Let's face it people, the world is changing. Whether it's the increasing price of fuel, the improved performance of cars, or the increasing number of online stores offering discount tires direct to the US public.
Recent reports suggest competition amongst tire sellers has intensified, with the new wave of online tire stores gaining ground over the independent dealers (the traditional market leaders).
Tire Rack
This intense competition is mainly due to the decreasing market, as demand for tires falls. The Rubber Manufacturers Association states that:
"...The passenger replacement market will decrease by approximately 3.2 percent in 2006 to nearly 196 million units..."
This decline could be due to modern tires being durable and lasting longer than they used to. People are also driving less as a result of increasing gasoline costs.
Despite the new competition of selling discount tires direct, The independent tire dealers still dominate the market, accounting for 69 percent of the replacement passenger market. But mass merchandisers have captured 17 percent of the market and manufacturer outlets claim 10 percent. Online tire sales make up about 4 percent.
"The challenge is that competition from the Internet and national retailers has increased. Tires are getting more expensive. Even though they're lasting longer and the number of units aren't climbing as fast as dollar sales, everyone wants a share of that," said Skip Potter, executive director of the Chesapeake Automotive Business Association, which represents locally owned tire service centers in Maryland, the District and Delaware.
I believe a shift in the market is happening as we speak. Discount tire centers make it cheaper, easier, and more convenient to buy tires than traditional independent stores. Growth of discount tire stores are strong. Nowadays there's no reason why we shouldn't buy tires direct.
Discount Tires Direct
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