"Cordiant": In Russia, the demand for premium tires is growing
In the company "Cordiant", they provided data on the sales of premium-class passenger tires in the Russian retail market and reported that in 2021, their share was 28%, while foreign brands that later left the country accounted for 25% in this segment and 34% in the premium and medium categories.
When a number of foreign brands left the Russian market, a "free niche in the premium segment" was formed, the company says, noting that "car owners who bought foreign-made tires several years ago are facing the need to purchase a new set of tires over time. Accordingly, they are looking for a high-quality, premium product like the one they used for several seasons and got used to".
According to "Cordiant", in the absence of familiar foreign premium brands, Russian drivers are choosing local analogs, and domestic manufacturers "have managed to adapt to the changes and today offer consumers tires that do not yield in quality and technological advancement to the departed competitors, and sometimes even surpass them".
The company reports that the share of premium brands in retail sales in the Russian market is currently 24%, and this figure has been growing for the third year in a row. In the traditional difference (offline store and manufacturers' online platforms), the share of brands in this category is 27%, and on marketplaces, it is slightly lower - 20%. Cordiant itself offers premium-class tires under its flagship brand Gislaved, whose retail sales grew by 26% last year.
"The tire market in the Russian Federation after the departure of Western brands was forced to transform in the shortest possible time, especially given the situation in the premium segment. The successful brands received a "reward" in the form of a more conscious buyer, for whom quality prevails over cost", the company says, adding that "one of the main signs of quality for the Russian car owner is the long service life of the product. The sales results and internal research of the Cordiant holding show that the buyer is ready to purchase more expensive but high-quality tires, with a calculation for long-term operation - approximately five to six years".
Regarding forecasts, Cordiant says that "the premium tire market segment in the Russian Federation has all the prospects for growth: adapted brands with high-quality and technological product lines, growing loyalty and strengthening trust among consumers, developing responsibility and attention to their own safety among car owners".