The Hindu Business Line : Greeting cards losing charm, but diaries, calendars still a hit

It is hard to imagine New Year without its paraphernalia of stationery - greeting cards, diaries and calendars. But the Rs 200-crore greeting card market is being hit by people opting for low-cost options such as SMS, MMS and e-greetings.

According to officials at ITC, a company that retails greeting cards and calendars, the market for greeting cards has been flat over the last few years.

The global greeting card market is shrinking and technology-savvy English speaking countries in Asia, such as Singapore and the Philippines, have seen no demand at all, they say. Despite this situation, the company has launched varieties such as `stick-on' greeting cards and `3D' cards to attract customers.

ITC initiative

However, the market for diaries and calendars continues to be buoyant. ITC has partnered with SOS Children's Villages of India, an NGO, to bring out about 4,000 new calendar designs. The company is also moving into the corporate calendars segment in a large way this year.

Srinivasa Fine Arts, owner of the Nightingale brand of niche diaries and calendars, has seen 40 per cent growth in sales for its products in the domestic and overseas markets.

Mr J. Varatharajan, National Marketing Manager, Srinivasa Fine Arts, said the company had received orders worth Rs 80 crore so far, including overseas orders of Rs 5 crore.

Cashing in on this demand, the company has launched a new range of calendars and diaries.

Classical paintings

The calendars feature classical Indian paintings and are positioned as substitutes for real paintings.

Printed using a special technology to maintain quality, these calendars come in two sizes - regular and landscape (covering an entire wall). The company's new diary range comes in metallic and mosaic finish.

Recently, Srinivasa Fine Arts entered overseas retail markets such as Africa, Canada, West Asia, and Singapore. "We plan to sell aggressively in these countries from New Year onwards," said Mr Varatharajan. Besides retail sales, the company has seen corporate orders too go up this New Year. "Both volumes and price per order has gone up," he said.

While the manufacturing sector tops the list of calendar buyers, the IT sector leads the diary-buyers market, he said.

20 pc increase

Eagle, a major diary manufacturer, too has seen growth in sales for New Year.

According to company officials, sales have increased by 20 per cent (over last year) to about Rs 20 crore this year.

"A5 size diaries are seeing good demand and we have launched 8-9 new models this year", officials said.

Public sector units, especially banks and insurance companies, have bought heavily, they said.

Besides undertaking customised orders, the company also retails diaries to domestic and overseas markets. This New Year, it will enter new retail markets such as West Indies and West Africa, officials said, adding that demand in their existing UK market had grown by 20 per cent this year.

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