INDUSTRY EVOLUTION
The automotive industry has changed a lot in the last 70 years, and Aussie heritage franchise JAX Tyres has been there through it all.
JAX Tyres has been wheeling and dealing for 70 years.
“We need agility to service all technologies moving forward, especially in the automotive race to zero-emission targets.”
That’s the focus that is driving JAX
Tyres CEO Steve Grossreider to revamp the brand’s approach to innovation, technology and training.
Since first launching in Sydney in 1949, the tyre experts have become a staple of the Aussie automotive industry, with more than 80 locations nationwide.
Now, with the industry on the brink of an electric evolution, Grossreider and the JAX team are investing heavily in ensuring franchisees remain ahead of the curve.
The CEO’s strategy isn’t simple. It takes guts to revolutionise a heritage brand, not to mention clarity of vision.
Inside Franchise Business sat down with Steve as he outlined the challenges and opportunities facing the evolving sector, explaining how he plans to take JAX into the future.
Q: CAN YOU TELL ME A LITTLE ABOUT WHAT JAX TYRES HAS BEEN DOING LATELY?
A: Since the start of this year, JAX Tyres has established EV charging stations in a number of our stores across the country, including Woolloongabba in Queensland, Kwinana in Western Australia, and Warrawong in New South Wales. These stations are part of a 2019 nationwide roll-out to future-proof our stores in partnership with electric car utilities experts, EVolution. This is the latest development in our exciting coast-tocoast expansion and growth in the electric energy space.
Q: THE AUTOMOTIVE INDUSTRY IS ONE THAT IS DEEPLY RELIANT ON NEW TECHNOLOGY; WHAT IS JAX DOING TO ENSURE ITS FRANCHISEES ARE PREPARED FOR THE FUTURE?
A: JAX is already a leader in the digital retail space. This year saw an upgrade to our existing omni-channel as we continue to focus and invest in providing an enhanced customer experience throughout our network and more focused training for our franchisees. This year will see a full training facility constructed in our Sydney head office that will be a full replica of a JAX retail store, which will allow regular structured training for our franchisees and ensure all franchisor staff are trained around supporting the franchisees with our CX strategy. In addition, we will be making significant investments in ensuring our network is fully equipped and our franchisees are trained to service and maintain new vehicle technology, including the emerging electrical vehicle market.
Q: DO YOU PREDICT ONGOING INDUSTRY CHANGES SUCH AS AUTONOMOUS VEHICLES AND ELECTRIC-POWERED CARS WILL PRESENT ADDITIONAL CHALLENGES FOR JAX TYRES FRANCHISEES? OR AN OPPORTUNITY TO STAND OUT FROM THE CROWD?
A: We definitely see diversification through EV and autonomous vehicles as a good thing for the automotive industry. We’re already taking steps to ensure JAX Tyres is ahead of the market in providing those solutions for customers in this space and JAX believes this fits well with our current operating model.
We need agility to service all technologies moving forward, especially in the automotive race to zero-emission targets. JAX Tyres has a very solid service network through our best-in-class franchisees and longstanding relationship with our trusted group of global top-ranked brand suppliers.
Through these relationships, JAX
Tyres will keep its position as a leading innovative technology-driven retailer and our commitment to delivering market leading customer services.
Q: JAX RECENTLY OPENED ITS FIRST WA OUTLET; WHAT DOES COAST-TOCOAST REPRESENTATION MEAN FOR THE BRAND?
A: Coast-to-coast representation is a significant milestone for the JAX Tyres brand and our growth strategy.
We started with our first store in Leichhardt, New South Wales. Nearly 70 years later, we’re thrilled to expand our strong retail network to 87 stores across the country, with our Kwinana store opening in Western Australia this year. This year will see the establishment of a strong national footprint that will enable JAX to retain its competitive position and continue market growth through its ongoing expansion.
Q: ARE THERE ANY OTHER EXPANSION PLANS ON THE WAY FOR 2019?
A: In 2019, JAX Tyres’ business strategy will focus on two key areas: firstly to expand nationally with our JAX installation footprint to maximise our digital omnichannel; and then explore international with strategically selected expansion opportunities.
Q: CAN YOU TELL ME A LITTLE ABOUT THE BEST-PRACTICE FOR FRANCHISEES?
A: Our franchise platform is a highly disciplined vehicle for consistently developing the service proposition and retailing the core product. Our franchise platform is made up of a number of key components that all work together to create our unique franchise value proposition. Each of these components is measured to allow the identification of best practice, which is then shared across our network through our operational structures and our national conferences.
Q: WHAT ADVICE DO YOU HAVE FOR FIRST-TIME FRANCHISEES?
A: As mentioned above, our franchise platform is a highly disciplined process and when adhered to, the business reaches an optimised level at a much faster rate. So my advice would be to follow the business model with a level of discipline and work closely with the franchisor to achieve mutual success.
Q: HOW DO YOU VIEW THE CURRENT FRANCHISE MARKET?
A: The current franchise market is going through some dynamic changes that will cause some short-term pain through adjusting models to align with new legislation. I strongly believe that in the long term we will have stronger franchisee platforms and great alignment with franchisors that will allow sustainable growth into the future.