Hindware reaches for the stars

An old brand targets the premium market and looks to improve its market share, ropes in Shah Rukh Khan as brand ambassador

Hindware, one of the oldest Indian companies in ceramic sanitary ware is going in for a makeover. Focusing on design and style instead of being a utilitarian brand in a functional product category, the five decade old company is reaching out to a clientele that seeks trendier and smarter products; especially since they are the ones pushing growth in the Rs 3,500 crore industry. It has launched a year-long campaign helmed by superstar Shah Rukh Khan to announce its new avatar.

Not just another room
Bathrooms are no longer dowdy and functional spaces to be kept hidden behind closed doors. They are wi-fi driven smart corners that proud home-owners love to flaunt. No wonder then that a Firstcall Research report (2015) says that the Indian sanitary ware industry grew by 18 per cent between 2010 and 2014. The sanitary ware industry that makes up nearly 37 per cent of the overall bath and wash room sector has seen phenomenal change along with the high growth numbers. As disposable incomes have grown and people's tastes have changed, many are looking for the exotic in the routine and mundane.

Technology and style are playing an important role in purchase decisions believe industry stalwarts. Sandip Somany, joint managing director, Hindware (HSIL) says, 'The modern consumer is spoilt for choice with several organised players vying to better their market share.'

Hindware has been around for nearly five decades. It is a brand that the wholesale trade is familiar with. Also the company has built an enviable distribution network which makes the brand visible and available across the country. The company has a 3,000 plus dealer network, a large retail spread and 125 plus Hindware Gallerias.

What made an old warhorse look at splashing on such a huge advertising and promotions campaign? By industry estimates Shah Rukh Khan charges, anywhere between Rs 8-10 crore, for an endorsement depending on the number of days allotted for the campaign. The company refused to confirm any figures however.

Superstars and fans
The ad has been mounted almost like a movie; a trailer was released on a few channels before the full TVC made its appearance and the company has plans to launch more ads in coming months. The company believes that it needed an ambassador who could cut across gender and age groups while capturing the spirit of the contemporary home owner. In other words the brand was looking for someone who combined luxury with a mass market appeal.

'Shah Rukh Khan embodies the spirit of this modern consumer, which is one of the significant reasons behind making him the brand ambassador of Hindware,' said Somany. Khan is admired by all and sundry and his appeal is not limited to India alone. Somany says, 'There could not have been a better fit and influencer than him to connect with them.'

Vinaya Naidu, campaign reviewer at Lighthouse Insights, agrees. She says, 'For Hindware a TVC with him is a good way to showcase all its offerings to the masses.' Besides the sanitary ware industry is still largely dominated by unorganised small-time traders and manufacturers who are quick to play the imitation game giving the branded companies a run for their margins. Having a celebrity provides the brand with an edge and establishes its unique identity.

It helps break through the clutter and in brand recall, although it would be impossible to measure the true impact. Naidu says, 'On how much brand recall do they generate is like trying to measure the number of eyeballs received by an outdoor banner.' However, she thinks Hyundai seems to have benefited after bringing in SRK. Thus it was important for Hindware to make a splash -not only to announce its superstar status but also to differentiate itself from the rest of the industry. Hindware is not the only one, other brands are also splurging on promotion and advertising in the sanitary ware industry. Take Kohler, Jaguar and a host of others and it is impossible to miss their ads in print and on television.

Hindware is the market leader today the company says with 38 per cent share of the market. Another report from stock broking firm Karvy corroborates this and says that Parryware is second with 30 per cent and Cera Sanitaryware is the third largest with approximately 23 per cent of the market share in the sanitary ware section. Given the leadership status, the brand believed that it was time to cash in on the premium segment.

'Hindware equals trust. And, trust is a priceless asset that one can earn with time,' says Somany. But the challenge will be to convince customers to pick out their trusted brand for style and luxury. That is Hindware's multi-crore quest.