KASHMIR CARPET INDUSTRY

Shiva Gupta Division C -43 SIMS 2014-2016

Kashmir Carpet

• Originated from Persia• 16th and 17th centauries artisans in Kashmir began

giving specialized touches to the carpets.• Kashmiri carpet is known worldwide for its intricate

designs and their durabilityIndian Exporters of Kashmir Carpets

1.Khazir Mohammad Brothers 2.M.Raza Sons 3.Modern Carpet Co 4.National Cottage Emporium

Reasons for slowdown

• Lack of financial resources• Lack of modern technology• Availability of duplicate Kashmiri carpets• The process of production is long and laborious• Lack of training as well as lack of innovations• Lack of Govt and NGO support• Labors(Nakaash) are disconnected from rest part of

world trends

Reasons for slowdown

• Very low income and child labor• Somewhere terrorism is responsible • Cost range is very high• Misuse of Kashmiri brand at international market• Indian competitors-Nearly 90% of the demand for

carpets in the country is met by the carpet-producing units in Amritsar, Rajasthan, Agra, Uttar Pradesh and Andhra Pradesh

International competitors

• China and Iran are biggest competitors, India has share of 25%.

Countries Market Share

Reason 1 Reason 2

China 26% low import duties on carpets

the cost of these carpets is much less than what we produce here

Iran 27%

Others 22%

SWOT AnalysisSTRENGTHS•Artistic skills•Innovation in design•Flexibility in size of carpet

WEAKNESSES•Unorganized -Incearses the time and cost•Lack of proper marketing channels•Lack of infrastructure•Lack professional approach•Internal Competition(national level)•Same design copied by competitors

OPPORTUNITIES •More concentration on new design liked by youth•Increasing the cost range for middleclass family(better cost management)•Increasing the difference with china made carpets•More organized operations•Selling through giant retail stores.

THREATS•Unhealthy competition•Terrorism in kashmir•Pressure of constant innovations in designs

FUTURE MARKET SEGMENTS

• Concentration on middleclass consumer segment i.e. affordable prices

• Modern design can help in penetrating other big countries market like Germany , Scandinavia

• Selling through giant retailers like (national level) future groups, reliance groups , (International level) Wal-Mart

• More concentration on e-retailing as it is current trend and attract more youth customers

• More concentration on advertisement of brand

Some possible solutions

• Reduction of price Can experiment combination of different fabrics with

silk for new varieties that will reduce the price

• Need more innovation in design Use of computer software for the preparation of designs called Naqash for the development of designs easily and speedily.

Some possible solutions

• Steps should be taken by Govtneed to exempt the industry from VAT/sales tax and invest more funds in carpet industry

• More fair/Exhibitions for international dealers as 95% of carpets are exported

• Elimination of terrorism for proper execution of any development plan by Govt in kashmir

References

• http://www.greaterkashmir.com/• http://www.carpetandrugpedia.com/• http://india-exporter.importers-directory.net/• http://www.carpets-rugs-guide.com/