Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Independent tire dealers are the retail leader
- Automotive dealerships are spending more on tire marketing
- Passenger tire sales increased 7.7% in 2011
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- Figure 1: U.S. sales of passenger tires, by retail channel, 2006-16
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- Figure 2: Fan chart forecast of total retail sales of passenger tires in the U.S. and Canada, at current prices, 2006-16
- Market factors
- Fewer miles driven as compared to last year
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- Figure 3: Miles traveled in the U.S. by month, 2009-11
- Older vehicles on the road increases the likelihood of tire replacement
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- Figure 4: Median age of automobiles and trucks in operation in the U.S., 1995-2010
- Five companies control 85% of all U.S. tire sales
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- Figure 5: Manufacturer share of retail sales of replacement tires, including passenger tires, light truck tires, truck tires, farm tires, and off-the-road (OTR) tires, in the U.S. and Canada, 2010
- The consumer
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- Figure 6: Tire, rim, and tire/rim packages purchased in the past 24 months, December 2011
- Nearly seven in 10 tire buyers purchase tires due to wear
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- Figure 7: Reasons for last tire purchase, December 2011
- Most patronized tire retailers vary by region
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- Figure 8: Location for tire purchase, by region, December 2011
- What we think
Insights and Opportunities
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- Target consumers by providing tire-check reminders through social networking and phone applications
- Tires for electric vehicles (EVs) and hybrids
Inspire Insights
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- Trend: Perfecting the Details
- Trend: Greenfluencers
Market Size and Forecast
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- Key points
- Passenger tire sales increase 7.7% in 2011
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- Figure 9: Total retail sales of passenger tires in the U.S. and Canada, at current prices, 2006-16
- Figure 10: Total retail sales of passenger tires in the U.S. and Canada, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 11: Fan chart forecast of total retail sales of passenger tires in the U.S. and Canada, at current prices, 2006-16
Market Drivers
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- Key points
- Fewer miles driven
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- Figure 12: Consumer vehicle miles traveled, all U.S. roads and streets, 1991-2011
- Figure 13: Monthly miles traveled in the U.S., 2009-11
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- Figure 14: U.S. gasoline national average price per gallon, 2004-11
- Age of the car parc
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- Figure 15: Median age of automobiles and trucks in operation in the U.S., 1993-2010
- Figure 16: Average mileage driven by years of car ownership, and annual miles driven, 2011
- Growth of electric and hybrid vehicles
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- Figure 17: Total U.S. sales and forecast of hybrid vehicles, 2006-14
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- Figure 18: Projected U.S. supply of electric vehicles, by make, 2011-15
- Rims affected by the economy and consumer confidence
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- Figure 19: University of Michigan Consumer Sentiment Index, 2007-11
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- Figure 20: Employment status, population aged 16+, 2000-11
Segment Performance
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- Key points
- High-performance tires becoming standard, driving growth
- Passenger tire volume down 1.4% in 2011
- Light truck tire volume has turned the corner and is increasing
- Shipments of tires by type
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- Figure 21: Total shipments of replacement tires for passenger vehicles and light trucks in the U.S. and Canada, 2006-11
Retail Channels
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- Key points
- Independent tire dealers are the retail leader
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- Figure 22: U.S. sales of passenger tires, by retail channel, 2006-16
- Figure 23: Indexed growth of U.S. sales of passenger tires, by retail channel, 2006-16
- Figure 24: U.S. share of sales of passenger tires, by retail channel, 2006-16
- Independent tire dealers leverage auto service to supplement revenue
- TBC Corporation is the largest independent tire dealer
- Discount Tire is the second-largest independent dealer
- Mass merchandisers
- Mass merchandisers are in distant second to independent dealers
- Sears offering private brands, trails Walmart
- Warehouse clubs
- Warehouse clubs increase number of stores by nearly 10% in 2005-09
- Tire company stores
- Sales pick up in 2010 and 2011
- Firestone Complete Auto Care
- Goodyear Gemini Automotive Care
- Auto dealerships
- U.S. auto dealers saw decline in 2011, change on the horizon
- Miscellaneous outlets
- Overview
- Pep Boys
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- Figure 25: Pep Boys store count, 2007-10
- Figure 26: Pep Boys revenue split, August 2011
- Online buying
Leading Companies
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- Key points
- Five companies control 85% of all U.S. tire sales
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- Figure 27: Value sales of replacement tires, including passenger tires, light truck tires, truck tires, farm tires, and off-the-road (OTR) tires, in the U.S. and Canada, 2009 and 2010
- Figure 28: Unit sales of replacement passenger and truck tires, by manufacturer brand, 2010
- Goodyear and Michelin dominate HP/UHP sales
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- Figure 29: Market Share of HP/UHP tires, by manufacturer, 2010 *
- Bridgestone Americas
- Bridgestone sales are up 15% since 2009 but below industry average
- Bridgestone renews sports sponsorship agreements
- Company facts
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- Figure 30: Bridgestone Firestone annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-10
- Goodyear
- Goodyear sales increased in 2010
- Goodyear Fuel Max Tires still an innovation leader
- Company facts
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- Figure 31: Goodyear annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-10
- Michelin North America Inc.
- Michelin is the third-largest tire brand in the U.S.
- Company facts
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- Figure 32: Michelin annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-10
- Cooper Standard
- Cooper Standard sales largest of five biggest brands
- Company facts
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- Figure 33: Cooper annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-10
- Continental Tire North America Inc.
- Continental is the fifth-largest tire company in the U.S.
- Company facts
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- Figure 34: Continental annual sales in the U.S. and Canada for passenger tires, light truck tires, truck tires, farm tires, and OTR tires, at current prices, 2006-10
Innovations and Innovators
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- Key points
- Goodyear Air Maintenance Technology
- Bridgestone airless tires
Marketing Strategies
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- Key points
- Marketing through sporting events common among tire manufacturers
- Bridgestone
- Online initiatives
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- Figure 35: Bridgestone Facebook page, December 2011
- Figure 36: Bridgestone Twitter page, December 2011
- Print advertising
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- Figure 37: Bridgestone safe roads print ad, September 2010
- TV advertising
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- Figure 38: Bridgestone and beaver saving man TV ad, March 2011
- Goodyear
- Phone applications
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- Figure 39: Goodyear Highway Helper phone application, December 2011
- Online initiatives
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- Figure 40: Goodyear Blimp Facebook page, December 2011
- Figure 41: Goodyear Blimp Twitter page, December 2011
- Print advertising
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- Figure 42: Goodyear Large Truck Tire print ad, August 2010
- TV advertising
- Goodyear mixes fantasy and reality, showing it will transport your cargo safely
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- Figure 43: Goodyear tires are built for stunt drivers and bought by you TV ad, August 2011
- Michelin
- Phone applications
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- Figure 44: Michelin European traffic phone application screen, December 2011
- Online initiatives
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- Figure 45: Michelin Facebook page, December 2011
- Figure 46: Michelin Twitter page, December 2011
- Print advertising
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- Figure 47: Michelin rims left untouched print ad, April 2010
- TV advertising
- Michelin Man shows how to save money by having a tire use less energy
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- Figure 48: Michelin Green X tires with Michelin Man TV ad, August 2011
- Michelin Man saves father and son on their wet roads journey home
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- Figure 49: Michelin dad and son homeward bound TV ad, December 2011
Tire and Rim Purchases
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- Key points
- Nearly five in 10 respondents report having purchased new tires in the past 24 months
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- Figure 50: Tires, rims or tire/rim packages purchased new or used in the past 24 months, December 2011
- Used tires more popular with younger demographic
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- Figure 51: Tire/rim packages purchased new or used in the past 24 months, by age, December 2011
- Income tracks with tire and rim purchase
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- Figure 52: Tires, rims and tire/rim packages purchased new or used in the past 24 months, by household income, December 2011
- Self-employed consumers more likely to buy new tires
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- Figure 53: Tires, rims and tire/rim packages purchased new or used in the past 24 months, by employment, December 2011
- Optimism about the economy a big driver in new tire and rim purchases
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- Figure 54: Tires, rims and tire/rim packages purchased new or used in the past 24 months, by optimism about the economy, December 2011
Reasons for Buying Tires
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- Key points
- Younger respondents most likely to change their tires based on a recommendation
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- Figure 55: Reasons for last tire purchase, by age, December 2011
- Households with kids more likely to buy tires out of necessity
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- Figure 56: Reasons for last tire purchase, by presence of children in the household, December 2011
Retail Sources of Tires
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- Key points
- Tire stores are top retail choice in a split market
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- Figure 57: Source of last set of tires, December 2011
- Young consumers most likely to use local maintenance shop for tires
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- Figure 58: Source of last set of tires, by age, December 2011
- Higher-income households most likely to buy from car dealerships and branded tire outlets
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- Figure 59: Source of last set of tires, by household income, December 2011
- Most patronized tire retailers vary by region
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- Figure 60: Source of last set of tires, by region, December 2011
- Reason for purchase influences store selection
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- Figure 61: Source of last set of tires, by reasons for last tire purchase, December 2011
Amount Spent on New Tires
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- Key points
- Men and women have similar spending habits on new tires
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- Figure 62: Amount spent on new tires in the past 24 months, by gender, December 2011
- Younger respondents spending less on new tires
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- Figure 63: Amount spent on tires in the past 24 months, by age, December 2011
- Household income correlates with spend on new tires
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- Figure 64: Amount spent on tires in the past 24 months, by household income, December 2011
- Those living in the Northeast and Midwest spend more on tires
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- Figure 65: Amount spent on tires in the past 24 months, by region, December 2011
Type of Tires Purchased
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- Key points
- Type of tires purchased varies with gender
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- Figure 66: Type of tires purchased, by gender, April 2010–June 2011
- Younger consumers buy greater number and range of products
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- Figure 67: Type of tires purchased, by age, April 2010–June 2011
- Income drives purchasing, shapes choices
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- Figure 68: Type of tires purchased, by household income, April 2010–June 2011
- Region greatly influences tire choices
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- Figure 69: Type of tires purchased, by region, April 2010–June 2011
Brand of Tires Purchased
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- Key points
- Goodyear the top choice among one third of those aged 18-34 and 55-64
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- Figure 70: Brand of tires purchased, by age, April 2010–June 2011
- Michelin leads among affluent households earning $150K+
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- Figure 71: Brand of tires purchased, by household income, April 2010–June 2011
- Region influences Goodyear and Michelin
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- Figure 72: Brand of tires purchased, by region, April 2010–June 2011
Reasons for Buying Rims
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- Key points
- Respondents most likely to purchase rims to improve the look of their vehicles
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- Figure 73: Reasons for last rim purchase, by gender, December 2011
- Younger respondents most likely to purchase rims to improve the look of their cars
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- Figure 74: Reasons for last rim purchase, by age, December 2011
Retailers used for Rim Purchase
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- Key point
- Specialty and branded tire stores the top two locations for rim purchases
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- Figure 75: Source of last set of rims purchased December 2011
Amount Spent on Rims
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- Key point
- Respondents are most likely to spend between $101-249
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- Figure 76: Amount spent on rims in the past 24 months, December 2011
Tire/Rim Packages
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- Retailer used for tire/rim package
- Key point
- Overview
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- Figure 77: Preferred location for tire and rim purchase, December 2011
- Spend on tire/rim packages
- Key point
- Majority of consumers spend $101-749 on tire/rim packages
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- Figure 78: Amount spent on tire/rim packages in the past 24 months, December 2011
Preferred Reminders for Tire Maintenance
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- Key points
- More than half of respondents prefer sticker reminder for tire maintenance
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- Figure 79: Preferred reminders for tire maintenance, December 2011
- Age has little effect on sticker reminders but shapes response of text reminders
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- Figure 80: Preferred reminders for tire maintenance, by age, December 2011
- Income drives preferred reminder
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- Figure 81: Preferred reminders for tire maintenance, by household income, December 2011
Impact of Race/Hispanic Origin
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- Key points
- Hispanics and respondents from other races more likely to purchase rims
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- Figure 82: Tires, rims, or tire/rim packages purchased in the past 24 months, by race/Hispanic origin, December 2011
- Reasons for buying tires
- Black respondents more likely than others to wait for a puncture before replacement
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- Figure 83: Reasons for last tire purchase, by race/Hispanic origin, December 2011
- Source of tires
- White respondents most likely to purchase from a specialty store
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- Figure 84: Source of last set of tires, by race/Hispanic origin, December 2011
- Spend on tires
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- Figure 85: Amount spent on tires in the past 24 months, by race/Hispanic origin, December 2011
- Type of tires purchased
- Black respondents purchasing regular passenger car and specialty tires
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- Figure 86: Type of tires purchased by race/Hispanic origin, April 2010–June 2011
- Brand of tires purchased
- Goodyear most popular with black respondents regardless of income
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- Figure 87: Brand of tires purchased, by race and household income, April 2010–June 2011
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- Figure 88: Brand of tires purchased, by Hispanic origin and household income, April 2010–June 2011
- Reason for buying rims
- Black respondents less likely to buy tires while getting other maintenance
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- Figure 89: Reasons for your last rim purchase, by race/Hispanic origin, December 2011
- Source of rims
- White respondents most likely to buy tires at tire specialty stores
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- Figure 90: Source of last set of rims, by race/Hispanic origin, December 2011
- Preferred reminders to check, change, and rotate tires
- More than 56% of all races prefer sticker reminder for tire maintenance
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- Figure 91: Preferred reminders for tire maintenance, by race/Hispanic origin, December 2011
Appendix: Trade Associations
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