Steel is an essential commodity. There is very little that goes on in the industrial world that doesn’t require steel. Like oil, it’s one of the supply chains that define world economy and productivity of countries. Therefore, stifling the channels of steel retail can put a roadblock in the path of progress. This is what happened in the steel industry till a few years back, when middlemen, who set arbitrary prices, monopolized steel trading and stultified growth further.
The Steel Hypermart concept is the long overdue marketing tool that the steel industry needed. Though the demand for steel is inexhaustible and can be generated, it was the sourcing that was proving to be the defining difficulty. With this quick solution, big steel manufacturing conglomerates were able to offer, for the first time, elements of permanence, constancy and reliability into the sector by having their own steel retail outlets.
Backed mostly by these steel manufacturing conglomerates, a hypermart can offer a degree of flexibility to the consumers. For most of these companies, this is a better investment opportunity and therefore, they go all out to win customer trust, just to create and maintain demand. Besides selling staple steel products, like hot rolled steel and chequered plates, they also undertake extensive customer support.
The reliability can’t be underestimated either. With permanently located outlet, long standing relationships with customers can be festered. This makes for more comprehensive business detailing, since now each partner can count on the other. A Hypermart can also be relied upon to offer all kinds of hot rolled steel and steel sheet, available under a single roof.
Its overall good news for the economy, since steel production, as stated earlier, is an economic steel manufacturers indicator. The cheaper availability of hot rolled and cold rolled steel has been a ready impetus to the number of operational SMEs, while simultaneously strengthening the steel manufacturing operations.
Though the initial sops offered by upstart hypermarts might not be everlasting, the lower prices will remain. This, again, is due to a more simplified supply chain; fewer trades between the production plant and market place will keep the cost of procurement low, as compared to yesteryears of middlemen and cash crunches.
The sops have helped too, while they’ve been offered. Most innovative was the ‘door delivery’ offer, when select hypermarts started door delivering purchases, further easing the process of procuring steel and bringing with it newer, more commonplace customers.
They might’ve been an overdue innovation, but hypermarts have still had their effect on the proficiency of the steel retail. They’ve not only augmented the marketplace for big steel manufacturers, but, in fact, created it.