Professional Documents
Culture Documents
The South Asian ethnic population in the USA, UK and UAE comprise of Indians and
Pakistanis, followed by Bengalis and Sri Lankans. The South Asian community mainly
Pakistanis and Indians living in these three countries share similar culture and for a large
population they more or less share the same language. The eating habits of the immigrant
families are majorly influenced by Pakistani and Indian cuisine and their palates are attuned to
the desi flavors. One of the main reasons for this strong cultural influence is that majority of the
Bengalis, Indians and Pakistanis are born in their native countries and are either working or
studying abroad. In the USA alone the South Asian ethnic population has grown by 72% since
2007 (http://www.pewresearch.org/fact-tank/2017/09/08/key-facts-about-asian-americans/);
according to PEWS Research the fast population growth suggests that Asians will become the
largest immigrant group in the USA.
UAE UK USA
Bengalis 188,000
Indians 3,982,000
Pakistanis 519,000
Numbers obtained from www.pewsresearch.org
Bikanervala has presence in London, New Zealand, Dubai, Nepal and Singapore other than
India, whereas Haldiram and Bikaji are available in 19 and 22 countries respectively. As per the
information available on Bikaji’s website (http://www.bikaji.in/aboutus_expansionplans.php) the
board is determined to double its production capacity in the next 5 years and would like to
increase its global presence by entering new markets.
Unfortunately, we do not have any mainstream international mithai brands of Pakistan that are
doing business globally. Names like Gourmet, Nirala and Rahat are popular in the Pakistani
mithai industry but they are not known outside Pakistan.
Barfi pop is a recent idea that popped in our minds during the spring semester at IBA as part of
our assignment. Our group member Schallim discussed the idea with his friends and colleagues
to rebrand traditional desi mithai ‘brafi’ in bite sized contemporary packaging. He discussed the
idea with the like-minded people and got to know that everyone in his circle loves to eat mithai,
however, the size of each serving is bigger for the individual consumption and it was too sweet
for the urban palate. The most popular mithai that we came across among Pakistani youth was
Barfi and Gulab Jaman. After a thoughtful brainstorming we knew that we could easily resolve
both the issues by reducing the serving size and by rolling barfi slices in coconut powder to beat
down the sugar content. Moreover, our main focus was to create an appeal for barfi pop through
cool packaging. Another key observation that we came across by talking to friends and family is
everyone loves mithai but buying mithai is not appealing – “it is not cool to buy mithai”. If it is
available at a convenience store at checkout counter or online in bite sized trendy packaging like
any other candy it would appeal to younger population. The first batch of barfi pop was made in
a friend’s kitchen with the help of her mom and it received good review. The second batch more
refined this time was served in the classroom and received kudos from the audience.
The same was presented to a restauranteur in Karachi and he loved the idea so much that he
agreed to stock it at his restaurant.
Presently, the operations in Pakistan are still in its infancy. Our team has narrowed down a few
suppliers in Karachi and working on to scale the supply up to meet the demand. Once, the entire
supply chain is set up we would be selling it off a cart at Dolmen Mall Clifton and at FoodPanda.
Thinly sliced barfi blocks will be bought from FT sweet near Napier Barracks, Saddar at Rs.
350/Kg packed at our facility at EASTEND Restaurant and shipped to the store at Dolmen Mall
kiosk.
International Markets
We are considering UAE, UK and USA markets to launch because of sizeable south Asian ethnic
population in these countries. The supply and production in all 3 countries will be done locally
through kitchens.
Barfi Pop in UK
UK is home to approximately 1.4 million Indians and 1.17 million Pakistanis together the make a
significant portion of the British population. UK is a tough market to enter into with Barfi Pop;
due to large desi populations plethora of mithai brands with strong roots are already present in
the market. Opening a store in UK or getting a kiosk would be nearly impossible due to high
operational costs. Our first option was to enter in an alliance with Bombay Stores UK which is
the largest Asian department store in Bradford but their management declined to shelf our
product at their store since they do not sell edible. However, they have recently entered in an
alliance with Morrisons department store at 22 locations and would consider shelving Barfi pop
as long as it passes the Food and Drug Authority requirements. Bombay stores will charge 35%
of revenue as shelf.
In USA
According to the Profit Magazine report, the year 2017 was the first time Pakistani Fashion
Apparel and shoe market achieved Rs. 1 trillion turnover in consumer spending and spending on
clothing has risen much faster than spending on other categories, rising by an average of 13.5%
per year for the past 15 years. (https://profit.pakistantoday.com.pk/2017/09/25/pakistans-first-
fashion-billionaires/). The Euromonitor forecasts for 2016-2021 shows Pakistan as a fastest
growing retail market with an annual growth of 8.2% per year.
This growth is mainly due to the rise of middle class and their disposable income. According to
the world bank report, Pakistan received $20 billion in remittances in the year 2016.
(https://data.worldbank.org/indicator/BX.TRF.PWKR.CD.DT?end=2016&start=2001)
According to an unpublished study by a Pakistani market research firm Aftab Associates, 38% of
Pakistani population is middle class while 4% falls into upper class. Combined, it amounts to a
total of 84 million people; a number greater than the population of Germany.
The Pakistani footwear industry has some major players operating in the industry like Servis,
Bata and Stylo Shoes with stores across Pakistan. The total estimated requirement of footwear is
around 600 million pair per year estimated at around Rs.250 billion out of which Rs.100 billion
is imported from China. (https://www.thenews.com.pk/print/172321-Pakistan-has-far-to-go-in-
footwear-industry). Presently, Servis Pakistan is the largest footwear brand in Pakistan available
at 2000+ outlets in the country followed by Bata Pakistan and Stylo with 900+ and 100+ stores
respectively. Lately, with the boom in modern retail culture and introduction of foreign brands in
Pakistani market. Local Pakistani footwear brands have also geared up their operations. Servis
Pakistan has come up with a new niche brand called “Shoe Box” which is a multibrand footwear
store stocking niche imported footwear for the burgeoning middle class. Servis has plans open up
50 mega stores in Pakistan in the next 3 years. These factors are encouraging shoe imports within
the country as consumer become more brand conscious and demand variety. These consumers
needs are either met through local production or through imports. Among the notable
international footwear brands currently available in the Pakistani market are Nike, Adidas,
Reebok, Charles & Keith, Hush Puppies, Pedro, Aldo, Bally and Nine West. These imported
brands are available at the major shopping malls or sell through multi-brand stores with price
range starting from Rs.6000 to Rs.20000.
Why Birkenstock
Birkenstock is a global footwear brand with presence in 90 countries across the world; its main
selling factor is its iconic look and contoured footbed for fitness. In the last 5 years the increased
health consciousness helped boost the fitness industry increasing demand of fitness shoes and
gym-wear. Birkenstock can become the next fashion statement in Pakistan with its two wow-
factors i.e. fitness and the iconic look. Secondly, the forecasting shows a promising business and
a good return on investment.
Initial Investment
Sales and PNL Forecast