The document summarizes a market study of the embroidery sectors in Multan and Dera Ismail Khan (DIK), Pakistan. It finds that: 1) Embroidery is a major industry and source of income for thousands in DIK, though high labor costs have reduced demand and led shops to import cheaper machine-made items. 2) DIK embroidery, especially styles like chicken taarkashi, is of very high quality though more expensive than other areas. However, distrust of laborers and high costs have caused shops to purchase more from Multan. 3) Recommendations include positively interlinking the two markets, improving access for rural laborers, establishing trendsetters, and changing practices to revive the

1. Reported By: KomalZahra Dated: 15-12-2013
Project: LPH
Survey Report/Field Analysis
District: DERA ISMAAIL KHAN
City: Peshawar
Province: KPK
Reported by: Komal Zahra

2. Reported By: KomalZahra Dated: 15-12-2013
LIVELIHOODS PROGRAMME HINDUKUSH
Project LPH, Implemented by IC
Dera Ismail Khan Embroidery Market Study and Assessment Report
KPK ____December, 2013

3. Reported By: KomalZahra Dated: 15-12-2013
1.Backdrop
The Livelihoods Program Hindukush (LPH) is an initiative of the Swiss Agency for Development and
Cooperation(SDC) andisimplementedbythe Inter-cooperation(IC) inselecteddistrictsof KP and FATA.
The Program aimsat improvingqualityof lifeandreducingvulnerabilities of marginalized communities
in rain fed areas of Khyber Pakhtunkhaw and FATA, Pakistan. Thus the program ventures to improve
asset base, enhance rural income and reduce vulnerabilities. The program has achieved various
milestones in meeting the overall goal.
1.1.Main Objective&Scope
LPH intendstoassistthese groupsinacquiringmarketledskillsandgettingcontinuous market demand.
For this the groups are to be integrated in the value chain as strong actors with entrepreneurial
partnershipswithother actors from the value chain. The assessment is being made through an insider
whoin the past hadbeeninvolved in the business of embroidery sector in Multan and whose family is
still intothisbusinessapartfromthishe was involvedwith the development sector and is aware of the
development priorities. The two main markets i.e. Multan and D.I.Khan are the main areas of
assessment.Inthe firstinstance,Multan wholesale market will be studied and after sharing necessary
findings and lesson learnt with the project team, D.I.Khan market will be studied.
1.2. Specific Objectives
 Map the embroideryvaluechain(mainactorsinvolve,in-flowsandout-flows) inbothmarketsof
D. I. Khan and Multan, identify their specific roles by studying their value addition share?
There were hundredsof businessmanwhoinvolved in this particular embroidery business due
to the main business of Multan city and the scope and the bright future of this embroidery
industry.There were alsoinvolvedadomesticlevel shopkeepers who had not big exposure and
businessof thisparticularmarketbuthadsuccessful small businessrunningandenhancing their
branches in different small markets of Southern Punjab. Main actors involve in this business
were the main businessman, a small businessman, Middle-Woman/Home-based
Businesswoman, Middle-Man/Domestic Level Businessman and Shopkeepers and the Labor
power of those particular areas where these all concerned people spread and formulate their
embroideryworkandbusinesses. Accordtothe DIK Market there is far difference for labor skill
charges.So the Businessmanof thismarketwantlesslaborand want to sale higher rate of each
embroidery piece as for the embroidery wear is so in trend in DIK and its nearest areas. The
Businessman and the Shopkeeper of this market is usually brought all embroidery items from
Multan bazaar in less rate of wholesale. Here in DIK market fewer businessmen who run their
businesstohire the laborfromthe areas of DIK and surroundings. More than 50% Businessmen
of DIKMarket nowgo to the Multanwholesalemarketandpurchase their required embroidery
and enhance its market in DIK.
 What are the major market trends of the markets in terms of products and skills, their current
and future demand, major buyers, price ranges, supply sources of finished and raw materials?

4. Reported By: KomalZahra Dated: 15-12-2013
Seasonallymajormarketrunitsproductaccordingto the businessmanandcustomerchoice and
main trend followed by the all major markets and small markets is how the product has its
publicityandfashion going. There are different sources to produce the trend design in market
and differentmethodsusedtoapproachthe buyersandhire the skill powertocreate that trend
designforthe requiredtask.Mostly middle men and middle women provide the labor skills to
the concernedmarketpersonandsomehow businessmanbyhimself approachesthe labor skill.
Accord wholesalemarkettheirmajorbuyersare different wholesalers from around the Punjab
and outside Punjab and the retail market of Multan and surroundings and the small villages’
shopkeepers who has started their small businesses there to meet their livelihoods. And who
has boutique businesswiththisparticularembroidery articles. For labor skill the price range of
each productisto low according to the middle man and middle woman, for each product price
range is different and it is according to the actual design of the embroidery and trend item, its
round about start from 400 to 4000. Market supply sources are not broad enough it start from
the wholesaler order and the end with labor prepared item.
Businessman/wholesaler
Middle men/Middle women
Shopkeeper
Labor
In DIK trendmostlywiththe white embroidershawl whichgowithseasonaroundhere. There is
white embroider shawl and also colored embroider shawl is in fashion all of the year and also
differentembroideryonpartywearandcotton wear and also the Multani embroidery is also in
trend here and the customer demand for it. The trend producer of this market is usually the
businessman or shopkeeper who designed and trace and purchase all material for the design
and thengive tothe labor of particular embroidery. Here in DIK product price quietly different
from Multan it is start from 1000 to 7000.There is no direct connection with the labor
continuouslyitisgoes like that labor come to their shops and they get to know each other and
then they take their order and on required time they again drop the product. There are fewer
trends of middleman and middle woman.
Labor
Shopkeeper
Labor

5. Reported By: KomalZahra Dated: 15-12-2013
 What are the possibilitiesof introducing innovationsor“inFashion”inthe embroidery sector of
both markets and how it can be adopted by the groups as business?
For this purpose should approach the high market and the Brands and the Designer Wear who
can have the better and renowned exposure and fame for these type of clothing as a esthetic
entity of the particular area and market. And also make a link between both markets with the
helpof the major businessmenwhocanspendtheirinterest,timeandmoneytothatpurpose. It
is better to link the both embroidery markets together and let them business freely and gives
them opportunities to enhance and produce their design in each other markets. Both markets
middleman and women cross work with each other it will give them boost to project the
embroidery market in both cities and around all over Pakistan. DIK has very fine labor work it
can be linkedwithMultanmarketandthengetthe betterembroidery outputs from him or her.
 What and how the existing system of producing, buying and selling for products, skills and as
well as for raw materials are in operations in both the markets?
There is still the old system running from buying to production .The whole process start from
the mainmarketwholesalerwhosettoproduce a one designinmarket,he startthe visitforraw
material asclothe and thenhe start rollingtothe task to produce byfollowingthe onsetrulesof
the business that first purchase the clothe then trace the design then hire the labor through
middle menandmiddle womenandsell and introduce the product to display for customer and
retailerandsmall businessmen and for Boutique. Trend is less important in DIK because of the
high labor skill charges, shopkeepers cannot afford them and then the hand embroidery
squeezedintomachineembroiderythatready-made workshopkeeperspurchase and sale, with
thisthe hand embroideryonly40% leftindemandandinsale, as sale is not available how can a
customerdemandforit.Which isbad and negative impactonembroiderymarketif skill labor is
interjected to Multan market then it will be a better situation for the particular matter.
 What are potential actorsof the value chainthat couldbecome businesspartnersof the women
groups?
Potential actorssomehowthe majorwholesalerof the marketandBoutiquesowner and Brands
producer and also at small level it can be the middle women of the particular area and work.
The shopkeepers who provide the raw material to the main wholesaler/businessmen middle
women or middle men they can be play partner role as well. In DIK the Shopkeepers and the
mall ownerstheycana playa role for it.Asthere is a groupworkingin DIK supportedbyan NGO
and they produce a margin work into the market from last five years and this kind of more
groups can work and it can be supported by some organization or Govt.
2.Methodology
The methodologyusedforthisstudy andassessmentwasSurvey,Case-Studyandshortinterview
sessions.

6. Reported By: KomalZahra Dated: 15-12-2013
3.Findings
 Embroidery work is done in almost every village, town and small colonies of districts D.I.Khan
since many years. Embroidery work is known as desert delicacy of D.I.Khan, consisting of over
1,000 independentandhome based(Formal &Informal) businesses.Itisgood source of income
for more than 10,000 individuals (direct and indirect). Approximately 400 females are directly
involved in the production of embodied clothes, dupatta, bed-sheets, sofa covers and many
other type of embroidery work in the main city of DIK and all other surrounding villages and
townswhere asmore than 1,000 people are indirectly involved in the preparation, distribution
and sales. Handicrafts and embroideries produced in D.I.Khan are sold in local and domestic
marketswhere asa small portionisexportedto Middle Eastcountriesindirectly by middlemen.
Most knowntype of embroideries are Cross Stitch, Ari, Kacha Taanka, Taarkashi, Shadow work,
Sheesha, Ribbon work, Kinaari, Moti Taanka, Tillah work, Arr (Kundi), Lace (Dori), Kacha
Kasheeda, Gota work.
 In DIKaccording to some shopkeepersthe embroideryworkbroughtfromothercitieslesscostly
to theirbusinessesperspectives as here in DIK labor cost is to high compare to the Haiderabad
marketand Multanmarket,In DIK where the laborcostexiston700 forper itemit is better that
purchase whole itemwithlaborcostfromMultanor Haiderabadin700/- to 800/- only.In DIK 40
pieces or 40 dupatta ready for sale in 10,000 estimation and in the same rate from the Multan
market can buy the 80 dupatta to 100 dupatta. Because of the high demand and cost of labor
skill the main market trend for embroidery is lesser to display.
 Chador is the main specialty of DIK embroidery but that Chador which is made of Chicken
Taarkashi or Chicken Taanka and cross stitch it is charged by labor is 700/- to 900/- without
clothe and dhaaga and in the same price the prepared piece of Chador can buy from Multan
market. This type of cost and rare work of labor in markets make the hand embroidery lesser
famousor unwanted and time by time it is replaced by the machine embroidery which import
by Lahore.
 DIK BusinessmenandShopkeepershasless trust on the labor power of their area from last 5 to
7 years because they had that experience with them that they paid high and have given free
period to complete their targets but they sometime not even drop the prepared material and
sometime drop with change in it and sometime 50% in completed. That is reason the DIK
Businessmen approaches the other markets and other trends and the interest of their own
rooted labor worker is neglected by them and the result is that the embroidery of the DIK as
mainoriginlessintominorpriorityforcustomerandshopkeeper as he opened side businesses
with it.
 As forqualityno one match with the finest handmade embroidery of this district not even the
Multan hand labor is compare to it. In Muryaali there is one of the finest Cross Stitch expert
laborexistedandinthe Kolaachi one of the bestSheeshaworkdone bylabor of this area. In the
surroundings of DIK there is an area called Razaai Shah, in this area the best Taarkashi labor
existed which is not found in any part of Pakistan.

7. Reported By: KomalZahra Dated: 15-12-2013
4.Recommendations:
 Positive Inter projection of both markets
 Effective Linkage between both markets
 Allow wholesaler and shopkeeper to display their deeds from one market to another
 Give both markets extra exposure through publicity of their work and business
 Create shortcuts for middle man and middle woman to approach each kind of market
trend and follow upon for the rest
 Create shortterm businessmeetingsfrombothmarketsshopkeepersandwholesaler to
give the exposure anddisplayforeachotherworkandworkfor the enhancementof the
main cause embroidery
 Organize Mobilization sessions to convince the buyer and seller for buying and selling
handmade embroidery
 Trained middle man and woman for design and scheme of the colors
 Reset codes for both markets tenders and designers
 Approach the Brand and Designer wear dooms
 Both markets should have labor cost reliably sufficient and normal
 Make easy access to the markets for the rural backward area labor women
 Shouldbe a chain which associate the all labor and shopkeepers together at one place
 Create way or source that village women can access the main markets for her labor
cause and to display the talent of her
 Should alsohuntthe talent of these all areas and around because there is so much left
to discover
 Create Trend Setters for both markets
 Change the old market trends and the new to give the power to this handmade
embroidery industry which will kill the machine made articles
 Interlinked the both markets handmade embroidery
 Sell the products of each other market trend and fashion