Innovation The Survival Mantra
- Posted by Essays Blog in Essays Blog |
- October 11th, 2009 |
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Indian art material Industry is a brobdingnagian distributed market consisting of different difference of attractive products like different types of brushes like agglutinative brushes, painting brushes, artist brushes, Oil pastels, crayons of different types, painting accessories, poster colours, fabric colours, liquid H2O colours, colour pencils, drawing books, colouring books, easel boards, canvases, palettes, markers, paints, coloured chalk and many more. The industry is said to capture maximum business from the consumer market directly, which accounts to 70% of their revenue.
The core Indian art material market of around Rs 500 crore is said to be growing at a rate of 4 - 5 % but thither is intense competition in this industry as the industry is highly nonunionized which proves to be a downfall for this aspect. With the duty rates coming down the art material imports have risen aggressively in the last couple of years and various Chinese and Korean brands are available in the market. International majors like Faber Castell etc have also ventured into the market. Maximum competition has come in the school colour range where the Indian manufacturers like Camlin Limited who has been in this adventure for years, Pidilite Industries who has launched a new range of art materials for children (crayons, H2O and conduit colors, etc) thereunder’s Acron brand and others had to reduce prices to fight competition. Thither was almost 15-20% reduction seen in prices since the last 5 years.
The Indian manufacturers have to face a bad time in the market. The danger of new entry affects the firms already existing in an industry and if a new rival can easily get in, so the market becomes more competitive, hence the firms must put any barriers to act others from entering. Now the Indian firms also have the burden of Vessel, which is levied 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 consumers to buy their products. Also branded goods have a hold on apical of unbranded goods, as now people prefer to buy branded products expecting spirit of a good quality product. But in a developing country like India allay this phenomenon is not put much into practice, the middle and lower class allay prefer to buy the cheap imported goods as their low price factor is indeed a tempting offer. But with proper awareness and guidance the Indian consumer’s opinion can be reversed. The existing leaders should create a brand identification, the new entrants thusly will have to attempt and accept slaked brand loyal customers away from the leaders which makes it a difficult chore for them to conquer.
Also new marketing activities like new products being introduced to assist different market segments are being implemented to change the brands. In the children’s product aspect also many brand ambassador products are appear to be employed advantageously. For e.g., it is seen that children prefer to buy products with cartoon character’s photographs or gifts attached as compared to others. In 2005 also much products sale appear an uptrend curve rather than the normal art material products.
Today the market has expanded and it’s not a child’s play anymore. The danger of artificial products also comes into concern. If artificial products are readily available, so the firms are likely to endure. The power of buyers should also be appropriated as a considering factor. The industry keeping in mind the innovation key in their hands can compete with the nonunionized aspect and imported goods aspect that prevail in the market. Tho’ many are of the opinion that finished brand building initiatives, good quality and innovation mantra they have managed to survive in the industry in 2005 and plan to do the same in 2006.