An industry report just published by financial analysts, Plimsoll Publishing, indicates that the UK market for car tyres grew by 3.3% during 2008. However this growth is confined only to the most efficient companies and the indications are that the bottom 16% are in serious risk of going out of business during 2009.
The Plimsoll research suggests that as businesses and consumers further seek to reduce costs the market for car tyres will come under increased pressure and upwards of 5000 jobs are likely to be lost. Of the businesses that survive only those companies offering low margin business models will actually thrive. This suggestion is supported by etyres year on year growth of almost 40%, which is sharply increasing as the recession deepens.
Plimsoll reports that the average sales per employee during 2008 were £161,700. and advises managers to seek a sales per employee target of at least £167,000. etyres, with sales per employee of almost £1m., far exceeds this benchmark. This underlines the benefit of e-commerce which enables low-cost business models to deliver a high quality service to consumers at a fraction of the cost of traditional retailers. The UK tyres market is no exception.