Page 24 - Retrading Business N103 2022-4
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Expectations of the customer have also un- understand the value that high-quality retreads provide to their operations, and - gher price for high quality retreads they can trust as an alternative to new tyres. Our ex- perience at Marangoni India has been that concepts, and if this works, they are willing been demonstrated. This is the main reason - knowledged as the best alternative to new tyres in the markets where it is currently available.
Lastly, the retreader community itself has been changing – more new entrepreneu- rs are entering the sector with the aim of furthering a cleaner environment while increasingly threatening the dominance of old, established retreaders in their mar- ket by providing better service, transpa- rent operations and greater value through CPK solutions. 90% of Marangoni India’s Franchisees are industry outsiders and approach that combines high quality re- treading with a consultative selling process combined with superior pre-and after sales service.
What have been the key trends regarding re- tread volumes in recent years?
Retreading volumes have steadily grown over the years and have mirrored the new tyre industry till recent times. A big factor that has weighed on the retreading sector has been the galloping radialisation of CV - ly increased over bias tyres as has been the experience in other, more advanced
markets, increasing radialisation beyond the ‘tipping point’, and adversely impac- ting retread volumes. This phase tends to last 3-5 years, and it is our belief that this time has passed and volumes have started growing back. It can be safely assumed that with radialisation crossing 50% in India, de- mand for retreading will actually grow con- tinuously.
The period from 2015-2019 has been a muted period for Industry volumes if one - ver, growth has now returned to the indus- try over the last two years. For Marangoni India, being a new player, we have seen volumes grew from 50% to 70% year-on- year. At our Franchisees, radial retreads comprise two-thirds of business - far ahead of the composition of the Indian market in general. This can grow further with growing radialisation.
retreading industry experienced in last two decades?
It has been observed that product qua- lity has been enhanced due to customer
demand and the efforts of established pla- yers – both International and Indian.
Organised retailing through the Franchi- see route is also growing as customers prefer to buy from ‘trustworthy’ outlets, and retreading entrepreneurs also rea- lise the importance of ‘partnering’ with - fing their business.
Fleets are demanding CPK from retrea- ders as they are getting used to this when they buy new tyres; However, this is a trend that will take time to get establi- shed as has been the experience overseas as well.
What significant developments have taken place in the organised sector compared to the unorganised sector?
One of the significant developments has been the establishment of pre-cured re- treading, made possible mainly by the organised sector – Franchisees as well as Independents. Major Indian tyre compa- nies in the CV tyre sector have entered the retreading sector as well, thereby expanding the share of the ‘organised’ sector.
Rapid expansion (and continued expan- sion) of ‘Franchising’ as the main route for retailing has been a big development as well.
The entry of MNC retreading compa- nies from Europe has been a significant move, signaling their belief in the readi- ness of the Indian market for ‘premium, high-quality retreading’. Michelin from France started this trend, with Maran- goni of Italy establishing it further in several Indian states.
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