The Hindu : National : The writing pen still rules

Online edition of India's National Newspaper
Wednesday, Sep 13, 2006
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The writing pen still rules

Sales in India surge thanks to retail boom, low pricing, wider choices

New Delhi: The pen continues to hold its might as an important tool of communications even in this hi-tech era of computers, mobile phones and tablets: a new study has found a phenomenal growth of 82 per cent in its sales in a time period of less than a year.

According to the `2006 ACNielsen Retail Audit' report released on Tuesday, India's pen market registered an impressive growth of 82 per cent in sales between July 2005 and April this year, riding the wave of an exponential retail market expansion.

According to the study conducted by the global research firm, the product is currently available in about 11 lakh stores across urban India. This represents a distribution growth of 23 per cent.

Pen sales went up in February and March, the examination season, and peaked in the last 11 months. An expanded distribution network, competitive pricing and product innovation contributed to the surge in sales.

"There is a consistent month-on-month growth in the writing instruments industry fuelled by competitive pricing and product innovation. Today, one can buy a gel pen for Rs. 2 and can choose from a wide variety of pens — with easy grip to water-proof ink," a spokesperson for the agency said.

"[The] pen market previously suffered from lack of organised information on the market size or market shares of various players, since most players are not listed companies and distribution was mostly limited to stationary stores," the spokesperson added.

Ball pens form the biggest chunk of the market in India, and account for 72 per cent of the total market. It is followed by the gel pen at 28 per cent. Marker pens also constitute a growing segment in urban India. Most segments such as whiteboard, CD marker or permanent marker have shown positive month-on-month volume and value growth in April 2006. The positive outlook is also evident from the amount of airtime bought on prime time television by almost all key players.

The report highlighted the fact that though the market is ruled by leading brands, there is scope and sufficient space for small players. — PTI

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