China’s leading e-commerce giant, JD, has launched a campaign to expand its market share in the tire market, which is expected to witness growth in the post-COVID era. According to a survey conducted by market research firm GfK in January, car owners are expected to drive more often in the first half of this year, which will increase expenditure on tire replacement. GfK estimates that sales of replacement tires for passenger vehicles will grow 12.2% YoY in 2023, with online sales expected to surge 21% and brick-and-mortar stores expected to see a growth of around 10%, according to GfK.
To meet the growing demand, JD has partnered with several well-known brands, including Continental, Goodyear, and Bridgestone, to offer discounts, interest-free financial tools, and installation services. JD’s extensive maintenance and service network, covering 163 cities across the country, combined with its popular online platform, make it well-positioned to capture the growing demand.
Statistics from JD reveal that the percentage of car owners who tend to order tires online grew to 48.2% in 2022, up from 12.7% in 2017. In tier-one and tier-two cities, 55.8% of car owners prefer to order tires online and have them installed at designated stores. JD has claimed that if a car owner orders tires in the city where it has a warehouse, the tires can reach the designated store in as little as one hour.
According to the company, good quality products and reliable brands are the key factors in car buyers’ decisions, followed by transparent prices. JD is positioning itself as a one-stop-shop for car owners, offering not just tires, but also vehicle maintenance, repair, and cleaning services. The company’s move to expand its share in the tire market is expected to boost its bottom line and strengthen its competitive position in the e-commerce sector.