MANILA, Philippines - Dr. Wally Y.H. Chen, president at Maxxis International, travels a lot overseeing his company’s various locations abroad. More than checking on the company’s interests overseas, Dr. Chen goes to these business trips for the pleasure of seeing Maxxis tires on the road in each country he visits. Their visibility means only one thing for Dr. Chen: people are trusting the brand.
Dr. Chen believes that trust speaks volumes about a company, determining its growth and expansion in local and international markets. “Maxxis is the company that they can trust. That’s the real meaning behind the brand. Trust can make a company last for generations.”
Dr. Chen joined Maxxis in 1974. His father-in-law Luo Jye founded Maxxis, then known as Cheng Shin Rubber Industry Co., in 1967. “Being the son-in-law, I felt this huge responsibility. But I also knew that I had the power to promote the brand,” says Dr. Chen.
The Maxxis Global Brand
Dr. Chen introduced a string of ideas and innovations to raise company margins, sales and profits. Changing the name of the brand, from Cheng Shin to Maxxis, and going global were among his forward-thinking initiatives. “I realized that if we were to go global, it was important to have a Western-sounding name for our product,” says Dr. Chen.
Top 10
With roots in Taiwan, Maxxis International is currently among the Top 10 in Tire Business’ Global Tire Company Ranking. It exports to more than 180 countries, earning more than US$4.5 billion annually. The company has a strong presence in the US, Europe, Canada, Australia and across Asia.
By being present in various markets globally, Maxxis was able to cater to all sorts of markets –from the emerging to the developed. It also further strengthened the Maxxis name.
From manufacturing bicycle and motorcycle tires and inner tubes, Maxxis now sells a range of products for motorcycles, cars, 4x4s, light trucks, trucks and buses, ATVs, race karts, industrial vehicles and trailers. It has also tires for lawn and garden products. Maxxis is the world’s largest manufacturer of bicycle tires.
Keeping up with competition
Maxxis’ business principles include respect, care, appreciation, 100 percent accountability and the T3 (100 percent quality, 100 percent service, and 100 percent trust).
As a global player, Maxxis keeps up with competition by constantly employing new strategies, adjusting to new trends, and being flexible. “We act fast. I think our competitive edge is our sense of urgency,” says Dr. Chen.
In recent years, the company has acquired state-of-the-art equipment to challenge competition. In Maxxis’ Kunshan tech center, the company bought a Flat-Trac III which is said to be only a fewer than ten machines of its kind in the world. Maxxis also installed a rolling resistance tester that can test tire uniformity up to 200 kilometers per hour. It is equipped with the latest machinery designed for testing force, rolling resistance, high-speed uniformity, noise and vibration, contact pressure measurement and analysis, and 3-D measurement.
Maxxis’ other tech center is located in Suwanee, Georgia, next to the company’s US office. The facility boasts of state-of-the-art equipment and a top-flight staff. The rest of the company’s R&D centers are located in Taiwan, where the headquarters is located; Xiamen and the Netherlands.
In November 2012, Maxxis launched a new proving ground using sophisticated technology in Shanghai. Located adjacent to their manufacturing plant, it covers an area of 860,000 square meters within a 5.2-kilometer perimeter. Costing more than US$150 million and taking a few years to design and build, it is touted to be the largest in China. It is also the first one of international standard in that country.
Empowering Local Partners
Each local distributor has only three directives from headquarters in Taiwan: to be a major player in the industry, promote solid, organic growth; and practice continuous innovation.
North Trend Marketing Corporation is Maxxis’ local partner in the Philippines. Maxxis first came to the country 20 years ago, and has since become one of the company’s fastest growing market. With the continued increase in car sales in the Philippines, Maxxis predicts more revenues in the coming years.
Dr. Chen was recently in the Philippines to meet with the local partners. “The visit of Dr. Wally Chen is a very big deal in the Philippine tire industry. It shows the determination of Maxxis to become one of the leading tire brands in the Philippine market. Lastly, it proves the commitment of Maxxis to improve the quality of lives of the Filipino people by providing global leading technology product, Maxxis, that delivers productivity, safety, efficiency and sustainability,” says Ronald Ang, president at North Trend Marketing Corporation
Inspiring others
Despite the company’s successes, Dr. Chen is showing no signs of slowing down. “This is my life,” he says. His current preoccupation is inspiring others. He recently wrote a book titled, “The Maxxis Global Family,” wherein he shares the story of the company as well as tips on leadership, management, and creating a strong international brand.
Maxxis is a company that was founded on quality and trust. By focusing and continuously improving on these qualities, Maxxis is now among the most widely respected and recognized companies in the world. Dr. Chen would like to keep it that way. After all, the goal is to be no. 1. And safe to say, they are on their way to achieving just that.