Market Research As with most other companies in the garment export industry, we export primarily to developed nations. Also, as our company specializes in mid to high end apparel, the developed nations are the best market for our products. Primary Market: Europe Since the European Union has a common unified trade friendly economy with a free flow of goods across its trans-national borders, which chose to tap this market. Due to this, we only have to pay a uniform duty rate regardless of which country in the EU the goods are exported to. Also, majority of the members of EU single market share the same currency, i.e. the Euro. Secondary Market: United States of America The United States of America has the largest economy in the world and is the world’s largest importer therefore making it an important market, however, the higher competition and uncertainty of laws in the USA made us choose Europe as primary market.
Garment Exports from India Current Scenario and Competition The current situation in our target markets is that the demand for apparel is rising, and their domestic suppliers cannot compete with our prices. However China, Sri Lanka and other East Asian economies are exporting in large amounts to Europe as well as America. The competition is severe and while our company has updated
India has relatively less number of shuttle-less looms (weaves 2-4 times as much as conventional looms) 3. The small size of manufacturing in the apparel industry allows for greater flexibility to procure specialized orders and undertake job production 4. 3. the situation is likely to change shortly. Less attention on man power training
. The Indian Apparel & Textile Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports of the country. The Spinning Sector in India lacks modernization 2. it is again the other Asian economies competing on the basis of low raw material and labor costs as well as established “loyal” brands such as Ralph Lauren Polo. STRENGTH 1. For Europe in particular. India is the third largest in the world in the production of cotton.and state-of-the art technology. The recent fluctuation in the Rupee: Dollar ratio also benefitted Indian exporters as the Dollar touched a 52 week high of 54 rupees. The EU countries have no discriminatory practices against a particular country and there are no significant trade restrictions and the market is free of quota restrictions. Whereas in the case of the United States of America. most Indian manufacturers do not. The cultural diversity and rich heritage of the country yields in extremely creative designers 2. High power costs and long export lead times are eroding India’s export competitiveness 4. Cheap labor and developing entrepreneurial skills have always been the backbone of the Indian Apparel and textile Industry. WEAKNESS 1. The existing demand which fell due to the recent economic downturn in both our target markets has reduced temporarily however with these economic issues being the most focused on issues. etc. 2. Hollister. Hungarian and Romanian manufacturers. India is self sufficient in terms of raw material such as cotton. we face strong competition from Turkish. A systematic SWOT analysis of the textile and apparel industry indicates the following:1.
gradually we are gaining better knowledge of our consumers’ preference and their demand therefore we are starting to use directly exporting on a small scale as well. Our products range from $3 . the major promotion of our products is that we price much lower than most of the other garment/apparel suppliers while maintaining superior and consistent quality. Polo Collared T-shirts are 20-25% more expensive than round neck t-shirts C. i. our agents are in touch with our customers to discuss new sample requirements and product developments which we incorporate in our manufacturing process on a quarterly basis in order to keep up with fashion trends (only for job specific orders) B. prints. Product strategy Our products range from tshirts. D. We also offer a range of different color and design patterns which change on a seasonal basis as per information obtained from our agents in the target markets. eg. ladies tops and tracks.e.5. Marketing decisions A. knitwear. We also regularly take part in trade fairs organized by the AEPC. Pricing strategy The pricing strategy that we use is Competitive pricing.
. Distribution strategies The distribution strategy we have chosen is that of indirect exporting. However.$15 based on the colors. etc. etc and considering the wide range of our customer base characteristics we provide various different sizes ranging from XS to XXXL. As part of our marketing strategy. Large distance of the potential market IV. However. based on the prices charged by our competitors. styles. Promotion strategy Promotion of our products is also primarily undertaken by our commission agents and resident buyers that have the required local knowledge of what works in their respective markets.
The agreement with them is that of a nonexclusive agreement so that a sale to any area does not have to involve one particular agent is therefore more flexible. Legal decisions With regard to the Agent/distributor agreement. commission agents were hired separately for both our target markets.V. The agents we are associated in our target markets are as follows: Worldwide enterprises LLC (USA) Shenzen Richford Enterprises (Europe) Shinobe globallink marketing (Europe) Our company has the valid import export code number and is a member of AEPC (Apparel Export Promotion Council) Some of the documents required for garment export:
Customs Declaration Form Customs Invoice (Mainly needed for the USA) Bill of exchange Bill of Lading Commercial Invoice Certificate of Origin Marine Insurance Certificate
The disputes of our company are handled by the Alternative Dispute Resolutions (ADR) function Indian Institute of Arbitration and Mediation (IIAM) covering our entire legal framework.