Tue December 7 12:52 pm 2021 in category Articles
Winter and Selected All-Season Tires Will Bring a 100% Growth in North America
Nokian Tyres organized a Capital Markets Day in September. Anna Hyvönen, EVP, Nordics, Vianor and North America, gave a presentation on how to grow sales in North America by 100%.
Doubling Nokian Tyres’ sales in North America means growing from two million tires to four million tires in mid-term. The growth is built on three cornerstones:
Snowbelt: Build on our strong customer relationships in the snowbelt area, i.e. Canada and the Northern USA, to secure a share of the winter tire market
All-season: Expand all-season product range to drive the growth
Distribution network: Build distribution together with key wholesale partners and go direct with large retail accounts
“Our sales team is building on our strong customer relationships to secure a share of the winter tire market. We will maintain our market leader position in Canada and increase our in-store share in the US. The Dayton factory in Tennessee is an investment that has paved the way for Nokian Tyres’ growth. The company is a forerunner in Europe in winter tires, and the company’s reputation in winter segment is legendary”, says Hyvönen.
Nokian Tyres has already introduced new tires for the North American market and aims to expand its all-season range to drive the growth. The company concentrates on Premium (A segment) and Mid Tiers (high B segment).
“The Dayton factory is the key, when it comes to the North American all-season products. One of the growth engines is light trucks. The light truck vehicle count is growing approximately 5% per year. It is the most interesting segment for us”, says Hyvönen.
The all-season products are designed together with the customers, according to their demands. One of the new products is the Nokian Tyres Encompass, an exclusive tire for Discount Tire, designed together with them.
In Canada, the company’s market penetration is higher than in the US, and Nokian Tyres has over 1,000 point of sales. In Canada, the aim is to capture the growth potential in Ontario and in Montreal area and grow the winter market share.
In the US, Nokian Tyres has close to 5,000 point of sales and the company is expanding its footprint with wholesale partners and with large retailers.
“To support growth in all-season products, we will expand, especially in south and west, and develop our own distribution network further in the Northeast. We focus on planning together with our customers, delivering directly from the factory to key customers, and providing efficient season replenishments from local warehouses. We focus on selective distribution with healthy earning potential for our customers”, Hyvönen concludes.
You can watch Anna Hyvönen’s presentation on growth in North America from here.