JD initiates tire campaign to grow share
Fang Yi, an executive of JD's auto business, speaks at the tire campaign initiated on March 20, 2023. [Photo provided to chinadaily.com.cn]
China's e-commerce giant JD kicked off a campaign on Monday to grow its share in the tire market that is expected to soar in the post-COVID era.
A survey in January by Market research company GfK shows that car owners will drive more often in the first half this year, which will increase the expenditure on tire replacement.
GfK estimates that sales of replacement tires for passenger vehicles in 2023 will grow 12.2 percent year-on-year.
Of them, online sales will soar 21 percent, while the brick-and-mortar stores will see their sales grow by around 10 percent, said GfK.
Fang Yi, an executive of JD's auto business, said the company is therefore partnering with a number of well-known brands including Continental, Goodyear and Bridgestone to meet the growing demand, offering discounts, interest-free financial tools and installation services.
JD boasts both a popular online platform and an extensive maintenance and service network covering 163 cities across the country.
Statistics from JD show that the percentage of car owners who tend to order tires online grew to 48.2 percent in 2022 from 12.7 percent in 2017.
In tier-one and two cities, 55.8 percent prefer to order tires online and get them installed at designated stores.
JD said if a car owner orders tires in the city where it has a JD warehouse, the tires can reach the designated store in as short as one hour.
Good quality products and reliable brands are key factors in car buyers' decisions, followed by transparent prices, said the company.