Tyrepac hits the Thai market
Singapore-based online automotive tire retailer Tyrepac has entered the Thai market through a partnership with Toyota Tsusho Thailand Co, a business unit of Japanese Toyota Group and Manoyont Group, a local aftermarket spare parts distributor.
Thailand is the fourth country Tyrepac has entered and has the most cars in Southeast Asia with around 8 million, said Marcus Lim, co-founder and director of Tyrepac Pte Ltd.
Tyrepac is Asia’s first and largest online tire retailer, debuting in Singapore in 2008, before expanding to Hong Kong in 2009 and Indonesia in 2015.
The online portal welcomes all tire brands and tire distributors, but it focuses only on car tires. Customers can purchase tires and ship them either to their homes or through Tyrepac’s partner network.
According to Mr. Lim, Toyota Tsusho will support communication with Tyrepac customers in Thailand, citing Toyota Tsusho’s local specialization in retailing while the Manoyont Group will help Tyrepac approach tire service points in the country.
Mr Lim said there are 50 service points providing tire replacements for Tyrepac customers, and the number is expected to increase to 100 by the end of this year.
Takahiro Arai, general manager of Toyota Tsusho Asia-Pacific, said Thailand is an important regional market for e-commerce due to the significant growth in the number of internet and smartphone users.
He said internet penetration in Thailand reached around 51% of the population and 64% were smartphone users last year, while the market value of e-commerce stood at US $ 90 billion. (3.06 trillion baht), was more than S $ 76 billion.
“Numerous research papers and surveys estimate e-commerce in Thailand to grow 38% in 2018 [from last year’s figures], said Arai.
“Thailand’s e-commerce value is expected to be similar to that of Japan, worth $ 135 billion in the very near future.”
According to Arai, Thailand itself has a very efficient logistics infrastructure to support the expansion of local e-commerce business.
In the country’s tire market, Arai said that around 15-20 million tires are replaced every year, or 1.5 million per month.
“Although the tires sold through online portals are only 1%, which is 15,000 tires now, I think there is more room for long-term development thanks to the new Thai car owners aged between the start. in their twenties and thirties. “
Mr Lim added that Tyrepac expects to be a major player in the tire e-commerce portal not only in Thailand but also in other countries where Tyrepac has a presence.