19/12/2022
*Malaysian Tire Industry*
If we refer to the overall retail and wholesale performance in the past six months (July to December 2022), most of the top executives were too optimistic about the performance in the first half of the year, leading to a misunderstanding of the market conditions in the second half of the year. Most manufacturers are indirectly pressuring sales of retailers and wholesalers to meet sales targets for the second half of the year. From those in the industry, we hear a lot of complaints about their day-to-day operations and financial constraints.
There are still two weeks to go before the 2022 year of complaining. Whether the sales target for the second half of the year is committed or abandoned depends on whether the cost of this amount can be absorbed, and it depends on the individual. Don't blame or point out that someone is cheating on you, there are two sides to the business game, take it or leave it.
The decisions you make will determine how your company grows and whether you can stay competitive and survive.
Throughout 2022, what have you learned and past signs that you need to take precautions and plan your company's direction for the coming year in 2023.
Let us refer to the following information for your consideration and planning.
From January to March 2023,
~January 2023, January 3rd~20th is the peak business period.
~ Imported tires must be received before January 13, otherwise they may face delivery problems for outstation dealers.
~ Are you ready to pay your employees their 2022 bonuses?
~ Is your financial liquidity healthy or struggling?
~ Is your DOM inventory high or healthy?
~ January 22nd is Chinese New Year, have you planned your month-end arrears and bonus amount?
~ Will your employees come back to work after Chinese New Year? If not coming back to work, why?
~ Can you meet your monthly sales target for January 2023?
~ Q1 Sales target you do need to plan carefully to avoid unnecessarily losing rebates and incentives from tire manufacturers or suppliers.
~ This critical decision you need to make in February 2023 is to continue or give up chasing sales target.
~ February 2023 is short, usually most business activities will return to normal after February 6th.
~ Awal Ramadan starts on March 23, so you need to consider whether your stock is enough to prepare for this festive sale.
~ If possible, boost your sales campaign by clearing out as much old DOM inventory as possible before the festival.
~ The sales performance in the first quarter (January to March 2023) will determine your foundation and future planning for the first half of the year.
~ There are still many external and internal issues affecting the sales progress of the tire industry.
~ In general, it still depends on the supply chain and global price factors to determine the industry situation.
In the second quarter of 2023 (April to June), it will be shared soon.
Key words: price increase, profit, channel, inventory, decision-making.
