Tires - US - November 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Six in 10 car owners don’t actively think about their tires
Figure 1: Attitudes toward tires, September 2017
Less than half of tire buyers can tell when they need to replace their tires
Figure 2: Tire maintenance behavior, September 2017
Four in 10 car owners don’t know the brand of tires on their cars right now
Figure 3: Current tire brand awareness, September 2017
The opportunities
Replacement tire revenue expected to grow
Figure 4: Total US retail sales and forecast of replacement tires, at current prices, 2012-2022
Four of five vehicle owners agree it is worth it to have a professional change the tires
Figure 5: Attitudes toward tires, September 2017
Tire shoppers are very receptive to price incentives
Figure 6: Attitudes toward tires, September 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Replacement tire market forecasted for growth
Gas prices remain low for US drivers
Low unemployment and high consumer confidence spurs maintenance spending
Americans are driving more than ever
Average age of vehicles increasing
MARKET SIZE AND FORECAST
Replacement tire revenue expected to grow
Figure 7: Total US sales and fan chart forecast of replacement tires, at current prices, 2012-22
Figure 8: Total US sales and forecast of replacement tires, at current prices, 2012-22
MARKET BREAKDOWN
Passenger tire sales dwarf light truck tire sales
Figure 9: Replacement tire breakdown, by segment, 2016
Independent retailers are the primary retail channel
Figure 10: Total US retail sales of replacement tires, by channel, 2016, 2014, 2012
MARKET PERSPECTIVE
Light truck sales growth will spur light truck tires moving forward
Figure 11: Total US unit sales and forecast of new passenger cars and new light trucks, by segment, 2012-22
MARKET FACTORS 
Gas prices remain low for US car owners
Figure 12: US gasoline and diesel retail prices, January 2007-September 2017
Low unemployment and high confidence should spur maintenance spending
Figure 13: Consumer confidence and unemployment, 2000-September 2017
Record number of vehicle miles traveled by Americans in 2016
Figure 14: Vehicle miles traveled, 2000-2016
Tariffs reduce low cost imports from China
Figure 15: US consumer tire imports from China, 2004-2016
Average age of vehicles on the road increasing
Figure 16: Average age of light vehicles in the US, 1995-2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Goodyear continues to lead in both passenger and light truck segments
Smaller brands struggle to grow market share
Tires on the cloud
COMPANY AND BRAND SALES OF REPLACEMENT TIRES
Goodyear Tires retain top market share in both passenger and light truck tires
Replacement tire segment extremely fragmented
Figure 17: Replacement passenger car tire sales market share, by brand, 2015 - 2016
Figure 18: Replacement light truck tire sales market share, by brand, 2015 - 2016
Figure 19: Dunlop online display ad, January 2017
WHAT’S ROLLING?
Goodyear Tires retain top spot in both passenger and light truck tires
Figure 20: Goodyear online display ad, October 2017
Figure 21: Goodyear online mobile display ad, August 2017
Figure 22: Goodyear acquisition email, September 2017
Figure 23: Goodyear tire and store locator landing page, September 2017
WHAT’S FLAT? 
Smaller brands not growing market share
WHAT’S AROUND THE TURN?
Smart-tires driving on the cloud
Color-accented tires add style and flair for car owners
THE CONSUMER – WHAT YOU NEED TO KNOW 
Four in 10 car owners don’t know the tire brand on their current cars
Online tire purchases remain a small segment of total sales
Cost is the top reason behind choosing a tire retailer
Less than half of tire buyers can tell when they need to replace their tires
Few car owners say they cheap out on tires
Car owners see value in professional installation
MOST RECENT TIRE PURCHASE
Majority of car owners have purchased tires within the past three years
Figure 24: Most recent tire purchase, September 2017
Fathers most likely to have purchased tires
Figure 25: Most recent tire purchase, by gender and parental status, September 2017
CURRENT TIRE BRAND AWARENESS
Nearly four in 10 car owners don’t know the tire brand on their cars
Figure 26: Current tire brand awareness, September 2017
Men more likely than women to know their current tire brand
Figure 27: Current tire brand awareness, by gender, September 2017
PURCHASE LOCATION
Car owners are buying tires from a wide variety of sources
Figure 28: Purchase location, September 2017
Walmart continues its success among younger car owners
Figure 29: Purchase location, September 2017
PURCHASE REASONS
Cost tops reasons for choosing a specific tire retailer
Figure 30: Purchase reasons, September 2017
Warehouse clubs, Walmart, and Discount Tire chosen for their pricing
Figure 31: Purchase reasons, by purchase location, September 2017
Older shoppers value trust and familiarity
Figure 32: Purchase reasons, by age, September 2017
Online reviews valued by younger shoppers
Figure 33: Purchase reasons, by generation, September 2017
TIRE MAINTENANCE BEHAVIOR
Less than half of tire shoppers can tell when to replace their tires
Figure 34: Tire maintenance behavior, September 2017
Millennials and Gen-Xers utilizing online resources most
Figure 35: Tire maintenance behavior, by generation, September 2017
ATTITUDES TOWARD TIRES
Car owners see value in a professional installation
Figure 36: Attitudes toward tires, September 2017
Perceived value of run-flat tires increased from 2016
Figure 37: Attitudes toward tires, August 2016 – September 207
Women less likely to proactively think about their tires
Figure 38: Attitudes toward tires, by gender, September 2017
CLUSTER ANALYSIS
Figure 39: Tire shopper segments, September 2017
Trust Buyers
Characteristics
Figure 40: Profile of Trust Buyers, September 2017
Opportunities
Figure 41: Attitudes toward tires, by clusters, September 2017
Deal Hunters
Characteristics
Figure 42: Profile of Deal Hunters, September 2017
Opportunities
Figure 43: Attitudes toward tires, by clusters, September 2017
Budget Tire Shoppers
Characteristics
Figure 44: Profile of Budget Tire Shoppers, September 2017
Opportunities
Figure 45: Attitudes toward tires, by clusters, September 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms