Major brand products are gaining market share, says Ludwig
"There’s been a lot of talk about 'trading down' by tire buyers this year, but surprisingly, the major brand products are gaining share vs. private brands," saysSaul Ludwig in the June installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"A tire buyer in the U.S. has a choice of about 350 different brands, but as best I can tell, the major flag brands such as Michelin, Goodyear, Bridgestone, Pirelli, Continental and Cooper, for instance, have gained share from all the others," Ludwig says.
"While the consumer may not be buying the top-of-the-line tire offered by the major brands, they do seem to want what they perceive to be higher quality products. This gravitation to higher priced, higher quality products is in evidence in the service bays, too, and might also explain why the service business is very strong among the dealers we speak with."
Ludwig is a managing director with KeyBanc Capital Markets Inc., based in Cleveland, Ohio. Look for the full "Ludwig Report" in the latest issue of Modern Tire Dealer magazine.