive Innovation" Creates a High-end Triangle Brand

"Triangle" is the first "China Famous Brand" in the national tire brand and it is one of the nine internationally famous brands cultivated by Shandong Province. "Triangle" brand tires have successively passed the US Department of Transportation Quality and Safety Certification (DOT), the European Economic Commission Product Safety Certification (ECE), and the China Quality Certification Center Product Compulsory Certification (CCC). The main performance indicators have reached the international advanced level. However, during the visit of the Triangle Group, I regret to see that although the triangle carries countless honors and excellent product quality, on the same production line, the tires of the “Goodyear” brand and the triangle brand produced by the Triangle Group, In the market price, the price difference has almost doubled. In the exchange with Lv Futong, Senior Vice President of Triangle Tire, Lv Futong said: In recent years, Triangular Tire has carried out many management innovations, marketing innovations, and product research and development. Countless triangular people have made great efforts, but it is really easy to get to the high end of the value chain.

Theoretically, how can triangular tires be used to create high-end brands? Establishing high-end brand image often requires bold tactics to inject new vitality into the brand. We know that Italy's Pirelli tyres are the main sponsors of Inter Milan. They belong to sports tyres and are the first to sponsor F1. People who like to ride cars do not care about its noise, and they do not care about its excessive price positioning. They do not hesitate to choose Pirelli. . Michelin tires, originating in France in the 19th century, were inventors of radial tires. Michelin is a comfortable tire in the minds of customers. It is generally wear-resistant on the ground, but Michelin's sales are second only to Bridgestone. What are the triangular tires that are determined to enter the international brand market?

The brand positioning of a company should be based on the overall considerations of the company's vision, strategy, culture, and core competitiveness, and differentiation is the most important brand strategy. How to make your corporate brand jump out of the same number of brands, allowing consumers to see it all at once is a great challenge for all brand managers. We see the tire people think of Michelin, see what can think of the triangle? Brand personality and richness need a unique approach to performance, this performance is not just to find a celebrity endorsement can cause consumers to resonate, Instead, it can embody the characteristics and uniqueness of the corporate brand and it is very easy to be remembered by consumers and represent an image of the company's brand connotation. Simple, sometimes the hardest.

What leaders need most is insight into the future. Destructive innovation is precisely the biggest challenge to leadership. Only by surpassing past leaders can we create the future.

China leading manufacturers and suppliers of Led Bucket,Led Ice Bucket, and we are specialize in Led Light Ice Bucket,Acrylic Ice Bucket With Lid, etc.

China Light Signs,Neon Light Signs supplier & manufacturer, offer low price, high quality Acrylic Led Sign,Metal Lighted Signs, etc.

We, Very Display,are not just a Sign or Display Maker, but a 15 years experienced acrylic POP display pioneer, and also the first supplier in china who combined the acrylic POP signs and displays with Led lighting technology. 

Material: we designed and produced lights signs and light displays according to clients demands, acrylic to be the main body light guide plate.

Advantages: 

We make all customers dreams came true, because we friendly & conscientious sales and over 14years experienced & creative 3D artists team ; 

We make everything possible, any signs or displays involved with various of materials, like wood, metal, glass or even stone, because we have qualified supplier chains working with us;

We make every order on time delivered, because we have quite skilled and high efficiency production and QC team.

Coorslight Beer Bucketacrylic light ice bucket

3D shop light sign


Customized Acrylic Light Ice Bucket. Customers' designs and OEM orders welcome.

Acrylic Light Ice Bucket

Led Bucket,Led Ice Bucket,Led Light Ice Bucket,Acrylic Ice Bucket With Lid

Very display co.,ltd , https://www.verydisplay.com