Federal Tyres has set its sights on 10% market share in Russia and is revving up its operations with a new website [www.federaltyresrussia.com], VKontakte page [vk.com/federaltyresrussia] -- which is similar to Facebook -- and campaign slogan for 2014: “Awaken the Champion Inside.”
Federal Tyres reports it has been present in the Russian market since 2004. Now it is looking to capitalize on its sponsorship of the world’s most famous soccer club -- it is the official tire partner of English Premier League champions Manchester United -- to establish its products as the ultra-high performance tires of choice for Russian consumers looking for high-speed enjoyment at an affordable price.
Russia is forecast to be Europe’s largest automotive market by 2020, reports Federal, with 13% annual growth by volume estimated for the Russian tire industry.
Federal Tyres CEO Jamie Ma says that now is the perfect time for his company to step up its operations in Russia. “Russia is one of our top priority growth markets and it is a region full of potential for us. Federal has a strong foothold in Russia already and the time is right to start realizing that potential. We are the only Taiwanese tire brand in Russia that makes cutting-edge products with proven race-track pedigree accessible to every driver – from professional racers to enthusiastic amateurs.”
Federal Tyres has seen sales in Russia “rocket by a growth factor of 100 since 2007,” the company says, and its products are now available at over 10,000 retailers across the country. The company is aiming to double the number of wholesalers every year for the next five years to help achieve its 10% market share objective by 2019.
Ma says the company’s sponsorship of Manchester United is key to its growth strategy. “Manchester United is the number one club in the number one sport in the world – they have nearly 18 million followers in Russia alone. Our partnership will help us make the connection with consumers we need to achieve our goals in Russia. We have created innovative, great value tires designed specifically for the tough conditions on Russian roads. Russian drivers want high speed thrills with no compromise on quality and safety, and they will quickly find Federal has the products to match their passion.”
As well as being official tire partners of Manchester United in Russia and Taiwan, Federal is also the official tire partner for racing competitions all over the world, “with a proud tradition as the race track-proven tire of choice for professional drivers and winning teams.”
Exclusive sizes of the company’s 595, Himalaya, Couragia and Formoza series tires are now available at Russian retailers to meet market demand, with up to four new products dedicated to the Russian market expected to reach consumers every year.
Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993.