Strategic Marketing Management

• Internal / External Analysis

• Direct / Indirect Competitors

• Market Analysis

• Strategic Competitiveness

A joyous occasion of Eid Spicy food that everybody loves in Pakistan

Handicrafts done by Pakistanis

Fashion Industry in Pakistan Flourishing day by day

Leading Retailers operating

World’s Leading Apparel Brand in

Pakistan

Local Brand Penetrating exceptionally

Area: 796,095 sq km (land: 770,875 sq km and water: 25,220 sq km)Official Language: English, Urdu

All About PakistanAll About Pakistan

Source: https://www.tradingeconomics.com

Key Macro Economic Indicators FY13

GDP Growth 3.60%

Exports - US$ Billion 24.50

Population (Million) 180 Million

Dimensions

Exchange Rate 1 USD == PKR PKR:98

Average Wages US$:102

Textile contribution in total exports60%

Employment contribution to total workforce 38%

Weakness

Benefits More than 600 kinds of goods could be exported duty free after receiving this status. 96% of products exported to the EU/UK by Pakistan will enjoy duty free access.

Only the second country in the entire South and South East Asian region to have duty free access to European Union.

Competitors in the Textile & Clothing sector have no duty free access as well as no preferential access.

Duty elimination for approx. 9% (varying in different product lines)

GSP Plus status awarded for 10 years..

World Trade Share

China, 24%

Hong Kong, 9%

Italy, 7%Taiwan, 2%

Pakistan, 2%Mexico, 2%

Indonesia, 2%

Other, 27%

Germany, 6%

Turkey, 4%Belgium, 3%

France, 3%

United States, 4%

India, 3%

Korea, Republic of, 3%

Direct Competitors: 1)China

2) Bangladesh

3)India

The above direct competitors of Pakistan in textiles are due to the low labor wages, political instability, uninterrupted power supply. Other factors such as efficiency, low cost of doing business and modernized machineries

Entry and Exit barriers a) Legal environment and Incentive from government in textile industry b) Energy crises

Level of competition a) Internal -national stage the level of competition is high because textile industry needs huge investment b) External - international level industry is facing competition from other developing countries like

Bangladesh, India

Bargaining Power of Buyers Bargaining power of buyer is very high because of increasing number of suppliers throughout the globe, there

are many options available to place orders

Bargaining Power of Suppliers Bargaining power of supplier is very low because of number of suppliers which are producing similar products

Threat of Substitute In textile industry threat of substitute is low because people don’t have any option to purchase another product to

satisfy their need.

Porter’s Five forces

  LOW

  MEDIUM

  HIGH

Entry & Exit barrier    

Level of competition    

Bargaining power of buyers    

Bargaining power of suppliers    

Threat Of Substitute    

Potential Competitors: 1)Vietnam

2)Indonesia

3)Jordan

4)Taiwan

Source: http://www.tdap.gov.pk/

Total $24.46 Bln

Source: www.trademap.org

Track suits, ski suits and swimwear; other garments

$2.3 Bln 6%

Men's singlet, briefs, pyjamas, Sleep wears, bathrobes etc

Men's Trousers, Denim & Non Denim Bottom, Shorts & Jackets.

Women's Bottoms, Skirts, Shorts Dresses & Jackets.

Gloves, mittens and mitts

0%$0.15 Bln 21%

$3.9 Bln 2%-4%$0.07 Bln 6%

$0.88 Bln 3%-9% $0.01 Bln 25%

$0.04 Bln 3%-7% $0.12 Bln 27%

$0.4 Bln 4%-21% $0.01 Bln -5%

UK IMPORTS FROM WORLD

UK IMPORTS FROM

PAKISTAN

PAK SHAREYOY YOY

Source: www.trademap.org

Panty hose, tights & other hosiery.

$0.6 Bln 8%

T-shirts, singlets and other vests

Men's shirts.

Men's Trousers, Shorts, Pullovers & Hooded Jackets,

Women's Trousers, Shorts, Skirts, dresses, etc.

2% $0.50 Bln 3%

$0.03 Bln 7%0% $0.22 Bln 3%

$2.5 Bln 2%-4% $0.47 Bln -7%

$0.7 Bn 3%-5% $0.21 Bln 25%

$1.5 Bln 1%0% $0.01 Bln 22%

UK IMPORTS FROM WORLD

UK IMPORTS FROM

PAKISTAN

PAK SHAREYOY YOY

Source: www.trademap.org

Knit TopsCVC 338/339

BottomsCVC 347/348

UnderwearCVC 352

JacketsCVC 334 / 335

HosieryCVC 332

5 / 15

GLOBALRANKING

7 / 6

12

2 / 9

4

Others

$ 747

$13,187

$13,006

$ 1,969

TOTALUS IMPORTS

$11,790

$ 70

$ 95

$ 453

$ 510

$ 92

$ 148

$ 2,168

“PAKSHARE”

4%

3%

3%

5%

13%

1%

US IMPORTS FROM PAKISTAN

Countries Textile Apparel Total

Pakistan 7.47 3.91 11.38

China 48.68 95.39 144.07

India 9.33 10.19 19.52

Bangaladesh 0.23 7.18 7.41

Veitnam 0.63 4.9 5.53

Indonesia 3.6 5.7 9.3

0

20

40

60

80

100

120

CountriesV

alu

e in

bill

ion

US

$

Textile

Apparel

• Focus On Value Addition• Technology Up-gradation & Capacity Building• Human Resources Development• Removal of Energy Crisis• Exploration of new Export Markets • Reducing the cost of doing Business in Pakistan• Improvement in productivity• Awareness of International Quality Standards• Introducing concept of on-the- job-training• Introducing efficient management techniques• Collaborating with buyers on forecasting and inventory management

Thank You !