Regional Strategy: APAC



NAFTA
LATAM
EUROPE
MEAI
RUSSIA
APAC


Market overview

APAC is the Region with the highest economic growth driven by China: +7.7% the average rate of growth per year in China in the 2013-17 period.



Vehicle parc

The number of vehicles in use is growing strongly, at an average rate of 8% per year between 2013 and 2017.

Premium and Prestige are the segments expanding the most: 2013-17 CAGR +12% vs. +6% of the overall market.


Tyre market

The Tyre market will follow the trend of the whole Region, with a strong shift of demand toward Premium products: 2013-17 Premium CAGR approximately 2.5x vs. that of the overall market. The incidence of the Premium segment is expected to go from 13% in 2013 to 17% in 2017, due to a strong growth of the OE segment (23% the incidence of Premium in the OE market in 2017).


Strategy

Pirelli in APAC


  • Premium player with a double digit market share in Superpremium (≥18”), “high teens” in China;
  • Unique positioning in OE through strategic partnerships with European Premium Car makers and strong OE pull – through in Replacement (direct access to car dealers);
  • Wide and renewed product range, specific for the Asian Car and SUV market (25% of sales from new products in 2013);
  • Vast distribution chain, with approximately 2,000 branded POSs in China in 2013, and being continuously expanded;
  • Brand awareness: #2 in Brand consideration amongst Premium car owners;
  • 1 plant producing Premium Car High Mix Tyres (100% Premium production capacity), 1 for Truck Tyres and 1 for Moto Tyres;
  • 8% is the Region’s contribution to the Group’s revenues.

TARGET: CAPTURING PREMIUM GROWTH IN THE REGION IN ALL CHANNELS AND MARKETS


    • Strengthening partnership with Premium/Prestige OEMs;
    • Doubling the distribution network: 4,500 POSs in 2017 (+2,500 vs. 2012), located in high-potential strategic areas (geomarketing);
    • Development of dedicated services for top-end dealers: training, commercial development and POS setup;
  • Commercial expansion into new markets in addition to China, such as South Korea, Malaysia, Thailand and Indonesia, with presence in selected areas.

2013-2016 Targets

 


 

Last revised: 19 Dec 2013