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Need to be written
Mission
1998
Started with offering
customers kurtas and
loose fabric made
from hand-woven
fabric.
Core ...
D
Design Department creates a
design and send it to R&D
department
R
Research & Development
department build few of the
Co...
01 100 % In-house
All The Products were
developed in-house and stores
were company operated
02 20-30 % In-house
Offloaded ...
Stores WWW
Khaadi SWOT Analysis - Pakistan
WS
O
Strength
Customer Equity
Tailoring Service
Supply Chain
New Stock every two weeks
Bra...
Low Quality
Low Price
High Quality
Low Price
High Quality
Low Price
High Quality
High Price
Quality
Price
STP – Pakistani ...
High Quality
High Price
Khaadi Segmentation-Targeting-Positioning
Customer with
High Purchase
Power
Segment who wants
unst...
169 bn $ Exports 235 bn $ Imports 10 % Unemployment
Economic Growth 3.9 9 % Inflanation Rate 2.19 $ Exchange Rate
80 Milli...
PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Democratic
Representation
Division among multiple
bod...
PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Service Sector
contributes 67% of GDP
10,000$ GDP/Cap...
PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant GAP between
different classes
Islamic Cul...
PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant Growth in
R&D
National Innovation
Strateg...
PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
8765
52% of Women prefer to
wear Hijab
31% of women prefer to
wear western touch clothes
Clothing Preference
TV
Radio
Soci...
Women Clothing Preference - Turkey
Buyers
High Per Capita
So customer have high
bargaining Power /
Ample Brands
Suppliers
Limited suppliers for
raw material ...
• Nearly 58 thousand active companies and 1 mn people (2 mn including
unregistered) employed in the textile , ready wear a...
Turkey’s Position
Turkey’s Position in the World and EU
Category World Rank EU Rank
Thread manufacturing 3 1
Knit fabric m...
of the clothing production is exported. (
of the clothing exported is cotton
clothing.
• Turkey is a of ready-
wear produc...
• Main threat: Low priced imports from China
• Main strategy: Concentration on high value
added products and branding
Indu...
Top Brands in Turkish Clothing Industry
Top Brands in Turkish Clothing Industry
Heavily westernized tilted brands have
occupied the ready wear industry
Strength Weakness Opportunity Threat
Khaadi SWOT w.r.t. Turkey
1. Country of Origin
2. Traditional culture
look
3. Fast Pa...
Huge Potential
wrt customer
base
A High Priced
brand in Pakistan
may be perceived
as low price
Brand in
Low Priced Labor
T...
Recommended Business Model
Send Value Added and Furnished Products to Turkey and Sell it in Turkey
Pakistan should be the ...
Recommended Business Model
Izmir
Western Touch
Products Only
Istan
bul
Anka
ra
Recommended Business Model
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
Khaadi business case (semester project)
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Khaadi business case (semester project)

Semester Project for Evaluation the Business Case to tap in the Turkish Market by Khaadi

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Khaadi business case (semester project)

  1. 1. Need to be written Mission 1998 Started with offering customers kurtas and loose fabric made from hand-woven fabric. Core Ideology Hand woven fabric with blend of both eastern and western touch.
  2. 2. D Design Department creates a design and send it to R&D department R Research & Development department build few of the Complete samples for approvals. S Style is responsible for approval and M Marketing is responsible for marketing and segmentation of products.
  3. 3. 01 100 % In-house All The Products were developed in-house and stores were company operated 02 20-30 % In-house Offloaded itself from in-house development and adopted franchise model. 03 5% In-house Completely focus on design and R&D. Increase global presence.
  4. 4. Stores WWW
  5. 5. Khaadi SWOT Analysis - Pakistan WS O Strength Customer Equity Tailoring Service Supply Chain New Stock every two weeks Brand Name Innovation Culture T Recession Intense Competition Threat Weak clothing line for men Cost Structure Online Presence Weakness New Products New Markets Increase online presence Opportunity
  6. 6. Low Quality Low Price High Quality Low Price High Quality Low Price High Quality High Price Quality Price STP – Pakistani Market
  7. 7. High Quality High Price Khaadi Segmentation-Targeting-Positioning Customer with High Purchase Power Segment who wants unstitched clothes Segment who want Eastern Clothes Segment who want Western Clothes Segment who want Accessories Segment who want Kids Clothes Segment who want Home Accessories
  8. 8. 169 bn $ Exports 235 bn $ Imports 10 % Unemployment Economic Growth 3.9 9 % Inflanation Rate 2.19 $ Exchange Rate 80 Million Population 10,500$ GDP/Capita 800 bn $ GDP
  9. 9. PEST Analysis Environment Social Technology Legal Economic Political Democratic Representation Division among multiple bodies Stable Foreign Policy Involvement in many global initiatives
  10. 10. PEST Analysis Environment Social Technology Legal Economic Political Service Sector contributes 67% of GDP 10,000$ GDP/Capita Reducing Public Debt in Progress Free Trade Agreements Rigid Labor Trends High Taxes
  11. 11. PEST Analysis Environment Social Technology Legal Economic Political Significant GAP between different classes Islamic Culture but blended with western touch
  12. 12. PEST Analysis Environment Social Technology Legal Economic Political Significant Growth in R&D National Innovation Strategy Double Digit Growth in technology sector Increase number of skilled scientist
  13. 13. PEST Analysis Environment Social Technology Legal Economic Political
  14. 14. 8765 52% of Women prefer to wear Hijab 31% of women prefer to wear western touch clothes Clothing Preference TV Radio Social Media Print Media Stores Touch Points asfasfasdfasdfa Point 4 afasdfasdf. Point 5 72% Of Urban Population Women 50% 70% Turks 20% Kurds Urban Population Istanbul Ankara Izmir Bursa Adana Gaziantep Konya Antalya Concentration 52% - 25-69 Years 17% - 16 to 24 Years 17% - 6-14 Years Age Distribution 28% - Food 20% - Transport 19% - Housing & Utilities 8% - Furnishing & Maintain. 6% - Restaurants 6% - Clothing 4% - Recreation $ Preferences Consumer Analysis - Turkey
  15. 15. Women Clothing Preference - Turkey
  16. 16. Buyers High Per Capita So customer have high bargaining Power / Ample Brands Suppliers Limited suppliers for raw material so higher bargaining power. New Entrant Other Pakistani Brands will follow Khaadi Success Story Substitute Western products /
  17. 17. • Nearly 58 thousand active companies and 1 mn people (2 mn including unregistered) employed in the textile , ready wear and leather industry. (Source: Social Security Institution, 2014) Manufacturing Production Value (USD bn) 2014 Number of Companies 2014 Share of SMEs in Total Number of Companies, 20124 Number of Foreign Companies 2014 Number of Employees 2014 Number of Employees (incl. unregistered employees), 2014 Manufacturing of Textile 26,5 17.313 98.0% 493 430.213 450,000 Manufacturing of Ready Wear 19,5 33.977 99.5% 130 454.754 1,500,000 Manufacturing of Leather Products 2,6 6.425 99.9% 107 60.591 NA Total 48,6 57.715 99.1% 730 945.558 NA Source: Ministry of Science Industry and Technology, Social Security Institution, Ministry of Economy, 2014 Turkey’s Position
  18. 18. Turkey’s Position Turkey’s Position in the World and EU Category World Rank EU Rank Thread manufacturing 3 1 Knit fabric manufacturing 2 1 Woven fabric manufacturing 5 2 Textile exports to World/EU 7 2 Clothing exports to World/EU 7 3 Cotton manufacturing 8 NA Cotton consumption 4 NA Organic cotton manufacturing 3 NA Knitted clothing exports 5 NA Woven clothing exports 9 NA Hosiery manufacturing 2 NA Raw cotton imports 3 NA
  19. 19. of the clothing production is exported. ( of the clothing exported is cotton clothing. • Turkey is a of ready- wear products but a net importer of textiles. Turkey Exporter / Importer ?
  20. 20. • Main threat: Low priced imports from China • Main strategy: Concentration on high value added products and branding Industry Direction
  21. 21. Top Brands in Turkish Clothing Industry
  22. 22. Top Brands in Turkish Clothing Industry Heavily westernized tilted brands have occupied the ready wear industry
  23. 23. Strength Weakness Opportunity Threat Khaadi SWOT w.r.t. Turkey 1. Country of Origin 2. Traditional culture look 3. Fast Paced Products Rollout 4. Muslim Brand Inheritance 5. Foreign Policy 1.First time experience of Turkish market 2. No supply and Brand 1. Expats may act as ambassadress 2. Additional revenue stream 3. Use tourism hub for brand awareness of khaadi to other countries 1. Local competitors 2. Turkish may not accept the brand 3. Small number of Textile suppliers
  24. 24. Huge Potential wrt customer base A High Priced brand in Pakistan may be perceived as low price Brand in Low Priced Labor Turkey as country People don’t know about Khaadi Khaadi is still closer to Turkish Traditional culture but not to western brands in turkey Khaadi vs local brands Its already a big ready to wear industry . Still Khaadi have to optin for textile import from Pakistan if Khaadi will manufacture product in Turkey Industry Pakistani recession vs new revenue stream Core suppliers for textile in turkey will be a challenge Khaadi SWOT Pakistan & Turkey
  25. 25. Recommended Business Model Send Value Added and Furnished Products to Turkey and Sell it in Turkey Pakistan should be the headquarter for Production
  26. 26. Recommended Business Model Izmir Western Touch Products Only Istan bul Anka ra
  27. 27. Recommended Business Model

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