Pirelli: Creating a Tire Industry "LV" with Fashion

As an entrepreneur, Marco Troncetti Provera is very accustomed to traveling in the entertainment industry, or the various fashion circles of the vanity field. Many times, he will travel with the beautiful wife who was Miss Tunisian.

In 2010 in Moscow, with him is Karl Lagerfeld, who is known as the "fashionista Caesar". Provera invites him to produce the 2011 Pirelli calendar; the following year in New York, Hollywood movie star Julian Moore, He was pleased to attend the 2012 Pirelli calendar conference and guest guest guest.

Provera is chairman and president of Pirelli Tire .

Increase Investment: Strive for Luxury Transformation

Pirelli, the world's fifth-largest tire company from Italy, has a history of 190 years. Since 2002, the company has gradually stripped its wire, cable and telecommunications businesses, focusing on high-end tire business.

In November last year, Pirelli issued its 2015 vision plan and revised its investment plan for 2011-2015. The plan will increase the company's five-year new investment from 1.9 billion euros to 2.2 billion euros. This move aims to make Pirelli the absolute leader in the global high-end tire market by 2015, increase the company’s EBIT margin to over 16%, and realize the company’s luxury transformation.

In 1901, long before Ford was founded, the Italian company produced its first automotive tire. Over the ensuing half century, thanks to the flourishing development of the automotive and communications industries, Pirelli has also grown rapidly as a manufacturer of telecommunications, cable and tires.

However, Ford and General Motors' innovations in automotive production processes, company management systems, and marketing, as well as the rise of German cars since then, Toyota's lean manufacturing management innovation, eventually formed the United States, Germany, Japan, the tripartite global automotive industry pattern.

As a result, Bridgestone of Japan, Goodyear of the United States, Tire Company of Continental Germany, and Michelin, the earliest producer of tires, became the world's top four tire manufacturers. The same "old" Pirelli company had to follow suit, trying to seek differentiation in the absence of a large auto industry in the country.

An Almanac: Creating a Fashion Legend

In 1964, an accidental cross-border attempt brought Pirelli a driving force for the brand's high end. In the second half of the 20th century up to the present, it brought a brand premium to it, and thus escaped the passive situation of simple price competition.

Like all auto parts, the tire market can be divided into parts business and supporting business. The former is sold directly to end customers through channels such as auto repair shops; the latter is directly part of the vehicle manufacturer's parts suppliers.

In order to increase its share in the retail market, tire companies need to establish a good relationship with the channel, the most important being the auto repair shop.

For a long time, the calendars of various sexy female models in the auto repair shop mixed with sweat and gasoline smells are very popular among car maintenance workers. Some component manufacturers will also do their best to present these new year calendars to these garages.

In 1964, Pirelli UK decided to do something different. They commissioned Derek Forsyth's instruction to hire Robert Freeman, the Queen Beatrice photographer, and used young female models to photograph the 1965 Pirelli calendar. As a gift to the customer. This calendar was very popular at the time.

Pirelli decided to adopt the practice of a British company. In the next 10 years, Pirelli hired well-known photographers each year to use the young, highly individual models or actresses as models to create company calendars.

Between 1964 and 1974, Pirelli's almanac pieces were more or less adulterated with Beatles, rock music, miniskirts, and anti-Vietnam War campaigns, and gradually created a female model calendar for entertainment car repair workers. A fashion legend.

In the 1970s, during the 10 years after the Gulf War broke out, Pirelli’s business was also affected. In view of the global economic downturn, after 1974, Pirelli stopped creating calendars. This move triggered the upsurge of the Pirelli calendar for the literary circle and fashion circle collection. Some people compiled Pirelli's calendar as a book of photographs and published it.

In this way, the tire calendar of a tire company was promoted as “a large block of fashion industry” driven by photographers, models, and their fans who participated in the annual calendar production.

In 1984, Pirelli decided to restart the calendar. Just the calendar of the new period, with more commercial atmosphere - the new Pirelli calendar, there will always be some company tires, or tire-related imprints.

At the same time, during the entire 1980s, Pirelli began radical mergers and acquisitions, which put the company on the verge of bankruptcy.

Dominate F1: Create a high-end image

In the same period, Provera took over Pirelli as the founder of the company and began implementing a series of reforms and reorganizations. Provera and his new management found that the influence of the Pirelli calendar helps to reverse the image of the group.

So in 1993, they once again adjusted the positioning of the Pirelli calendar, decided to abandon all the information on the tires, abandon all constraints and conditions other than “conformity” and “good taste,” and only pay attention to the artistic expression of the calendar.

After adjusting the Pirelli calendar, the world’s hottest models, such as Cindy Crawford and Kate Mousse, were invited to regain great success and effectively increased the popularity and reputation of the Pirelli Group brand. Many celebrities are willing to believe that a company capable of producing artwork-like annual calendars can provide quality and high-end products.

In fact, in the 10 years of the 1990s, Provir had spent a great deal of time and energy on company mergers, acquisitions, reorganizations, and spin-offs, and thus realized the appreciation of personal and corporate assets. It was not until 2002 that the company began to gradually shrink its strategy and once again focused on its tire business.

Provella's latest plan is that by 2015, the company must firmly occupy the high-end tire market. For this reason, he did not hesitate to defeat Michelin and became the tire sponsor of the 2011-2013 F1 race.

Of course, to become a LV in the tire industry, it is not enough to have a “mass blockbuster”. Automotive tires are a functional product, and Pirelli will beat other rivals in the high-end market. A basic premise is that Pirelli should have leading product quality and performance innovations. This requires continuous accumulation of production processes and material technologies.

This is also the reason why Provir has decided to increase investment in the next four years.

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