Report: Tires - US - July 2008 TOC

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Tire market driven by price hikes, not volume
Fuel prices affect consumer driving behavior
Rubber shortage contributes to higher tire prices
Retread market allows for new source of revenue
Competition from China puts U.S. tire makers at disadvantage
Tire manufacturers turning to premium, value-added tires
Tire consumers prefer independent dealers
Tire consumers
Market Size and Forecast
Key points
Overview
Tire sales and forecast
- Figure 1: Total retail sales of passenger tires in the U.S. and Canada, at current and inflation-adjusted prices, 2002-12
- Figure 2: Total shipments of replacement tires for passenger tires in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
- Figure 3: Total shipments of replacement tires for light truck tires in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
Competitive Context
Retread tires provide cheaper, more durable alternatives for trucks
Retread market now under wing of replacement tire players
- Figure 4: U.S. sales of retreaded truck tires, by manufacturer, 2007
Foreign tire manufacturers less prone to recalls, costs
Alternative transportation choices more common, as consumers become less reliant on cars
Segment Performance
High-performance tires gain sales momentum
Smaller, passenger tires increasing in volume, price
Segment Performance--Performance Rating
Key points
Tuners driving future growth
Biggest tire sizes most popular with young buyers
- Figure 5: Unit sales of H, V and Z/ZR high-performance tires, by volume, 2003-07
Standard tire sizes stagnant
- Figure 6: Unit sales of standard tires, by volume, 2003-07
Segment Performance--Seasonality Description
Key points
Seasonal tires
MS tires predicted to rebound to coincide with HP/UP tire growth
- Figure 7: Unit sales of mud/snow tires, by volume, 2002-06
All-season tires
- Figure 8: Unit sales of all-season tires, by volume, 2002-06
Segment Performance--Car and Light Truck
Key points
Passenger tires increasing along with prices
- Figure 9: Total shipments and average price of replacement tires for passenger vehicles in the U.S. and Canada, 2003-07
Light truck tires getting costlier as volume decreases
Lighter P-metric tire to replace traditional, heavier tires
- Figure 10: Total shipments of replacement tires for light trucks in the U.S. and Canada, at current and inflation-adjusted prices, 2003-07
Retail Channels
Key points
Distribution leaders remain stable; auto dealerships increase market share
Passenger tire sales, by channel
- Figure 11: U.S. sales of passenger tires, by retail channel, 2005 and 2007
Retail Channels--Independent Tire Dealers
Key points
Overview
Pending bill to raise independents' stature among service providers
Discount Tire continues to dominate market
Independent tire dealership sales
- Figure 12: U.S. Independent tire dealership sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Mass Merchandisers
Key points
Overview
Wal-Mart sells one third of mass merchant tires
Sears tire sales threatened
Mass merchandiser tire sales
- Figure 13: U.S. mass merchandiser sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Warehouse Clubs
Key points
Overview
Warehouse clubs, numbers of stores and tire sales
- Figure 14: Warehouse club growth, number of stores, 2003-07
- Figure 15: U.S. warehouse clubs sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Company-Owned Tire Stores
Key points
Overview
Company-owned tire store sales
- Figure 16: U.S. tire company store sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Service Stations
Key points
Overview
Service station sales of tires
- Figure 17: U.S. service station sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Auto Dealerships
Key points
Overview
Auto dealership sales of tires
- Figure 18: U.S. Auto dealership sales of tires, at current and inflation-adjusted prices, 2003-07
Retail Channels--Other
Key points
Overview
Pep Boys
Monro Muffler Brake & Service
Midas Corp.
Tire Rack
Other Internet resources
Market Drivers
Gas prices reach all-time highs...
- Figure 19: Motor gasoline retail price per gallon, national average, 2001-08
...compelling consumers to seek smaller cars over trucks and SUVs
- Figure 20: Most popular cars and trucks, based on U.S. sales, April 2008
Consumers hitting the road with less frequency than before
- Figure 21: Estimated vehicle miles, 2000-08
Rate of registered cars hitting the road slowing
- Figure 22: Total U.S. registered automobiles and estimated passenger automobiles miles driven, 1998-2006
Rubber shortage increases global demand, prices
Leading Companies
Key points
Five companies control 91% of all tire sales
- Figure 23: Retail sales of replacement tires in the U.S. and Canada, 2005 and 2007
Goodyear top player in tire market
- Figure 24: Market share of replacement car tires by volume, by manufacturer and brand, 2005 and 2007
Brand Share--Goodyear Tire and Rubber Co.
Key points
Strike slows 2007 sales
Rubber costs, global competition increase
Price increases, more premium tires on the way
- Figure 25: Goodyear annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
Company facts
Brand Share--Bridgestone Firestone USA (BFS)
Key points
Investment in retreading operations
Projected 80% increase in operating income by 2012
For now, steadily increasing tire price hikes
- Figure 26: BFS annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
Company facts
Brand Share--Michelin
Key points
No to PAX, yes to Energy Saver
2010 goals: faster growth, higher prices, higher performance
- Figure 27: Michelin annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
Company facts
Brand Share--Cooper Tire and Rubber
Key points
Focus on premium tires
Price increases, cost cutting measures
- Figure 28: Cooper annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
Company facts
Brand Share--Continental AG
Key points
New products, market analysis, lead to sales breakthrough
Price increases continue through 2008
- Figure 29: Continental annual sales in the U.S. and Canada for passenger car tires and light truck tires, at current and inflation-adjusted prices, 2003-07
Company facts
Innovation and Innovators
Sidewalls that smell like lavender to target women
Retractable studs allow instant versatility between wet, dry roads
' Smart tire' sensors to alert danger in real time
Exclusivity distribution deals designed help grow luxury tire market
Advertising and Promotion
Overview
Performance
- Figure 30: Take Control, Goodrich, 2008
- Figure 31: Tame the road, Hankook, 2008
Safety/reliability
- Figure 32: Safety, Bridgestone, 2008
- Figure 33: Safety and reliability, Goodyear, 2008
- Figure 34: Innovative reliability, Bridgestone, 2008
- Figure 35: Reliability, Michelin, 2008
Emotional edge
- Figure 36: Selling tires on attitude, Cooper, 2008
- Figure 37: Selling tires on attitude II, Cooper, 2008
- Figure 38: Selling tires on attitude III, Cooper, 2008
- Figure 39: Targeting the luxury buyer, Toyo, 2008
- Figure 40: Environmentally friendly, Yokohama, 2008
Promotions
- Figure 41: Rewards tie-ins, Goodyear, 2008
- Figure 42: Go Speed Racer, Yokohama, 2008
- Figure 43: NASCAR, goodyear, 2008
Brand authority
- Figure 44: Brand awareness, Bridgestone, 2008
Vehicle Usage and Maintenance
Household car or truck ownership
- Figure 45: Household car or truck ownership, by gender, age, race or ethnicity and household income, April-May 2008
Responsibility for vehicle maintenance
- Figure 46: Responsibility for vehicle maintenance, by gender, April-May, 2008
- Figure 47: Responsibility for vehicle maintenance, by age, April-May, 2008
Driving behavior
- Figure 48: Consumer attitudes regarding driving, age, April-May 2008
Tire Purchasing, Type and Spend
Who purchases tires
- Figure 49: Purchases of passenger, pickup, SUV, and van tires in past 12 months, Jan-Nov 2007
- Figure 50: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by age, Jan-Nov 2007
- Figure 51: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by household income, Jan-Nov 2007
- Figure 52: Purchases of passenger, pickup, SUV, and van tires in past 12 months, by number of people in household, Jan-Nov 2007
Consumers less finicky about tires, preferring all-season
- Figure 53: Types of tires purchased in the past 12 months, Jan-Nov 2007
Amount spent on tires
- Figure 54: Amount spent on tires purchased in the past 12 months, Jan-Nov 2007
Type of tire purchased, by region
- Figure 55: Types of tires purchased in the past 12 months, by region, Jan-Nov 2007
Brand Usage
Passenger car tires
- Figure 56: Use of passenger tire brands, Jan-Nov 2007
- Figure 57: Use of pickup/SUV/van tire brands, Jan-Nov 2007
Factors on Tire Purchase
Factors influencing tire purchase
- Figure 58: Factors influencing tire purchasing decisions, April-may 2008
- Figure 59: Factors influencing tire purchasing decisions, by age, April-May 2008
- Figure 60: Factors influencing tire-purchase decisions, by household income, April-May 2008
What tire buyers consider at time of purchase
- Figure 61: Most important factors when buying tires, by age, April-May 2008
Tire Maintenance
- Figure 62: Extent of tire maintenance, by gender, April-May, 2008
- Figure 63: Extent of tire maintenance, by age, April-May, 2008
- Figure 64: Extent of tire maintenance, by household income, April-May, 2008
Race and Ethnicity
Tire spending
- Figure 65: Amount spent on tires purchased in the past 12 months, Jan-Nov 2007
What tire buyers consider at time of purchase
- Figure 66: Most important factors when buying tires, by race or ethnicity, April-May 2008
Responsibility for vehicle maintenance
- Figure 67: Responsibility for vehicle maintenance, by race or ethnicity, April-May, 2008
Tire maintenance
- Figure 68: Extent of tire maintenance, by race, April-May, 2008
Appendix: Trade Associations, Government Agencies and Magazines

Tires - US - July 2008

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