When you are so busy dealing with the day-to-day activities of business, it’s easy to lose sight of the fact that we all operate in a global economy. Our principle concerns are often immediate and local, but when you read the following information about China and its Tire Industry plans, you begin to realise that we need to think globally and we need to start now…
Earlier this year I came across a report from a company out of Europe. They offer market research and data and their stream of press releases had me sitting up and taking notes - here are some of those notes:
— China’s Tire Industry
The remarkable progress of China’s automotive industry has culminated in the development of a significant tires sub sector. Following China’s accession to the WTO in late 2001, the growth rates for both sectors accelerated.
To fulfill its ambition to become the main base of operations for leading foreign auto companies, it is imperative that China develop a world-class tires industry. In doing so, the country would become more attractive to leading automakers.
Ready access to high quality tires would enable these companies to streamline their supply chains and purchasing operations while avoiding costly tires imports.
— US$6 Billion in 2002
With an estimated value of nearly US$6 billion in 2002, China’s tires industry is large and poised for further high growth, bolstered by the rising fortunes of automobile manufacturers there. This industry is still largely driven by the multinational tire companies (eg. Michelin, Bridgestone, Goodyear and Yokohama) and their joint-venture partners, with Michelin alone accounting for 30% of the replacement tires market.
Domestic players are relatively less skill-intensive, use simpler production techniques and have somewhat inconsistent quality standards. These domestic tire companies are also financially weak which explains their relatively lower investment in research and development facilities.
— Fragmented…for now
Although a considerable segment of the tires industry is concentrated in the Jiangsu, Shandong, Shanghai and Shenyang area, the domestic tires industry is still largely scattered across the country. This has resulted in a lack of cooperative synergies.
Foreign multinationals, on the other hand, are more prone to cooperation in areas such as purchasing and research and development activities. For instance, Goodyear tires by purchasing a minor stake in Sumitomo tires, has taken steps to form a strategic alliance with its Japanese counterpart to share their marketing and purchasing operations.
The domestic companies owing to their lower investment in research and development also produced relatively obsolete products. Their production volumes also lagged that of their multinational counterparts.
— China’s Domestic Tire Output
The average annual tire output of China’s domestic players in 2003 is approximately 410,000, considerably behind the 2.70 million produced by foreign tire companies in China.
To become a leading player in the global tire industry, it is imperative that domestic tire companies rectify these weaknesses by developing more sophisticated production techniques.
China has also taken up steps to produce products that are higher up the value chain. For instance, the country is now encouraging the production of radial tires1 by promising the waiver of the 10% excise tax for radial tire products.
Many domestic companies are also forming strategic alliances with multinationals to acquire greater expertise in production, distribution and marketing.
— Summary
As you can see, China’s tire market is evolving. Maybe today the Chinese marketplace is not a threat to your business, but historically when China sets its mind to something they usually see it through to conclusion. And if their plans include the eventual manufacture and export of tires, it will ultimately change the tire industry landscape over here in the west.
Definitely something to keep an eye on - wouldn’t you agree?
Sources: Information for this article was drawn from the public Internet and news feeds.
Author: http://www.JamesBurchill.com - James is a freelance writer and consultant.
God is the primordial Creative Force that is believed to have created each atom that we see around us. When you sit and muse, have you ever heard a voice inside you talking to you? That is the voice that is in you, whom you may also call GOD.
Think logically, if you have heard of the voice of that inner soul in you, who indeed is the never-lying, never-forsaking GOD, then is it JUST NOT possible that you are devoid of even a spark of that Divine Creativity? It definitely isn’t! And it is never too late to bring it out.
Start with something as small as designing a cookie in a very unique way or icing a cake beautifully or growing blossoms in your garden. Help your kids to make a tent and watch him or her glow with domestic bliss — to him, it is a blessing that you have designed for him. Yes, you are the CREATOR. At any level, being a creator is really a very Divine thing.
To create is human, to Create is Divine
Human beings have been blessed with the power to create and that is where Nature has been partial with us. That we are humans evinces the fact that we have creativity innate in us. It has to be explored, cultivated and expressed. That’s all!
Explore : Remember your childhood. Remind yourself the compliments that pleased you. What are the qualities that you had? Were you good at dancing? Singing? Did you speak well? Stitched lovely clothes for your dolls? Scored well in cricket? Travel down the vista of years and remind yourself of the happy moments of your past. Explore the talents that you have nearly forgotten about.
Cultivate : Wash away the rust and let it shine. Re-live the happy moments, by practising those things yet again. Let your children help you. Find the notes in your voice, try a gig like you did years ago. And indeed why not go for a new hobby. Try pottery or gardening or glass painting anything creative.
Express : Let your creativity be expressed and appreciated. And never ever forget how creative you are. Let the world at large find out that you have a place in God’s Creation, and are blessed with the creative instinct. Not only that, but you also have the strength in you to express your creativity with confidence.
Do not fear criticism, for criticism is just the thing you need to improve your art. Did Satan not criticize God’s creation. It only helped God to improve His creation, and thus human beings populated the earth!
Again, it is NEVER TOO LATE to begin. Let your inner voice stimulate your creativity right now. And at the end of it all, when you create something, however small it might be, you will the happiest person when you find that you are a creator.
Shreelina Ghosh is an Indian Classical dancer and web designer. A post-graduate in English Literature and Language, she looks forward to studying the finer nuances of web rhetorics.
