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Winning through value-added services

Winning through value-added services

By TA News Bureau:

The focus of Giti Tire is on providing great value, service, and support to customers, giving them a highly dependable and sensible option in the competitive marketplace, Chris Bloor, Executive Director of International Sales and Marketing, told Tyre Asia in an interview

As the 11th largest tyre maker in the world, what provides Giti Tire’s competitive edge in a fiercely competitive market?

Giti Tire is a Singapore-based global tire company. In all the company has 12 offices and 5 R&D/technical centers worldwide, as well as production facilities in China, Indonesia, and the US. In addition, the company has OEM relationships and recognition from numerous top global manufacturers and participates in high-profile motorsports categories both in the car and truck categories. Giti’s focus is on providing great value, service, and support to customers, giving them a highly dependable and sensible option in the competitive marketplace.

Giti has made a major strategic move by entering the US truck tyre market. What challenges do you foresee in the market?

Giti Tire has already been supplying truck tires to the US market with different brands. Now the company has recently announced the introduction of its flagship Giti brand to the market, which has already been available in Asia, Europe, and elsewhere. This gives the company’s existing and potential North American customers the ability to take advantage of the special features of the Giti brand, including products, service features, and support materials and tools not previously available.
The US market is challenging, with a large number of existing partnerships and a competitive marketplace of brands vying for share. However, Giti offers good products and a unique value proposition to the market, and with local staff, distribution, and R&D, can provide a strong option to the fleets in the country.

Acquisitions and partnerships play a major role in Giti Tire’s growth. What strategy do you follow in making such moves?

Giti Tire has a wide range of partnerships around the world, both as a company and through local distributorships. Potential new partnerships and acquisitions are evaluated based on a number of factors including current market situation, strength of fit, and other considerations.

Giti Tire has a major presence in motor sport. How does it help in the company’s product expansion and marketing?

Motorsports is very important to the company and Giti brand for a wide number of reasons. For one, Giti’s motorsports presence in Europe, Asia, North America, and elsewhere brings brand awareness and recognition from viewers, many of which are very passionate about driving and cars. It shows the strength of its products, based on the fact that its tires are relied upon to race with top teams, races, and events around the world.

Please elaborate on your R&D efforts/facilities

Giti Tire has been putting a large amount of investment in R&D for a long time. This includes major research and development centers in Germany, USA, China, and Indonesia, as well as a testing center in the UK. In addition, the company has proving grounds in various locations, including a full one recently opened in Indonesia.
All of these R&D facilities work together on technology, while also understanding the features and special characteristics of the regions in which they operate. This allows Giti to continue to advance products and technology to meet the needs of local consumers.

Does Giti Tire face the impact of the recently launched “tariff war” between the US and China?

As a very large company with a presence in more than 130 countries, there are always political and economic situations that need to be dealt with and adapted to. This includes anti-dumping duties and tariffs in some markets. Fortunately, Giti Tire has limited its exposure to these situations with a large network of its team and facilities around the world, which includes production centers in the US and Indonesia, as well as China. This requires the company to be nimble and adapt its supply chain and distribution to the current situations.

What are your green initiatives

Fuel efficiency and green production is extremely important for Giti Tire from the top management to factory workers. Each year, the company has a number of goals and initiatives to reduce production waste, improve mileage, and give back to the environment in other ways, including a longstanding partnership with Conservation International. When educating distributors and end-users, driving and fuel efficiencies is one of the most important topics, and Giti always wants to help in this way, both to save costs and also to help the local environment and communities in which it operates.

What is your take on the new regulations being imposed in Europe?

Similar to as mentioned previously, Giti Tire is always considering the local regulations and market situations, and adapts its strategy accordingly. Giti has been selling its tires in Europe for decades, and its tires are made to fit the local preferences, standards, and regulations. For certain products or markets effected by tariffs, Giti is able to supply from an alternate manufacturing location. While new regulations cause challenges that need to be adapted to, Giti believes that as a large company with a long-term mindset, it will be able to weather such storms and continue to be successful.

In what ways is Asia an important market for Giti?

Giti Tire as a company has a long history in the Asia region, with roots going back more than 65 years in Indonesia, providing both passenger car and truck and bus tires with different brands in its line. The region is important because of the large and diverse consumer market, and its wide use of commercial vehicles that are suited very well to Giti’s line-up of tires. The company also has its Singapore headquarters, as well as other offices in China, Malaysia, Indonesia, and Dubai to service the area. For this reason, Asia was the first market that the Giti brand was released to, and is always considered the home market for Giti.

What is your strategy for the Asia region? And why do you think you can make an impact in the crowded market?

The Asia region is a competitive one, with a large number of companies in both the high-end and cheap price segments. However, Giti is able to strongly compete because of the quality and value that its tires give. When comparing cost-per-kilometer in testing, Giti performs very strongly, and in addition offers a great deal of training and tire support tools for fleets and other users. That is why Giti Tire products are already used on a wide range of fleets in the region.

Please give us a run-down of your current offering for Asia

Giti offers a full range of passenger car, SUV/4×4, and light truck tires for any type of use and vehicle segment. For commercial truck and bus tires, Giti has a full range of offerings for the Long haul, Regional, Urban, Mixed service, and Off-road segments. Regardless of the applications or conditions the vehicles are working in, Giti has an option to fit the needs.

How are your distributors supporting your brand and how do work with them to help customers?

Distributors are an extremely important part of Giti’s business, as they are the bridge to the users in their countries. Fortunately, we have a variety of very strong partners in the region, many who have been working together with the company for more than 20 years. Together the brand and products are able to be introduced and properly applied in the local markets.

How are your tyres designed to continue to provide quality and assurance in the region’s harsh conditions?

Giti tires are specifically designed to withstand the harshest of conditions, including the strong heat and sometimes challenging road conditions in the region. The quality and durability of tires is paramount all the way from the product design to the factory production equipment. This is something that can be demonstrated both when viewing the cut sections of the tires compared to others and in road testing. In addition, the tires allow for strong retreadability which can provide even more lifelong value.

What major trends are in the market and how do your tyres meet the demand they create?

Previously, tire markets often characterized by wholesale selling with a focus on selling price and not much in the way of service or other benefits. However, this model is no longer able to succeed, due to more educated end-users and a huge influx of low-end tires just selling on price. Now, a model that includes great cost-per-kilometer, service, fleet education, and support tools and materials is needed to be truly successful in the long term.

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