Nexen Tire(002350) is moving in earnest to tap the ASEAN market by overhauling its sales network, distribution structure, and logistics base in Malaysia at the same time.
Nexen Tire said on the 3rd that it recently revamped a large brand store in the Sri Petaling area, south of Kuala Lumpur, the capital of Malaysia. It has opened about 60 brand stores there from 2022 through last year, and plans to open more than 20 this year to raise brand awareness and market share.
A brand store refers to a partner's outlet to which only Nexen Tire's unique image has been added. It unifies signs, interiors, and displays in its signature purple, so customers can have the same brand experience at any store.
It is also changing its distribution structure. Nexen Tire will convert its Malaysian subsidiary into a resale entity that directly handles local distribution starting with this month's production. Instead of the existing method of going through dealers, the company will manage distribution itself to improve responsiveness to the market.
In addition, it is reviewing the establishment of a regional logistics center with the goal of opening in the first half of next year. By sequentially securing sales bases, distribution entities, and logistics infrastructure, it aims to complete a business structure that runs on its own in the local market.
Malaysia is a key bridgehead for Nexen Tire as it targets the broader Southeast Asian market. Nexen Tire plans to break into the local market by leveraging its quality competitiveness built by supplying original equipment (OE) tires to premium automakers such as Mercedes-Benz, BMW, Porsche, and Audi.
A Nexen Tire official said, "Based on a locally embedded business structure, we will steadily expand our brand presence in the ASEAN market."