Innovation is driving the growth of Tire Group International LLC's (TGI) Cosmo brand, says TGI President Joaquin Gonzalez Jr. in this MTD exclusive.
MTD: Can you bring us up to speed on TGI's activities in 2024, particularly as they relate to the company's Cosmo brand?
Gonzalez: Tire Group International has focused on expanding the reach of Cosmo Tires, strengthening its presence across key markets.
We have actively promoted and proactively invested in the marketing of the Cosmo brand throughout North American and Latin American markets, leveraging our established distribution channels to boost visibility and sales. In parallel, creating strategic partnerships and collaborations with distributors has helped TGI expand Cosmo’s footprint, particularly in North America.
Cosmo’s commitment to innovation has driven the introduction of new models designed for different applications. The focus on quality, performance and affordability has been at the forefront of our strategy in developing these products. Cosmo is all about creating value for the consumer.
Additionally, TGI has made significant strides in digitalization, enhancing its e-commerce platforms to improve the customer experience and drive online sales of Cosmo products, which ultimately benefits every wholesaler stocking the brand.
Cosmo has also developed the Kool Kat Assets website, which is a robust, one-of-a-kind digital hub that contains a multitude of marketing assets - everything from logos, mascot drawings, official color palettes, sample radio and TV ads, a myriad of social media content , social media instructional videos, retail program guidelines, point of sales materials to order (many at no charge), etc.
And lastly, we have the Kool Kat Test that if you pass, you get a swag bag with a value of over $100!
MTD: In August 2024, TGI acquired Portland, Ore.-based Avaun Tire Supply. Are there other acquisitions in the works? What's your strategy for distributing TGI products through other wholesalers? Is this a part of your business that you're trying to grow?
Gonzalez: Understanding TGI’s family-first culture will tell you all there is to know about our strategy. There are plenty of wholesalers out there that can sell you a tire. We aim to do much more that that. We are looking for true partnerships, where we can leverage every parties’ strengths and focus on building a brand. We are actively looking for these partnerships and are open to exploring what a future looks like together.
MTD: Can you bring us up to speed on the Cosmo retail store program and how it's been received by customers? (Editor’s note: TGI opened its first Cosmo retail store, an outlet in Hollywood, Fla., in 2023. In February 2024, the company opened a second Cosmo store.)
Gonzalez: The Cosmo retail store program aims to enhance brand visibility by creating dedicated, branded spaces within retail outlets, offering customers a personalized shopping experience. These stores showcase the full range of Cosmo Tires, providing product education, premium service, and expert advice.
Customer response has been positive, with many appreciating the exclusive focus on Cosmo products, which simplifies purchasing and fosters trust in the brand. The program has also helped build brand loyalty by associating Cosmo with quality and personalized service.
Based on the program's success and valuable customer insights, TGI plans to expand the retail concept into new markets, further boosting Cosmo’s presence.
MTD: What's your take on the general state of the wholesale tire distribution channel in the U.S. as the year winds down?
Gonzalez: As 2024 winds down, the wholesale tire distribution channel in the U.S. has been navigating a dynamic landscape marked by stabilizing supply chains and strong demand for both passenger and commercial tires.
While inventory challenges and fluctuating shipping costs remain, the demand is driven by vehicle fleet expansions and a heightened focus on sustainability and electric vehicles.
Digital transformation has become a priority, with wholesalers adopting e-commerce platforms and digital tools to streamline operations and enhance customer experiences. The rise of direct-to-consumer sales models has increased competition, prompting wholesalers to offer value-added services and flexible distribution solutions.
Looking ahead, those who can balance inventory management, embrace digitalization and adapt to changing consumer preferences are well-positioned for growth in a consolidating market.
Overall, Cosmo Tires has seen considerable growth over the past 24 months and we attribute that to our relentless commitment to our partners and our family-first approach.
MTD: What can we expect to see from TGI during the rest of 2024 and next year? What will be the company's top priorities? Can we expect to see new Cosmo brand products hitting the market?
Gonzalez: As we get into the home stretch of 2024, we want to make sure we finish the year strong. We are on pace to making this TGI’s and Cosmo best year ever. We are excited for SEMA and the introduction of two new product lines for Cosmo. (Editor’s note: This interview was conducted before last month’s SEMA Show.)
Our Cosmo Kurrent, a premium touring tire, offers a smooth, quiet ride with Quiet Kat Technology. Built for performance, it features extra load capacity (XL), a tread wear indicator and is EV-ready. With optimized rolling resistance, it's ideal for long-distance travel and supports a variety of vehicles.
Our Cosmo GripIt XT (is) an all-terrain tire built for extreme conditions, featuring a mud-rated design and customizable two-sidewall aesthetics. With Directed Super Silica for better wet traction, Quiet Kat Technology for a quieter ride and a patented bead claw for extra traction and wheel protection, it's a top choice for off-road enthusiasts.
Cosmo is all about creating partnerships with like-minded entrepreneurs. We market relentlessly, with a focus on building long-term brand equity that will benefit our partners, both at the wholesale level and retail level. We are passionate about what we do and we are serious about how we go about doing it. We are all about family-first - our partners are our family.
