April 14, 2013

Continental Tires to add 1,000 retail outlets in China in 2013

German tire manufacturer Continental Tires has outlined plans to add 1,000 retail outlets across China in 2013 as part of strategy to strengthen its presence in the country.

By admin-demo

German tire manufacturer Continental Tires has outlined plans to add 1,000 retail outlets across China in 2013 as part of strategy to strengthen its presence in the country.

The company opened 1,000 retail stores in 2012 bringing the total store count in the country to 2,500.

Continental Tires China general manager Jay Dhillon told chinadaily.com.cn that the company is looking to replicate the rapid retail expansion of 2012.

"We will open another 1,000 authorized stores in 2013 – three a day – as well as deepen our footprint into more second- and third-tier cities, and maintain that speed over the next three years," he added.

"In 2012, Continental entered the second phase of our development in China, after establishing a stable foothold here. But we need to go much faster.

"We spent 80 percent of our marketing budget on opening shops and doubling our sales team in 2012," revealed Dhillon.

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The chain, which launched 12th BestDrive store in the country, is keen on increasing the store count by two-fold in 2013.

It also plans to add a further 10 to 15 stores per year over next three to five years.

"Establishing BestDrive stores is a key initiative to propel our rapid growth in China, as well as a major step in building our presence in the local retail market, especially in the service sector," noted Dhillon.

The retailer has made an investment of $175m for the second phase development of its plant in Hefei to increase its production capacity to 8 million tires per annum.

Continental also plans to increase its original equipment (OE) business that currently contributes to 10% of its total business.