New Delhi, Oct 3: Archies Greetings & Gifts Ltd (Archies) is planning to launch cyber galleries in key metros--as a support mechanism to handle orders booked on the Net. The first cyber gallery is slated to come up at Archies' Naraina Industrial Area office in Delhi, before Diwali '99. Archies' is in the process of setting up its own site on the Web--and has also begun taking orders in association with Rediff.com.The 3,000-square-foot cyber gallery will be supported by a store-incharge accessing a small inventory of the Archie product range. Specific products from each of the Archies' cards and gifts division will be shifted to the cyber gallery. Dedicated on-line personnel will then confirm Net orders via telephone and delivery boys--sporting brand Archies attire and motorbikes--will be responsible for despatch of orders and collection of money from Delhi-based customers.
``We expect e-commerce to add to our kitty in a significant way,'' says Anil Moolchandani, CMD, Archies. ``Once on-line verificationof credit cards comes into place there will be a boom in the greetings card business.''
India's average per-person purchase is at half-a-card a year--which is much less than the 42 card average in the UK and 35 in the US. ``Even if we can increase it to four cards a person, it would result in a phenomenal business,'' says Moolchandani.
In an interesting trend, Moolchandani discloses that of all the orders booked on the Net so far, 80 per cent originated in the US. ``There is a tremendous cards and gifts market among the oversees Indians and NRIs, which we intend to capture,'' said Vijayant Chhabra, director, Archies. In the US, e-commerce has boosted the cards industry from $6.5 billion in 1998 to $7.2 billion in 1999.
Once the concept becomes operational in Delhi, Archies would expand cyber galleries to Mumbai and other metros--in addition to tying up with express and courier companies. Unlike Archie Gallery franchises, customers will not be able to directly shop at a cyber gallery.
While remainingfocussed on exclusive galleries--it is opening 25 Vision 2000 Galleries in the next six months in addition to the existing eight in India--Archies is now considering expansion through exclusive tie-ups with departmental stores, particularly in the South.
Realising its strengths in pulling in consumer traffic, especially teenagers, Archies is also mulling strategic retailing tie-ups. ``We're closing studying modules like Color Plus' tie-up with Nike for common retail shops,'' said Chhabra.
To popularise its own site--the address will be finalised shortly--Archies plans to launch a raft of contests. ``Since we'll be charging the retail price even on the Net, a portion of those margins could be easily passed on to the consumer in terms of gifts and prizes,'' said Chhabra. ``Once our site becomes popular, we stand to attract a good band of advertisers who would like to place banners on our site.'' Archies is also in the process of identifying new sites to promote the Archies brand.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.