Marking 120th year, Goodyear targets 45% market share in PH
Published Oct 25, 2018 12:00 am
By Bernie Cahiles-Magkilat
American tire manufacturer Goodyear aims to achieve 45 percent market share in the next three to four years to solidify market dominance in the Philippines’ growing tire industry.
Kenneth D.L.R. Sambajon, market director of Goodyear Philippines, Inc., made this forecast as the company celebrates 120 years this year as global leader in the tire industry and is gearing for its 100th year in the Philippines in 2019.
Based on data from GFK, a global market research institute, Goodyear has 41 percent market share in the Philippines as of August this year. Sambajon said that three to four years ago, the local unit had 37 percent market share only in the country.
Hopefully, he said, they would attain the same pace of growth or additional 4 percent to 45 percent in the next three to four years from the current 41 percent.
The Philippines consumer tire segment, excluding trucks and buses, as per Land Transportation Office registration stands at 2.4 million units. But the tire replacement happens only in three to five years. Overall, the domestic tire industry has been growing 12 percent annually for the past five years.
In the case of Goodyear, it has been serving the Tier 1 segment or the high-end motor vehicles, particularly the sports utility vehicle category. Of its total sales, the SUV vehicles account for 35 percent of its total tire sales.
The SUV market preference has made the company optimistic of continued growth despite the current slump in the motor vehicle market. Sambajon noted that since it would be costly to change cars, especially SUVs, every five years, customers invest more on tires to last them longer.
As premium tire supplier, Goodyear’s pricing is 20-25 percent higher than the value segment dominated by Chinese brands. But Sambajon said that because they have better quality, their customers end up with better cost efficiency than those using the low-end tires.
In addition, Goodyear also continues to introduce more innovative products and service to customers.
Goodyear provides five-year tire warranty from date of purchase, insurance to the driver, and worry-free card to clients to ensure immediate service to users on the road.
To service its customers, the company also continues to have the largest network of tire retailers and Goodyear Autocare outlets nationwide. It is also committed towards the expansion of its retail footprint nationwide with 100 Goodyear Autocare outlets to date.
As Goodyear Philippines also celebrated its 100th year in 2019, the local unit is also focused on further improving its after-sales service through continuous certification programs to its technicians, state-of-the-art facilities, and an enhanced overall customer experience.
“We are not just selling tires, but we are also educating our customers,” he said.
Goodyear left its manufacturing operation in the country in 2009 as it consolidated operations in in the region for better efficiency both in pricing and costs. At present, it sources its supplies from Thailand, Indonesia or Malaysia and some from the US. It has no plan of going back into tire manufacturing in the Philippines.
Kenneth D.L.R. Sambajon, market director of Goodyear Philippines, Inc., made this forecast as the company celebrates 120 years this year as global leader in the tire industry and is gearing for its 100th year in the Philippines in 2019.
Based on data from GFK, a global market research institute, Goodyear has 41 percent market share in the Philippines as of August this year. Sambajon said that three to four years ago, the local unit had 37 percent market share only in the country.
Hopefully, he said, they would attain the same pace of growth or additional 4 percent to 45 percent in the next three to four years from the current 41 percent.
The Philippines consumer tire segment, excluding trucks and buses, as per Land Transportation Office registration stands at 2.4 million units. But the tire replacement happens only in three to five years. Overall, the domestic tire industry has been growing 12 percent annually for the past five years.
In the case of Goodyear, it has been serving the Tier 1 segment or the high-end motor vehicles, particularly the sports utility vehicle category. Of its total sales, the SUV vehicles account for 35 percent of its total tire sales.
The SUV market preference has made the company optimistic of continued growth despite the current slump in the motor vehicle market. Sambajon noted that since it would be costly to change cars, especially SUVs, every five years, customers invest more on tires to last them longer.
As premium tire supplier, Goodyear’s pricing is 20-25 percent higher than the value segment dominated by Chinese brands. But Sambajon said that because they have better quality, their customers end up with better cost efficiency than those using the low-end tires.
In addition, Goodyear also continues to introduce more innovative products and service to customers.
Goodyear provides five-year tire warranty from date of purchase, insurance to the driver, and worry-free card to clients to ensure immediate service to users on the road.
To service its customers, the company also continues to have the largest network of tire retailers and Goodyear Autocare outlets nationwide. It is also committed towards the expansion of its retail footprint nationwide with 100 Goodyear Autocare outlets to date.
As Goodyear Philippines also celebrated its 100th year in 2019, the local unit is also focused on further improving its after-sales service through continuous certification programs to its technicians, state-of-the-art facilities, and an enhanced overall customer experience.
“We are not just selling tires, but we are also educating our customers,” he said.
Goodyear left its manufacturing operation in the country in 2009 as it consolidated operations in in the region for better efficiency both in pricing and costs. At present, it sources its supplies from Thailand, Indonesia or Malaysia and some from the US. It has no plan of going back into tire manufacturing in the Philippines.