Is the pen still mighty? India has nearly 300 million students – from school children to the postgraduate level. In terms of population, this alone would make them the fourth largest nation globally! No wonder then that it is a lucrative, even mighty, segment for businesses to get even a slice of. Among the sectors cashing in is the Rs3,500 crore stationery sector. The stationery market is dominated by ballpoint pens, which form a big chunk of the pie, followed by graphite pencils, colouring pencils, gel pens, markers and highlighters, rollerball pens and fountain pens, according to Manos Nikolakis, Director & General Manager of BIC Cello India. “Education and creativity are the two most important elements driving a purchase decision in the stationery segment,” explains Nikolakis. “Almost 70 per cent of the Indian stationery market has unorganised players. However, the entry of international brands, such as BIC Cello and others, have changed the dynamic. Assuming the market comes back to normalcy and the education sector goes back to operating the way it was pre-pandemic, the category is expected to grow at a rate of 5-6 per cent year-on-year. The growth will be fuelled by the influx of four to five million new students in the formal education system every year. BIC Cello commands a 25 per cent market share in the writing instruments category, which includes pens, markers, and mechanical pencils.” Other major players in the space include domestic players such as Linc, Luxor, Flair, Camlin (bought by Kokuyo), ITC’s Classmate and Hindustan Pencils. International brands that have entered the market include Reynolds and Faber Castell. Nikolakis points out that due to Covid, with lockdowns imposed since March 2020, the education sector along with ancillary businesses, like stationery, have seen a decrease in purchasing habits. “The industry witnessed a decline of about 35 per cent in 2020 versus 2019 in traditional trade sales. We saw a similar trend in our core business, writing instruments. However, we saw a boom in e-commerce that was complemented by growing internet penetration in smaller towns and cities across India.” While the company does not reveal sales figures, unconfirmed sources say sales for the brand topped Rs1,000 crore in 2019-20. In 2020, BIC conducted an in-depth survey across India to understand the impact of the pandemic on parents and their children’s education. “We surveyed more than 400 parents and found that the majority of Indian parents, especially in Delhi, purchased school supplies online,” reveals Nikolakis. “We found that the average spending on school supplies went up from Rs8,000 to more than Rs20,000 – primarily due to investment in electronic items, while a significant dip of Rs5,000 was seen in stationery, arts and crafts, as well as educational toys and games. From a business standpoint, we anticipate recovery in traditional trade in the second half of 2021 and early 2022 with the gradual opening of schools, colleges, and offices. We expect an increase in demand and a positive momentum.”
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BIC Cello says it sells five million pens in the country every day
