khaadi business case (semester project)
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Mission
1998 Started with offering customers kurtas and loose fabric made from hand-woven fabric.
Core Ideology Hand woven fabric with blend of both eastern and western touch.
D Design Department creates a design and send it to R&D department R
Research & Development department build few of the Complete samples for approvals.
S Style is responsible for approval and M
Marketing is responsible for marketing and segmentation of products.
01 100 % In-house
All The Products were developed in-house and stores were company operated
02 20-30 % In-house
Offloaded itself from in-house development and adopted franchise model.
03 5% In-house
Completely focus on design and R&D. Increase global presence.
Stores WWW
Khaadi SWOT Analysis - Pakistan
W S
O
Strength Customer Equity Tailoring Service Supply Chain New Stock every two weeks Brand Name Innovation Culture
T Recession Intense Competition
Threat
Weak clothing line for men Cost Structure Online Presence
Weakness
New Products New Markets Increase online presence
Opportunity
Low Quality Low Price
High Quality Low Price
High Quality Low Price
High Quality High Price
Quality
Price
STP – Pakistani Market
High Quality High Price
Khaadi Segmentation-Targeting-Positioning
Customer with High Purchase
Power
Segment who wants unstitched clothes
Segment who want Eastern Clothes
Segment who want Western Clothes
Segment who want Accessories
Segment who want Kids Clothes
Segment who want Home Accessories
169 bn $ Exports 235 bn $ Imports 10 % Unemployment
Economic Growth 3.9 9 % Inflanation Rate 2.19 $ Exchange Rate
80 Million Population 10,500$ GDP/Capita 800 bn $ GDP
PEST Analysis
Environment
Social
Technology
Legal
Economic
Political
Democratic Representation
Division among multiple bodies
Stable Foreign Policy
Involvement in many global initiatives
PEST Analysis
Environment
Social
Technology
Legal
Economic
Political
Service Sector contributes 67% of GDP
10,000$ GDP/Capita
Reducing Public Debt in Progress
Free Trade Agreements
Rigid Labor Trends
High Taxes
PEST Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant GAP between different classes
Islamic Culture but blended with western
touch
PEST Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant Growth in R&D
National Innovation Strategy
Double Digit Growth in technology sector
Increase number of skilled scientist
PEST Analysis
Environment
Social
Technology
Legal
Economic
Political
8 7 6 5
52% of Women prefer to wear Hijab 31% of women prefer to wear western touch clothes
Clothing Preference TV Radio Social Media Print Media Stores
Touch Points asfasfasdfasdfa
Point 4 afasdfasdf.
Point 5
72% Of Urban Population Women 50% 70% Turks 20% Kurds
Urban Population Istanbul Ankara Izmir Bursa Adana Gaziantep Konya Antalya
Concentration 52% - 25-69 Years 17% - 16 to 24 Years 17% - 6-14 Years
Age Distribution 28% - Food 20% - Transport 19% - Housing & Utilities 8% - Furnishing & Maintain. 6% - Restaurants 6% - Clothing 4% - Recreation
$ Preferences
Consumer Analysis - Turkey
Women Clothing Preference - Turkey
Buyers
High Per Capita So customer have high
bargaining Power / Ample Brands
Suppliers
Limited suppliers for raw material so higher
bargaining power.
New Entrant
Other Pakistani Brands will follow Khaadi
Success Story
Substitute
Western products /
• Nearly 58 thousand active companies and 1 mn people (2 mn including unregistered) employed in the textile , ready wear and leather industry. (Source: Social Security Institution, 2014)
Manufacturing Production
Value
(USD bn)
2014
Number of
Companies
2014
Share of SMEs
in
Total Number
of Companies,
20124
Number of
Foreign
Companies
2014
Number of
Employees
2014
Number of
Employees (incl.
unregistered
employees), 2014
Manufacturing of Textile 26,5 17.313 98.0% 493 430.213 450,000
Manufacturing of Ready Wear 19,5 33.977 99.5% 130 454.754 1,500,000
Manufacturing of Leather
Products 2,6 6.425 99.9% 107 60.591 NA
Total 48,6 57.715 99.1% 730 945.558 NA
Source: Ministry of Science Industry and Technology, Social Security Institution, Ministry of Economy, 2014
Turkey’s Position
Turkey’s Position
Turkey’s Position in the World and EU
Category World Rank EU Rank
Thread manufacturing 3 1
Knit fabric manufacturing 2 1
Woven fabric manufacturing 5 2
Textile exports to World/EU 7 2
Clothing exports to World/EU 7 3
Cotton manufacturing 8 NA
Cotton consumption 4 NA
Organic cotton manufacturing 3 NA
Knitted clothing exports 5 NA
Woven clothing exports 9 NA
Hosiery manufacturing 2 NA
Raw cotton imports 3 NA
of the clothing production is exported. (
of the clothing exported is cotton clothing.
• Turkey is a of ready-
wear products but a net importer of textiles.
Turkey Exporter / Importer ?
• Main threat: Low priced imports from China
• Main strategy: Concentration on high value added products and branding
Industry Direction
Top Brands in Turkish Clothing Industry
Top Brands in Turkish Clothing Industry
Heavily westernized tilted brands have occupied the ready wear industry
Strength Weakness Opportunity Threat
Khaadi SWOT w.r.t. Turkey
1. Country of Origin 2. Traditional culture
look 3. Fast Paced Products
Rollout 4. Muslim Brand
Inheritance 5. Foreign Policy
1.First time experience of Turkish market 2. No supply and
Brand
1. Expats may act as ambassadress
2. Additional revenue stream
3. Use tourism hub for brand
awareness of khaadi to other
countries
1. Local competitors 2. Turkish may not
accept the brand 3. Small number of
Textile suppliers
Huge Potential wrt customer
base
A High Priced brand in Pakistan may be perceived
as low price Brand in
Low Priced Labor
Turkey as country
People don’t know about
Khaadi
Khaadi is still closer to Turkish
Traditional culture but not to western brands in
turkey
Khaadi vs local brands
Its already a big ready to wear
industry .
Still Khaadi have to optin for
textile import from Pakistan if
Khaadi will manufacture
product in Turkey
Industry
Pakistani recession vs new revenue stream
Core suppliers for textile in turkey
will be a challenge
Khaadi SWOT Pakistan &
Turkey
Recommended Business Model
Send Value Added and Furnished Products to Turkey and Sell it in Turkey
Pakistan should be the headquarter for Production
Recommended Business Model
Izmir
Western Touch Products Only
Istan
bul
Ankara
Recommended Business Model
