Many players in the German tyre trade landscape have been observing Michelin’s distribution movement in the form of Tyres-N-Parts with a critical basic attitude. The signs Michelin has been sending towards dealers during the past years have created a certain distance towards the brand. We discussed these topics with two people being responsible, Dr. Johannes Witting (Operative Management at Tyres-N-Parts) and Michael Egelhof (Head of Sales at Tyres-N-Parts).
A few weeks ago you launched a new platform with Tyres-N-Parts. There are already some established online suppliers and providers for tyres and automotive spare parts in our country. What are you able to do better?
Dr. Johannes Witting: There are already enough price-oriented platforms in the market. We know the mechanisms of e-commerce. Our digital platform primarily focuses on quality, a selected network of suppliers working reliably and having goods in stock, and above all fair price structures as the foundation of our concept.
Tyres-N-Parts provides B2B customers in Germany with a comfortable and timesaving one-stop possibility and a full range of products of tyres, wheels and automotive spare sparts, which is independent from manufacturers. This includes the possibility of getting the products directly via connected wholesalers and suppliers at their conditions. One-stop shopping stands for a “digital buying-selling process”: From placing the order via paper-free delivery with standardized invoice to selling everything can be organized in a digital way. Thus, customers only need two clicks to order tyres or parts. Many other platforms are far more time-consuming.
Michelin is the only shareholder. The press release for the launch of the offer did not include any information on this topic. Why? This is very relevant for all the trade players.
Michael Egelhof: First of all, it is important for us to stress the independence of Tyres-N-Parts, which explains a separate way of communication concerning its foundation. Our start-up and thus, the connected agility show how important digitalization is for the whole concept. Tyres-N-Parts is a new digital B2B trading platform for tyres and automotive spare parts. It works as a legally independent organization in the Michelin group structure.
Why is the German market the right one to try out the offer?
Michael Egelhof: The idea of founding Tyres-N-Parts was indeed developed in the region of Northern Europe and was led and implemented by people in Frankfurt. Thus, Germany was our market of origin. Nonetheless, we are still at the beginning. We plan to connect with 10,000 to 15,000 garages in the whole of Germany in the future.
We heard some voices from trade circles that criticized that Michelin only tried to get access to a direct contact database via Tyres-N-Parts. What do you think about this and what type of feedback have you received so far?
Dr. Johannes Witting: We would like to get further customers with Tyres-N-Parts that we have not been able to offer our service to so far. Digital platforms used to have the image of being anonymous, but nowadays, they are just the more comfortable alternative. Platforms also offer a certain shopping experience. We would like to address customers that are keen on using new and modern digital solutions.
Furthermore, our platform was developed in a direct exchange with customers. When creating Tyres-N-Parts, we integrated many suggestions and ideas, and especially our younger fleet customers expressed high interest. Moreover, we are very aware of some critical voices too, as this will be the only option to really convince them that we developed an independent business platform with Tyres-N-Parts, which is supposed to add value for the whole B2B business.
When startting the offer you have said “Tyres-N-Parts is supposed to be a model determining the future of tyre and parts trade”. Could you go more into detail, please? How do you want to change the trade business?
Dr. Johannes Witting: Tyres-N-Parts represents our idea of taking digitalization very seriously. Ordering tyres or parts is to happen in an easy way without absorbing time in the daily operative business. Additionally, our new digital marketplace stands for an efficient answer to a constantly increasing complexity of the market.
In the future, there will be e.g., a scanner for in-coming goods to digitalize in a sustainable way and make processes more transparent in the receiving department after placing orders via tyresnparts.com. According to our vision, in-coming goods will be scanned and further processed via links to the merchandise management and ordering systems of the respective dealers.
