By Samuel Ee

THE last thing one may associate a tyre with is coffee but that is what Yves Pouliquen refers to when he speaks passionately about the former.

Mr Pouliquen is the managing director of Michelin Malaysia and one of his responsibilities is to oversee the sales and marketing activities of the Singapore market.

He says that in general, growth in Asia is faster than in Europe, which is a mature market, especially in the West. South-east Asia is a particularly fast growing area but there is a downside.

"There is still a lot to be done in terms of Asian tyre retailers' professionalism," he says. "Also, the market is not fully structured yet."

This is unlike, say, in Australia, where there are very strong retail networks with "many points of sales under the same name" - just like having many Starbucks chains and only a few old coffee stalls.

Whereas in Singapore, there are many independent dealers who are not structured in a retail network. "Here, it is the opposite - few Starbucks and many small coffee stalls," says Mr Pouliquen.

One problem with this is that it is not possible to develop a "nice retail store" in a commercial or shopping area with a "nice look and high level of professionalism".

"Michelin is a premium brand, and a premium brand should be serviced in a premium retail store, like a modern Starbucks. Of course I pay more for coffee there but I go because it is nice and clean and has good service," he says.

But he is undaunted. Despite most tyre shops here being located in an HDB or industrial estate, Mr Pouliquen figures it is no reason "you can't have this premium retail experience".

That is why he recently kicked off a $250,000 branding campaign to revamp his dealers"' premises and raise their image and professionalism. In addition to featuring the famous Michelin Man more prominently, each tyre shop will have a clean and uncluttered layout with tyres and rims neatly displayed and stacked.

The self-confessed autophile started his career with the world's No 1 tyre manufacturer after graduating from the University of Reims in France. Armed with an MBA in finance and economy, he joined as a supply chain manager in 1998, quickly rising through the ranks, before being sent to this part of the world to head the Malaysia office in 2007.

But the unflappable Frenchman is also the first to admit that selling tyres is not an easy job. "It is a challenging business because nobody really likes to purchase tyres," he explains. "It is not a 'fashion' product."

Thankfully though, most people understand the importance of tyres when it comes to safety. That, and his passion for cars, have provided the driving force in his professional life.

"I'm a car lover and the tyre industry is directly related to cars," he says. "I like the technological side of tyres. Contrary to what most people think, tyres are not just round and black - they are an integration of technology that evolves very quickly."

This dynamic business has seen steady growth each year "except for 2009", says Mr Pouliquen. It is highly concentrated (the top three worldwide manufacturers - Michelin, Bridgestone and Goodyear - have 60 per cent of the total market), diversified (bicycle, motorbike, passenger car, light truck, 4x4, truck, bus, agricultural, plane), and highly technological (especially for industrial products like earth mover tyres).

Unlike in Europe, he says "Asian consumers are very attached to their cars". "They are quite knowledgeable when it comes to the car's equipment, including the tyres. In Singapore, the beauty is that the car market is a high value one - there are a lot of high end-cars, which is a fantastic opportunity for Michelin!"

But the Republic's high proportion of relatively new cars in the vehicle population presents an unusual problem too. According to Mr Pouliquen, the average age of a car in France is around seven years.

"In Singapore not so long ago, it was three years old," he says.

"This means that people change their cars every three years in Singapore, so much so that sometimes they didn't even have time to buy new tyres."

Things are changing, though, now that more people are keeping their cars longer. "Therefore, the tyre market is growing again."

And by investing in the revamp of his dealers' outlets, he is confident that Michelin will remain the leading brand in Singapore's replacement market.

The company already has a more than 20 per cent market share.

"It will change in the future because Singapore customers will want to have an enjoyable shopping experience when it comes to buying their tyres."

samuelee@sph.com.sg

This article was first published in The Business Times.