MOSCOW (April 1, 2014) — Taiwan’s Federal Corp. has set its sights on 10-percent market share in Russia and is revving up its operations with a new website and slogan for 2014 — “Awaken the Champion Inside.”
Federal, an official tire partner since last year of English Premier League soccer champion team Manchester United, has been present in the Russian market since 2004. The company said it plans to use its sponsorship “of the world’s most famous football club to establish its products as the ultra-high-performance tires of choice for Russian consumers looking for high-speed enjoyment at an affordable price.”
Russia is forecast to be Europe’s largest automotive market by 2020, according to Federal, with 13-percent annual growth by volume estimated for the Russian tire industry. Federal Corp. CEO Jamie Ma said now is the perfect time for his company to step up its operations in that country.
“Russia is one of our top priority growth markets and it is a region full of potential for us,” he said. “Federal has a strong foothold in Russia already and the time is right to start realizing that potential.
“We are the only Taiwanese tire brand in Russia that makes cutting-edge products with proven race-track pedigree accessible to every driver—from professional racers to enthusiastic amateurs.”
According to the tire maker, its sales in Russia have skyrocketed “by a growth factor of 100 since 2007,” with the Taiwanese company’s products now available at more than 10,000 points of sale across the country via a distribution network of nine wholesalers in eight cities including Moscow, St. Petersburg and Ekaterinberg.
Federal said it also is aiming to double the number of its wholesalers in Russia every year for the next five years to help achieve its 10-percent market share objective by 2019.
Explaining how Federal’s sponsorship of Manchester United is key to its growth strategy, Mr. Ma said the team “is the No. 1 club in the No. 1 sport in the world—they have nearly 18 million followers in Russia alone.
“Our partnership will help us make the connection with consumers we need to achieve our goals in Russia. We have created innovative, great value tires designed specifically for the tough conditions on Russian roads. Russian drivers want high-speed thrills with no compromise on quality and safety, and they will quickly find Federal has the products to match their passion.”
Federal also noted that exclusive sizes of its 595, Himalaya, Couragia and Formoza series tires are now available at Russian retailers to meet market demand, “with up to four new products dedicated to the Russian market expected to reach consumers every year.”
In addition to its soccer team sponsorship, Federal said it also is the approved tire supplier for a number of motorsports series including the Malaysian Super Series & Sepang S1K in Southeast Asia; Ma5da MX5 Cup and Nippon Challenge Racing Series in UK; Japan D1 Street Legal drifting series; and U.S. Asphalt Legend Cars.
Federal was founded in Taiwan in 1954.
What is the best business practice?
|Treating your customers fairly.||
67% (36 votes)
|Offering the lowest price possible.||
2% (1 votes)
|Doing the job well, as quickly as possible.||
22% (12 votes)
|Staying ahead of technology.||
4% (2 votes)
|Be heavily involved in the community.||
6% (3 votes)
|Total votes: 54|