Chinese Online to Offline model practiced in tyre Industry can establish backward and forward supply linkages in Pakistan: Shah Faisal Afridi

Lahore, April 28, 2016 (PPI-OT): Chinese O2O (Online to Offline) model practiced in tyre Industry can establish backward and forward supply linkages in Pakistan. It was stated by president Pak-China Joint chamber of Commerce and Industry during a meeting with Mr George Sun, Chairman, Jinan Kemp international Trading Company China Mr George sun, the pioneer of Tyre industry in China with worldwide production facilities of cutting-edge quality tires, who is visiting Pakistan to introduce the Chinese Hi tech and stress resistant modern technology in Pakistani Market.

Shah Faisal Afridi pointed that Collaboration with innovative Chinese Tyre industry can bridge the huge demand gap for Tyres in Pakistan. Shah Faisal Afridi baptized this opportunity as radical shift in the automobile industry of Pakistan. He informed that the Tyre industry of Pakistan could hardly meet 12 to 15% demand and the shortfall paves the way for the international tyre companies in Pakistan that in his view is a positive development. “In Pakistan tyres of trucks and buses are on top of consumption as 50% of the total consumption in the country for these two four wheelers are on top of running which is in commercial use, while bicycle and trolley tyres are in bottom of consumption figure” said Afridi.

Keeping in view the growing demand, the government could attract domestic as well as foreign investment in the rubber tire industry by resolving structural problems of the sector, said president PCJCCI. “Steep increase in gas and electricity tariffs along with security issues, is creating problems for future investment”, said PCJCCI officials.

Faisal Afridi explicated that heavy smuggling of Tyres in Pakistan has scared away foreign investors. He said that India is taking advantage of the situation by offering special incentives to the investors and that’s why global Tyre manufacturing players are strengthening their place in the Indian market. Faisal Afridi maintained that if the government is desperate for foreign investment, then it must curb smuggling, as mounting volumes of smuggled goods, especially tyres, are affecting the sector.

He informed that according to industry estimates, Pakistan produces around 23% of the total demand while 40% is met through imports. The remaining 37% is grabbed by smuggled tyres.

Faisal Afridi during the discussion reiterated that Pakistan is a consumer’s paradise and no company or product could see a lack of potential in a market of our size. We only have to provide the right atmosphere and this market will move forward in no time. Once that atmosphere is in place investments will flow into Pakistan, including the tyre sector, said Afridi.

Mr George while introducing his company said that his brand of Tyres is preferred all around the globe due to the durable and innovative hi-tech manufacturing units installed in all major developed countries. Mr. George further said that the impressive developments particularly in the communication sector has elevated the Tyre industry as a vibrant area of investment in Pakistan.

He elaborated that his team has developed O2O (online-to- offline) business model, according to which consumers go to a portal controlled by the company and then go to a bricks-and-mortar outlet to get the tires fitted, the portal owners offer the opportunity for the buyer to select a local outlet and arrange an appointment, the portal owners then work with logistics teams to get the Tyres to the local outlet.

He mentioned that Careful strategic planning is behind the steady growth of his brand both on the domestic as well as on global front. The company has adopted technology innovation as its development mantra that is excellently reflected in its introduction of radial technology for the first time. He said that seeking the huge demand of cost effective and durable Tyres in Pakistan he is planning to initiate state-of- the-art R and amp;D centres and Tire Research Institutes to stay at the forefront of technological advancements and remains the nerve centre for providing cutting edge technology.

For more information, contact:
Wardah Ali Gohar
Media Manager
Pakistan China Joint Chamber of Commerce and Industry (PCJCCI)
Mega Tower, 309 – 6th Floor,
Main Boulevard, Gulberg II,
Lahore, Punjab – Pakistan
Tel: +92-42-35777460-02, +92-42-37032203, +92-42-35874353
Fax: +92-42-35777524
Cell: +92-324-4925611