chikan industry

7/24/2019 Chikan Industry

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MANAGERIAL ECONOMICS - I

Project Topic

Micro-economic study on Chikankariindustry in Lucknow, Uttar Pradesh

(Analysis of economic unit: Individual Firms oeratin! in the Chikanmarket"

Participants Group D (Section E)

Course Instructor: Prof. SanjayK. Singh

Aeksha A!arwal(P#P$%&'%"

Aurva i)it(P#P$%&'*"

+aran hin!are(P#P$%&'$"

eshal .ain

(P#P$%&/%"

0hu1hra as(P#P$%&2$"

Uman!+hetan(P#P$%&34"

5ivek

Anandan

(P#P$%

&3'"

1


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Int!"#$t%!n t! t&' T!(%$

The project studies the maret structure! demand and supplydeterminants! go"ernment support to and future outloo of the Chikanindustry in #ucno$. Chikankariis a hand%embroidery art that stands outas the &ni'ue Selling Proposition of #ucno$. The industry is also recei"inghelp from the State and Central go"ernment through ()port Promotion*ureau! Small Industries +e"elopment *an of India ,SI+*I- andandicrafts /areting and Ser"ice Centre.

Chikankari is an art form that most closely associates itself $ith the city of0a$abs. It employs lahs of people! but remains an unorganised maretfacing sti competition from machine%made embroidery $or.

The industry has seen bac$ard and for$ard integration $ith single unitshandling the production as $ell as retail of Chikan%embroidered clothes.

Importance of the study: ne of the ey sources of li"elihood for artisansin and around #ucno$ is Chikanembroidery. 3ith the Chikankariindustryrecei"ing support from S(34 ,Self%(mployed 3omen5s 4ssociation-! theindustry has got a boost in terms of increase in $omen5s participation. It$as important to understand ho$ the industry $ors and $hat theroadblocs are to its gro$th.

M't&!"!)!*+

The study taes data spanning o"er 6 years! primarily collected through:

1. 7ield 8isit: ur team "isited multiple Chikankarishops in #ucno$.3e spoe to shop o$ners in the a9ratganj maret and $ithin thatthe anpath area. Some of the shops $e "isited include:

C&&n*-) T"'., SE/A ChikanIn"#.t+, M!"*' T"'.n" A"& T"'..

2.

3e $ent through the $ebsite and 4nnual ;eport of S(34 #ucno$to study the


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HISTORY OF CHIKANKARI

Chikankari is one of the most popular form of embroidery in India thathas grace andelegance attached to it. 7or centuries this


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de"eloped under patronage of the rulers of 4$adh. #ater in the year

122! $hen the capital of 4$adh shifted to #ucno$ from 7ai9abad! theno$ledge of the craft came to #ucno$. ere it found the and *locPrinting sills that made it easier for them to practice this embroidery! asearlier the tracing of design on cloth $as "ery diDcult.

A


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This a"ailability of easy process of dra$ing based design encouragedthem to teach this


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F


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AVADH CHIKAN TRADER

(stablished in 1HF! 4"adh chicen is one of the oldest players inthe maret. It is a successful 7amily business selling the follo$ingproducts J

1 #adies suits

2 Sarees

3 Kurtis J stitched ! unstitched and semi stitched

C&ST/(;S P;ICI0>

Price range of the products are from ;s. 1EEE to =EEE. The ma)imumselling is of products in the price range of ;s. 1EEE%2EEE.

The $al%in customers on an a"erage are E%E and appro)imatelyFE customers buy something.

The ma)imum sales happen in the months of /arch to une during thesummer brea. Tourists are the main source of sales. The seasonsales d$indle do$n to around 1E%1F customers a day

P;7IT /4;>I0S

The pro


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+(/40+

1 The turno"er is around ;s. F crore

2 Since this industry is susceptible to rapidly changing fashion trends!the demand is "ery Buctuating. 4s told to us! by the time the

particular product of latest trend gets ready! it may happen that thetrend is gone from the maret leading to dead stoc. 4t times! thestoc is cleared $ith a loss up to 2F L of the cost. 2 designers areemployed to help in laying out the designs for the artisans. Thedesigners are also paid on job $or basis

3 4s per the shopeeper! the F years demand trend has been "erypositi"e. There has been 1E%1FL increase in both local andinternational business.it is a rapidly gro$ing industry.

4 nly 1EE L cotton urtis are e)ported abroad.

5 The change in trend is gauged through customers5 feedbac. The

shop participates in "arious fares and e)hibitions to no$ moreabout the customer re'uirements.6 The current trend in the maret is of urtis $hich forms the major part of

sales.

CST *;(4K&P

The cost breaup J

;a$ /aterial ,7abric- J 2F L of the Total Cost

#abor ,chian $or! stitching!


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CHHANGAMAL TRADER

(stablished in 1H! Chhangamal is an e)clusi"e sho$room of #ucno$iChian goods. $ned by /r. ;am Saran >arg it has been the family

business for A generations. The sho$room oers the follo$ing Chianproducts:1 Kurtis2 Sarees3 Sal$ar Suit4 +ress /aterials

C&ST/(;S P;ICI0>

The products are oered in the range of ;s.FEE J ;s.=EEE. The mostpopular and ma)imum sold product is the cottonNsemi%cotton urtis rangepriced in the 1FEE J 2EEE ;s bracet.

4t an a"erage the shop is accustomed to a footfall of =E%AE customersfrom $hich around 2E%2F actually mae the purchase. The customerfootfall is a seasonal aair! $ith the ma)imum footfall being in the ct%+ec period. The oseason sees the footfall d$indle do$n to 1E%1Fcustomers maing a purchase per day.

P;7IT /4;>I0S

The embroidery goods are sold at an a"erage =EL mar%up o"er the cost.This remains true for most of the year. o$e"er! during the oseason or insituations of stoc clearance the goods are sold at a discount bringing

do$n the pro


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I08(0T;G

4t any point of time the sho$room stores goods $orth ;s 1E %1F lahs.The $arehouse holds goods in a mi)ture of


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MODAGE TRADER

(stablished in 1H1 as a foot$ear shop! /odage shifted its business fromfoot$ear to clothing in 2E12. Since 2E12 they ha"e been selling clothesembroidered $ith Chianari ,Chian 4rt-. 3ithin a short span of time they

ha"e established themsel"es as one of the major players in the maret.They claim that there are as many as =6 dierent "ariety of stitches thatthey oer on their product. Their primary products are:1 #adies Kurtis2 Sarees3 Sal$ar Suit

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season Sales per day is on an a"erage 2E%2F pieces per day.Summer season demand peas to around E%1EE pieces per day i.e.

=EEE pieces a month.

&nlie others e"en $inter is a high demand period for them! they sell$oolen products $ith chianari on it during these periods. They

Since it is a handicraft! prices "ary drastically depending upon theintricacy of the $or. 7or the normal pieces that they stoc in shops forregular customer it is priced bet$een 2EEE to =EEE rupees but basic pricerange starting from FEE rupees are also there. 4lthough they also ha"esarees $ith a price tag of AE!EEE to FE!EEE for the high end customers.The e)port customers that they ha"e mostly demand these ind products.

CSTS

#abour costs

3ages are gi"en and calculated on day to day basis. Per day $age for alabour is on an a"erage 2FE rupees! presently 1F labours are employede"eryday by /odage. +uring pea seasons more labours and artists areemployed.

In addition to the labours they also ha"e sales sta $ho sell the

product at their shop. Currently there are F salespersons employed! ata pay of FEEE rupees per month each. They also ha"e a maintenancecost of 2FEEE per day $hich includes electricity! shop rent and misc.e)penses.


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1E


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C/P(TITI0

4lthough the 2F odd shops at anpath are their direct competition! theyconsider e"en a small shop "endor at a fara$ay place as theircompetition. ;eason being! if that small shop starts selling products at aslightly discounted price than theirs then the customer $ould naturally$ant to buy from there.

4part from this the ne$ readymade maret is a big threat to them.*ecause if a design change is re'uired or a pattern change is demandedby the maret! it $ould tae almost 1F%1 days to incorporate thosechanges in the product for the artisans $ho stitch by hand. 3hereas thereadymade manufacturers just need to push the design into the machinesand the ne)t day they5ll ha"e a ne$ lot of desired pattern.

I08(0T;G

4t any point of time they stoc goods $hich $ould last up to an estimated =months of time. Presently they ha"e around 2EEE pieces in shop ready to sell.4nd an additional AEEE pieces in stoc in $arehouse $hich $ill need to be$ored on to sell as a


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Hn"%$9t. M't%n* n" S'%$' C'nt', :n%

The main objecti"e of this centre is to impro"e the social and economic

conditions of the artisans in the handicraft industry. The organi9ation alsopro"ides direct assistance to the artisans for training and directmareting outlets through "arious e)hibitions! craft marets and craftfairs.

The oDce has also sponsored 2%= catalogues for the publicity ofChikan(mbroidery Industry.

E7(!t P!-!t%!n C!#n$%) 9! Hn"%$9t. EPCH, N'5 D')&%

This organi9ation promotes e)port of handicrafts from India byorgani9ing buyer sellers meet! participating in national andinternational $orshops and fairs and by conducting "arious types ofseminars and $orshops.

S%)) #(*"t%!n n" (!"#$t%!n #n"' IGP In$!-' G'n't%!nA$t%%t+

;/K,;ashtriya /ahila Kosh-! 0ational /inority 7inance +e"elopmentCorporation and S*I ha"e contributed immensely to support the sillupgradation and production to many thousands of artisans forsustaining the ChikankariIndustry! through credit schemes.


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CURRENT TRENDS

In terms of product! Kurtiare being increasingly bought by consumers.Chikankari$or is being adopted on ne$er products too%Aari is a ne$addition to the list

Costs ,$ages- are increasing. /0;(>4 and schemes lie this are tainga$ay cheap labour and shooting up the $age rate for the silled$orforce. This has resulted in increased prices being charged tocustomers.

FUTURE OUTLOOK

The industry remains fragmented. ()ports are catching up but need to bepromoted more aggressi"ely. Competition from Surat and 4hmedabadmust be $arded o by stressing on the authenticity of hand%$o"en

embroidery and geographical originality of the art. /oreo"er! the futurebecons the use of machines to part%automate the process! $ithoutmaing artisans jobless.

7&T&;( &T#K 40+ >;3T ST;4T(>G

1 I"'nt%9+ n'5 '7(!t -'t.; igh gro$th rate pro


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see better a"enues for


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1F


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REFERENCES

1. nline sources

&dyog *andhu:$$$.udhyogbandhu.com The

Times of India:http:NNtimeso


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chikan industry

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