Archies plans to launch goods for infants

Archies Limited, one of India's leading gifting and greeting companies, plans to tap the niche gifting market to grow its brand in 2008.

The aim is to segment the market in terms of consumer profile to push sales.

For one, Archies has tied-up with a US-based company which specialises in making soft toys and other accessories for new-born babies.

The US-based company also makes nappies and blankets for babies.

The formal launch is expected in April this year.

According to Anil Moolchandani, chairman and managing director of Archies, gift items exclusively for new-borns is very small right now with hardly any organised player.

"Through the tie-up with this US-based company, we will be able to bring its products to India in April this year. We will roll them out in about 50 stores initially. With a completely new range of products, we think this will help Archies grow its sales volumes this year," Moolchandani said. The baby products cost between Rs 500 and Rs 1000.

The company has also tied-up with 'Russ Berrie', a UK-based company that manufactures premium gift items like photoframes, candle stands, photo albums, mugs, etc. Archies would bring these products to India, targeting the Valentine's Day in February. These would be rolled out in close to 35 Archies stores initially and would cost within Rs 1,500.

At present, Archies has 100 company-owned stores in India and 450 franchise-run outlets.

It plans another 100 company-owned outlets by 2010 with an investment of close to Rs 40 crore.

Archies is also planning to tap the Rs 1000 crore corporate gifting sector in India.

According to Moolchandani, items like office accessories and wine packaging are best bets for corporate gifting.

"We launched items for corporate gifting in 2007 in Delhi. We recorded sales of Rs 2 crore in Delhi alone. Now we plan to roll out these items in our stores in Mumbai, Bangalore and Kolkata. In 2008, we expect corporate gifting to fetch Archies close to Rs 4 crore," Moolchandani said. Archies corporate gift items cost between Rs 500 and Rs 15,000.

"One trend these days among buyers is that they are looking for attractive gift wraps that people would like to stock along with the gifts. So we are planning to introduce specially designed gift wraps, gift bags and boxes. We hope to allot about eight feet in each store selling various gift wrapping options," Moolchandani said.

Specialised gift wrapping bags and boxes would cost between Rs 55 and Rs 200 and would be available only in bigger Archies stores.

Typically, Archies stores are between 1,000 and 3,000 sq ft.

Archies also plans to tie-up with local grocery or chemist shops to sell greetings and gifts. This is a move to bring convenience at consumer's doorsteps, Moolchandani informed.

Archies already sells products in about seven local grocery and chemist stores in Mumbai, Baroda and NCR. It is now looking at taking this format to other cities where it would be allotted 100-200 feet in grocery or chemist shops for selling its products.

The company is also planning to increase its 'Stupid Cupid' jewellery stores in India. At present it has about six standalone Stupid Cupid stores in Delhi and NCR.

"Greeting cards contribute close to 45 per cent to our overall turnover, while sale of soft toys contribute 14 per cent," Moolchandani informed. The company registered a turnover of Rs 104 crore as on March 2007 and expects to close this fiscal at Rs 120 crore.

According to market data, the organised gifting market is estimated to be Rs 3000 crore, while the organised greetings market is estimated to be about Rs 200 crore.