Regional Strategy: Russia
Gradual recovery of economic activities starting from 2014. The anticipated stabilization of oil and natural gas prices are likely to keep the average growth rate at 3.5% per year between 2014 and 2017.
The number of vehicles in use is growing (+3.8% CAGR 2013-2017), with an Increasing presence of foreign Brands: 60%, the weight – imports + local production – over the total in 2017.
The market is expanding and the incidence of top-of-the-range Tyres over the total is growing: 2013-17 CAGR of A and B segments at 6.8% and 6.6%, respectively, and segment C at 0.5% +8.2%, the 2013-17 CAGR of Premium demand, 4.1% the overall market.
Pirelli in Russia
- Player operating in all market segments (A, B, C);
- 10% share of the Premium market;
- Over 650 POSs, 560 of which with Pirelli qualified support;
- 2 plants, with an overall capacity of 8 million pieces (6 mln pcs in Kirov ≤16”; 2 mln pcs in Voronez ≥17”);
- 4% is the Region’s contribution to the Group’s revenues.
TARGET: RELAUNCHING THE REGION BY TRIPLING SALES IN 2017 AND POSITIONING AMONG THE LEADERS OF THE PREMIUM WINTER NORDIC SEGMENT
- Widening of the product range and of the commercial offering: doubling of studded products in 2014 (Ice Zero, New Formula Ice lines); launch of a thoroughly renewed Nordic Friction line in 2015, designed specifically for Russia/Nordics;
- Partnership and synergies with the major Premium car makers (sales doubled in 2016 vs. 2012);
- Development of the sales network: at least 50 new POSs per year starting from 2014 (+55% POSs in 2016 vs. 2012); strengthening of partnerships with car dealers (2014 vs. 2013: 2x share of wallet; 2016: first or second Brand in the channel), increase of our Shelf presence (2016: ranking among the first 3 Brands both in the Summer and in the Winter markets);
- Optimization of the production footprint: one plant in Voronez, the excellence centre for Premium Winter Nordic High Technology Tyres and Premium OE; one high-efficient and flexible plant in Kirov for the Medium segment able to promptly respond to market requests.