Kasmiri Carpets Industry- A case study wherein i have made an attempt to identify the problems related to this dying art form and have laid down objectives in order to revive it.

1. Market study for
IDENTIFYING THE PROBLEMS RELATED TO THIS
DYING ART FORM AND LAYING DOWN OUR
OBJECTIVES IN ORDER TO REVIVE IT
Submitted to
Brand Ambassador Program Team
Submitted by
Renu Dhillon
E 33 l MBA Batch 2014-16
LEGACY TRENDS SOLUTIONS
K A S H M I R I C A R P E T S

2. INTRODUCTION
Apart from the scenic beauty of Kashmir, it is also
renowned for its carpets, scarves, sweaters and shawls.
The carpet industry of Kashmir forms an integral part of
the state’s economy and is a matter of pride for India
Legacy
Kashmiri carpets dates back to 1341-1385 AD.
Skills have since then been passed down by fathers to
their sons, who have built upon those and in turn handed
them down to their offspring as a closely guarded family
secret
Abstract
This industry is unique in terms of design, cost and quality
of products and thus provides a competitive advantage on
other national and international players of handicrafts
market. Inspite of the various advantages, the industry still
needs to explore and identify various opportunities and
challenges ahead to compete at national as well as at
global level marketers. In this backdrop, the present case
study is an endeavour to study various avenues of carpet
industry of state in terms of revenue generation,
marketing, raising standard of labour and employment
generation. The study focusses on the contemporary
challenges as well as the scope of handicraft sector in the
state of Jammu & Kashmir and thereby providing suitable
suggestions in order to make industry more market
oriented and sustainable in future.
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3. NDUSTRY
VERVIEW
Indian carpet industry is primarily export oriented industry
1215 carpet manufacturing units
190 are in the organized sector and the rest are in small scale industry
Major set back during 1996 -2000 due to the involvement of the child
labour
Owing to high inflation the cost of Woollen Yarn, Cotton Yarn and
Polyester Yarn have gone up by more than 50% in a period of 6 months
Need to grow the new markets apart from the traditional overseas
market
Export taxes are higher
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4. NDUSTRY
VERVIEW
Smaller export orders: desire to have small inventory & JIT (just in time)
Poor infrastructure facility
The Banks are overcharging
exporters in the matter of interest, penal interest and charges
Initially Indian carpets were considered poor manifestations of Persian
rugs and carpets
Gradually and steadily they have been accepted as original works of art
Organizations like CEPC, AICMA etc. are promoting Indian carpet by
increasing the demand over the last 50 years
Educational & Research bodies like, WRA Thane, IICT Bhadohi, IIT Delhi &
etc. are providing their support to Indian carpet industry
Currently ranked No. 1 in the international market ,market share of 35%
of total world import of Handmade Carpets

5. NDUSTRY
VERVIEW
Indian carpet is an export oriented item & above 90% of its
production being exported
Export statistics of last 10 years (Source CEPC)

6. NDUSTRY
VERVIEW
Exports break-up based on carpet types
Carpet type wise comparison (Source CEPC)

7. KASHMIRI CARPET MARKET SHARE
RANK COUNTRY MARKET SHARE (i%)
1 USA 14.9
2 Germany 11.5
3 United Kingdom 10.3
4 Canada 6.5
5 France 4.9
 World flooring and carpet demand will
rise 4.9 percent yearly to 18.6 billion
square meters in 2016. Hence, India must
concentrate more on the exports of
Kashmiri carpets as it is predicted that
the Asia- Pacific region will see the most
rapid growth
 The domestic market size is about Rs. 200
crores
 India exported Kashmir Carpets worth USD
2,846
 UNITED STATES is the largest supplier of
Kashmir Carpets
 The developed countries absorbs 88-90%
of Indian carpet exports
 USA and Germany, the two largest and
established markets for carpets together
account for 76% of India’s exports

8. KASHMIRI CARPET MARKET ANALYSIS
The export destinations can be categorized on the basis of potential
Traditional markets like Europe offer small potential for growth though the volumes are high.
The scenario may change in future if southern European countries start driving the growth. For
most of the players, USA offers a good market based on its size and growth. Also, demand for
different kinds of carpets is not widely varying as in the case of other countries. Hence, USA
offers an opportunity for both, traditional as well as modern designs. Similar case is for Hand
knotted and hand tufted carpets.
Chinese carpets are
emerging as competitors Foreign carpets from Turkey,
Belgium and China
Demand for the Kashmiri carpets
have decreased by 20 per cent in
the domestic market
COMPETITION

9. PROPOSED SOLUTION
NEW PRODUCT
Low – End Carpets
Modern Designs
Business Process
Up gradation
• Low end carpets like hand-tufted carpets are
currently driving the growth of industry
• Modern design is attracting young consumers
• Timely delivery, better price and high quality products
can only help carpet manufacturers for survival
PRICE
Cost management
• Effective costs management will always be a
competitive advantage to any player. The trend is
common in every industry. Carpet industry is no
exception. Better cost management will reduce the
price which can lead to increase in volume sales
PLACE
New Markets
Big Retailers
• Developing countries or lesser developed countries
like Spain, etc. Growth in income level is the major
driver for this
• Big retailers like Wal-Mart, Ikea can drive the growth
in the carpet industry. These players have huge
network with a large customer base. Low-end carpets
can be a major product

10. PROPOSED SOLUTION
• New designs and low cost carpet should be
promoted to create awareness
• Online marketing campaign involving viral videos, FB
page and Kashmir Handicrafts YouTube channel
• Online retailing and custom made carpets
• Promotional events, trade fairs and international
promotional events
PROMOTION
Market new designs
Online marketing
Click and mouse store
Offline marketing
Chinese carpets are emerging as competitors
Foreign carpets from Turkey, Belgium and China
Demand for the Kashmiri carpets have decreased
by 20 per cent in the domestic market

11. Thank You
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