SE Asia: Local Product Demand Rising

Market research firm GfK Asia has released a report on the performance of four emerging Southeast Asian tire markets in the first quarter of 2012.

The researcher found that demand for replacement tires in the countries investigated – Indonesia, Malaysia, Philippines and Thailand – increased 14% between January and March in comparison with the October to December 2011 quarter. According to GfK’s retail tracking of replacement passenger car tires across a number of cities within the four countries, some 2,557,600 tires were replaced in the first three months of the year.

This growth, says GfK, was mainly driven by higher demand in Bangkok and Malaysia’s Klang Valley, which registered respective incremental sales volume of 38% and 16% compared to the closing quarter of 2011.

"While the healthy sales performance of replacement car tires in Malaysia was driven by seasonal demand brought about by the festive Chinese New Year period in January, the sudden sales spike in Thailand was an exceptional occurrence that was a result of the flooding disaster, which took place at the end of third quarter last year,” highlighted Jasmine Lim, account director at GfK Asia. "As a result, replacement car tire sales fell by 26% in quarter four last year, but pent up demand drove sales up considerably in the following quarter.”

Judging by all the brands present across all four markets, GfK says it is apparent that the dominance of Japanese tire brands is being diluted in this region. Comparing first quarter results of this year vs. the last, major Japanese tiremakers’ market declined by nearly 3%. Nevertheless, they still hold about 40% of the total across all four countries.

On the other hand, the performance of local and international brands is on the rise. "Prudent consumers will tend to choose local car tire brands due to their lower cost, a factor that is especially crucial during the economic recovery phase,” said Lim. "With the prediction that consumers will continue to exercise caution in their spending in the upcoming months, we anticipate that tire brands which are best able to offer top value for consumers’ bucks to be the ones who will flourish and grow in 2012.”

The GfK report also showed that average prices of replacement car tires have remained relatively stable in the last year, increasing by only $2 per tire across the four markets. (Tyres & Accessories)

GRI recently conducted programs in Sri Lanka to empower women and motivate children under its Green x Circle initiative. The company said these endeavors aimed to address the needs of the community, focusing on both women empowerment and youth motivation.

GRI recently organized a training program titled "Management of household finance under current economic conditions" at the Ingiriya Rubber Collecting Center in Sri Lanka, South Asia led by Shashika Nimali, an NLP practitioner and life coach. The company said this initiative provided women in the industry with essential skills and knowledge to effectively manage household finances. GRI's tailored training sessions equipped participants with tools for informed decision-making, ultimately fostering greater financial security and independence, the company said.