The Art Materials Market In India Today
Indian art material Industry is a vast kado unik, kado ultah unik marketplace consisting of different selection of attractive products like different types of brushes like artificial brushes, painting brushes, artist brushes, Oil pastels, crayons of different kinds, painting accessories, poster colours, fabric colours, liquid water colours, color pencils, drawing books, colouring books, easel boards, canvases, palettes, markers, paints, coloured chalk and many more. The core Indian art material market of around Rs 500 crore is said to be growing at a level of 4 - 5 % but there is extreme competition in this sector as the industry is extremely unorganized which proves to become a downfall for this sector. With the work rates decreasing the art materials imports have risen sharply in the last couple of years and several Chinese and Korean brands can be found in the market. International majors like Faber Castell etc have also ventured into the market. Maximum has come in the school colour range where the Indian producers like Camlin Limited who has been in this venture for a long time, Pidilite Industries who has launched a new selection of art materials for kids (crayons, water and tube colours, etc) under it's Acron brand and others had to reduce prices to fight competition. There was almost 15-20% reduction seen in prices because the last 5 years.
The Indian manufacturers need to face a 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 your market becomes more competitive, therefore the firms must put some barriers to avoid others from entering. At this point the Indian firms likewise have the burden of VAT, which is usually levied by the Indian authorities at a flat rate of 4%. The just tools within their hands are production new, innovative and attractive products in the market that compel the consumers to buy their products. Also branded products 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 nation like India still this phenomenon isn't put much into practice, the middle and lower course still prefer to get the cheap imported goods as their good deal factor is indeed a tempting provide. But with proper awareness and assistance the Indian consumer's opinion can be reversed. The existing leaders should create a brand identification, the brand new entrants thus will have to try to take satisfied brand loyal customers away from the leaders that makes it a difficult task to allow them to conquer.
Also new marketing pursuits like services being introduced to serve different market segments are being applied to fortify the brands. In the children's item sector too many brand ambassador products are seem to be working well. For electronic.g., it really is seen that children prefer to buy products with cartoon character's photographs or presents attached in comparison with others. In 2005 too this kind of 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 energy of buyers should also be taken as a considering factor.