To Importers in the Global Tire Industry:
Please read this carefully as it might inspire you. Many international friends have been perplexed about how to import tires manufactured in China and sell them in their home countries. China's tire industry has experienced rapid growth over the past decade, marking a period of significant dividends. Many early investments in large factories have yielded substantial returns. However, with an increasing number of factories and brands, the competition has intensified. For those who wish to enter this industry but are unsure about how to proceed, please follow my website. I will periodically update it with information about China's tire industry for your reference.
The Relationship Between Tire Manufacturing Factories and Trading Companies
Allow me to shed light on the relationship between direct tire manufacturing factories and trading companies. Before 2015, there weren't many tire factories in operation. Additionally, these factories didn't face challenges in selling their products. Consequently, they didn't establish independent export departments and relied on trading companies for sales and exports. However, as the number of factories increased and competition became fierce, export departments were set up within the factories. Despite this, collaborations with trading companies persisted. Nevertheless, these collaborations gradually eroded the trading companies' customer base and market share, resulting in harsh competition. Trading companies hardly had an edge over factories in terms of pricing. Some trading companies maintained favorable relationships with the factories or were even established by the direct relatives of factory owners. Consequently, their prices were on par with the factories, and sometimes even better. Some foreign friends might mistakenly assume that factories are the ultimate partners, but this is a misconception.
The Relationship Between Sales Representatives and Your Orders
If you are concerned about your orders and pricing, it's essential to connect with knowledgeable sales representatives. Salespeople with strong expertise might not always offer the best prices, but collaborating with inexperienced sales representatives guarantees that you won't receive the best prices and services.
Many export departments of factories are physically distant from the factories. Some sales representatives have never witnessed the tire production process. They have no interest in learning how tires are manufactured in the workshops. The factory environment is hot, and the smell isn't pleasant. Some representatives have never even touched a tire. They can communicate in English but essentially serve as messengers. As someone passionate about the tire industry, I strongly disdain such unprofessional individuals.
Of course, the essence of business is profit. However, such collaborations gradually diminish the profits you desire. It's crucial to understand your partners. If someone doesn't invest time in learning about their own industry, how can you expect them to genuinely handle your orders?
Please continue to follow the upcoming articles. I will provide you with more details into China's tire industry.
