GfK Indonesia retail audit of passenger car tyres in July 09 reported close to 110,000 units of car tyres traded in retail level, with sales worth more than USD 6.75 million
JAKARTA, Indonesia, Sept. 8 /PRNewswire-Asia/ -- GfK Indonesia released the first retail measurement report of aftermarket passenger car tyres, covering the area of Jakarta and Surabaya. According to the retail census conducted by GfK in Jakarta and Surabaya, there are currently a total of 435 shops retailing car tyres which consist of: 300 Car Tyre Specialists, 110 Car Garages and 25 Fast Fitters. Car Tyre Specialists made up the bulk of the passenger car tyre retail sales with 85% of units sold through this core channel. These results clearly show consumers' preference to "specialized" shops when replacing tyres.
Japanese tyre manufacturers currently lead the market with close to 70% cumulative share. Nonetheless, local brand manufacturers' total brand share exceeds 20%, after the Japanese brands. In Malaysia, we see combined sales of European and American brands taking up a 40% share. However, in Indonesia these same brands hold less than 10% of retail sales.
Mr. Guntur Sanjoyo, General Manager of GfK Indonesia, said, "Because of the strong sales of Japanese cars in the Indonesia market, Japanese tyre makers benefit from consumers' loyalty to their OEM tyres when making replacements. Other tyre makers will have to do something different to break this buying pattern. We believe that unique brand positioning and a service oriented approach play important roles to provide higher value for money if other brands want to break through or do well."
Despite the dominating performance of Japanese tyre makers in Indonesia, local brands still manage to place 5 models among the top 20 best selling models in July '09. The combined unit sales of these 20 models take up 70% of the market.
Positively correlating with the popularity of MPV and city cars in the nation, Indonesia is predominantly characterized by small to medium sized tyres, shown by tyres with rim diameters of 15" and below taking up over three quarters of the market.
It is crucial that car tyre manufacturers understand the retail environment as it allows them to give strong support to the retail front. Feedback gathered by GfK from retailers showed that aside from profit margin, quick reaction to complaints is one of the key factors in maintaining dealers' satisfaction. This is a parity point that all brands will have to achieve to compete well in the retail market.
About GfK Asia Pte Ltd
GfK Asia Pte Ltd (GfK Asia), part of the global GfK Group, is a leading research company with over 20 years experience in providing reliable Asian retail and technology market data. Our analysts track a broad range of consumer technology markets, including: consumer electronics, telecommunications, IT, household electrical appliances (large and small), optics, entertainment, automotive, gaming as well as digital imaging. GfK Asia covers more than 55 product groups and over 350,000 models, collecting monthly data from over 6,000 specialist / independent shops as well as over 170 organized retailers with approximately 15,000 outlets. This disciplined methodology, together with tight field operational control in every country, allows GfK Asia to produce high quality reports containing reliable information that our clients can use with confidence. Based in Singapore, with other offices in India and Japan, GfK Asia offers extensive coverage of the following countries: China, Singapore, Malaysia, Thailand, Indonesia, Korea, Taiwan, Hong Kong, Vietnam, and Australia. For further information please visit our website: http://www.gfkrt.com .
Editors Notes:
GfK Malaysia also audits Passenger Car Tyres in the Central Region of Malaysia.
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Bryant Williamson Communications
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