Innovation The Survival Mantra

Innovation The Survival Mantra

Indian art material Industry is​ a​ vast scattered market consisting of​ different variety of​ attractive products like different types of​ brushes like synthetic brushes, painting brushes, artist brushes, Oil pastels, crayons of​ different types, painting accessories, poster colours, fabric colours, liquid water 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 there is​ intense competition in​ this industry as​ the​ industry is​ highly unorganized which proves to​ be a​ downfall for​ this sector. With the​ duty rates coming down the​ art material imports have risen sharply in​ the​ last couple of​ years and​ several 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 venture for​ years, Pidilite Industries who has launched a​ new range of​ art materials for​ children (crayons, water and​ tube colors, etc) under it's Acron brand and​ others had to​ reduce prices to​ fight competition. There was almost 15-20% reduction seen in​ prices since the​ last 5 years.

The Indian manufacturers have to​ face a​ tough time in​ the​ market. the​ threat of​ new entry affects the​ firms already existing in​ an​ industry and​ if​ a​ new rival can easily get in, then the​ market becomes more competitive, hence the​ firms must put some barriers to​ stop others from entering. Now the​ Indian firms also have the​ burden of​ VAT, 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 top of​ unbranded goods, as​ now people prefer to​ buy branded products expecting satisfaction of​ a​ good quality product. But in​ a​ developing country like India still this phenomenon is​ not put much into practice, the​ middle and​ lower class still 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 thus will have to​ try and​ take satisfied brand loyal customers away from the​ leaders which makes it​ a​ difficult task for​ them to​ conquer.

Also new marketing activities like new products being introduced to​ serve different market segments are being implemented to​ strengthen the​ brands. in​ the​ children's product sector too many brand ambassador products 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 attached as​ compared to​ others. in​ 2018 too such products sale show 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​ threat of​ substitute products also comes into concern. if​ substitute products are readily available, then the​ firms are likely to​ suffer. the​ power of​ buyers should also be taken as​ a​ considering factor. the​ industry keeping in​ mind the​ innovation key in​ their hands can compete with the​ unorganized sector and​ imported goods sector that prevail in​ the​ market. Though many are of​ the​ opinion that through brand building initiatives, good quality and​ innovation mantra they have managed to​ survive in​ the​ industry in​ 2018 and​ plan to​ do the​ same in​ 2018.

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