PROJECT ON EXPORT OF APPAREL ITEM TO SWEDEN

FOR DIPLOMA IN EXPORT-IMPORT MANAGEMENT

SUBMITTED BY

AMBUJ KUMAR

FOREIGN TRADE DEVELOPMENT CENTRE

N-5, SOUTH EXTENSION PART 1 NEW DELHI-49

INDIA

INDEX
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. PREFACE ACKNOWLEDGEMENT OBJECTIVE OF THE STUDY COMPANY PROFILE REPORT ON PRESENT STATUS OF INDUSTRY LOCATING BUYER EXPORT ORDER PRODUCT IN DETAIL ACTIVITY PROFILE EXPLANATION OF EACH ACTIVITY CORRESPONDENCE DOCUMENTATION DESPATCH OF GOODS COLLECTION/SETTLEMENT OF PAYMENT SUMMARY BIBLIOGRAPHY

PREFACE

ACKNOWLEDGEMENT

OBJECTIVE OF THE STUDY

OBJECTIVE IS TO STUDY THE PRESENT STATUS OF APPAREL INDUSTRY .

Company Profile
Yash India of business enterprises are involved in the production of a variety of Scarves, mufflers, stoles and shawls. With our assortment we cater to the international market through agents, wholesalers and direct marketing. Yash India was founded in 1995 and by continuous exploration of new horizons in the field of product styling, designing and development we have maintained an edge over our competition. Our current overall Strategy is to realize business growth through expansion in the niche markets of the world. Our mission is to deliver the best quality of our product to our customers as per their requirements. We also have our own team of designer professionals, which constantly develops new products in line with the international trends. We sell concepts and not just products. Our aim is to be the best performer, first choice for the established trade in the global market,

while being accountable on ethical issues like child labour, health, safety and environmental related issues. Our products consist of scarves, mufflers, stoles and shawls ranging from trend setting street wear to chic and classy hi-end wear for all seasons. Starting with a concept, we design, develop and with a clever and tasteful usage of materials we value add and produce unique pieces. Our pricing is competitive and flexible. Currently, we are exporting our goods to country like Scandinavia to countries like spain , germany. Our success in this region has encouraged us to go for a further international market expansion.

Present status of industry : Prospects & Problems

Apparel Accessories The apparel accessories are those items, which are generally used to give a more complete look to the outfit or sometimes also used just as embellishments. The various types of apparel accessories available in the market are bandannas, shawls, scarves, handkerchiefs etc. These accessories are crafted out of materials like wool, cotton, linen and nylon. You can find a vivid collection of these accessories in intricate embroidery work, colorful prints and stunning patterns. The major manufacturing hubs of these items are China, USA, India and Hong Kong. Industry Overview The fashion accessories industry is on the verge of complete metamorphosis. The global clothing accessories industry generated total revenue of approximately US $74.9 of the overall industry value. The accessories industry growth in 2006 initiated fierce competition in the sector.

Future Prospects There is a lot of competition from the Asia pacific countries because of which, US based companies are competing on quality rather than price and are also diversifying their products. Use of latest machines has increased production. New marketing strategies and advertising techniques are employed to attract customers. The future outlook of the accessories industry is very bright, as people are becoming more fashion savvy resulting in an increase in demand for these products. The standard of living and the purchasing power of the people is increasing, more and more people especially of the younger age group are spending more on these articles to adorn their wardrobe. The Apparel and Textile industry, is Indias second largest industry after IT Industry. At present, it is amongst the fastest growing industry segment and is also the second largest foreign exchange earner for the country. The apparel industry accounts for 26% of all Indian exports. The Indian government has targeted the apparel and textiles industry segments to reach $50 billion by the year 2015 . China on the other

hand, has already reached their target of $52 billion in 2004, and therefore, it is very possible for India to reach its target soon. One of the most interesting features of the apparel industry is that, it migrates from high cost nations to the low cost nations. The growth of the domestic demand for clothing in India is linked with the success of the retailing sector. India presently has entered the second phase of growth and is witnessing a massive rise in the domestic demand. This is primarily due to the rise in the standard of living caused by the rise in the middle-income groups. In our present economic world of demand and supply, price and quality are the key factors, which determine the success of any business. The key element here though, is the cost of labor. India and China have a comparative advantage in this industry though, their vast labor forces and the relatively low cost of labor. Since, India and China have the advantage of making textiles and so fabric costs are lower than in other countries, they have become the

Apparel sourcing choice for many international companies. Sourcing choices arise from profitability. This includes considering costs, such as, buying factors of production, like land, buildings and machines versus factors affecting revenues, including pricing, marketing, and distribution. The issues of labor, material, shipping costs and tariffs structure also affect the sourcing choices. Since, apparel production is a labor-intensive activity, wage rates are also a major factor in sourcing decisions. This gives immediate competitive advantage to producers in countries like India and China to export to more developed and high cost countries like the United States and the European Union. The fashion accessories market has outperformed all other sectors in the clothing industry, growing by around 40% between 2000 and 2005

Industry

Challenges

The global fashion accessories industry is on the threshold of a large-scale transformation. Several factors responsible for that are:

Steep increases in raw material prices, Over capacity and competition, Changes in consumer buying power in key markets, Emergence of new markets, Increasing consumer consciousness and More vigilant governments and regulators

Sustenance and growth will require an insight into macroeconomic / industry dynamics, vision and foresight, intense action bias and a readiness to change. Combine these imperatives with the fact that the industry is more globally integrated than ever before, and we face the urgent need for strategic rethinking at the level of the global fashion accessories industry. The Working Group on Textiles & Jute Industry for the 11th Five Year Plan (2007-2012) has studied the major problems being faced by the textile industry which include:

i) Structural weaknesses in weaving and processing. ii) Fragmented and technologically backward textile processing sector. iii) Fragmented garment industry. iv) Rigid labour laws. v) Inadequate capacity of the domestic textile machinery manufacturing sector. vi) Inadequate training facilities in textile sector, and vii) Infrastructural bottlenecks in terms of power, utility, road transport etc.