Be a Market Driver; Don’t Wait for the Market to Drive You – Hindalco’s Aluminium Gallery

What are the typical household applications that you would associate with aluminium? Foil, of course, utensils, may be – probably you are also thinking of window frames and garden chairs. Ever thought of the silvery grey metal as a lifestyle statement? Take a look at the displays in any of Hindalco’s aluminium galleries and the idea of aluminium as a fashion statement will seem a lot less far-fetched!

India’s per capita consumption of aluminium is 0.7 kg as against 25 kg in the US. Hindalco, one of Asia’s largest manufacturers of primary aluminium, realized that the Indian consumer did not have opportunities to really see the product “in action”. Through its market-driving move of opening aluminium galleries in Mumbai and Bangalore, the flagship company of the Aditya Birla group aims to spread awareness about product quality and transform the brand image of aluminium. The galleries function as showcases for products ranging from roofing sheets and ceiling panels to windows, doors and outdoor furniture. The products are available through franchisee outlets across the country. Hindalco’s objective is to create new applications and markets for aluminium.

Of course, being a market driver is a major strategic choice and needs to be backed by superior product quality and marketing initiatives. Hindalco’s high quality standards at all its facilities have won the group several awards over the years. Market driving involves a high level of risks – but it holds the potential for revolutionizing entire industries, and can deliver huge returns in terms of customer value and first-mover competitive advantage. A risk well worth taking, if you ask me!

Explore posts in the same categories: 03 Customer and Market Focus, Benchmarking, Business, Management, Marketing

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One Comment on “Be a Market Driver; Don’t Wait for the Market to Drive You – Hindalco’s Aluminium Gallery”

  1. LM Says:

    Market driving is a bit like the El Dorado expedition – you are treading uncharted territory, there is no map or precedent to lead you and the only driving force is the lure of the “pot of gold”. The difference in the case of market drivers – and it is a fundamental difference – is that you know there is a pot of gold for sure at the end of the journey as long as you do not lose track. It is the quality of this conviction that determines the success or failure of market-driving strategies. Hindalco, for instance, has thrived on risks and path-breaking strategies over the years, through successes and some conspicuous failures. The company’s recent multi-billion dollar acquisition of Novelis Inc. raised several eyebrows, and in fact Hindalco is going through tough times post-acquisition since it funded the acquisition with heavy equity dilution. But analysts believe that the rising price of aluminium will help the company bounce back. Thus being a market driver is not a decision restricted to one strategic move. It is a philosophy that encompasses several strategic decisions – once you decide to be a market driver, there is no looking back or faltering.

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