Market

Today, most urban and semi-urban Indians tend to follow international trends where gifts and greeting cards are concerned. This is largely because of the pioneering entrepreneurship and ingenuity of a company widely acknowledged as the king of the ‘social expressions’ or ‘emotions’or ‘feel good factor’ industry – Archies

The organisation, through its mushrooming franchises, has been manufacturing and selling its products since 1979. In fact, it has virtually created this industry in India and changed the way Indians express themselves.

Archies is India’s leader in this business with over 50% market share and the competition hardly anywhere in sight. (Source: IndiaInfoline). The country’s social expression industry is valued at about Rs. 500 crore (US$ 111.1million) with the greeting card market estimated to be around Rs. 300 crore (US$ 66.7 million) at retail value. Of this, the organised sector accounts for approximately Rs. 150 crore (US$ 33.3 million) – and Archies greeting cards, projected for fiscal ending March 2007, at Rs. 100 crore (US$ 22.3 million) accounts for a little over half of the organised sector (Source: industry estimates). At 50% of the organised segment market Archies sits comfortably on top of the pyramid. In comparison to the West, however, India is still a growing greeting and gifting market. But it brims with a limitless potential for growth. The per capita consumption of greeting card usage in the US and the UK is between 40 and 50. India’s per capita consumption is minuscule compared to these figures. But Archies is now poised for another mega take-off that will add to its already gigantic dimension in the market. There are 67 company-owned Archies Galleries and ten Stupid Cupid stores across all the major malls and shopping areas in fourteen cities in India. This is in addition to its reach of over 400 franchisees in more than 100 cities and six countries.

Archies is now on an aggressive expansion spree focusing on the mall opportunity and B and C class towns. The company is planning to open an additional 150 company owned stores in fifteen additional cities by the end of 2007/08.The marketing challenge from e- greetings is a reality. But market analysts do not foresee them replacing the physical act of choosing and sending cards. According to experts who have studied the impact of e-cards in developed economies believe e-greetings have an impersonal feel. They rubbish the argument that emails have virtually displaced the hand written letter with the counter argument that telephony has made easy the exchange of information, which is what letters were all about. Greetings they argue are different in as much as they express an emotion best articulated in the written form. These observations are supported by the ground realities of the booming American and European greeting cards industry. Analysts benchmarked 1995 as the first full internet year for the US market; American greeting card sales grew from US$ 6.5 billion (Rs. 29,250 crore) to US$ 7.2 billion (Rs. 32,400 crore) in 1997. In short, the physical nature of sending cards will remain with no perceptible threat seen from the internet version of greeting cards.

Achievements

The company’s most notable achievement has a purely psycho-emotional dimension to it : when at a loss for words think of Archies. The company has successfully engraved itself in the minds of consumers as a living and caring entity that speaks the right words at the right time and helps find a card for every cause and reason and a gift for every occasion. It is hardly surprising then, that this once small company, launched in a staid environment should be classified a Consumer Superbrand two years in a row. Thanks to its spirit of innovation Archies has been the market leader since its very inception. Today, the company boasts several collaborations and licensing arrangements. These include Walt Disney characters, Archie comics; licensing arrangements with the world’s largest publicly owned greeting card company, American Greetings, in addition to those like Anne Geddes, Simon Elvin and Kim Anderson. The year 1996 still stands as a testimonial to the company’s commercial vibrancy and vitality. Its public issue that year was oversubscribed four times. Three years later the company’s share price with an original offering of Rs. 70 zoomed to a meteoric Rs. 1,400.

History

The organisation, through its mushrooming franchises, has been manufacturing and selling its products since 1979. In fact, it has virtually created this industry in India and changed the way Indians express themselves.

Anil Moolchandani whose family owned a sari shop in Kamla Nagar, Delhi, founded Archies. One fateful day, a customer presented him with two posters that he had brought back from the US. Anil displayed these posters in the shop and was amazed when visitors inquired whether they were for sale. Not one to pass up a business opportunity, Anil started putting up posters for sale in his shop. In 1979, Anil set up Archies, a mail order poster shop and started operating from a mezzanine office measuring 200 square feet. The other products on offer included songbooks and leather patches. Archies received its first mail order worth Rs.12 from a customer in Lucknow.

In 1980 the company introduced its first line of greeting cards called the Poster Series (PSeries). The success of the P-Series, which continue to be sold even today, led to Archies setting up a distribution channel. Penetration of Archies greeting cards continued to grow and in 1981, the company held its first distributors' meet in New Delhi. As sales grew, the company explored new ways of expanding its business and establishing itself as the market leader. It procured its first ever foreign license from Walt Disney in 1984. Next in line was the establishment of the Archies Gallery chain. The first of its kind concept-store opened its doors in Kamla Nagar, Delhi, in 1987 and was an instant hit. As the market environment continued to evolve and internet became an important aspect of urban life, Archies has kept pace by introducing e-cards and offering online gifting opportunities through its e-commerce portal.

Product

The Archies’ range includes greeting cards, posters, social expression stationery and gifts. Its unmatched quality and unique variety provides customers a plethora of choices ranging from a three-inch mini-greeting card for just Rs. 4 and a five-and-a half-foot teddy bear for Rs. 10,000 to elegant crystal masterpieces at over Rs. 25,000. Its exclusive and trendy products are selected and sourced from all over the world. Archies has always provided its customers with premium quality greetings and gifting collections such as curios, photo albums, soft toys, mugs, quotations and key chains. Archies maintains a strong back-end support to ensure that its galleries never run out of supplies. It has a highly efficient supply chain management system that helps build an effective retailing structure.

Recent Developments

Shopping malls have given Indian consumers a one-stop shopping experience and Archies, being present in most of them, has proverbially been at the right place at the right time. Being aware of the huge potential in the fashion accessories market, the company has also ventured into this arena with Stupid Cupid – a range of trendy jewellery, handbags, sunglasses, hats and funky belts. The brand is aimed at those who want to look different and do not hesitate to experiment when it comes to fashion and lifestyle. Stupid Cupid has opened nine stores in Delhi and one in Mumbai, in addition to Shopin- Shop counters within large format Archies Galleries.

Promotion

Greeting card occasions in India have almost singlehandedly been created by Archies. It has Indianised hitherto foreign events like Valentine’s Day, Mother’s Day, Father’s Day and Teacher’s Day amongst others. It also created a day of its own – Friendship Day. Over time, Archies’ promotions have married the medium and message to reap rich returns and to inch closer to its customers. The company has also ventured into in-film advertising with the Hindi film,Waqt: a race against time. This was preceded by a vast array of movie merchandise for widely acclaimed films like Speed, Hum Aapke Hain Kaun, Devdas and Lagaan. Not to miss out on the growing FM radio craze, Archies has been airing promotional activities on radio.

Brand Values

Touching the emotional chord and feelings of people around India has been a trademark that is very specially Archies. It promises ‘the most special way to say you care’. It has kept this promise with an outpouring of desirable and unique gifting ideas. Its customers can always luxuriate in the constant variety the brand churns out. As a brand, Archies is committed to providing its customers with opportunities to vent their innermost sentiments. Throughout the year, they can say it with a card or a gift no matter where they live in India. As part of its core belief in social responsibility, the company has also extended a helping hand to foster the causes of some of the best known and highly regarded social institutions across the country. These initiatives include ties with HelpAge India, an organisation that works for the well-being of the deprived and desolate elderly, as well as Archies’ collaboration with Child Relief and You (CRY), that reaches out to the needs of the deprived and underprivileged children.