Sumitomo Rubber centres focus on Dunlop as “premium brand”

Kobe, Japan – Sumitomo Rubber Industries (SRI) has laid out plans to extend its premium brand strategy as part of its growth blueprint to 2030.

As part of the strategy, the recently acquired Dunlop brand will be the focus of development for the ‘tier one’ premium category, explained SRI in an 8 Jan presentation.

This includes new tires for passenger cars and SUVs using SRI’s homegrown ‘active tread’ technology, as well as flagship tires differentiated by proprietary technologies.

SRI announced the acquisition of the Dunlop brand for passenger car tires in Europe, North America and Oceania from Goodyear on the same day.

The brand, it said, enjoys “high recognition globally” and marketing efforts are boosted by SRI’s Dunlop presence in the sports business.

On the other hand, SRI’s Falken brand, which has been growing in North America and Europe, will compete as “a top contender in the tier two category.”

Elaborating on its approach, SRI said this year will see “organisational transformation and continuous improvements through foundation-strengthening initiatives.”

Furthermore, the Japanese group will aim to complete its 'core system renewal' in 2025 to support digitalisation-driven management.

This year will also see major focus on "selection and concentration of existing businesses" and building “a foundation for growth businesses."

In this context, explained SRI, its decision to terminate production in the US in late 2024 was part of the rationalisation process.

Out of 10 businesses targeted for restructuring, SRI said six have so far been addressed.

For growth businesses, the group emphasised its previously stated goal to “master” rubber technology towards maximising product-value.

SRI went on to explain that it’s 'premiumisation' strategy involved increasing the ratio of premium products to ‘other’ products from the existing 40/60 to 60/40 by 2030.

By 2027, the ratio of premium products is expected to increase to 45%, helped by the acquisition of the Dunlop brand.

SRI defines premium tires as differentiated items, including tires for SUVs and passenger vehicles with sizes of 18 inches or larger.