EXPORTS TO LEBANON - FASHION

1. NATIONAL INSTITUTE OF FASHION TECHNOLOGY
HYDERABAD
MASTERS IN FASHION MANAGEMENT 2013 – 15
END TERM PRESENTATION FOR FASHION EXPORT MERCHANDISING AND EXIM DOCUMENTATION
LEBANON – SWOT ANALYSIS AND STRATEGIC
IMPORTANCE
PRESENTED BY:
AVANI CHHAJLANI
PRESENTATION DATE: 19TH MAY 2014

2. OUTLINE
• ABOUT LEBANON
• COUNTRY PROFILE
• BALANCE OF TRADE
• IMPORTS
• INDIA EXPORTS TO LEBANON
• LEBANON APPAREL MARKET ANALYSIS
• SWOT ANALYSIS
• STRATEGIC IMPORTANCE
• REFERENCES

3. ABOUT
• LEBANON, IS A DEMOCRATIC REPUBLIC COUNTRY
BORDERING THE EAST MEDITERRANEAN SEA.
• IT IS BORDERED BY SYRIA TO THE NORTH AND
EAST AND ISRAEL TO THE SOUTH.
• LEBANON'S LOCATION AT THE CROSSROADS OF
THE MEDITERRANEAN BASIN AND THE ARABIAN
HINTERLAND
Source: (http://en.wikipedia.org/wiki/Lebanon)

4. COUNTRY PROFILE
Region Western Asia
Currency Lebanese Pound (LBP)
Surface area (square kilometres) 10452
Population in 2011 (estimated, 000) 4259
Population density in 2011 (per square kilometre) 407.5
Capital city and population in 2011 (000) Beirut (2022)
United Nations membership date 24-Oct-45
Source: (http://www.nationsonline.org/oneworld/lebanon.htm)

5. TRADE ANALYSIS

6. BALANCE OF TRADE
• LEBANON RECORDED A TRADE DEFICIT OF
1478.94 USD MILLION IN FEBRUARY OF 2014.
• BALANCE OF TRADE IN LEBANON AVERAGED -
742.16 USD MILLION FROM 1993 UNTIL 2014,
REACHING AN ALL TIME HIGH OF -182.55 USD
MILLION IN AUGUST OF 2006 AND A RECORD
LOW OF -2369.73 USD MILLION IN FEBRUARY
OF 2012.
• BALANCE OF TRADE IN LEBANON IS REPORTED
BY THE BANQUE DU LIBAN.
Source: (http://www.tradingeconomics.com/lebanon/balance-of-trade)

7. IMPORTS
• IMPORTS IN LEBANON INCREASED TO 1791.86
USD MILLION IN MARCH OF 2014 FROM
1731.52 USD MILLION IN FEBRUARY OF 2014.
• IMPORTS IN LEBANON AVERAGED 912.66 USD
MILLION FROM 1993 UNTIL 2014, REACHING AN
ALL TIME HIGH OF 2798.95 USD MILLION IN
FEBRUARY OF 2012 AND A RECORD LOW OF
268.55 USD MILLION IN AUGUST OF 2006.
Source: (http://www.tradingeconomics.com/lebanon/imports)

8. INDIA EXPORTS TO LEBANON
Name of
Country
April-2010-March-
2011
April-2011-March-2012
%Growth
in INR
%Growth
in US$Value in
INR Lacs
Value in
US$ Million
Value in INR
Lacs
Value in US$
Million
India
Export to
LEBANON
80,295.50 176.1 1,12,040.30 231.87 39.53 31.67
Data for 2011
No. Name Percent
1 Non-Knit Women's Suits 1.46%
2 Non-Knit Women's Shirts 1.13%
3 Pure Cotton Yarn 0.92%
4 Knit T-shirts 0.72%
5 Synthetic Staple Fibers Yarn 0.50%
Source: (http://www.infodriveindia.com/export-import/trade-statistics/countries-wise.aspx#name_of_region:_wana), (http://atlas.media.mit.edu/explore/tree_map/hs/export/ind/lbn/show/2011/)
DATA FOR 2011
Category Percent
Diamonds 21.45%
Cars 14.04%
Combustion Engines 6.92%
Frozen Bovine Meat 5.47%
Packaged Medicaments 3.77%

9. APPAREL MARKET ANALYSIS

10. LEBANON APPAREL MARKET ANALYSIS
• IN 2013, THE LOCALLY PRODUCED GARMENTS
ACCOUNTED ONLY FOR 22% FOR THE TOTAL
$580 MN SALES OF APPAREL
• WHILE THE IMPORTS IN THE SAME YEAR
CONTRIBUTED ABOUT 78%
• THE TOTAL APPAREL IMPORTS REACHED AN ALL
TIME HIGH IN 2013 12,719 TONNES OF
GARMENTS BEING EXPORTED
• 2011 SAW A DIP IN THE VOLUME OF IMPORTS
BUT THE GROWTH HAS BEEN STEADY
EVERSINCE

11. LEBANON APPAREL MARKET ANALYSIS
• IN 2013, THE CONTRIBUTION OF WOMEN’S
WEAR WAS THE HIGHEST (46%)
• WHILE THE LEAST WAS KIDSWEAR (5%)
• THE TRADE BETWEEN INDIA AND LEBANON HAS
BEEN VOLATILE SINCE THE GROWTH RATE IN
2010 WAS ABOUT 24% WHICH HAS DROPPED
DOWN TO 4% IN 2013 WITH YEAR WITH
NEGATIVE CHANGE AS WELL

12. LEBANON APPAREL MARKET ANALYSIS
• IN 2013, INDIA CONTRIBUTED TO ABOUT 5% OF
THE TOTAL IMPORTS MADE BY LEBANON
• WHILE CHINA AND ITALY WERE THE LEADERS
WITH 33% AND 12% CONTRIBUTION
RESPECTIVELY

13. SWOT ANALYSIS

14. SWOT ANALYSIS
• STRENGTHS
• ENCOURAGING BUSINESS CULTURE
• TRADITION OF EXPOSURE TO WORLD
FASHION
• LOW CUSTOMS DUTY ON IMPORTED
TEXTILES
• GOOD STANDARD OF LIVING
• LIMITED INVESTMENT RESTRICTIONS
• WEAKNESSES
• ALTHOUGH THERE ARE LOW TAXES,
GOVERNMENT CAN SET UP ROAD BLOCKS,
NO QUESTIONS ASKED
• LACK OF EFFECTIVE TRADE AGREEMENTS
• POOR EXPORT-ORIENTED STRATEGIES
• ALTHOUGH SYRIA PULLED THEIR TROOPS
OUT OF LEBANON THERE IS STILL A SENSE
OF DISCOMFORT AND MISTRUST

15. SWOT ANALYSIS
• OPPORTUNITIES
• LIMITED LOCAL APPAREL MANUFACTURING DUE
TO:
• LOW LABOR PRODUCTIVITY
• INEFFICIENT USE OF MACHINERY
• HIGH PRODUCTION COSTS
• HIGH DEPENDENCE ON IMPORTS
• POTENTIAL DEVELOPMENT OF SPECIALIZED
APPAREL SUB- SECTORS
• GROWING GLOBAL APPAREL MARKET
• THREATS
• POOR IMAGE HINDERING ITS ACCESS TO
CAPITAL AND FINANCING.
• EXCESSIVE AND INFLEXIBLE
REGULATIONS
• UNSTABLE DOMESTIC AS WELL AS
REGIONAL POLITICAL AND SECURITY
SITUATIONS
• COMPLAINTS ABOUT:
• ARBITRARY LICENSING DECISIONS
• COMPLEX CUSTOMS PROCEDURES
• LACK OF ADEQUATE PROTECTION OF
INTELLECTUAL PROPERTY.

16. STRATEGIC IMPORTANCE OF
LEBANON

17. STRATEGIC IMPORTANCE
• THE IMF FORECASTED A GROWTH OF 7% FOR LEBANON'S REAL GDP IN 2010 AND 2011
• IT HAS 54TH RICHEST GDP PER CAPITA IN THE WORLD IT IS FORECASTED THAT LEBANON
PER CAPITA WILL BE 19,100 BY 2015
• BILATERAL TRADE AGREEMENT – INDIA IMPORTS SCRAP IRON, COPPER AND ALUMINIUM
AND RAW LEAD
• THE INDO-LEBANESE BUSINESSMEN FORUM WAS SET UP IN DELHI IN NOVEMBER 1996
AND THE BEIRUT TRADERS ASSOCIATION IN 1997
• FOREIGN EXCHANGE FOR INDIA

18. STRATEGIC IMPORTANCE
• THE LEBANESE GOVERNMENT APPLIES THE LOWEST AD VALOREM RATES IN THE REGION
AND HAS ABOLISHED ALL DISCRIMINATORY BARRIERS AGAINST FOREIGN IMPORTS
• THE MAJOR INDUSTRIAL SECTORS INCLUDE METAL PRODUCTS, BANKING, AGRICULTURE,
CHEMICALS, AND TRANSPORT EQUIPMENT
• THE LEBANESE ECONOMY IS SERVICE-ORIENTED; MAIN GROWTH SECTORS INCLUDE
BANKING AND TOURISM

19. REFERENCES
• ___ LEBANON. (2014, MAY 17). RETRIEVED FROM NATIONSONLINE.ORG:
HTTP://WWW.NATIONSONLINE.ORG/ONEWORLD/LEBANON.HTM
• BALANCE OF TRADE - LEBANON. (2014, MAY 17). RETRIEVED FROM TRADINGECONOMICS.COM:
HTTP://WWW.TRADINGECONOMICS.COM/LEBANON/BALANCE-OF-TRADE
• IMPORTS - LEBANON. (2014, MAY 17). RETRIEVED FROM TRADINGECONOMICS.COM:
HTTP://WWW.TRADINGECONOMICS.COM/LEBANON/IMPORTS
• INDIA EXPORT IMPORT TRADE CONTINENTAL STATISTICS-2012. (2014, MAY 17). RETRIEVED FROM
INFODRIVEINDIA.COM: HTTP://WWW.INFODRIVEINDIA.COM/EXPORT-IMPORT/TRADE-
STATISTICS/COUNTRIES-WISE.ASPX#NAME_OF_REGION:_WANA
• PRODUCTS THAT INDIA EXPORTS TO LEBANON (2011). (2014, MAY 17). RETRIEVED FROM
ATLAS.MEDIA.MIT.EDU:
HTTP://ATLAS.MEDIA.MIT.EDU/EXPLORE/TREE_MAP/HS/EXPORT/IND/LBN/SHOW/2011/

20. THANK YOU!