Current Knitwear Market

Strength in the wool market The wool auctions resumed positively after the three-week Christmas/New Year recess. Close to 110,000 bales were offered over the first two complete sale weeks, with 94 per cent of offerings sold at an EMI of around 1,100 AU cents. With the current high AU: USD exchange rate (~$1.04), this means the international value is around USD11.50, which is close to the 90 % for the post-stockpile period. This positive tone reflects well on underling demand for our fiber, which is the central goal for wool marketing campaigns.

Above graph shows the average AWEX Eastern Market indicator for the poststockpile era (since July 2001) in AUD and USD terms, and shows current price percentile values for this period. Looking into the smaller volume of selection for the rest of this season, all expect a largely unchanged to stronger market. While Chinese New Year is just around the corner and could have some negative price implications, the current demand seems to be strong enough to carry our market through in a historically strong position.

8% on an annual basis and accounting for 12. and garment exports rose 3.2% year on year to USD 95. up 2.6% in 2007. Other Luxury fibers Globally. forecasters such as IMA-ASIA are seeing the global economy showing noticeable growth in the second half of 2013. In December. there is a general tightening of luxury fiber supply.4% of China’s overall exports. China’s textile and garment exports beat expectation. Similar to the silk market. and the Ministry of Commerce recently advised of its intent to keep boosting domestic demand to ensure economic growth in 2013 through the promotion of durable and semi durable consumer goods.92 billion. Roughly 90% of the world’s supply of pure cashmere and 70% of its finished products come from China. Stocks in China were noticed low. There are reports indicating one of the Chinese buyer have been building his own stockpile of greasy Cashmere.1 billion. Underlying resilience in the Chinese economy While the Euro-zone and North American economic malaise has impacted China’s export economy. . The export slowdown may have bottomed out. and this should start to have a flow on effect on the global textile and clothing market. The latest report from The Schneider Group outlines silk prices continue to rise.9% to USD 159. and shortage of supply affected some top makers and some spinners throughput. climbing 10. Superfine and Ultrafine Merino is a substitute and competitor for cashmere. Together total exports amounted to USD 254. up from 39.14 billion. r relative strength. Therefore prices are forecast to remain strong through till after the next harvest in June – July 2013. In their report silk prices rose to record high due to the lack of raw materials and strong demand for the fiber.And also looking beyond the current season. textile exports up 1. it has also increased the importance of the Chinese domestic market.9% year on year to USD 24. and so cashmere prices and supply have some relevance for wool in the luxury apparel market. For 2012 as a whole. and prompted the Chinese government to take steps to stimulate economic growth. strong demand accompanied by limited supply are pushing up the prices. More than 55% of China’s economic growth was coming from domestic consumption in 2012.78 billion.

On the other hand. (just-style. fruit-net. New knitting machines have opened up possibilities hitherto into unknown segments such as technical textile. and burnouts have heated up the market.Current Market Demand For Knitwear Marketing Industry Analysis: Current market demand for knitwear is involved with the quality and competitive pricing of products. reaching a value of US$1. a recovery of consumer confidence. Cutthroat competition has made manufacturers to offer multi-pack products at inexpensive prices. shade net and composite products. products such as fishnet. . product innovations and sustainability would all help to put growth back on track. developing markets. It can be safely assumed that the knitwear the industry lifecycle is at the mature stage as shown in the figure below. and advanced treatments such as digital printing. inkjet printing.com) It seems that the revival of economic growth. There is a close competition between the manufacturers and marketers to hit the best bargain and offer promotional discounts to consumers. demand for unique product offerings.8bn by 2015. glossy foil prints. Developments in knitting. served by unexplored. The Smart Fabrics and Interactive Textiles market will return to growth. according to new research by Global Industry Analysts (GIA). for instance. flocking. will sustain growth.

silver jewelry and others. some of these business enthusiasts operate in a very small scale and usually manage their business operation from home. woolen sock. India. Ltd. CornLeaf lighter than other natural fibers. RadiciGroup’s yarn is available in a range of lightfast.) With advancements in the industry in the recent years. and mufflers. SH helps entrepreneurs with financial and technical assistance. . and has tenacity comparable to other synthetic fibers. The economic crises have narrowed the gap between the upper and lower end of the market with style differentiation almost vanishing. Besides producing and exporting handicrafts items. knitwear. the manufacturing of CornLeaf requires less water and energy consumption as solution dyeing technology is integrated into the spinning process.Figure 1. Korea. The global knitwear market is competitive and fragmented. The knitwear products include woolen cap with earmuffs (or ear-flap woolen hats). wash-resistant colors intended for use in intimate wear. prompting manufacturers to expand their operations into South America. they dominate global knitwear sector with a 65% market share (LTD). name of the book. the Asia-Pacific market was buoyed by rapid growth in China. furnishings and consumer goods. the yarn also has greater hygroscopicity compared to synthetic yarns and is faster drying than natural fibers. and page number) According to GIA. market variety of handicraft products. Indonesia and Taiwan. product development and design. Asia Pacific is currently growing to be a promising market for the same. the intimate apparel industry is defined by new fabric developments. The report found that competition within the industry had resulted in falling prices and a shift in production. T. in collaboration with local women and producers.) Product Information: Sana Hastakala. the yarn is made from Ingeo. Europe is identified as the single largest regional market for knitwear.(Ltd. health checkup. hemp products. (W. RadiciGroup is introducing CornLeaf. The complete list of products is provided in Appendix A. ceramics. We are looking for prospect buyer(s) in Canada for knitwear products offered by SH. Need caption specifying Source (author. a polylactic acid (PLA) polymer derived from renewable vegetable resources. According to RadiciGroup. During the recession. although the US. mittens (boxer gloves and hunter mittens). Central Europe and Asia (Network). including innovations in fashionable and comfortable garment designs. Produced by Noyfil SA. metal crafts. and marketing (Sana_Hastakala "About Us"). a 100% biodegradable solution-dyed continuous yarn. The products are beads. Appendix B provides the images of these products. Compared to traditional dyeing and finishing processes. Such assistances usually consist of capital needed for raw materials.

gender equity and freedom of association Working conditions Capacity building Promotion of Fair Trade Environment The details of these standards are discussed in detail by any Fair Trade organizations (FTGN_Standards). SH has its own catalog for the designs. Since these are hand-made. It is worthwhile noting that all knitwear (except for sweaters which is not in consideration because of size-requirement discrepancies between Asia and North America) products are unisex. SH ensures that these ten standards are followed: Creating opportunities for economically disadvantaged producers.SH uses high quality sheep wool and agora wool from Nepal. These wools are from sheep and yak. All the knitwear products are hand-made and will have “100% Hand-made in Nepal” labels (Sana_Hastakala "Polcies and Procedures"). SH also provides professional to develop pattern and design in collaboration and consultation with the clients. The design catalog is provided to clients upon request. The compliance certificates can be obtained upon request by the clients. The client can request to be affiliated with Sana Hastakala to promote Fair Trade practices in Nepal. after approval. will then be sent to producers. which are regularly checked by these organizations. The knitwear products are available in two different sizes: small (kid-size). These linings provide extra warmth and are usually preferred by most of the clients. and no animals are harmed during the production of wool. which are based on both traditional Nepalese and classic western motifs (SH_Woolen). Fair Trade Group. but will comply with client’s requirements (Sana_Hastakala "Polcies and Procedures"). The local woolen yarn colors are usually pale white and grey. The requirement of linings will be decided after consultation with clients. and also uses imported wool from New Zealand. Being a member of World Trade Organization. Transparency and accountability Trading practices Payment of a fair price Child labor and forced labor Non-discrimination. Some clients have expressed the positive outcomes . The quality of yarn has to be approved by the client prior to production. The samples. Sana Hastakala strictly adheres to the guidance and regulations to maintain quality and standards. The design catalog contains the range of colors available. The hats or caps and boxer gloves can have fleece lining upon request by the clients. Besides quality and standard. and large (adult-size). and Fair Trade Group – Nepal. SH admits that it is hard to enforce size requirements. The knitwear products are available in a range of fashionable colors. The wools are dyed based on the clients’ requirements.

However.and boost in profits because of this affiliation. mix and match of any products. Mittens and Mufflers). If the client prefers DDP (Delivered Duty Paid). set prices. The client will be responsible for all the charges thereafter (Sana_Hastakala "Polcies and Procedures"). The method of transportation will depend upon after discussion with buyer and their preferences. as below: . Nepal is member of World Trade Organization and strictly adheres to rules and regulations of WTO. SH. according to the cost analysis. Some clients prefer EXW – the products are picked up from the SH warehouse located at Kupondole. insurance and cost of goods will be the landed cost. The turn-around-time depends upon the quantity of merchandise ordered.00 below 500 kg and US$ 2.25 over 500 kg (Sana_Hastakala "Polcies and Procedures"). whereas the air cargo cost depends upon the courier service used for transportation. The seller has to keep in mind that the estimated delivery time through sea is three to four months. air cargo costs US$ 9. SH assures that the client will develop business relationship that will benefit everyone and SH will be committed once this relationship is established (Sana_Hastakala "Polcies and Procedures").000 units of knitwear. Transportation Procedures: Sana Hastakala (SH) offers two types of shipping: sea and air. is required to minimize the packaging and handling charges. Currently. then SH will use its own freight forwarding firm. Pricing Policies and Procedures: For selling any of goods or services some type of cost analysis is required. the latter being more expensive and will cost more to buyer (Sana_Hastakala "Polcies and Procedures"). for their three merchandise (Caps.00 over 500 kg. whereas the estimated delivery time through air cargo is five to seven business days (Sana_Hastakala "Polcies and Procedures"). SH prefers exporting through seaway for exporting goods. on the average. Prior to 2005. Nepal does not have any restrictions in exporting knitwear as long as it maintains quality standard requirements (Shah).50 below 500 kg and US$ 7. A minimum order of 1. The import also is subjected to certification fees and custom fees based on the total value of goods (DFAIT "Schedule (Paragraph 3(1)(a)): Fees for Import Permits"). but this requires order in advance one year so that the product reaches the buyer in time. but sea shipment will be recommended to keep the landed cost minimized. SH can also provide merchandise through air cargo – the order is required four months in advance. The packaging will be done in weather-proof packages so that there is minimal damage to the merchandises due to weather and other natural disasters. handled by third party. The packaging is either in the tarp sacks or boxed. the shipping price through sea is US$ 3. importing textiles and clothing to Canada is subjected to Export Import Permit Acts and requires import permit from Foreign Affairs and International Trade Canada (DFAIT) (DFAIT "Import Conditions"). Nepal. The seaway shipment is cost-effective compared to air cargo. Nepal enjoyed quota free access to major global markets. and the freight.

For better understanding the market situation. Ltd. Caps Mittens Mufflers SH $3-4 SH $3-4 SH $2-3 Goldmax Int'l Pvt. we can determine if a particular price is reasonable.4-1.8 Jiangsu Yunyuan Silk Co.5 Le Moda Magasin (Nepal) $0.. They promote 12% discount for orders more than 70.5 Wuxi X&S Knitting Factory (china) $2. It’s obviously shows that SH prices are higher than the other competitor in the market and it is because of their quality and being handmade of the products.3-1. Obviously.50-4.5-2. (china) 1.5-3.5-6.1 EAGLE EYES EXPORTS Nepal 2.5 JOO HYUN TEX INDUSTRY korea $1. $1..6 Kayastha Knitwear (Nepal) $2. Ltd (India) $1. By asking three or more suppliers of their prices for the same product. (china) $5-6 Table 1.. This "total cost of acquisition" is the real cost that must be compared.Caps: $3-4/Piece Mittens: $3-4/Pair Mufflers: $2-3/Piece A part of analysis is verification of pricing.000 and 20% discount for . Ltd. the lowest bid may not always represent the lowest cost. There may be cost associated with making the lower cost product perform to standards. Ltd. the additional cost of early replacement or the cost of redesign and/or testing required making the lower cost product applicable. this is one of the best means for validating price.15 Yiwu Amanda Import & Export Co.00 Shanghai Arch Im & Export Co. competing price SH doesn’t have any discount offer for first order but for compete with other competitors they offer discount for second and subsequent orders. the table one shows comparing prices between three supplyer that are competing in the market and SH. However.90 .

References http://www. Also they recommend 50% advance payment and 50% COD payment for third order and subsequent orders. Furthermore they have discount for fair trade members about 25%. also these excludes VAT which is 22% in Nepal.php#ixzz2OCOBZd2R http://www. 25% after shipping.com/market-reports-january13 . The company use advanced order to take advance payments to cover the cost of raw materials purchase. Then SH use totally prepaid advanced payment for first order and for the second order they recommend 75% advance payment.000.orders more than 100.woolmark. The firm’s policy on extending credit to its customers is depending on the loyalty of the customers to SH and their participation in promoting fair trade globally and locally.com/essays/marketing/current-market-demand-forknitwear-marketing-essay.ukessays.

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