Innovation The Survival Mantra

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					Title:
Innovation The Survival Mantra

Word Count:
622

Summary:
Indian art material Industry is a v
ast scattered market consisting of
different variety of attractive pro
ducts like different types of brush
es like synthetic brushes, painting
 brushes, artist brushes, Oil paste
ls, crayons of different types, pai
nting accessories, poster colours,
fabric colours, liquid water colour
s, colour pencils, drawing books, c
olouring books, easel boards, canva
ses, palettes, markers, paints, col
oured chalk and many more. The indu
stry is said to capture m...
Keywords:
Gifts & Stationery, Stationery

Article Body:
Indian art material Industry is a v
ast scattered market consisting of
different variety of attractive pro
ducts like different types of brush
es like synthetic brushes, painting
 brushes, artist brushes, Oil paste
ls, crayons of different types, pai
nting accessories, poster colours,
fabric colours, liquid water colour
s, colour pencils, drawing books, c
olouring books, easel boards, canva
ses, palettes, markers, paints, col
oured chalk and many more. The indu
stry is said to capture maximum bus
iness from the consumer market dire
ctly, which accounts to 70% of thei
r revenue.

The core Indian art material market
 of around Rs 500 crore is said to
be growing at a rate of 4 - 5 % but
 there is intense competition in th
is industry as the industry is high
ly unorganized which proves to be a
 downfall for this sector. With the
 duty rates coming down the art mat
erial imports have risen sharply in
 the last couple of years and sever
al Chinese and Korean brands are av
ailable in the market. Internationa
l majors like Faber Castell etc hav
e also ventured into the market. Ma
ximum competition has come in the s
chool colour range where the Indian
 manufacturers like Camlin Limited
who has been in this venture for ye
ars, Pidilite Industries who has la
unched a new range of art materials
 for children (crayons, water and t
ube colors, etc) under it's Acron b
rand and others had to reduce price
s to fight competition. There was a
lmost 15-20% reduction seen in pric
es since the last 5 years.

The Indian manufacturers have to fa
ce a tough time in the market. The
threat of new entry affects the fir
ms already existing in an industry
and if a new rival can easily get i
n, then the market becomes more com
petitive, hence the firms must put
some barriers to stop others from e
ntering. Now the Indian firms also
have the burden of VAT, which is le
vied by the Indian government at a
flat rate of 4%. The only tools in
their hands are manufacturing new,
innovative and attractive products
in the market that compel the consu
mers to buy their products. Also br
anded goods have a hold on top of u
nbranded goods, as now people prefe
r to buy branded products expecting
 satisfaction of a good quality pro
duct. But in a developing country l
ike India still this phenomenon is
not put much into practice, the mid
dle and lower class still prefer to
 buy the cheap imported goods as th
eir low price factor is indeed a te
mpting offer. But with proper aware
ness and guidance the Indian consum
er's opinion can be reversed. The e
xisting leaders should create a bra
nd identification, the new entrants
 thus will have to try and take sat
isfied brand loyal customers away f
rom the leaders which makes it a di
fficult task for them to conquer.

Also new marketing activities like
new products being introduced to se
rve different market segments are b
eing implemented to strengthen the
brands. In the children's product s
ector too many brand ambassador pro
ducts are seem to be working well.
For e.g., it is seen that children
prefer to buy products with cartoon
 character's photographs or gifts a
ttached as compared to others. In 2
005 too such products sale show an
uptrend curve rather than the norma
l art material products.
Today the market has expanded and i
t's not a child's play anymore. The
  threat of substitute products also
  comes into concern. If substitute
products are readily available, the
n the firms are likely to suffer. T
he power of buyers should also be t
aken as a considering factor. The i
ndustry keeping in mind the innovat
ion key in their hands can compete
with the unorganized sector and imp
orted goods sector that prevail in
the market. Though many are of the
opinion that through brand building
  initiatives, good quality and inno
vation mantra they have managed to
survive in the industry in 2005 and
  plan to do the same in 2006.

				
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posted:12/5/2010
language:English
pages:5