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After Lanxess/NTDA published a news report analyzing the UK tyre retail industry perspective last month, a leading tyre industry publication house has further discussed the entire report in extensive detail. It was initially interpreted that tyre labelling, until now, has been sort of an opportunity missed by tyre businesses across Europe. However, the data from Lanxess/NTDA, which was published subsequent to Goodyear Dunlop’s “one year on” analysis, contradicted previous findings on the consumer impact of tyre labelling.
NTDA Lanxess Tyre Labelling Report
Has Labelling Impacted Consumer Buying Pattern?
The Lanxess/NTDA study published in October this year suggests that tyre labelling has not impacted the consumer purchasing behaviour significantly. It also says that very few are aware of the labelling system or the advantages that high category tyres bring along. These findings, however, are in stark contrast to the prior Goodyear report.
GfK stats, compiled for NTDA and printed in the Lanxess analysis, suggest that rather than improved premium tyre sales, there has been a boost in budget tyre sales after introduction of tyre labelling. Hence, the latter tyre segment seems to have gained from the labelling legislation in UK.
Figures say that budget tyres covered 41.1% market share from July to September last year, and that the same rose to 45.4% from April to June period in 2013. The overall sales of both types of tyres, however, fell.
In its concluding part, the said report also discovers and highlights several probable reasons on why tyre labelling has influenced lesser than expected. The feedback suggests that end-users prioritise up-front expenses the most, as reflected by the words of Hyundai’s Stephen Stacey during the earlier Goodyear Dunlop conference.
But, SMMT’s research from last year pinpoints that this doesn’t imply that tyre buyers exhibit aversion towards green motoring. In fact, consumers get better interested when it soothes their wallets. For instance, from 2007 to 2012 low emission vehicle sales leapt from 10.6% to 55%; a staggering hike.
The Report – In a Nutshell
Lanxess/NTDA report concludes with the finding that considering the existing market share of both, premium and value tyres, it is clear that tyre retailers are not recommending advanced, premium tyres to their prospective purchasers. The report continues that this may be because of some scepticism prevalent among tyre retailers about the extent of accurate communication of tyre benefits or drawbacks via labelling. One of the respondents said that tyres must be sent for independent testing, lest the industry might not take these seriously.
The key aspects of the study are:
93% of retailers said that customers hardly ever require EU label info.
Price remains the most important factor for 74% tyre customers
80% of respondents agreed to customers mostly following their advice
5% said that consumers never follow their suggestions.
The most popular suggestions towards improving labelling info at the point of tyre sale were posters, websites and leaflets, with 32%, 25% and 19% respectively.
71% of retailers said that buyers collate required information before purchasing tyres
The Lanxess/NTDA research data, however, does not reflect the entire picture and every perspective.
The latest tyre information and safety advice from Tyre Blog, associated with fast fit car tyres specialists.
Related posts:
Is Tyre Labelling Info Redundant for 93% Potential Tyre Consumers?
Buying Cheap Budget Tyres? Information & Opinions on Safety Risks
ETRMA: All Tyre Segments Excluding Trucks Plummet in the First Half of 2013