fMM&T India 2009


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This presentation will provide the insite of Indian Footwear industry and also provide the detaisl of the fMM&T India 2009.

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fMM&T India 2009

  1. 1. fMM&T India 2009 The First APLF Event In India
  2. 2. Content  Overview of the Indian Culture  Tips of doing business In India  Potential of Indian Market  Leather & Footwear Industries In India  fMM&T India-2009- An overview  Make your Business Stand out
  3. 3. India Social Culture  Official name – Republic of India  Population – 1, 065, 070, 607  Languages – Eighteen principal Languages; majority speaks Hindi; Business language; English  Currency – Indian Rupee  Capital city – New Delhi  GDP – Purchasing power parity $3,022 trillion*  GDP Per Capita – Purchasing power parity $2,900*
  4. 4. Overview  Country of both diversity and continuity  Blend of cultures, religions, races and languages.  Rich cultural heritage that dates back at least 5,000 years.  Hinduism and the traditional caste system  Fatalism  Collectivism
  5. 5. Indian Business Culture  Work Practice Appreciate Punctuality but may not reciprocate Advisable to make appointments one month in advance confirm Business appointments ideally made between the hours 11am to 4pm Decision process is slow, deadlines shouldn't be rush as impatience.  Structure & Hierarchy Decision are almost always lead by most senior person senior colleagues & especially elders are obeyed respectfully Final decision rest with highest ranking business executive Always Maintain strong relationship with senior figures
  6. 6. Indian Business Culture Continues.  Working Relationships Senior management responsible to monitor, check & look after Face & Self Esteem is Very Essential, Individual criticism in business must be done carefully Mostly relationship between an Indian boss & his employee can be similar to that of close relatives.
  7. 7. Tips of Doing Business In India “the Indian way!”  Set realistic goals about expected returns  Business with a local partner  Consider listing on local stock exchange  THINK GLOBAL, ACT LOCAL- Try to Indanise the product before launching it in India.  Never underestimate the power of family—and of religion and astrology—in Indian business.
  8. 8. Tips of Doing Business In India “the Indian way!”  Avoid contractions. To the Indian ear, the way Americans pronounce can’t sounds like can. To avoid confusion, substitute cannot.  Expect true culture shock and fuzzy thinking  Don’t expect to start punctually at 9 a.m. or 10, or even 11  Expect and intend to spend time on developing the relationship before you get to business  Don’t assume “Yes” means “Yes
  9. 9. Potential Of Indian Market  GDP reached $1.3 trillion (2008)  GDP over $3 trillion when adjusted for purchasing power parity  GDP growth rate projected at over 6% for 2009  World’s 12th largest economy in terms of GDP  External trade over $ 465 billion in 2008  Vibrant stock market with a listing of over 6000 companies  Since 1990s, growth of middle class; poverty levels have been reduction  Two-way U.S.- India trade exceeded $30 billion in 2006, up from $10 billion in 1997
  10. 10. Indian Retail Industry  Largest industry in India  Contributing to over 10% of the country's GDP.  Expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.  Expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion  Retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion  Expected that by 2010, India may have 600 new shopping centers  The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010  There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets
  11. 11. Indian Leather & Footwear Industry  The history of leather tanning in India dates back to 3000 BC. Tanning in the rural areas is done by indigenous techniques, The most popular Indian leather products include footwear and hand bags.  A special type of thickish shoes, called mojadis is designed in Rajasthan. They are decorated with silk, beads and metal embroidery. Jaipur is famous for its fancy and sophisticated footwear.  West Bengal is famous for its handbags in batik style with cracks, bold curves, and traditional motifs.
  12. 12. Indian Leather & Footwear Industry  Being very ornamental, Kashmiri leather items are very popular among buyers the world across.  The red leather embroidered with gold and silk is done in Madhya Pradesh.  In Hoshiarpur (Punjab), appliqué work is made in colored leather pieces.  Leather with silvery finish or metallic gold is done in Karnataka.
  13. 13. Major Production Centre's of Leather and Footwear Products  Northern Region: Kanpur and Agra, Jalandhar, New Delhi and Noida  Southern Region: Chennai,Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul, Hyderabad and Bangalore  Eastern Region: Kolkata  Western Region: Mumbai and Ahmedabad
  14. 14. Region –Wise Export Performance
  15. 15. Indian Leather & Its Footwear Industry  India is the world’s 4th largest economy by GDP (in Purchasing Power Parity terms) and is expected to rank 3rd by 2010.  India ranks 1st, ahead of Russia, in terms of emerging markets potential in retail and deemed a Priority 1 market for international retail.  India is the largest livestock holding country 21% large animals and 11% small animals    A source for 10% global leather requirement  Value Annual production over US$ 4 billion  Annual export value over US$ 2 billion
  16. 16. Indian Leather & Footwear Industry  Export growth CAGR 8.20% (2000-04)  About 2.5 million workforce (30% women)  Promising technology inflow and Foreign Direct Investment  Top priority to occupational safety and work environment  India’s GDP grew at the rate of 9.4% in 2007(Current rate)  With a population of 1.07 billion, India has a large domestic market largely untapped
  17. 17. fMM&T-Indian 2009- An Overview Organized by APLF Ltd. (UBM & SIC) In partnership with IFCOMA Endorsed By - Department Of Industrial Policy & Promotion Ministry of Commerce & Industry Supported by:
  18. 18. fMM&T India 2009- Overview  Spread Over 5400 sq meter area.  140 Exhibitors from 20 countries.  International Pavilion from Spain, Taiwan & China EXHIBITOR BREAKUP 36% 64% National International
  19. 19. fMM&T India 2009- Overview  3249 buyers from more than 20 countries VISITOR BREAK-UP 8% 12% 13% 55% 12% MANUFACTURER EXPORTER IMPORTER INDEPENDENT WHOLESALER/DISTRIBUTOR AGENT
  20. 20. fMM&T-Indian 2009 “ From Evolution to Revolution”
  21. 21. How to make your business Stand Out  Product- Offer a product which is unique or even trendy, or extend a product and offer a valuable service to make the product more useful to the customer.  Services - Same goes for a service. Many times this can be the packaging of a service as a product.  Market Niche - Carve out an industry or two and become the most dominant player serving that industry. A really nice bonus to this approach is you can usually raise your prices dramatically when you specialize in this manner.  Offer - One can become known by an offer one make. So, try to tailor-made an attractive offer which can make you known and can attract more clients.
  22. 22. How to Make your business Stand Out  Message of Value - Many times there are things that you do that don't get communicated. Extra that you provide or services you think should be included. Your positioning might just rest in more effectively communicating what you do.  Guarantee - You can offer a guarantee so strong that no one else in your industry would dream of doing it.  Customer Service - One of the greatest ways to kick this off is to over deliver on your first customer contact. Give them something more than you promised, give them a gift, give them a related service for free.
  23. 23. How to make your business Stand Out  Against the competition -Try to create your category niche by looking for holes in the offerings of your competitors. If everyone in industry fails to address a certain problem, grab on to solving that problem and use your competition as the point of difference.  Clues to uncovering your difference - Look at your current clients. What common elements exist among your best clients? Interview your clients. See if they can tell you why they chose to work with, why they stay, why they refer? Study your competitors more closely. What do they do that you could do better, what don't they offer they you could, how do they position themselves.  Communicate the difference - Once you find your chosen strategy or combination of strategies to differentiate your business, all of your advertising and promotion should be centered around shouting about that difference.
  24. 24. Benefits of Exhibition  Create, maintain and enhance brand awareness  Elevate your profile in the industry  Generate new leads  Foster relationships with current clients and potential partners  Intellectually influence your industry peers  Launch new products and services to a large but targeted audience  Targeted Marketing  A captive Audience  Relaxed Meeting Environment
  25. 25. Ways To get Better Return On Investment at Exhibition  Researching and looking into the history of an exhibition helps in understanding the number of visitors that are likely to attend.  Planning in advance gives an upper hand against potential competition, advisable to plan nine months in advance as you may need to order exhibition equipment beforehand and plan for any possible changes  Setting achievable goals is a great motivator and in doing this it is possible to judge performance and make changes to any plans for next time  Being creative can be very advantageous as finding a unique display that is customer friendly can give a competitive edge  Having eye catching literature holders can enhance a company's exhibition ratings dramatically and boost brand identity.
  26. 26. Ways To get Better Return On Investment at Exhibition  Try to get best possible Position at the show. (i.e. where there is a lot of traffic)  Always go for open spaces as it always attractive on a sub-conscious level to the eye  Avoiding clutter and creating a comfortable spacious area is a positive move  Clever use of lighting and mirrors can also have a positive impact  Ensure that you brand name and logo are clearly displayed  Make sure that your stand provides some type of memorable feature  Provision of literature (i.e. through the use of literature stands) and extras such as the provision of free drinks
  27. 27. THANK YOU