BackgroundEmbroidery Thread is used for a variety of purpose around the world depending upon the customs and traditions.
In Pakistan Rayon thread is commonly used for embroidery purpose.
Rayon threads are synthetic threads that are shiny; these threads are usually sold in the form of thread wrapped in cones packaged in cartons.
•Total numbers of colors are 400.•Rayon threads are sold in the form of small cones weighting 85g while the cones that traders use to import 1.250kg which is a converted form through embroidery machines
Values
• 2.50/3
Embroidery Specifications
• 1.40/2
Culture
Culture has a tremendous effect on people’s preferences and perception.
Pakistan culture is such which encourages Embroidery work people like to wear cloths having embroidery work either Golden or Silver in weddings
Fashion and designing industry is flourishing day by day in Rawalpindi which would be healthy for our new business.
Constraints
Most of the Embroidery traders choose to import thread from China as it is cheaper
Pakistan market is mainly price driven. This is why the traders prefer importing from
china though the only constraint that is involved is a delay time.
Long lead timePower shortagesImport duties
How to Acquire
SuppliersThere are two ways to acquire Rayon thread in
Pakistan.
Buy from Faisalabad or Taxila suppliers. (OR)
Import from China (Slice company)
How To Acquire
Slice Company sells a minimum of 10-15 cartons per order
each carton containing 120 cones
It takes 60-65 days from China to Pakistan to reach (Lead time).
Place
Wide scale distribution in Rawalpindi and Islamabad.
“Think Global act local”
Available nationwide as well through WWW.
PriceEach sub-brand of Rayon Thread has different
prices according its segments, colors and quality
Pricing is almost stable no ups and downs apart from exceptional cases such as the depreciation of Rupees against dollar.
Pricing from suppliers is different for different countries
PromotionAllowing price discounts and allowances to
distributors and retailers
Push strategy and Pull strategy
Establishing contacts with Designers i.e:– JIA collections
– Nakoosh
– Nadia Hussains collection– Sana Safinas
Marketing Strategy
A website will be maintained consist of all the embroidery codes with a friendly user interface along with colors the customer will only chose what sort of specification he needs. Delivery will be made to home and payment would be on spot. Note this facility will be provided on the nature of
transaction
Contacts will be established with the some of the designers
Even a single contract would do the job
Market Demographics (Rawalpindi)
POPULATION 176,242,949 (July, 2009 estimated)
CHILDREN 37.2% (65,607,612)
ADULTS 62.8% (110,680,572)
CHILDREN EQUITY 60% (14,643,619)
ADULT EQUITY 40% (27,802,960)
TOTAL TARGET MARKET: 42,446,579
Budgeting
Embroidery business does not cost much as it need a very affordable amount of money.
Embroidery business needs an ICO (Initial cash outlays) about 5-6K $ which is used to buy some embroidery machines
Financial Figures
Sale price 72/unit cost 60/unit Freight 2500$
No. of cartons
667/orderTotal No.
ofunits 667 * 120
= 80,040 / Order Storage
cost 30,000/ month
(30 X 50 sq.ft)
Overheads 10,000 / month
Furniture and
furnishing
30,000 (once)
Each thread cone has currently ROI about 15%.
Note: All these figures are taken from a retailer (Capri) who is into this business.