our business.”This method of refurbishing worn tyres was both cost-effective and environmentally friendly. However, the arrival of Chinese imports in the mid2000s disrupted the market. “It became unviable to manufacture retread tyres cost-effectively,” he explains.“A brand-new tyre was often cheaper than producing a retread.” ADAPTING TO MARKET CHANGES The shift required a revaluation of operations and a transformation in how the company approached its core business. Grant highlights that adapting to such significant changes was challenging yet necessary. “We had to think differently and find ways to remain competitive,” he says.This adaptability set the stage for the company’s future growth. To stay afloat, Highway Tyres diversified.“In the mid90s, we started importing other new brands, which helped us strengthen our business,” Grant says. The strategic pivot proved vital as the complexity of vehicle tyre sizes also began to grow, making the retreading process increasingly impractical. What began as a small family-owned operation with $2 million in annual turnover has since grown exponentially, now boasting a $30 million annual turnover, five retail stores, and three wholesale outlets across Victoria and Queensland. Diversification also allowed the company to mitigate risks. “Expanding our portfolio ensured we weren’t overly reliant on one aspect of the business,” Grant notes. EXPANDING A NICHE MARKET The company carved out a unique niche by combining novelty with innovation: coloured burnout tyres.“We developed a product that creates colourful smoke during burnouts,” Grant shares. Originally popular among Australian car enthusiasts, these tyres found a surprising market in the U.S. for gender reveal celebrations.“We sell about 100 tyres a month into the U.S., and our online store generates around $600,000 annually.” The innovation didn’t stop at the product itself; the company also invested in marketing and building a loyal customer base. “We created an online store that made these tyres accessible globally,” Grant says. 13 BUSINESS VIEW OCEANIA VOLUME 07, ISSUE 01 HIGHWAY TYRES
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