The going has been tough for the Rs 250 crore greeting card industry last year. The short messaging service (SMS) ate into its marketshare by almost 20 per cent during the Diwali and New Year's period.
However, Valentine's Day has brought some respite to the players such as Archies Greetings & Gifts Ltd (AG&G) and Greeting Card Business, (GCB) a wholly owned subsidiary of ITC. Most players have seen a 5 per cent increase in purchase of greeting cards in the last one week, which has been the case even in 2000 and 2001.
The Rs 80 crore AG&G has seen a marginal sales growth for its greeting cards this year compared to last year. "On an average, Valentine's sales contribute almost 7 to 8 per cent of the total turnover, approximately Rs 5.6 crore and this year has been no exception," said Vijayant Chhabra, director, AG&G.
He said SMS has not had an impact on this occasion due to the fact that the company is primarily targeting consumers between the age group of 14 and 25 years, who generally have no access to SMS. He also pointed out SMS can happen on that day while Valentine's Day purchases begin at least 10 to 15 days prior to the day. "SMS is a message while cards actually send you the greetings and therefore the two may complement each other but in the long run," he said, adding that SMS is a spontaneous act and therefore does not affect the greeting card segment.
According to Chand Das, CEO, GCB, which already has a 5 per cent marketshare, the industry particularly faced rough weather during the Diwali time and New Year's due to the September 11 attacks. "The SMS has not had any significant impact on the greeting card industry," Das said. However, the industry has seen negligible growth in the last two years.
