Hankook eyes greater B2C business after JAX purchase

SEOUL, South Korea (Feb. 1, 2017) — Hankook Tire Co. Ltd. is buying JAX Tyres, Australia's largest tire retailer, and plans to leverage the company's franchise platform into a broader business-to-consumer (B2C) model throughout Asia.

Hankook did not disclose financial details of the purchase nor elaborate on its plans to develop a franchise system, other than to say it plans to "grow into a global top-tier company by expanding customer relationships and strengthening its competitiveness in the B2C distribution sector as a mainstay of new business."

Sydney, Australia-based JAX Quickfit Franchising Systems Pty. Ltd. is a tire retail and a distribution franchise with 83 franchise stores in operation throughout eastern Australia.

Seung Hwa Suh, vice chairman and CEO of Hankook Tire, said, "We will solidify the position as the global top-tier brand by extending the role of holding company.

"We will concentrate more on enhancing global competitiveness by diversifying the inorganic business in the automotive sector based on organic growth of tire."

The Seoul-based tire maker said it sees franchising as an "extension of the B2B characteristics of tire manufacturing industry," and that it will expand its growth model "not only from the hardware-oriented business such as a plant establishment but also the software's growth including distribution channels and premium services."

Hankook did not comment on the timing of the roll-out of a franchising system.

The JAX stores handle sales and service of tires, wheels, brakes and suspension, serving roughly 60,000 customers a month.

Hankook is buying the firm from Jax Tyres Chairman Fred Hurrell and others. The firm's annual sales were not disclosed.

Jax Tyres has been active in Australia since 1949. In 2005 it merged with Quick Fit Tyres, a retailer based in Queensland and Victoria.

According to Hankook, JAX Tyres stores are comparable with those of a luxury car dealership with a modern style exterior and the customer-friendly interior.

JAX Tyre stores carry a range of brands BFGoodrich, Bridgestone, Continental, Dunlop, Goodyear, Hankook, Michelin and Pirelli.