Importance of the Handicraft Industry


Handicrafts are unique expressions and signify a culture, custom and heritage of your country. The Handicraft Industry is one of quite beneficial sector. Various attempts have been designed to define this wide-ranging and diversified industry. The following definition strives to repay diversity and complexness of Handicraft Industry.

Defining Handicrafts:

Definition Corresponding to United Nations Educational, Scientific and Cultural Organization/Information Technology Community (UNESCO/ITC) International Symposium on "Crafts and the International Market: Trade and Customs Codification", Manila, Philippines, October 1997

"Products that are produced either completely yourself or by using tools. Mechanised tools can be utilized so long as the immediate manual contribution of the artisan remains the most substantial element of the completed product. Handicrafts are produced from recycleables and can be produced in unlimited statistics. Such products can be utilitarian, cosmetic, creative, creative, culturally fastened, decorative, useful, traditional, religiously and socially symbolic and significant".

Definition relating to Govt. of India:

"Product which is made by hand; must have some imaginative value; they could or might not exactly have functional tool. "

The Need for Handicrafts

  • The Cultural Importance: Handicrafts play very important role in representing the culture and customs of any country or region. Handicrafts are a substantial medium to protect of wealthy traditional art, heritage and culture, traditional skills and skills that are associated with people's lifestyle and background.
  • The Economic Importance: Handicrafts are hugely important in conditions of financial development. They offer enough opportunities for employment despite having low capital investment funds and become a visible medium for overseas earnings
  • India is a country of wealthy culture, history and customs. India is one of the major designer and supplier of Handicrafts products on the globe. India has been major developer and provider of handicrafts products since long time. Before the commercial development, this artwork and industry was a potential economical advantage for the country.
  • During modern times, the importance of handicrafts has been surged due to their ethnic and financial principles. The small range business - including handicrafts can play a significant role in the introduction of the current economic climate of both developed and the growing countries similarly. The 90-95% of the full total industrial products of the world are stated in small workshops run by significantly less than 100 people. For instance, Japan, which reaches the top of the economic development, has considered 84% of the its companies as small and medium level companies. In countries such as India and China, handicrafts are as high as the mechanized products in quality and volume level, and are a significant way to obtain their foreign profits. These countries are concentrating on the development of handicraft industry, in order to strengthen the economy.
  • The Indian handicrafts industry is highly labor intense, cottage based and decentralized industry. The industry is pass on all over the country mainly in rural and cities. A lot of the manufacturing products are located in rural and small towns, and there is huge market probable in every Indian places and abroad. Handicraft industry is a major income source for rural areas utilizing over six million artisans including a big variety of women and people owned by the weaker sections of the modern culture.
  • The Handicraft sector is highly creative sector and produces large variety of crafts products. This industry is localized portion of the local and international market. In India the production of art products are done on both large and small range. Because of low capital investment people can begin their business on small scale. Through this flexibility the demand and supply can be managed.
  • Though Indian Handicraft industry is known as a cottage industry, but it includes evolved as one of the major earnings generator over time. There has been consistent development of 15% over couple of years and the industry has improved as one of the major contributor for export and foreign revenue technology.
  • There is huge demand for the Indian Handicraft products in both national and international market. To match the demand and supply with quality, there may be need to have greater technological support and innovativeness with the uniqueness in industry.

Key Facts Of Indian Handicrafts Industry

  • India's rich cultural diversity and traditions offers a unique and huge resource for developing craft products.
  • The Indian Handicraft Industry is showing continuous development rate of 20% each year.
  • Handicrafts industry is one of quite segment of decentralized sector in India.
  • Major elements of industry operates in rural and semi urban areas throughout the country and has potential Indian and International market with around 67000 exporters to touch the marketplace.
  • According to the nationwide census of handicrafts, carried out by the Country wide Council for Applied Economic Research the worthiness of handicrafts produced this past year were of Rs. 26, 213 Crore.
  • This Industry provides huge occupations to artisans which include women and folks belonging to backward and weaker population. That is one of the major source of income there.
  • The Indian Handicraft Industry is a $100 billion industry worldwide.
  • India's contribution in world market is 1. 2%
  • The total exports of crafts items: - Rs. 13412. 92 Crore.
  • Industry's show in India's exports:- 1. 51 %
  • In spite of having varied products, some part of Indian market are still untapped and market is price hypersensitive. Products are high priced in big and metro locations, that happen to be beyond, reach of individuals belonging midsection and lower middle income.
  • Craft manufacturers have to be competitive on price, quality and delivery for different segments.
  • There is poor campaign for craft products in countrywide market.
  • There is lack of understanding about new customs and among craftsmen and there is need of scientific support and training.


Handicrafts industry includes diversified products stock portfolio and there is large variety available in market. Handicrafts products can be distinguished into following
  • Metal ware,
  • Wood ware,
  • Hand branded textiles,
  • Embroidered and crocheted goods,
  • Shawls, Carpets,
  • Bamboo products
  • Zari goods,
  • Imitation jewellery
  • Paintings,
  • Earthenware,
  • Jute products,
  • Marble Sculpture,
  • Bronze Sculpture
  • Leather Products and
  • other miscellaneous handicrafts.

Handicraft industry in India is multiply throughout the country with greater attention in rural and suburban areas of country.

  • Metal ware and Bronze sculpture: Major Making units are located in Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Thanjavur, Jagadhari etc.
  • Wooden artware and sculpture: Major Manufacturing units are positioned in Sharanpur, Nagina, Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Bangalore, Mysore, Behrampur etc.
  • Embroidered item: Manufacturing Systems are positioned in Kutch, Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu and Srinagar.
  • Marble and delicate stones crafts:Agra, Madras, Bastar and Jodhpur are well-known for these art products.
  • Paper Crafts: These making units are located in places of Kashmir and Jaipur.
  • Terracotta: Terracotta items are situated in express of Madhya Pradesh, Rajasthan, and Bastar.
  • Hand imprinted textiles and scarves:Amroha, Jodhpur, Jaipur, Farrukhabad, Bagru and Sanganer consist of manufacturing models.
  • Zari Products: Zari and zari products are made at units located at Surat, Agra, Varanasi and Amritsar.
  • Imitation Rings: Elements of Delhi, Moradabad, Sambhal, Jaipur and Kohima contain manufacturing devices for these jewelry products.

Political View

Industrial Insurance policy:

  • There are no constraints regarding location for building manufacturing products.
  • All companies of handicrafts are exempt from obtaining Industrial Permit to produce. The delicenced undertakings, however, are required to document an Industrial Business owner Memoranda (IEM) partly 'A' with the Secretariat of Industrial Assistance (SIA), and obtain an acknowledgment. No more approval is required.

Trade Insurance plan:

  • Handicraft products are categorized as the ITC (HS) code 97.
  • Paintings, drawings and paintings, domestic articles of real wood etc. that can come under 9701
  • Original engravings slipping under 9702
  • Original sculptures grouped under 9703
  • Products under the code 9704 are widely importable.
  • Imports of items in 9705 are constrained.

Characteristics of Indian Handicrafts for exports; as described by Govt. of India are:

  • They are quota free and neutral to fiber content or composition, barring 100% silk.
  • They include Clothing, Made-up and clothing accessories.
  • Are produced in cottage business.
  • Should not have zippers.
  • Must be ornamented using anybody or more of the next Indian folk styles.
  • Hand painting, Palm printing, Batik, Tie and Dye, Kalamkari.
  • Hand embroidery, Crocheting.
  • Appliqu work of sequins, wooden or glass beads, shells, reflection, ornamental motifs of textiles materials.
  • Extra cover of welt ornamentation of silk, artwork silk or zari threads.
  • Should conform to shape and varieties of each item as described in the agreed list of different countries.
  • Should meet the dimensional aspects.

Tariff-non-tariff Coverage: Aside from 9704, all the items under 97 attract a total import responsibility of 35. 2 per cent. This includes a basic duty of 35 % and a particular additional responsibility of four %. Items under 9704 do not attract any import work.

In India, handicrafts are sent out through pursuing major Distribution Programs
  • Retailers/Direct Sales: That is the most frequent distribution route for selling handicrafts in India. In India there are large number of merchants who provides wide range of handicrafts products.
  • Wholesalers/Distributors: Aside from retail and direct selling programs, wholesalers and distributors provide large selection of handicraft products. Wholesalers will keep product stock in large and can sell direct to last consumer or shop.
  • E-Commerce: Internet has surfaced as a one of the encouraging distribution route for offering the handicrafts products. It is estimated that internet will be one of the major route for the circulation of handicrafts products through E-Commerce.

Export And Foreign Earnings

Handicraft Industry has improved among the major contributors for Export and overseas earnings
  • Exports of handicrafts including side knitted carpets during 2005-06 were Rs. 13412. 92 Crore.
  • Export items- Fine art Metal wares, Hardwood wares, Hand paper textiles, Embroidered and Crocheted goods, Shawls as fine art wares, Zari goods, Imitation jewelry, Carpets, Leather products, Jute products, Paintings, Bamboo products, Earthen ware, Marble Sculpture, Bronze Sculpture etc.
  • India's major export marketplaces are USA, Germany, UK, France and Japan, Saudi Arabia, Canada, and Italy etc.

Indian Handicraft Industry contributes very important role in Indian market. For the correct functioning and procedure of industry it is very essential to involve some policies and rules set up. In India, the Ministry Of Textile is responsible for the formulation of coverage, planning, development, export advertising and legislation of the Handicraft Industry. There are many other bodies and organizations which help to formulate and execute these regulations. All insurance policies should be applied for the higher development of the complete industry so that it can help to strengthen the market.

Industrial Insurance policy:

  • There are no constraints regarding location for building manufacturing devices.
  • All companies of handicrafts are exempt from obtaining Industrial License to manufacture. The delicenced undertakings, however, are required to document an Industrial Businessperson Memoranda (IEM) partly 'A' with the Secretariat of Industrial Assistance (SIA), and acquire an acknowledgment. No further approval is necessary.

Trade Insurance plan:

  • Handicraft products fall under the ITC (HS) code 97.
  • Paintings, drawings and paintings, domestic articles of timber etc. which come under 9701
  • Original engravings slipping under 9702
  • Original sculptures grouped under 9703
  • Products under the code 9704 are openly importable.
  • Imports of items in 9705 are constrained.

Characteristics of Indian Handicrafts for exports; as described by Govt. of India are:

  • They are quota free and natural to fiber content or composition, barring 100% silk.
  • They include Clothing, Made-up and clothing accessories.
  • Are stated in cottage sectors.
  • Should not need zippers.
  • Must be ornamented using any one or more of the following Indian folk styles.
  • Hand painting, Hands printing, Batik, Link and Dye, Kalamkari.
  • Hand embroidery, Crocheting.
  • Appliqu work of sequins, wooden or glass beads, shells, reflection, ornamental motifs of textiles materials.
  • Extra cover of welt ornamentation of silk, fine art silk or zari threads.
  • Should conform to shape and styles of each item as described in the arranged list of different countries.
  • Should fulfill the dimensional aspects.

Tariff-non-tariff Insurance plan: Except for 9704, all the items under 97 attract a complete import work of 35. 2 %. This includes a basic responsibility of 35 per cent and a special additional duty of four %. Items under 9704 do not draw in any import obligation.

In India, handicrafts are allocated through pursuing major Distribution Programs
  • Retailers/Immediate Sales: That is the most frequent distribution route for providing handicrafts in India. In India there are large numbers of merchants who provides large range of handicrafts products.
  • Wholesalers/Distributors: Aside from retail and direct selling programs, wholesalers and distributors provide large range of handicraft products. Wholesalers will keep product stock in bulk and can sell immediate to final consumer or retailer.
  • E-Commerce: Internet has emerged as a one of the appealing distribution route for advertising the handicrafts products. It's estimated that internet will be one of the major route for the syndication of handicrafts products through E-Commerce.

Easily availability on global basis and cost effective way has made Internet a good current market to buy, sell, and promote the merchandise.


  • Large, varied and potential market.
  • There is large product variety and range is obtainable because of diversified culture.
  • It has strong, varied and supportive retail infrastructure.
  • Diversified product range that service different market.
  • Cheap labor rates that lead to competitive price.
  • Need low capital investment.
  • There is versatile production flexibility.
  • Low barriers of new access.

Advantages and Critical Success Factors:

  • Easy creation and development of production centers.
  • There is no dependence on macro-investment.
  • Industry provides potential resources of employment.
  • Products are quality value added, and handicrafts have various applications.
  • It is the actual source of international revenue because of higher export.


  • Lack of infrastructure and communication facilities.
  • Unawareness about international requirements and market.
  • Lack of co-ordination between specialists and private players.
  • Inadequate information of new technology.
  • Inadequate information of market trends.
  • Less interest of teenagers in art industry.
  • Lack of skilled labor.
  • Still confined to rural areas and small places and untapped market.
  • Lack of advertising of products.


  • Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc.
  • Developing fashion industry requires handicrafts products.
  • Development of areas like Retail, Real Estate that offers great requirements of handicrafts products.
  • Development of domestic and international tourism sector.
  • e-Commerce and Internet are surfaced as promissory distribution channels to market and sell the craft products.


  • Competition in domestic market.
  • Balance between high demand and offer.
  • Quality products produced by rivalling countries like China, South Africa.
  • Better Trade conditions offered by competing countries.
  • Increased and better technological support and RandD facility in contending countries.
  • Inspite of having varied products, some part of Indian market continues to be untapped and market is price hypersensitive.
  • Products are high priced in big and metro towns, which are beyond the reach of men and women belonging middle and lower middle income.
  • Craft producers have to remain competitive on price, quality and delivery for different sections.
  • There is poor advertising for build products in nationwide market.
  • There is insufficient recognition about new practices and among craftsmen
  • It is difficult to balance the cultural and commercial value of handicraft products.
  • Inadequate supply string management and distribution reduces the sector's commercial viability and economic sustainability.
  • Lack of Technological support and training.
  • Lack of Research and development for key handicraft industries like, ceramics, paper making etc.
  • There is scarcity of skilled craftsmen and labor to complement the competition.
  • Lack of ability to produce in large level and create economies of range.
  • Inadequate material testing and performance dimension.
  • Inappropriate energy equipment to rural and sub-urban areas.
  • Untapped and inaccessible market due to poor travel infrastructure.
  • There are limited training centers to develop skilled craftsmen
  • The primary purpose is to build an environment that helps the industry to remain competitive on the global basis.
  • To build the environment that will focus on: Wealth Creation, Infrastructure Development, Training, Technological Development, and Poverty Alleviation etc. to enhance the sector performance.
  • Awareness should be increased among craftsmen and customers through Trade Occurrences, Seminars, Craft Discussion boards and advertising.
  • More training centers should be opened up to provide proper training to craft persons.
  • There should be more trade shows to facilitate craft producers to access the marketplace.
  • Transportation infrastructure should be improved to gain access to the untapped market that might be beneficial to decrease the travel cost.
  • Promotion of ethnical tradition and heritage.
  • Promotion of Indian Travel and leisure to catch the attention of the international customers.
  • Developing technology to recycle natural resources to produce new products and ensure waste materials minimization, product durability and reliability.
  • Promoting Collaboration and cooperation with private sector.
  • There should be market system for craft producers owned by rural areas to market their products.
  • Development of electronic digital platform by using internet to provide information, repository, and marketing and syndication solution.
  • Increased Private participation in industry.
  • There should be optimized circulation network and offer string management.
  • Through bettering labor output in a high labor extensive and price competitive market.
  • There should be proper balance between cultural and commercial value of art products to maintain business opportunities.
  • Through using low cost production methods the sustainability of small business can be better.
By implementing following model, the performance of Handicraft Industry can be improved upon and the higher Value addition can be done
  • Identify the actual Market
  • Making Effective Business Plan and Refinement in existing business
  • Test Marketing to test the initial probable of new products in market
  • Effective Operational and Technological Upgradation
  • Hiring skilled manpower, provide training and recognition about most advanced technology and market movements and effective management.
  • Hiring skilled manpower, provide training and understanding about latest technology and market fads.
  • Cost Effective Development, Maintain Quality Specifications, and Presentation.
  • Set the Costing and Costs with Quality taken up to be consideration
  • Cost Effective Distribution Development using both Physical and Electronic Syndication Stations (Internet, e-Commerce)
  • Both Country wide and International Market Development for better Export and Foreign Revenue.

All India Handicrafts Panel:

The All India Handicrafts Mother board was established in 1952 to suggest various solutions for improvement and development in Handicraft Industry. Formulation of Plans, Assistance to Condition Govt. for planning and execution of strategies, and providing assistance for Marketing, Financial, and Organizational aspects of Handicrafts Industry.

State and Union Territories: Every Condition and Union territories has different office for the development of Handicrafts Industry. Marketing, Campaign, SCHOOL FUNDING to Small Size Sectors, and other programs will be the functions of State level organizations.

Central Firms: The Handicrafts and Palm looms Export Firm of India: It had been proven in 1962. Exports Advertising, Development of potential market execution of Whole Deal and retail Requests are major functions of company.

The Central Cottage Industries Organization Pvt. Ltd. : It really is a registered modern culture that runs Central Cottage Industries Emporium in New Delhi, Mumbai, Kolkata, Chennai to market the Handicrafts products.

The All India Palm loom Materials Marketing Cooperative World Ltd. : This Cooperative Culture is backed and marketed by All India Side loom Board. It offers various palm loom emporiums in all metro metropolitan areas, Chandigarh, Ahmedabad, Hyderabad etc. and few branches in New York, Singapore etc.

All India Organizations: All India Textile Handprinting Sectors Federation: 1106 Prasad Chambers, Swadeshi Mill Real estate, Mumbai, India.

All India Federation of Zari Industry: Safe Deposit Chambers, Surat, Gujarat, India.

All India Carpets Manufacturers Association: Post Box No. 63, Bhadohi, Region Varanasi, Uttar Pradesh, India.

Export Advertising Organizations and Councils: The All India Handicrafts Board (West Stop VII, R. K. Puram, New Delhi- 110022): This group is in charge of Export Promotion, Market Development, and Planning Exhibitions etc.

The Gem and Jewellery Export Advertising Council (D-15, Business Centre, 4th Floor, Tardeo Road, Bombay- 400001): This Corporation is in charge of the campaign of Jewellery, Gem, Stones, Pearls build of the country.

The Handicrafts and Handlooms Export Company of India (Jawahar Vyapar Bhavan, Anex-I, Tolstoy Marg, New Delhi 110001: It really is Govt. starting and accountable for exports efforts of private sector promote Indian Contribution in International Exhibitions.

The Handloom Export Campaign Council (123, Mount Road, Chennai- 600006): It works for the export promotion of Indian Handlooms in the united states.

The Indian Institute of Foreign Trade: It provides Training Courses and publishes various survey reports.

The Trade Development Specialist of India: (Bank or investment company of Baroda Building, 16 Parliament Block, New Delhi- 110001).

The Export Credit Promise Corporation (Express Towers, 10th Floor, Nariman Point, Bombay-400001): It offers exports credit brains, addresses against various risks.

The Export Inspection Council (14/1-b Erza Neighborhood, World Trade Centre, Calcutta- 700001): It is accountable for Quality Control Issues, and Pre-shipment Function.

The Federation of Indian Export Business (Allahabad Loan company Building, 17 Parliament Street, New Delhi-110001) The Trade Expert of India (Pragati Maidan, New Delhi-110001): It had been were only available in 1977 and works for exports and trade advertising and development.

The Indian Handicraft Industry stands a unique place among all other industries. It represents the wealthy culture, traditions and heritage of India. India's abundant cultural diversity and heritage provides a unique and huge source for developing build products. The Indian Handicraft Industry is showing continuous development rate of 20% every year and it is one of the main portion of decentralized sector in India.

Most of the part of industry operates in rural and semi urban areas throughout the united states and also have large and potential in Indian & International market. Indian Handicraft Industry provides huge range of products because of country's varied culture, practices and heritage. There may be huge demand of Indian Handicraft products in international market. Industry provides sufficient opportunities for occupation to people owned by backward and weaker classes of world.

However, Indian Handicraft Industry has the status of cottage industry in India, but it has shown promising progress and evolved among the major revenue generator over the years. It shows continuous progress at the speed of 15-20% through the years and contributes major role for export and international earnings.

Low capital investment, Cheap and skilled labor, Diversified product profile, Flexible Creation are few important top features of Indian Handicraft Industry. However, Lack of Infrastructure & Technological support, Insufficient awareness of international and new styles and Poor Promotional promotions are a few drawbacks of industry which must be overcome. It's estimated that Handicraft Industry in India is ready to develop with immediate rate in future and add its talk about towards monetary development handsomely.

The model so called Model 5 causes developed by Michael E. Porter is the one used largely among many authors who try to recognize industry in which there is produces. These Five Makes Evaluation or Porter's model of competitor's causes is often used with PEST analysis to ascertain a position and prospects on market
  • strength of competition among producers that runs within fashion industry sophisticated technology, highly trained personnel, greater capital for buying modern sewing machines (CAD/CAM) and positive affect of market expansion,
  • existence of other suppliers of clothes who are prepared to enter market, investment in technology and development, psychological reference to fashion industry and a fairly easy strategic movement ahead,
  • customers commence to change fashion products - advanced technology, necessary training of staff and on the other side global convenience of some products by internet,
  • consumer's negotiation capacity -a large demand and complex technology and
  • supplier's negotiation ability - sufficient great and growing market and a global gain access to by internet.


The problem that exists inside our garment industry is that we analyze and follow movements which may have already taken place on the fashion world so while a variety has been accepted and the planning for production is getting completed a fresh fashion demand is here now, and the old one hasn't got accustomed yet. Fashion companies that not spend money on the development of products and development technology enter risk and can't "keep place" with fashion craze although they try hard.

Markets studies, consumers' wishes, demands, and criterium mean inevitable and dominant job for a maker of clothing, because by obtaining each one of these information a production can be directed, business organized with advanced described goals and strategies. Marketing enables greater flexibility and better organisation for more successful reaction to market requirements.

Market analyses are perhaps difficult strategies for fashion industry, because they want time and energy to see strong edges and opportunities although they are too eager to identify weaknesses and dangers. It is important to keep yourself updated that once when weaknesses are diagnosed, some steps to improve them can be studied by training, so there exists likelihood to make it a strong side. That's why SSC and SWOT are useful techniques used to determine strong and weak points in a fashion industry. Just how Levi Strauss & Company succeeded by their own attempts to impose a fresh product LEVI'S ENGINEERED JEANS (redesigned denim trousers that follow contour of the body ergonomically), it is an example how to use BCG matrix and Difference examination that show us how market methods and techniques can be used in our garment industry to be able to meet requirements of flexible creation.

Retailers in India have previously started the idea of co-branded credit cards. A current example would be the aggressive salesperson in virtually any Spencer's store showcasing the HSBC-Spencer's offering.

Another vibrant example would be the Future Group credit-based card which had Television set ads across stations for a long time. The response though have been lukewarm.

With organized retail sales looking downward during the last calendar year, especially in Q3 and Q4 of 2008-09, these offering experienced disappeared from the stand. But, Q1 & Q2 of 2009-10 have been particularly good, with around 15% expansion in the sector on the back of an effective yuletide season.

The new buzz word that is approaching in Retail circles is the Item card, which is actually gift vouchers/certificates in the form of smart credit cards.

They will be profitable for merchants as it will breed commitment through repeat acquisitions. There may also be a significant part of credit card value (10% in the us: Economist) which should never be redeemed.

Retailers in India remain nascent when it comes to maintaining a comprehensive customer database, which will be a small, yet significant step to the same.

The future for gift idea cards will produce many innovatively packed offerings similar to the trends in the us.

A few good examples from the Economist
  1. Target: Gift cards that twice as wind-up toys
  2. Gift credit cards through email
  3. Best Buy: multiple people can add small amounts for a pricey gift card to be created
  4. Time based surprise cards throughout the day. E. g. Happy hour shopping times for Present card redeemers

Expiry schedules in gift credit cards will foster consumers to buy in a specified period which will always help the retailer longing on the other end. If not redeemed this runs directly into the company's kitty. But a great deal depends on the way the retailer will deal with consumers who reach their store with expired present cards. A well-balanced act should go quite a distance in establishing the client friendly side of your retailer.

Another interesting pattern in America could be the auctioning of such surprise cards online. E-bay is approximated to market 100, 000 gift cards on a monthly basis through the second-hand course. Consumers quit gift cards that they are unable to redeem online at almost half their price.

All this contributes to a overall healthy pattern for the surprise card idea.

Manufacturers are already present in India for smart credit cards, who are currently in advanced talks with retail biggies.

The benefits for consumers is really obvious; a gift cards would be a great choice for any wedding, birthday and other such events.

"German Engineering, Designed for India"

An whole Times of India model blanketed with only Volkswagen, over and over again as each webpage was turned on by surprised visitors & mixed up marketers. Baffled & in awe only as a result of gravity of the amount of money that were spent for the day, 11th November 2009.

This is the kick start of any 40 crore marketing campaign by Volkswagen India, who have also think of a Television ad lately, showcasing their brands.

The print ads introduced and appraised viewers to the many Volkswagen brands that are available (Passat & Jetta) & the ones that are prearranged for India (Polo, Beetle, Touareg).

Each brand of Volkswagen suits a different focus on group, and the company is wanting that the 40 cr. mass media spend can help establish all its brands; they certainly acquired people talking for nearly a week now.

The marketing spend includes print, Television, outdoor & the internet.

Expect the internet & outdoor impact to be in the same way innovative-Mudra Group

The 40 cr. question? is whether this will boost their numbers, which were poor in Oct' 2009. They operate in the niche high class of the business enterprise, which makes up about significantly less than 2% of overall car industry sales. India is touted among the growth markets for Volkswagen and they're not that way behind Mercedes or BMW in their quantities. Apr to Oct sales show that they are only around 700-900 vehicles behind.

The main question is the relevance of such a blitzkrieg marketing campaign in a daily known to be friendly (readers may spell irritating) to full site printing advertising. Is this the best channel for a niche top end brand like Volkswagen? Would it not do worthwhile if the word-of-mouth extended in the low floor circles of office?

Brand building, definitely yes! & a good job at it too, but at what cost, is the 40 cr. question. Meanwhile entertainment galore for visitors & marketers similarly, let's pray the numbers look up, while people look forward to the Beetle & Polo hitting the hard Indian roads

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