Priyanka Jain
NEW DELHI: THE stationery industry in the country is at a junction where it needs to redefine itself. On the one hand, the market is flooded with cheap imported products – especially from China – which are aesthetically appealing but lack in functionality and quality; and on the other, there are domestic manufacturers, who, despite their enormous potential, are struggling for market visibility.
At the crossroads, the industry needs to decide whether it wants to thrive on imported products or strengthen itself by developing world-class quality products that can cater to the domestic demand, and also dominate overseas markets.
Low prices, wide range
Presently, Chinese stationery dominates the Indian market largely because of its low prices, mass availability and wide range. The Chinese companies are able to deliver this because of advanced manufacturing processes, superior technology, and large investment. They garner high sales and are quick in bringing in new technology as compared to stationery manufacturers back home.
It is a vicious cycle! Manufacturers in India struggle to achieve healthy sales, thereby failing to generate funds to invest in new technology and machinery. Some of them are even forced to produce low quality, outdated design items, which have no takers in the market. There are others who start importing items, which are of low quality, but cheap.
India is a price-sensitive market where a product is picked for its price tag, rather than quality and durability. The Indian consumer mindset compromises quality in favour of immediate savings. But is this really a saving? Do we ever ask ourselves what consequences this mindset has on the GDP of the country, and on the economy as a whole? The bigger problem, however, is the industry ecosystem– the decision of the big stationery players in the arena.
Shifting the focus
With deep market penetration and retail network, they flood the market with cheap, low-quality, and non-functional imported products. That’s because when they buy from their overseas vendors in huge quantity, they get it at low prices. And what they get is appealing designs, but poor quality. Thereafter, they focus only on trading as it yields more profits than manufacturing.
Worse still, they don’t allow the distributors of these imported products to stock selectively. The distributor is forced to stock their entire product range in order to continue doing business with them. With his funds depleted, the distributor is in no position to buy further from local manufacturers, and is compelled to sell – at times even promote – these cheap imported products.
With negligible market presence, the domestic manufacturers are discouraged from investing in advanced technology, innovation and high-end machinery. Invariably, they too are left with no option but to resort to trading in imported items. The resultant scenario is not in consonance with Prime Minister Narendra Modi’s vision of making India a global manufacturing hub on its journey towards a Viksit Bharat by 2047.
The larger picture
The onus to fix this problem lies with the big stationery companies in the country. They need to look at the larger picture. Overlooking shortterm cost advantages, they should go for tie-ups with domestic producers and encourage them to make the highestquality stationery products at the most competitive prices. The potential is huge; what is required is a small push. And the push must come from within the industry. The time for that is now!
