Handicrafts

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Introduction

Handicrafts are alone looks and stand for a civilization, tradition and heritage of a state. The Handicraft Industry is one of the of import productive sector. Assorted efforts have been made to specify this wide and diversified industry. The undermentioned definition strives to cover diverseness and complexness of Handicraft Industry.

Specifying Handicrafts:

Definition Harmonizing to United Nations Educational, Scientific and Cultural Organization/Information Technology Community ( UNESCO/ITC ) International Symposium on “ Crafts and the International Market: Trade and Customs Codification ” , Manila, Philippines, October 1997:

“ Merchandises which are produced either wholly by manus or with the aid of tools. Mechanical tools may be used every bit long as the direct manual part of the craftsman remains the most significant constituent of the finished merchandise. Handicrafts are made from natural stuffs and can be produced in limitless Numberss. Such merchandises can be useful, aesthetic, artistic, originative, culturally attached, cosmetic, functional, traditional, sacredly and socially symbolic and important ”.

Definition harmonizing to Govt. of India:

“ Merchandise which is made by manus ; should hold some artistic value ; they may or may non hold functional public-service corporation. ”

The Importance of Handicrafts

  • The Cultural Importance:Handicrafts play really of import function in stand foring the civilization and traditions of any state or part. Handicrafts are a significant medium to continue of rich traditional art, heritage and civilization, traditional accomplishments and endowments which are associated with people ‘s lifestyle and history.
  • The Economic Importance:Handicrafts are enormously of import in footings of economic development. They provide ample chances for employment even with low capital investings and go a outstanding medium for foreign net incomes
  • India is a state of rich civilization, history and traditions. India is one of the major manufacturer and provider of Handicrafts merchandises in the universe. India has been major manufacturer and provider of handcraft merchandises since really long clip. Before the industrial development, this art and industry was a possible economic advantage for the state.
  • During recent old ages, the importance of handcraft has been surged due to their cultural and fiscal values. The little graduated table industries – including handcrafts can play a major function in the development of the economic system of both developed and the developing states every bit. The 90-95 % of the entire industrial merchandises of the universe are produced in little workshops run by less than 100 people. For case, Japan, which is at the extremum of the economic development, has considered 84 % of the its industries as little and average graduated table industries. In states such as India and China, handcrafts are every bit high as the mechanised merchandises in quality and volume, and are a major beginning of their foreign net incomes. These states are concentrating on the development of handcraft industry, in order to beef up the economic system.
  • The Indian handcrafts industry is extremely labour intensive, bungalow based and decentralized industry. The industry is spread all over the state chiefly in rural and urban countries. Most of the fabricating units are located in rural and little towns, and there is immense market potency in all Indian metropoliss and abroad. Handicraft industry is a major beginning of income for rural communities using over six million craftsmans including a big figure of adult females and people belonging to the weaker subdivisions of the society.
  • The Handicraft sector is extremely originative sector and produces big assortment of crafts merchandises. This industry is localized section of the domestic and international market. In India the production of trade merchandises are done on both big and little graduated table. Because of low capital investing people can get down their concern on little graduated table. Through this flexibleness the demand and supply can be managed.
  • Though Indian Handicraft industry is considered a bungalow industry, but it has evolved as one of the major gross generator over the old ages. There has been consistent growing of 15 % over few old ages and the industry has evolved as one of the major subscriber for export and foreign gross coevals.
  • There is immense demand for the Indian Handicraft merchandises in both national and international market. To fit the demand and supply with quality, there is demand to hold greater technological support and innovativeness with the singularity in industry.

Key Facts Of Indian Handicrafts Industry

  • India ‘s rich cultural diverseness and heritage provides a alone and immense resource for developing trade merchandises.
  • The Indian Handicraft Industry is demoing uninterrupted growing rate of 20 % every twelvemonth.
  • Handicrafts industry is one of the of import section of decentralized sector in India.
  • Major parts of industry operates in rural and semi urban countries throughout the state and has possible Indian and International market with around 67000 exporters to tap the market.
  • Harmonizing to the national nose count of handcrafts, undertaken by the National Council for Applied Economic Research the value of handcrafts produced last twelvemonth were of Rs.26,213 Crore.
  • This Industry provides immense employment chances to craftsmans that include adult females and people belonging to backward and weaker society. This is one of the major beginning of income at that place.
  • The Indian Handicraft Industry is a $ 100 billion industry worldwide.
  • India ‘s part in universe market is 1.2 %
  • The entire exports of trades points: – Roentgen. 13412.92 Crore.
  • Industry ‘s portion in India ‘s exports: – 1.51 %
  • In malice of holding diversified merchandises, some portion of Indian market are still untapped and market is monetary value sensitive. Merchandises are high priced in large and metro metropoliss, which are beyond, range of people belonging center and lower in-between category.
  • Trade manufacturers have to vie on monetary value, quality and bringing for different sections.
  • There is hapless publicity for trade merchandises in national market.
  • There is deficiency of consciousness about new traditions and among craftsmen and there is demand of technological support and preparation.

Categorization

Handicrafts industry comprises diversified merchandises portfolio and there is big assortment available in market. Handicrafts merchandises can be distinguished into followers:

  • Metal ware,
  • Wood ware,
  • Hand printed fabrics,
  • Embroidered and crocheted goods,
  • Shawls, Carpets,
  • Bamboo merchandises
  • Zari goods,
  • Imitation jewelry
  • Paintings,
  • Earthenware,
  • Jute merchandises,
  • Marble Sculpture,
  • Bronze Sculpture
  • Leather Merchandises and
  • other assorted handcrafts.

Handicraft industry in India is spread throughout the state with greater concentration in rural and suburban countries of state.

  • Metal ware and Bronze sculpture: Major Manufacturing units are located in Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Thanjavur, Jagadhari etc.
  • Wooden artware and sculpture: Major Manufacturing units are located in Sharanpur, Nagina, Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Bangalore, Mysore, Behrampur etc.
  • Embroidered point: Fabrication Unit of measurements are located in Kutch, Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu and Srinagar.
  • Marble and soft rocks trades: Agra, Madras, Bastar and Jodhpur are celebrated for these trade merchandises.
  • Paper Crafts: These fabricating units are located in topographic points of Kashmir and Jaipur.
  • Terracotta: Terracotta units are located in province of Madhya Pradesh, Rajasthan, and Bastar.
  • Hand printed fabrics and scarves: Amroha, Jodhpur, Jaipur, Farrukhabad, Bagru and Sanganer consist of fabricating units.
  • Zari Merchandises: Zari and zari merchandises are manufactured at units located at Surat, Agra, Varanasi and Amritsar.
  • Imitation Jewelry: Partss of Delhi, Moradabad, Sambhal, Jaipur and Kohima consist of fabricating units for these jewellery merchandises.

Political Position

Industrial Policy:

  • There are no limitations sing location for set uping fabricating units.
  • All manufacturers of handcrafts are exempt from obtaining Industrial License to fabricate. The delicenced projects, nevertheless, are required to register an Industrial Entrepreneur Memoranda ( IEM ) in Part ‘A ‘ with the Secretariat of Industrial Assistance ( SIA ) , and obtain an recognition. No farther blessing is required.

Trade Policy:

  • Handicraft merchandises autumn under the ITC ( HS ) codification 97.
  • Paintings, drawings and pictures, domestic articles of wood etc. which come under 9701
  • Original engravings falling under 9702
  • Original sculptures categorized under 9703
  • Merchandises under the codification 9704 are freely importable.
  • Imports of points in 9705 are restricted.

Features of Indian Handicrafts for exports ; as defined by Govt. of India are:

  • They are quota free and impersonal to fiber content or composing, excluding 100 % silk.
  • They include Garments, Made-up and vesture accoutrements.
  • Are produced in bungalow industries.
  • Should non hold slide fasteners.
  • Must be ornamented utilizing any one or more of the undermentioned Indian common people manners.
  • Hand picture, Hand printing, Batik, Tie and Dye, Kalamkari.
  • Hand embellishment, Crocheting.
  • Applique work of spangles, wooden or glass beads, shells, mirror, cosmetic motive of fabrics stuffs.
  • Extra wrap of welt ornamentation of silk, art silk or zari togss.
  • Should conform to determine and manners of each point as defined in the in agreement list of different states.
  • Should fulfill the dimensional facets.

Tariff-non-tariff Policy:Except for 9704, all the points under 97 attract a entire import responsibility of 35.2 per cent. This includes a basic responsibility of 35 per cent and a particular extra responsibility of four per cent. Items under 9704 do non pull any import responsibility.

In India, handcrafts are distributed through following major Distribution Channels:

  • Retailers/Direct Gross saless:This is the most common distribution channel for selling handcrafts in India. In India there are big figure of retail merchants who provides broad scope of handcraft merchandises.
  • Wholesalers/Distributors:Apart from retail and direct gross revenues channels, jobbers and distributers besides provide big scope of handcraft merchandises. Jobbers can maintain merchandise stock in majority and can sell direct to concluding consumer or retail merchant.
  • E-commerce:Internet has emerged as a one of the promising distribution channel for selling the handcraft merchandises. It is estimated that cyberspace will be one of the major channel for the distribution of handcraft merchandises through E-Commerce.

Export And Foreign Net incomes

Handicraft Industry has evolved as one of the major subscribers for Export and foreign net incomes:

  • Exports of handcrafts including manus knitted rugs during 2005-06 were Rs.13412.92 Crore.
  • Export items- Art Metal wares, Wood wares, Hand printed fabrics, Embroidered and Crocheted goods, Shawls as art wares, Zari goods, Imitation jewellery, Carpets, Leather merchandises, Jute merchandises, Paintings, Bamboo merchandises, Earthen ware, Marble Sculpture, Bronze Sculpture etc.
  • India ‘s major export markets are USA, Germany, UK, France and Japan, Saudi Arabia, Canada, and Italy etc.

Indian Handicraft Industry contributes really of import function in Indian economic system. For the proper operation and operation of industry it is really indispensable to hold some policies and ordinance in topographic point. In India, the Ministry Of Textile is responsible for the preparation of policy, planning, development, export publicity and ordinance of the Handicraft Industry. There are several other organic structures and organisations which help to explicate and put to death these policies. All policies should be implemented for the greater development of the whole industry so that it can assist to beef up the economic system.

Industrial Policy:

  • There are no limitations sing location for set uping fabricating units.
  • All manufacturers of handcrafts are exempt from obtaining Industrial License to fabricate. The delicenced projects, nevertheless, are required to register an Industrial Entrepreneur Memoranda ( IEM ) in Part ‘A ‘ with the Secretariat of Industrial Assistance ( SIA ) , and obtain an recognition. No farther blessing is required.

Trade Policy:

  • Handicraft merchandises autumn under the ITC ( HS ) codification 97.
  • Paintings, drawings and pictures, domestic articles of wood etc. which come under 9701
  • Original engravings falling under 9702
  • Original sculptures categorized under 9703
  • Merchandises under the codification 9704 are freely importable.
  • Imports of points in 9705 are restricted.

Features of Indian Handicrafts for exports ; as defined by Govt. of India are:

  • They are quota free and impersonal to fiber content or composing, excluding 100 % silk.
  • They include Garments, Made-up and vesture accoutrements.
  • Are produced in bungalow industries.
  • Should non hold slide fasteners.
  • Must be ornamented utilizing any one or more of the undermentioned Indian common people manners.
  • Hand picture, Hand printing, Batik, Tie and Dye, Kalamkari.
  • Hand embellishment, Crocheting.
  • Applique work of spangles, wooden or glass beads, shells, mirror, cosmetic motive of fabrics stuffs.
  • Extra wrap of welt ornamentation of silk, art silk or zari togss.
  • Should conform to determine and manners of each point as defined in the in agreement list of different states.
  • Should fulfill the dimensional facets.

Tariff-non-tariff Policy:Except for 9704, all the points under 97 attract a entire import responsibility of 35.2 per cent. This includes a basic responsibility of 35 per cent and a particular extra responsibility of four per cent. Items under 9704 do non pull any import responsibility.

In India, handcrafts are distributed through following major Distribution Channels:

  • Retailers/Direct Gross saless:This is the most common distribution channel for selling handcrafts in India. In India there are big figure of retail merchants who provides broad scope of handcraft merchandises.
  • Wholesalers/Distributors:Apart from retail and direct gross revenues channels, jobbers and distributers besides provide big scope of handcraft merchandises. Jobbers can maintain merchandise stock in majority and can sell direct to concluding consumer or retail merchant.
  • E-commerce:Internet has emerged as a one of the promising distribution channel for selling the handcraft merchandises. It is estimated that cyberspace will be one of the major channel for the distribution of handcraft merchandises through E-Commerce.

Easily handiness on planetary footing and cost effectual manner has made Internet a good market place to purchase, sell, and advance the merchandises.

Strengths:

  • Large, diversified and possible market.
  • There is big merchandise assortment and scope is available because of diversified civilization.
  • It has strong, diversified and supportive retail substructure.
  • Diversified merchandise scope that service different market.
  • Cheap labour rates that result to competitory monetary value.
  • Need low capital investing.
  • There is flexible production flexibleness.
  • Low barriers of new entry.

Advantages and Critical Success Factors:

  • Easy creative activity and development of production centres.
  • There is no demand for macro-investment.
  • Industry provides possible beginnings of employment.
  • Merchandises are high value added, and handcrafts have assorted applications.
  • It is the possible beginning of foreign gross because of higher export.

Failings:

  • Lack of substructure and communicating installations.
  • Unknowingness about international demands and market.
  • Lack of co-ordination between authorities organic structures and private participants.
  • Inadequate information of new engineering.
  • Inadequate information of current market tendencies.
  • Less involvement of immature people in trade industry.
  • Lack of skilled labour.
  • Still confined to rural countries and little metropoliss and untapped market.
  • Lack of publicity of merchandises.

Opportunities:

  • Rising demand for handcraft merchandises in developed states such as USA, Canada, Britain, France, Germany, Italy etc.
  • Developing manner industry requires handicrafts merchandises.
  • Development of sectors like Retail, Real Estate that offers great demands of handicrafts merchandises.
  • Development of domestic and international touristry sector.
  • e-commerce and Internet are emerged as promissory distribution channels to market and sell the trade merchandises.

Menaces:

  • Competition in domestic market.
  • Balance between high demand and supply.
  • Quality merchandises produced by viing states like China, South Africa.
  • Better Trade footings offered by viing states.
  • Increased and better technological support and RandD installation in viing states.
  • Inspite of holding diversified merchandises, some portion of Indian market is still untapped and market is monetary value medium.
  • Merchandises are high priced in large and metro metropoliss, which are beyond the range of people belonging center and lower in-between category.
  • Trade manufacturers have to vie on monetary value, quality and bringing for different sections.
  • There is hapless publicity for trade merchandises in national market.
  • There is deficiency of consciousness about new traditions and among craftsmen
  • It is hard to equilibrate the cultural and commercial value of handcraft merchandises.
  • Inadequate supply concatenation direction and distribution reduces the sector ‘s commercial viability and economic sustainability.
  • Lack of Technological support and preparation.
  • Lack of Research and development for cardinal handcraft sectors like, ceramics, paper devising etc.
  • There is deficit of skilled craftsmen and labour to fit the competition.
  • Lack of ability to bring forth in big graduated table and create economic systems of graduated table.
  • Inadequate stuff testing and public presentation measuring.
  • Inappropriate energy supplies to rural and sub-urban countries.
  • Untapped and unaccessible market due to hapless transit substructure.
  • There are unequal preparation centres to develop skilled craftsmen
  • The primary aim is to make an environment that helps the industry to vie on the planetary footing.
  • To construct the environment that will concentrate on: Wealth Creation, Infrastructure Development, Training, Technological Development, and Poverty Alleviation etc. to heighten the sector public presentation.
  • Awareness should be increased among craftsmen and clients through Trade Events, Seminars, Craft Forums and advertizements.
  • More preparation centres should be opened to supply proper preparation to craft individuals.
  • There should be more trade shows to ease trade manufacturers to entree the market.
  • Transportation substructure should be improved to entree the untapped market that would be good to cut down the transit cost.
  • Promotion of cultural tradition and heritage.
  • Promotion of Indian Tourism to pull the foreign clients.
  • Developing engineerings to recycle natural resources to bring forth new merchandises and guarantee waste minimisation, merchandise lastingness and dependability.
  • Promoting Partnership and coaction with private sector.
  • There should be market platform for trade manufacturers belonging to rural countries to market their merchandises.
  • Development of electronic platform by utilizing cyberspace to supply information, database, and selling and distribution solution.
  • Increased Private engagement in industry.
  • There should be optimized distribution web and supply concatenation direction.
  • Through bettering labour productiveness in a high labour intensive and monetary value competitory market.
  • There should be proper balance between cultural and commercial value of trade merchandises to prolong concern chances.
  • Through utilizing low cost production methods the sustainability of little concern can be improved.

By implementing following theoretical account, the public presentation of Handicraft Industry can be improved and the greater Value add-on can be done:

  • Identify the Potential Market
  • Making Effective Business Plan and Refinement in bing concern
  • Trial Selling to prove the initial potency of new merchandises in market
  • Effective Operational and Technological Upgradation
  • Hiring skilled work force, supply preparation and consciousness about latest engineering and market tendencies and effectual direction.
  • Hiring skilled work force, supply preparation and consciousness about latest engineering and market tendencies.
  • Cost Effective Production, Maintain Quality Standards, and Packaging.
  • Set the Costing and Pricing with Quality taken to be consideration
  • Cost Effective Distribution Development utilizing both Physical and Electronic Distribution Channels ( Internet, e-commerce )
  • Both National and International Market Development for better Export and Foreign Revenue.

All India Handicrafts Board:

The All India Handicrafts Board was established in 1952 to propose assorted solutions for betterment and development in Handicraft Industry. Formulation of Plans, Assistance to State Govt. for planning and executing of strategies, and supplying aid for Marketing, Financial, and Organizational facets of Handicrafts Industry.

State and Union Districts:Every State and Union districts has different section for the development of Handicrafts Industry. Marketing, Promotion, Financial Aid to Small Scale Industries, and other plans are the maps of State degree corporations.

Cardinal Corporations:The Handicrafts and Hand looms Export Corporation of India: It was established in 1962. Exports Promotion, Development of possible market executing of Whole Sale and retail Orders are major maps of organisation.

The Central Cottage Industries Corporation Pvt. Ltd. :It is a registered society that runs Central Cottage Industries Emporium in New Delhi, Mumbai, Kolkata, Chennai to sell the Handicrafts merchandises.

The All India Hand loom Fabrics Marketing Cooperative Society Ltd. :This Concerted Society is supported and promoted by All India Hand loom Board. It has assorted manus loom department stores in all metro metropoliss, Chandigarh, Ahmedabad, Hyderabad etc. and few subdivisions in New York, Singapore etc.

All India Organizations:All India Textile Handprinting Industries Federation: 1106 Prasad Chambers, Swadeshi Mill Estate, Mumbai, India.

All India Federation of Zari Industry:Safe Deposit Chambers, Surat, Gujarat, India.

All India Carpets Manufacturers Association:Post Box No. 63, Bhadohi, District Varanasi, Uttar Pradesh, India.

Export Promotion Organizations and Councils:The All India Handicrafts Board ( West Block VII, R.K. Puram, New Delhi- 110022 ) : This organisation is responsible for Export Promotion, Market Development, and Arranging Exhibitions etc.

The Gem and Jewellery Export Promotion Council ( D-15, Commerce Centre, 4th Floor, Tardeo Road, Bombay- 400001 ) :This Organization is responsible for the publicity of Jewellery, Diamond, Stones, Pearls trade of the state.

The Handicrafts and Handlooms Export Corporation of India ( Jawahar Vyapar Bhavan, Anex-I, Tolstoy Marg, New Delhi 110001:It is Govt. project and responsible for exports attempts of private sector promote Indian Participation in International Exhibitions.

The Handloom Export Promotion Council ( 123, Mount Road, Chennai- 600006 ) :It works for the export publicity of Indian Handlooms in the state.

The Indian Institute of Foreign Trade:It provides Training Courses and publishes assorted study studies.

The Trade Development Authority of India:( Bank of Baroda Building, 16 Parliament Street, New Delhi- 110001 ) .

The Export Credit Guarantee Corporation ( Express Towers, 10th Floor, Nariman Point, Bombay-400001 ) :It provides exports recognition intelligence, screens against assorted hazards.

The Export Inspection Council ( 14/1-b Erza Street, World Trade Centre, Calcutta- 700001 ) :It is responsible for Quality Control Issues, and Pre-shipment Act.

The Federation of Indian Export Organization ( Allahabad Bank Building, 17 Parliament Street, New Delhi-110001 ) The Trade Authority of India ( Pragati Maidan, New Delhi-110001 ) :It was started in 1977 and works for exports and trade publicity and development.

The Indian Handicraft Industry stands a alone topographic point among all other industries. It represents the rich civilization, tradition and heritage of India. India ‘s rich cultural diverseness and heritage provides a alone and immense resource for developing trade merchandises. The Indian Handicraft Industry is demoing uninterrupted growing rate of 20 % every twelvemonth and it is one of the most of import section of decentralized sector in India.

Most of the portion of industry operates in rural and semi urban countries throughout the state and have big and possible in Indian & A ; International market. Indian Handicraft Industry provides broad scope of merchandises because of state ‘s diversified civilization, traditions and heritage. There is immense demand of Indian Handicraft merchandises in international market. Industry provides ample chances for employment to people belonging to backward and weaker categories of society.

However, Indian Handicraft Industry has the position of bungalow industry in India, but it has shown promising growing and evolved as one of the major gross generator over the old ages. It has shown uninterrupted growing at the rate of 15-20 % over the old ages and contributes major function for export and foreign net incomes.

Low capital investing, Cheap and skilled labour, Diversified merchandise portfolio, Flexible Production are few of import characteristics of Indian Handicraft Industry. However, Lack of Infrastructure & A ; Technological support, Lack of consciousness of international and new tendencies and Poor Promotional runs are a few drawbacks of industry which needs to be overcome. It is estimated that Handicraft Industry in India is all set to turn with rapid rate in future and lend its portion towards economic development handsomely.

The theoretical account so called Model 5 forces developed by Michael E. Porter is the 1 used largely among many writers who try to acknowledge industry in which there is industries. These Five Forces Analysis or Porter ‘s theoretical account of rival ‘s forces is frequently used with PEST analysis to find a place and possibilities on a market:

  • strength of competition among industries that operates within manner industry sophisticated engineering, extremely qualified forces, greater capital for purchasing modern run uping machines ( CAD/CAM ) and positive influence of market growing,
  • being of other manufacturers of garments who are ready to come in a market, investing in engineering and development, emotional connexion with manner industry and an easy strategic motion in front,
  • clients start to alter manner merchandises – sophisticated engineering, necessary preparation of forces and on the other side planetary handiness of some merchandises by cyberspace,
  • consumer ‘s dialogue ability -a big demand and sophisticated engineering and
  • provider ‘s dialogue ability – sufficient great and turning market and a planetary entree by cyberspace.

Decision

The job that exists in our garment industry is that we analyze and follow tendencies that have already taken topographic point on the manner scene so while a aggregation is being accepted and the readying for production is acquiring completed a new manner demand is here, and the old 1 has n’t got accustomed yet. Manner companies that do non put in the development of merchandises and production engineering acquire into danger and ca n’t “ maintain topographic point ” with manner tendency although they try difficult.

Markets researches, consumers ‘ wants, petitions, and criterium mean inevitable and dominant undertaking for a manufacturer of garments, because by obtaining all these information a production can be directed, concern planned with advanced defined purposes and schemes. Marketing enables greater flexibleness and better administration for more successful reaction to market demands.

Market analyses are possibly hard processs for manner industry, because they need clip to see strong sides and chances although they are excessively eager to place failings and menaces. It is of import to be cognizant that one time when failings are identified, some stairss to alter them can be taken by preparation, so there is possibility to do it a strong side. That ‘s why SSC and SWOT are utile techniques used to happen out strong and weak points in a manner industry. The manner Levi Strauss & A ; Company succeeded by their ain attempts to enforce a new merchandise LEVI ‘S ENGINEERED JEANS ( redesigned jean pants that follow contour of a organic structure ergonomically ) , it is an illustration how to utilize BCG matrix and GAP analysis that show us how market methods and techniques can be besides used in our garment industry in order to run into demands of flexible production.

Retailers in India have already started the construct of co-branded recognition cards. A current illustration would be the aggressive sales representative in any Spencer ‘s shop showcasing the HSBC-Spencer ‘s offering.

Another graphic illustration would be the Future Group recognition card which had Television ads across channels for rather some clip. The response though had been tepid.

With organized retail gross revenues looking downward over the last twelvemonth, particularly in Q3 and Q4 of 2008-09, these offering had disappeared from the tabular array. But, Q1 & A ; Q2 of 2009-10 have been peculiarly good, with around 15 % growing in the sector on the dorsum of a successful gay season.

The new bombilation word that is coming up in Retail circles is the Gift card, which is fundamentally gift vouchers/certificates in the signifier of smart cards.

They will be profitable for retail merchants as it will engender trueness through repetition purchases. There will besides be a important part of card value ( 10 % in America: Economist ) which are ne’er redeemed.

Retailers in India are still nascent when it comes to keeping a comprehensive client database, and this will be a little, yet important measure towards the same.

The hereafter for gift cards will give many innovatively packaged offerings similar to the tendencies in America.

A few illustrations from the Economist:

  1. Target: Gift cards that double as wind-up playthings
  2. Gift cards through electronic mail
  3. Best Bargain: multiple people can lend little sums for an expensive gift card to be created
  4. Time based gift cards during the twenty-four hours. E.g. Happy hr shopping times for Gift card Jesuss

Expiry day of the months in gift cards will further consumers to purchase within a specified period and this will ever assist the retail merchant waiting on the other terminal. If non redeemed this goes straight into the company ‘s pool. But a batch depends on how the retail merchant will manage consumers who arrive at their shop with expired gift cards. A balanced act will travel a long manner in set uping the client friendly side of a retail merchant.

Another interesting tendency in America would be the auctioning of such gift cards online. E-bay is estimated to sell 100,000 gift cards every month through the second-hand path. Consumers give up gift cards that they are unable to deliver online at about half their monetary value.

All this leads to a overall healthy tendency for the gift card construct.

Manufacturers are already present in India for smart cards, who are presently in advanced negotiations with retail biggies.

The advantage for consumers is reasonably obvious ; a gift card would be the ideal pick for any nuptials, birthday and other such occasions.

“ German Engineering, Made for India ”

An full Timess of India edition blanketed with lone Volkswagen, over and over once more as each page was turned on by surprised readers & A ; baffled sellers. Confused & A ; in awe merely because of the gravitation of the money that had been spent for the twenty-four hours, 11th November 2009.

This is the kick start of a 40 crore run by Volkswagen India, who have besides come up with a Television ad late, showcasing their trade names.

The print ads introduced and appraised readers to the assorted Volkswagen trade names that are presently available ( Passat & A ; Jetta ) & A ; the 1s that are lined up for India ( Polo, Beetle, Touareg ) .

Each trade name of Volkswagen caters to a different mark group, and the company is trusting that the 40 chromium. media spend will assist set up all its trade names ; they surely got people speaking for about a hebdomad now.

The media spend will include print, Television, outdoor & A ; the cyberspace.

Expect the cyberspace & A ; out-of-door impact to be likewise innovative-Mudra Group

The 40 chromium. inquiry? is whether this will hike their Numberss, which were hapless in Oct ‘ 2009. They operate in the really niche top terminal of the concern, which accounts for less than 2 % of overall auto industry gross revenues. India is touted as one of the growing markets for Volkswagen and they are non that far behind Mercedes or BMW in their Numberss. Apr to Oct gross revenues show that they are merely around 700-900 autos behind.

The chief inquiry is the relevancy of such a blitzkrieg run in a day-to-day known for being friendly ( readers may spell annoying ) to full page print advertisement. Is this the best channel for a niche top terminal trade name like Volkswagen? Would it make any good if the viva-voce continued in the lower floor circles of an office?

Brand edifice, decidedly yes! & A ; a good occupation at it excessively, but at what cost, is the 40 chromium. inquiry. Meanwhile amusement galore for readers & A ; sellers likewise, allow ‘s trust the Numberss look up, while people look frontward to the Beetle & A ; Polo hitting the difficult Indian roads