Case study kashmir carpet industry
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This document discusses the value chain of the Kashmir carpet industry. It identifies various factors that influence the industry, including tourism, transportation costs, and terrorism. There are several challenges facing the industry like competition from other regions, lack of private investment, and weak marketing. However, there are also opportunities to expand online marketing and attract tourism. A SWOT analysis finds strengths in market potential and employment but weaknesses in infrastructure and engaging youth. Overall strategies proposed to increase sales include expanding exhibitions, test marketing new products, improving quality and packaging, and generating customer awareness of handloom advantages.
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Similar to Case study kashmir carpet industry (20)
New product launch and export startegy international marketing
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Case study kashmir carpet industry
- 1. Piyush kumar Division E – Roll No 57 SIMS 2014-16
- 2. Value Chain Market of Kashmir Carpet Industry Wool Chemicals DyeRaw Material Weaving & Designing Trader Finishing(Cut & wash) Trader Exporters National Retailers
- 3. •Dependency : High If there is very high inflow of tourist then sales is high and vice versa. •Dependency: High • At the time of peace it attract more people which result n more sales. •Dependency : Medium •Amount of export is generally not influenced by minor factors. •Dependency : High •As the skill is passed from generation to generation. Today not much are taking interest Culture & Economy Transportation to Foreign Market TourismTerrorism FACTORS INFLUENCING THE KASHMIR CARPET VALUE CHAIN
- 4. FACTORS LEADING TO LOW ECONOMIC RETURN • Competition from many other carpet makers from other part of country like Jaipur, Panipat. • Jammu & Kashmir has not been able to attract investments from private sector • Lack of awareness in the Indian market due to improper marketing channel. • Weak Purchasing Power of local players. • Lack of organized market • Poor reforms of production system • J&K remained an industrially backward state due to its unique economic obstacles arising out of remoteness and poor connectivity, hilly and often inhospitable terrain, weak resource base, poor infrastructure, sparse population density, shallow markets and most importantly a law & order situation threatened by militancy
- 5. NEW MARKET FOR THE KASHMIR CARPET INDUSTRY Marketing and selling the product online : • As the consumer behavior towards buying the product is increasing so by making the product available through online website will be profitable. • Everybody is not able to go to J&K and purchase goods from there • Consumer would be able to get the handloom carpet made in J&K by sitting at his home and ordering through online websites.
- 6. SWOT ANALYSIS FOR KASHMIR CARPET INDUSTRY STRENGHT • Huge Market potential • Flexible Production & design • Cheap labor • Suitable to Climatic conditions • Huge employment opportunities • Foreign revenue generation • Eco-friendly. • Needs less investment. • Export oriented WEAKNESS • Underdeveloped infrastructure • Lacks global exposure • Lack of customer feedback system. • Less interest among youths. • Confined mostly to rural areas. • Still old techniques prevail. • Low wage structure in handicrafts. • Unorganized sector THREATS • Huge demand in both domestic as well as international markets. • Develops Tourism industry of J&K • E-commerce to channelize handicraft products of J&K. • Handicraft products are also preferred by Real Estate players to add value in their busin OPPORTUNITIES • Counterfeiting. • Stiff competition ahead. • Deficit balance between supply & demand of J&K handicrafts. • Better technological support and R&D facility in competing countries. • Translation of skill to next generation. • Huge inflating rates of raw material. • Introducing low skilled labor
- 7. STRATEGY TO INCREASE THE SALES • Enhance National and International Market Development through exhibitions. • Before introducing the new product, first go for test marketing in order to discover faults and omissions therein. • Maintain Cost Effective Production; Quality Standards, and Reasonable Packaging of handicraft products. • Cost Effective Distribution Development using both Physical and Electronic Distribution Channel (Internet, e-Commerce) • Adopting market centered philosophy rather than production centered. • Generating awareness in customer’s mind about all the advantages that can be got from handloom uses. • Focus should be on brand promotion of the Kashmir handicrafts
- 8. THANK YOU