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Survival of The Fittest
Despite of many hindrances of Competition and Government Taxation the Indian stationery market promises growth with Innovative Designs and Correct Marketing Strategies being it's main tool.
The term Stationery encompasses of all the articles from pin to pen and from papers to files and folders. Products comprised under it are paper products, computer stationery, school stationery, office stationery etc. Also under stationery now included is all the writing Instruments like pen, paper, along with various desktop items useful in commercial offices, schools, corporate places etc. Demand remains strong for these fashionable writing instruments, personal stationery and kid's stationery. Revolution for these products has come to birth from the past few years and it's having immense value in the Indian market. Polypropylene is another product which through it's varied list of goods have contributed in the revolution of office stationery. PP stationery has also gained equal importance in the past years and if correct marketing is done then the demand for PP stationery is guaranteed to grow. As perceived by Mr. Manoj Lodaya, CEO, Corporate Stationery, the Stationery industry has a flourishing future in it's coming years and over a period is estimated to grow at 10 to 15% p.a. The demand for stationery goods will increase If good quality products are offered and new marketing strategies are followed. Also the government has come out with education enhancement schemes which inturn will give a growth to this sector. The maturing Indian stationery market has faced various transitions in the passage of time in terms of trends, quality, demand etc. They have created their own individual effect on the market growth. The Indian stationery market is also influenced by macroeconomic development, national income and lasts but not the least the ever-growing Indian population. The government policies and the tax structures influences the general economy of the country which inturn affects the purchasing power of the consumer thus affecting the sales.
The Indian stationery Industry is highly unorganised, the organised sector players in the stationery industry are estimated to be less than the unorganised sector players. Also the unorganised stationery players are expanded throughout the industry and controls major market share. The Indian buyer is price sensitive and would like to have the best possible product which suits it's need and pocket. The manufacturer of unorganised sector without proper billing practices dump goods at cheap prices to the buyers at a very low rate while the manufacturer and suppliers from the organised sector have to bear the burden of taxation laid down by the government which creates the major gap between the pricing structure of the two sectors.
The invasion of VAT is another current issue brought upon by the Government. VAT is expected to substitute for Sales Tax, Entry Tax, Turnover Tax, Surcharge, Additional Surcharge etc. Though it won't be including other additional duties like octroi and CST for the time being, but government is said to be optimistic about the execution of VAT which is considered to be a step towards the simplification of Tax structure. As per Mr. Sagar Tejura, Importer and Official Distributor, for Maped in India, VAT though a good concept has it's own immediate downfall effect on the stationery sector but the current impact of the VAT will not remain for long and slowly and gradually VAT will be welcomed in the Indian market. He is of the opinion that the consumers are ready to spend if a quality and innovative product are offered to them. He says that Maped has always concentrated on quality and design for it's product and has always come out with new and creative product, which attracts the attention of the consumers. He thinks that with correct marketing strategies and protective short term measures the effects of the VAT can be overcomed. Also Mr. Manoj Lodaya, CEO Corporate Stationery throws sunlight on VAT topic by saying that the VAT strategy will further boost the moral of the organised players as it's impact on the unorganised sector will result in slow depletion of that sector thus welcoming the growth in number of the organised companies to approximately 30 - 40 % than the present. Whether it is accepted or not by the Indian Trading fraternity, government seems to be very keen on implementation of VAT as the government anticipates that VAT will also lead to increase in overall Tax Revenue of government in this fiscal year.
Chinese dragon entry a concern for the Indian market.
Another major competition faced by the Indian stationery manufacturer is from the Importer and Grey market. It's a fathomed verity that Chinese manufacturers are the most competitive among all the other world market players as they have an advantage of mass production capacity, aggressive favourable government export policy, simplified low taxation and well developed infrastructure. As part of the Indian government's liberalisation program, the restrictions on imports are removed and now imports become more easy and simplified. Secondly with development and acceptance of Internet technology, sourcing the desired supplier in any part of the world has became a very convenient task. Thus imports of Chinese stationery products is a major threat to our stationery industry. Malpractice of under invoicing is carried very frequently by importers thus giving them clear advantage to the extent of nearly around 15 % to 20% than the cost of the Indian organised manufacturers. These evasion of taxes by such importers leads to the incapability of organised manufacturer to compete with the MRP of importers even though good innovative products are supplied by them.
Following the Upcurve Path
But no matter what the threat the stationery manufacturers and suppliers have still managed to progress slowly in the market. The market is said to be growing 10 to 15% annually. The manufacturers have started building new product strategies, which helps in reducing their overall cost without compromising on quality thus producing a good quality product at competitive price. His approach has now widened from it's home market to the export market for which the Indian manufacturer tries to be flexible in it's export policies by supplying qualitative goods in lesser quantities. They have learnt that innovation, flexibility, performance and versatility are the key area of focus in the design and development of any product. Also the manufacturers are now into researching and developing into their products and consumer's attitude thus finding out solutions to provide customers the best products at cost effective prices. Also the buyer is now becoming price conscious and is ready to spend more if a reliable product is offered to him. Even in kids stationery today it is very necessary to make your product creative and user friendly. The Indian buyers purchasing capacity has also started increasing with the increase in the overall economic growth of the country.
The taste of the people has also improved with the improving technology and their attention has now been drawn towards branded products available in the market. Branding plays a major role in the market today these goods have greater marketability than the non - branded goods. According to Mr.Sagar Tejura branded goods with impulsive buying and attractive packaging techniques have a very bright future in the Indian market. The consumer is the king today and he today enjoys the choice of buying with so many manufacturers and suppliers running the market. Also the government's focus on increasing education every where in the country have proved to enhance the growth of stationery market. This has helped the consumer in getting matured day by day and today he can easily distinguish and choose the best product, which suits his purpose among the vast choice given to him. Also government's liberal policies on taxation and other aspects have proved to be a stepping stone to the growth of the stationery industry.
Branding Revolution
The Indian market is slowly developing into a brand conscious market. Branded goods are expected to have premium quality as well as a value for money. Indian stationery market leaders has also to face competition with not only the local market dealers but also with the other competitive popular brands thus maintaining it's brand loyalty. But if he concentrates it's attention on it's targeted audience yet never lose it's brand focus he could open up entirely new markets for himself.
New horizon of brand image building is taken into consideration by the Indian manufacturers. They have started promoting their brands with the help of powerful and popular medias like advertising, electronic, internet etc. Also active participation in national and international trade fairs have helped them in creating awareness for their products and thus increase their growth in the market, also incentives and other promotional strategies have benefited the Indian manufacturer in building image for their brand. Thus it is apparent that the Indian stationery Industry slowly and gradually with the right kind of input, approach and with government support can not only survive from it's competition but put it's first step into achieving total growth and development.
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