How important is the North American market?
Establishing production in Mexico will bring several advantages to Sailun and its U.S. customers. By expanding operations to Mexico, Sailun aims to enhance consistency, security, and predictability in the production of our tires.
This investment in Mexico represents a strategic move towards ensuring a stable supply chain for North American customers, further demonstrating our commitment to delivering reliable products and services to our customer base in the U.S.
With inflation, has there been a consumer shift to Tier III/IV products?
Certainly, there's been a noticeable trend towards valuing quality, and as customers engage with our products, they swiftly evolve into enthusiastic brand advocates.
What makes your relationship with TBC Corp. work?
For over two decades, TBC has stood as a steadfast partner to Sailun, a testament to the enduring nature of our shared values: integrity, customer-centricity and respect. Additionally, STA is privileged to cultivate similar relationships with other tire wholesalers and retailers across all brands within our portfolio.
Sailun has jumped in the EV tire segment. What is your EV strategy?
Sailun forecasts a growing demand for EV tires in the long term. Leveraging our ECO point 3 technology—which offers energy-saving benefits and low rolling resistance suitable for both EVs and internal-combustion-engine vehicles—we anticipate a continued shift towards environmentally-conscious tire solutions.
Our upcoming products will harness this technology to not only enhance battery life and fuel efficiency but also contribute positively to environmental sustainability. Stay tuned for new STA products tailored to meet the evolving needs of electric and eco-conscious vehicle owners.
What kind of trends or pleasant surprises are you seeing in the marketplace?
The U.S. consumer tire market at mid-year showcases robust overall demand, with consumers displaying a shift towards being less brand-centric and prioritizing true value in their purchases. This trend is advantageous for STA as we actively engage in the value segment of the market, aligning well with the evolving preferences of consumers seeking quality and affordability in their tire choices.
Do you expect to roll out any additional products in 2024?
Our primary focus during the second half of 2024 and likely throughout 2025 will center around converting sales representatives and counter staff into enthusiastic advocates of our brands by implementing comprehensive training programs and engaging contests to foster a deeper sense of brand loyalty among internal stakeholders.
STA remains committed to adapting to market needs, driven by the valuable feedback we receive from our customers. As an illustration of this commitment, we are poised to introduce rugged terrain (RT) tires across all our brands, along with new fitments spanning the various segments we currently serve.
Has artificial intelligence begun to impact business?
As the sales and marketing division of the Sailun Group for North America, we've begun integrating AI to augment and support our proficient team. This augmentation has resulted in increased productivity among our staff, particularly in handling mundane tasks, thereby allowing us to focus more on strategic initiatives.
What are some of the challenges facing the industry?
In urban areas, challenges such as vehicle ownership and the implementation of car-free zones in certain cities loom large. However, amidst these obstacles, we remain optimistic about the burgeoning demand for electric and hybrid vehicles. The unique requirements of these vehicles are poised to streamline tire consumption.
Furthermore, we anticipate a rise in compliance and regulatory standards, which will inevitably factor into the operational costs for tire manufacturers.
One of our key challenges lies in effectively disseminating our messages to the broader public, particularly in the densely populated digital landscape where breaking through the noise can be daunting.
What do you want tire dealers to know about the company that they may not know?
We've crafted a multifaceted strategy featuring distinct brand identities across our portfolio. Additionally, it's crucial for our dealers to recognize that STA's team comprises individuals with extensive backgrounds spanning every facet of the tire industry, boasting decades of invaluable experience. This wealth of expertise grants us a definitive edge over many of our competitors.
