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SMS, e-commerce cut into postal earnings on New Year's Eve: ASSOCHAM

Indiantelevision.com Team

(5 December 2007 8:00 pm)

NEW DELHI: Tele companies in government and private sector earned about Rs 1.75 billion on New Year’s Eve and also on the first day of 2008, according to estimates of the Associated Chambers of Commerce & Industry of India (ASSOCHAM).

During Diwali 2007, these earnings were estimated at approximately Rs 1.65 billion through e-commerce.

Traditionally, the projected revenue generation should have been pocketed by the postal department and various courier companies, and therefore, it is a net loss for them as about 40 million youth countrywide chose to transmit their New Year and Diwali greetings through SMS and made their relevant purchases through e-commerce, adds the ASSOCHAM assessment.

ASSOCHAM secretary general D S Rawat said that this phenomenon will further intensify in the future and that the postal department and courier companies would have to find innovative ways and means to compensate for the lost ground.

Releasing the assessment, Rawat added that the current telecom revolution is going to take another 20 million youngsters into making the best use of mobile and telephony facilities for transmitting their wishes to their near and dear ones even in rural pockets in the next 15-20 months.

Estimates made by ASSOCHAM show that e-cards and e-shopping sale for New Year and on Diwali of 2007 registered a growth of 120 per cent and generated revenues to the extent of Rs 1.1 billion on the eve of New Year 2008 as well the first day of 2008. In Diwali 2007, their estimates are for Rs 1.3 billion.

On the other hand, the postal department revenue generation suffered for which estimates are between Rs 150 to 180 million for New Year’s Eve. Their estimates for Diwali 2007 are pegged at Rs 80 to 100 million, the Secretary General indicated. Similarly, courier companies' revenue losses are estimated within the range of Rs 160-170 million on New Year’s Eve. For 2007 Diwali, their losses are estimated around Rs 55 million.

Moreover, this pinch was almost equally felt by a large number of card printers across the country whose New Year sales dropped by nearly 35-40 per cent both during Diwali and New Year’s Eve.

ASSOCHAM, however, the elderly will continue to send greeting cards as visual impressions last longer. This fashion could also be revived for the younger generation provided vintage value is inscribed in most of the greeting cards.

The ASSOCHAM recommends that government printing press also publish greeting cards not only for New Year and Diwali but also for other festivities with altogether different impressions so that their market shares do not disintegrate into oblivion.