I have expressed my personal views on how the Indian labels market is likely to move ahead in 2018
From being a country with predominantly rural population and unorganized retail, urbanization in India is steadily transforming the market to a mature one with consumer orientation. Products that were mostly available in loose unpacked format are now increasingly being offered from organized retail food marts in decorative and attractive packaging.
From being a country with predominantly rural population and unorganized retail, urbanization in India is steadily transforming the market to a mature one with consumer orientation. Products that were mostly available in loose unpacked format are now increasingly being offered from organized retail food marts in decorative and attractive packaging.
A label or pack that
had limited need earlier has become the communication tool between the seller
and end consumer. Indian label market that has over the years defied recessionary
trends at the global level has been growing steadily with double digit growth.
Market segmentation has also been a continued process both in terms of
producing labels for the commodity products and those for high end with
attractive decoration. The former segment forms the bottom of the triangle, accounts
for the larger volume of labels and is highly competitive with depleting
margins.
This segment will stay fiercely combative in the marketplace and will
resort to heavy cost cutting to drive in margins with economy of scale. They
will resort to buying traditional but low cost presses with faster speeds, lower
wastage and lesser downtime. The Upper part of the triangle is which caters to
the users for whom a good and unique label is an imperative to boost sales.
This is the segment that drives in development with innovative capabilities to help
drive in better margins. For this reason we will see growing demand for hybrid
presses by leading high end printers.
Digital printing in labels is still a
segment where Indian printers are hesitant to step in even
though the journey
in this direction has commenced. This is so due to the higher cost of
production in this printing technology. Short runs and variable data, drive
this segment and in a high population country like India, this market will grow
but not at the rate at which it grows in the western world. Lower cost of
printing and converting equipment may boost this segment. Digital equipment
manufacturers who can address this aspect will surely make this segment to
prosper. Imperative need for brand protection, communicative labels, decorative
labels and relatively short run labels to aid marketing in different
geographical regions in India with different languages and festivals, spells
the need for hybrid presses.
India witnessed turmoil in business due to aggressive
government economic policies that would aid faster growth longtime. Business
slowed down a bit, but moved on due to inertia. The settling down of economy
will surely create an expanded market. We envisage a better growth rate in
2018. Labels moving into different tangents like Shrink sleeves, IML, wrap
around, etc. stem a larger growth rate in the self adhesive labels but as
mentioned earlier, due to the sheer market size, all segments will keep
growing.
Environmental concerns are also likely to impact the Indian market
scenario, it is becoming increasingly difficult to send the waste to landfills
or incinerate it. 2018 will see emphatic moves to conserve the environment. How
this evolves, only time will tell.
Written By Harveer Sahni, Chairman Weldon Celloplast Limited, New Delhi January 2018. To email the author; harveersahni@gmail.com
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