| 03-04-2008
Although the company hasn't specifically names any of its competitors, it has been careful to highlight the differences between its new plan and Michelin's programme. Unlike Michelin, which requires the purchase of two Michelin brands tyres to become a member, Goodyear's programme is free of charge and open to all brands. Another distinction is that Michelin's programme is aimed exclusively at the replacement market, while Goodyear's plan "is aimed at both the replacement and OEM markets." "Along with the development of the industry, competition in the tyre market has shifted from price to service. Consumers need comprehensive, customized services," says Xu Qiongdan, vice marketing manager of Goodyear China.
Goodyear's services do not include roadside assistance, however, which is a big draw for car owners. "It is really good that consumers can benefit and enjoy comprehensive services, but it forces us to choose," says consumer Wen Jie, who drives a Volkswagen Golf. She hints that she might opt for Michelin's roadside assistance service. Michelin's vast distribution network will support its new service programme. Ladent says that half of its 1700 dealerships throughout the country have already met Sui Ni Xing programme standards, and its roadside assistance service covers 83 cities throughout the launch phase. "That will go up to 150 by June," adds Ladent.
This blow-for-blow struggle is reminiscent of another close battle over distribution in the replacement market last year in Shanghai. Last April, Goodyear announced the move of its Asia-Pacific headquarters from the United States to Shanghai, along with the establishment of a powerful new management team. The announcement clearly signalled the company's intentions in the Shanghai market. Seven Michelin Tyreplus stores changed sides, with Goodyear gaining more than 70 dealerships from other tyre manufacturers.
Editor: Frederick Wei from Chinabuses.com
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