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Tire WholesalersPublished by: First Research, Inc. Published: May. 5, 2008 - 10 Pages Table of Contents
AbstractThe US tire and tube wholesaler industry includes about 2,000 companies with combined annual revenue of $17 billion. Major companies include American Tire Distributors and TBC Corporation. The industry is highly concentrated: the 50 largest companies hold about 70 percent the market. Most companies are small, with a dozen employees and less than $5 million in annual revenue. A large wholesaler may have $200 million in annual revenue and a network of 10 sales centers.COMPETITIVE LANDSCAPE Demand depends on consumer income and driving volume. The profitability of individual companies is linked to merchandising and good marketing. Small companies can compete by specializing in types of tires or applications (such as for farm equipment or motorcycles) or offering superior service and support. Large wholesalers have economies of scale in distribution, support of national accounts, and advertising and promotion. Annual revenue per employee is close to $600,000. PRODUCTS, OPERATIONS & TECHNOLOGY Tire wholesalers sell new replacement automobile tires (50 percent of revenue); new replacement truck, bus, and industrial tires (40 percent); and used or retreaded tires (less than 10 percent). (Original tires for new cars are sold directly to car companies, called OEMs, by tire manufacturers.) Some wholesalers also sell wheels and associated parts. About 75 percent of consumer tire sales are "flag" brands (premium manufacturer brands); 10 percent are "associate" brands (economy manufacturer); and 15 percent are private-label. Product is bought from manufacturers like ... Get Full Details About This Report >> |
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