Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. One thinks of any global brand and it is here. These include designer and status symbol pens, be it Parker, Cross, Mont Blanc or Cartier.
Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case, etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. All items for schools, colleges, and offices.
The global market in writing instruments is estimated at USD 38 billion, of which the global pen market accounts for nearly USD 30 bn. The Indian market size is relatively small. In terms of the quality of pens, India ranks amongst the best in the world, well ahead of even China. However, India's export market is abysmally low at Rs 2 billion, while China exports Rs 50 billion worth of pens every year. The corporate gift segment in India is valued at over a billion, growing at 15%. The Indian market consists of around 15 large-scale, 100 midsize, and 900 small-scale manufacturing units. These units have a combined production capacity of over 10 million pieces a day.
About 80% of the revenues of the pen industry in India come from pens with a price range of up to Rs 15. A small percentage of pens is priced in the range of Rs 100 to Rs 300 and a minuscule of the market is contributed by the super-premium segment in which the price tag goes to as high as Rs 100,000 or more. While the market for a lower price range (up to Rs 15) is growing at a rate of 7 to 8% annually, the market for pens above that range is growing at 8 to 10%. The rate of growth of high-priced writing instruments is much higher - basically because of a small base. There is, nevertheless, in the recent period, a price up-gradation in evidence at the low-end. As the market is developing in the new ambiance, the products are getting upgraded.
The market is segmented broadly into products required by (a) young students (many of whom depend only on pencils and ballpoint pens), (b) frequent users (in offices, commercial and public establishments), (c) occasional users (like housewives and literate manual workers). While India's literacy rate is low, all literates do not use ball or fountain pens, if at all, only occasionally. The per-person usage is limited mainly to (a) and (b) segments. The usage norms differ from function to function; even as it does from one person to another and certainly from one segment to another.
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