Piyush kumarDivision E – Roll No 57

SIMS 2014-16

Value Chain Market of Kashmir Carpet Industry

Wool

Chemicals

DyeRaw Material

Weaving & Designing

Trader

Finishing(Cut & wash)

TraderExporters

National Retailers

• 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

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

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.

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

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

THANK YOU