For a maker of pens to tell you ?do not sign with this pen? is rather unusual. But then so is Pooja Jain, scion and now Executive Director of the Luxor Group, who ahead of the festive season is most excited about the Pilot Frixion, a pen whose ink you can erase with a rubber at the other end of the pen! Jain is today incharge of the Rs 300 -crore writing instruments division of the Group, and in short time, has already been credited with introducing major market and product innovations, including the introduction of the Parker Premium and Waterman brands in India. Jain, who graduated from the London School of Economics and then did a stint at Gillette, UK, before joining her father, is pushing the boundaries of the Indian writing instruments market, asserting even in the age of the keypad and the stylus, people still carry pens as a statement of style. And wishes to make her company the leader in the segment. Suman Tarafdar was impressed enough to write this longhand with a pen, a Luxor of course!
How large is the pen market in India? Where are challenges and scope for growth the most?
The Indian mass market for pens is about Rs 2,500?Rs 3,000 crore. Luxor has about 15% of the market, though in the Rs 5-15 category, we have 70% of the market. This is growing at about 30% a year. For the premium market, the focus is coming to a lot of new age professionals ? the new aspirers of luxury. Today someone earning about Rs 10 lakh annually would buy a Waterman. Pens are mostly an impulse purchase, and the retail environment is still not there.
We have 15 Luxor Signature stores now, and plan to expand further. Airports are on our radar, especially as globally too, airports are good points of sale. While the top 12 cities are the biggest markets, even smaller towns are beginning to get important. Meerut has taken the special edition Waterman we launched in India recently. With the retail environment changing, there is greater attention to detail and an increasing differentiation ? Parker and Luxor for example cater to different segments.
Are Indians ready to spend on pens?
Absolutely. There have been huge changes in the Indian market in recent years, and along with better looking products in most categories, people are conscious about the pens they carry too. Consumers are also getting curious and asking questions. Where they only spent on gold earlier, now they are buying into other aspects of lifestyle. Aspiration is very visible. Parker has been a treasured heritage for most Indians since the pre-Independence era, while Waterman too has a large heritage in India. In the luxury pens category, Parker has 80% of the market. Parker spans a large audience. There are seven product families in the entry line, Parker Execution, five in the mid high range and four in the top end. In each there are different modes and finishes.
Are any of the brands making their pens in India? How much R&D goes into a pen?
Parker is making its entry level pens in India. Waterman is completely imported. A lot of technology goes into the making of a pen. The Frixion, for example has taken 32 years to develop ? it is thermosensetive, its ink disappearing with heat! Parker has unique products for India ? the quality levels are similar, but the price points are different.
Do you forsee any change in the gifting pattern this year?
Pens are still an important accessory for men, and are gifted for men. Packaging plays an important part in the luxury category. Around 40% of the game is the way it is packaged and presented. Luxor has been a pioneer in this area, and we have a gifting range called Luxor Expressions, in which we have annual theme. This year it is Egypt. However, there is a bit of a slowdown this year. But there is a greater premium on gifting with value for money, and pens score here.
Luxor already makes a million pens a day on an average. Where do you see Luxor going in the near future?
I see Luxor going to the premium level. We will also do value addition. We will launch premium highlighters and markers soon.