Star Ceramics aims to take the market head-on against foreign competition with unique designs, cutting-edge technology, and strategic marketing solutions.
The ceramics industry is a rapidly growing manufacturing sector in Bangladesh, making bold strides in both the local and international market. The local ceramics industry has evolved alongside people’s lifestyles. With the consumer base increasing every year, the ceramics industry has grown significantly since its inception in the 1950s.
Star Ceramics is the new driving force in the ceramics industry. With a firm understanding of the people’s desire for thematic tiles, the company has pioneered a new style of flooring and wall tiles that exude a higher standard of living. With their cutting-edge manufacturing technology, and a highly skilled design team, Star Ceramics offers unique varieties and sizes of tiles for a variety of purposes. While the turmoil of the COVID-19 pandemic caused global logistical disruptions, Star Ceramics’ strategic solutions ensured steady supply of raw materials, while offering financial solutions to consumers.
AN INFRASTRUCTURAL FACELIFT
The ceramics industry, which consists of tableware, sanitary ware and tiles, is constantly growing and shaping the economy of our country. There was a time when people used to decorate their floors with mosaics. Over time, mosaic started being replaced with floor tiles, which rapidly grew in popularity among the general masses. Soon afterwards, people started decorating their washrooms and kitchen walls with wall-tiles. In our country, most houses generally have tile flooring and painted walls. But now, people’s mindsets are changing along with their lifestyle. They are now leaning towards tiles as the complete solution, both for flooring and their walls.
Sanitary ware is also expanding its footfall, especially in rural areas. People living in rural areas are replacing their undeveloped latrines with Asian water closets. This is also helping them achieve a higher social status and giving them an increased perception of self-esteem.
UNIQUE SIZES, POPULAR CHOICES
Star Ceramics plant entered the market on the 1st of January, 2013. The key factors that led it to succeed in such a very short time in this competitive market are its cutting-edge technology, the latest and advanced machinery, and the unique sizes and designs of the tiles. In the industrial market, Star Ceramics is the pioneer of nanotechnology and digital print. It also pioneered the 20cm x 50cm , 33cm x 50cm , 50cm x 50cm, 60cm x 90cm and 60cm x 120cm tiles. According to Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA), Star Ceramics ranks 4th with a market share of 10.7%. In a very short period of time, it has gained massive market share and popularity, which is reflected in its accolade as the 3rd Most Popular Ceramic Brand in the country, awarded by Bangladesh Brand Forum during the Best Brands Awards 2020.
CAPTURING COLOURS, CULTURES, AND CLASS
Star Ceramics understands that every person is different; that their lifestyles are different. As a result, Star Ceramics is working on a range of thematic designs so that it can extend its products to people of all ideologies and lifestyles. With the help of a skilled creative team, Star Ceramics has created more than 16 designs centered around festivals, events, and lifestyle. For example, Lokoj is themed around aristocracy and fashion trends, and Deja vu represents geometric shapes. It also offers Tropical to represent the forest, Hollywood to represent glam, as well as unique and aesthetic themes such as Jade, Castle, Finery, Veneer, Troy, Reva, and Eden.
The Sanitary Ware Division also offers a variety of designs with several themes such as Star Deluxe, Day by Day, Sara, Iris, Pearl, Lily, and many more.
the highly skilled design and laboratory teams are constantly testing new and innovative tiles and sanitary ware, maintaining international standards, and as a result, the brand is constantly introducing new products in the market. Star Ceramics is the only company in Bangladesh which offers so many unique designs.
Star Ceramics believes in continuous innovation not only in the production, but also in technological advancement, development of new marketing strategies, exploring new opportunities in the marketing avenue, and formulating new trade-based strategies. Through this continuous innovation process, it has brought 0% EMI to the market. 0% EMI is now authorized at more than 50 outlets across the country, and the number will increase in the future. Star Ceramics has 6 banks involved in this strategic marketing to facilitate customers with 0% EMI. 0% EMI was initiated with a specific consumer market, particularly, those with 800 to 1200 sq. ft. houses. Customers are able to avail 0% EMI up to 3 months, which has been financially beneficial in the face of the difficulties brought on by COVID-19. Through digital activities, the 0% EMI campaign has been able to generate over 12,000 leads since its inception.
A CONQUEROR AMIDST A CRISIS
While the ceramic industry is a growing manufacturing industry in Bangladesh, it continues to face numerous challenges in the way of its growth, namely inconsistent gas supply, an over-reliance on imported raw materials, and rising fuel price and freight charges.
The inconsistent gas supply has not only affected the ceramics industry, but also those factories across various industries that rely heavily on gas. Some factories need to draw gas lines over large distances in order to meet demands, and as a result, whenever there is a leakage or low pressure, they have to temporarily shut down all operations. Star Ceramics has overcome this challenge as its factory is situated in the Habiganj District, near a gas field. As a result, it does not have to encounter inconsistent gas supply, and is able to operate its factory 365 days a year.
Another challenge that the ceramic industry faces is the huge tariff placed on imported raw materials. Due to the continuous increase in the price of raw materials, the company has had to increase the price of its tiles by an average of BDT 3 per square feet.
The other challenge has been most evident during COVID-19, when both fuel prices and freight charges increased. Star Ceramics receives shipments via sea but due to COVID-19, sea freight operations slowed down from 15-day shipments to 2 to 3 months. Star Ceramics responded by opting for air freights even though it incurs a higher cost. Despite the rising cost of fuel price and freight charges, Star Ceramics bore the cost in consideration of its customers. Till now, Star Ceramics has not raised prices due to increased fuel price and freight charges, but due to inevitable constraints, the entire ceramics industry will be bound to raise prices, sooner or later.
FIGHTING FOREIGN FORCES
There was a time when customers used to look for foreign tiles and sanitary ware. There were only a few domestic companies in the market back then. Over time, domestic products have grown, at one point capturing 80% of the market share. Now, the business is growing at an average rate of 20% per year.
Recently, the Government of Bangladesh cut tariffs on imported tiles by 1 USD per square meter resulting in a price reduction of foreign products by 12 BDT per sq. ft. This again creates a challenge for the local companies as it helps to reduce cost for the importers of foreign tiles.
Today, tiles and sanitary ware of international quality are being produced and marketed both in Bangladesh and in other countries. Star Ceramics has nanotechnology, digital print, and mirror polish technology in its factory. It also produces the largest sized tiles in the market, with dimensions of 60cm x 120cm and 60cm x 90cm. Additionally, it also produces unique sizes such as 30cm x 50cm, 30cm x 60cm, among others. As a result, Star Ceramics has a large amount of production and stock capability which can easily meet consumer demands.
RECOVERING FROM COVID
The entire ceramics market lost its momentum during the COVID-19 pandemic and became inactive. Almost all construction projects came to a halt, and as a result, consumer demand decreased accordingly. With the decline of COVID-19 cases in the third quarter this year, the ceramics market is gradually returning to its old form. There is hope for a return to the previous momentum. Previously, Star Ceramics had exported products to countries like India and Bhutan, however, in the last 2 years it has not exported any products due to the pandemic. Between 2014-2019, the business has grown by 40 percent and Star Ceramics has been able to achieve an annual sales milestone of around BDT 550 crore. However, after COVID-19 was declared a pandemic, the loss in momentum has created a challenge not of growth, but of survival.
