Tires - US - November 2015

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Consumers need to be prompted on when to change their tires
Figure 1: Prompt to replace tires, September 2015
Social media not getting much traction in the tire market
Figure 2: Attitudes towards most recent tires purchase, September 2015
The opportunities
Younger consumers are buying tires more often
Figure 3: Previous tire purchase, by age, September 2015
Aging vehicle fleet adds opportunity
Figure 4: Average age of passenger cars and light trucks, 2005-15
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Market will dip, but growth to follow
New cars could spur growth in a few years
New tire innovations could also drive growth
MARKET SIZE AND FORECAST
Historic and projected sales performance
Figure 5: Total US sales and fan chart forecast of replacement tires, at current prices, 2010-20
Figure 6: Total US retail sales and forecast of replacement tires, at current prices, 2010-20
MARKET BREAKDOWN
Passenger cars rule the road, so passenger-car tires rule the market
Figure 7: Total US retail sales and forecast of replacement tires, by segment, at current prices, 2010-20
Most tires sold via independent retailers
Figure 8: Total US retail sales of replacement tires, by channel at current prices, 2013 and 2015
MARKET PERSPECTIVE
Today’s new-car growth brings tomorrow’s tire customers
MARKET FACTORS
Growth in the Millennial market could lead to increased spending on tires
Figure 9: Tire purchase plans, by Age, September 2015
Climate change could drive increase in snow tires
Figure 10: Mileage of tire replacement, by Region, September 2015
KEY PLAYERS – WHAT YOU NEED TO KNOW
Goodyear, Bridgestone, Michelin rule the tire market
Cooper Tires isn’t far behind
Niche brands make up a smaller part of the market
WHAT’S WORKING?
Goodyear, Bridgestone, Michelin combine marketing with innovation
WHAT’S STRUGGLING?
Small brands don’t have the purchase intent of larger brands
WHAT’S NEXT?
Innovations might change the tire game
THE CONSUMER – WHAT YOU NEED TO KNOW
Younger buyers are in the tire market
Consumers need a prompt to change their tires
Well-known brands high on consumers shopping lists
Run-flat tires tops for tech
TIMING OF LAST TIRE PURCHASE
As consumers drive more, they need tires more often
Millennials are in the tire market
Figure 11: Previous tire purchase, September 2015
Those with higher incomes also shopping for tires sooner
Figure 12: Tire purchase plans, by demographics, September 2015
Hispanics more likely to be replacing tires soon
Figure 13: Tire purchase plans, by Race, September 2015
PROMPT TO REPLACE TIRES
Worn tires are biggest prompt for a change
Figure 14: Prompt to replace tires, September 2015
Older buyers more apt to replace their tires when they are worn
Figure 15: Prompt to replace tires, by demographics, September 2015
Blacks most apt to change tires when they are worn
MILEAGE OF TIRE REPLACEMENT
Consumers replace tires at 40,000 miles
Figure 16: Mileage of tire replacement, September 2015
Baby Boomers most likely to replace tires at 40,000 miles
Men of all ages more likely than women to replace tires at 40,000 miles
Figure 17: Mileage of tire replacement, by gender, September 2015
ATTITUDES TOWARDS MOST RECENT TIRE PURCHASE
When it comes to tire purchases, consumers follow technician recommendations
Young buyers listen to the experts
Blacks least likely to follow recommendations
Figure 18: Attitudes towards most recent tires purchase, September 2015
TIRE BRANDS
Goodyear, Michelin, Firestone top on consumers’ lists
Figure 19: Brands of tires, September 2015
Men more interested in Hankook tires than are women
Non-Millennials the most interested in Michelin
High household incomes also interested in Michelin
TIRE FEATURE INTEREST
Run-flat tires draw interest
Figure 20: Interest in tire features, September 2015
Middle-aged consumers especially interested in run-flat tires
Black consumers are interested in run-flat tires, too
Figure 21: Interest in tire features, by demographics, September 2015
TIRE SPENDING
Most consumers are spending at least $250 on tires
Figure 22: Consumer Spending On Tires In The Past 12 Months, By Type Of Tires Purchased, October 2014-June 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – CONSUMER
Figure 23: Consumer Spending On Tires In The Past 12 Months, By Type Of Tires Purchased, October 2014-June 2015