Study of channel optimization of G Tyre company in the new retail format

Abstract

G Tire Company, a global leader in tire manufacturing, rapidly expanded its offline retail network upon entering the Chinese market. However, traditional offline retail faces challenges, with the emergence of “new retail” integrating the internet with physical stores. Rising “new retail” firms like TuHu have impacted G Tire's traditional channels, prompting a need for a “new retail” transformation. This paper reviews literature on “new retail” and the tire industry, analyzing the industry’s development and transformation. Based on research and distribution channel theory, a four-element model for “new retail” channel analysis is proposed. The surveys and analysis revealed issues such as e-commerce impact, dense urban channels, and lack of brand diversity due to data shortages. Improvement strategies include channel coordination, product enhancement, traditional channel optimization, and management upgrading.