After becoming the president of the Goodyear Tire Company in Asia Pacific in 2004, the first fire that Pierre Coward’s new official took office was to move the headquarters of the Asia Pacific region from its headquarters in Akron, Ohio to Shanghai. Times have changed. Since then, Ke Huade has allowed the Goodyear Tire brand to usher in the Chinese era, expanding its business from business-to-business to consumer markets. The company currently has more than 800 branded stores in China, the world's largest automotive market.
Now, as Chinese consumers become more affluent and families that originally owned a car started buying second and third cars, the challenge for Howard is to maintain its growth. He said that whenever he wakes up, before going to sleep, and when making any decisions he always asks himself the same question: "Is this development fast enough? Are we bravery enough? We really caught the present Are all the opportunities brought by the wave in most parts of Asia?†Mr. Howard told reporters about his challenges: operating in a diversified, expanding Asian market; inspiring and maintaining Chinese consumers Loyalty; Creating the business benefits of green companies.
Reporter: What are your biggest challenges in China?
Ke Huade: Whoever can achieve a double-digit growth rate in China, the problem is that if you feel good about 25%, why is it not 32%? China is the most competitive market in the world, because every competition Everyone wants to succeed here. They have all done their best in China, as if this is not enough to make people feel serious. Chinese companies are also very aggressive. Looking around the Chinese market, we will find that: Goodyear is not the biggest, nor the richest, so if we can not do things faster and better than others, we will be eaten. We must create a culture that makes us feel that we must become the most agile, fastest, boldest, and most creative contenders, because we cannot afford to be as good as others.
Reporter: What are the cost increase issues that you have to deal with in China?
Ke Huade: At present, we face three kinds of costs in China. The first is obvious inflation. Labor costs have risen. The cost of purchasing everything has risen. The second is the exchange rate. The exchange rate of the renminbi against the US dollar is rising. I like this because it will increase the price of the product, but it will also increase my cost base. The third is raw material costs. Energy prices rose and fell, but overall it was still higher.
Reporter: What are the differences between Chinese consumers and consumers in other markets?
Ke Huade: Chinese people often have high brand loyalty, but they are loyal to the concept of the brand, not necessarily the brand itself. Out of curiosity, they will switch to different brands. Therefore, this creates an opportunity for you to attract first-generation drivers to use your brand. Once you have done this, you must find ways to maintain their loyalty to your brand.
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