Not only limited to some brands, not just a few tens of dollars. The entire tire industry is continuously setting off a frenzy of rising prices in recent years.
In fact, from the end of last year, tire prices have risen once. The overall soaring price of tires, which involves a wide range, a large increase, it is beyond people's expectations.
Tire prices rise unexpectedly
In the past few years, the price of tires continued to decline. Why did the price of tires rise collectively when the market was in a downturn?
Although many companies have attributed this price increase to the overall increase in raw material prices, there is no shortage of conspiracy theories for the soaring price of tires.
Some industry professionals even use the property market as an analogy.
Tire prices are like people's prices will continue to fall. People will never buy, and they are still imagining lower prices. When developers deliberately increase prices, they will obviously help promotions.
Some tire companies joined hands to increase prices deliberately to stimulate sales, causing distributors and tire stores to panic and fear that tire prices will rise again, thus seizing the purchase.
For those companies that have been struggling for a long time because of low prices, they immediately followed the trend and the market quickly formed a domino effect.
Since there is no way to live without rising prices, it is better to fight for prices. It is a best time for the overall price of raw materials to increase.
However, whether it is for the sake of potential or long-planned, it reflects the dilemma of many domestic tire companies.
As we all know, there are many domestic tire manufacturers, and the entire industry is facing the status of overcapacity and oversupply.
After this surge in prices, the domestic tire industry will experience new changes in the pattern, I believe the industry is also expected to usher in a real reshuffle.
Changes in the domestic tire industry will see new changes
First of all, from this price increase, we can see that the heavy blows of national policies on environmental protection governance have obviously restricted the development of those tire companies that rely on low-cost wins.
Secondly, tire companies that do not pay attention to brand building at ordinary times have also exposed the problem that premium prices are not strong in the tide of price increases.
When these companies try to ease pressure on inventory through sharp price increases, market competitiveness is likely to drop significantly, and their living space will be even narrower.
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