Pirelli business operations are represented by two main segments. Consumer (tyres for cars, SUV, light commercial vehicles and motorcycles) and Industrial (tyres for buses, trucks, agricultural equipment and steel cord). These businesses are in turn pursued through two sales channels:
- Original Equipment, addressed directly to the world’s leading car and truck makers;
- Replacement, for the replacement of tyres on vehicles already in circulation.
In the field of Original Equipment, Pirelli in Europe has a market share in premium products of nearly 20% in 2014 compared to the level of 14% which the Company had in 2011. In the Prestige segment, which is the highest range on offer, Pirelli is close to 50%, having grown strongly from 36% in 2011.
As part of the Replacement area, there are two broad types of Pirelli customer: Specialist Dealers and Distributors.
Specialist Dealers are tyre specialists operating on the market in the role of independent businesses, constituting a fundamental point of contact between the Group and the end user. Particular attention is devoted to specialised dealers in terms of shared development to enhance the product offering integrated with a high quality level of service, in compliance with Pirelli values and consumer expectations.
In 2014 Pirelli has about 10,000 loyal retailers globally, with a particular numerical concentration in Europe, Asia-Pacific and South America (about 80% of the total points of sale). The level of affiliation is diversified based on the specific elements of the market and the presence of Pirelli itself: it ranges from a softer type of loyalty (Fidelity Club) in which the main objective for Pirelli is territorial coverage and dealer sales support, to franchising programmes which use partnership exclusivity to work hard on business development at the points of sale as a whole, and up to a maximum level of affiliation that is represented by the presence of Pirelli with its own sales outlets (322 point of sale worldwide).
The Distributors are partners who are fundamental to guaranteeing continuity in the supply of tyres to specialist and non-specialist resellers. They do so by offering local delivery and distribution services throughout the entire territory. In addition to the core Tyre Business customers, there is a proportion of rather diverse customers associated with Pirelli & C. Ambiente, a company involved in the production of filter systems to reduce pollutant emissions and liquids, as well as waste-to-fuel renewable energy, and PZero, a fashion design project supporting the tyre business which focuses on the Premium and Prestige segment while sharing with the core Tyre Business the principles of constant commitment to research, innovation and technology.