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Kashmiri Carpets Fort of the Indian oriental carpets and rugs

Presented by : Aditi Bhatt

C 2 SIMS

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CARPET INDUSTRY OF INDIA

• CARPET WEAVING IS NOT CONSIDERED TO BE INDIGENOUS TO KASHMIR BUT THOUGHT TO BE INTRODUCED BY PERSIAN’S

• CRAFT THAT HAS ASSORTED SKILL AND EXPERTISE FROM LANDS AS DIVERSE AS PERSIA, CHINA AND AFGHANISTAN

• IT IS OFTEN SAID IN KASHMIR FOLKLORE THAT A HOME IS INCOMPLETE WITHOUT A SOUL - A KASHMIR CARPET, WHICH IS SAID TO "BRING THE ENTIRE HOUSE TOGETHER" INTO A UNIFIED WHOLE.

• EXPENSIVE BECAUSE OF AN ELABORATE PRODUCTION PROCESS AND THE TYPE OF MATERIAL USED- SILK AND WOOL

• PRODUCTION OF CARPETS MAINLY CARRIED OUT IN SRINAGAR, BUDGAM, ANANTNAG, BARAMULLA

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Carpet belt Features

Bhadohi - Mirzapur in Uttar

Pradesh

• Maximum carpet production- 90% market share• Medium quality , 60 -80 knots per square inch

Agra belt in Uttar Pradesh • Persian style Carpets, emphasizing elegance and

simplicity surrounded by bold floral borders• Turkman and Abussan are the famous varieties

Jaipur-Bikaner belt in Rajasthan• Medium quality with about 80 knots to 120 knots per

square inch and geometric patterns• Jaipur carpets are known for their innovativeness.

Panipat belt in Haryana• Panipat is famous for ‘panja’ durries a kind of a floor

covering• Durries resulted in a burgeoning number of private and

state owned weaving units within the city

Kashmir belt • Famous for hand knotted woollen and silk carpets, they

are a symbol of quality and artistic expertise• Pure silk carpets of Kashmir are such high quality that

they are woven with 324-600 knots per square inch

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MAJOR CARPETS OF INDIA

Hand Knotted Woollen Carpets

Hand Woven Woollen Carpets

Hand Tufted Woolen Carpets

Handmade Woollen Dhurries

Pure Silk Carpets

Staple or Synthetic Carpets

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QUALITY STANDARDS

Kaleen- According to CEPC promotional material, the label signifies that “the user is abiding by the code of conduct adopted by the Carpet Export Promotion Council for the eradication of child labour.

Step- Ensure market opportunities and transparent business,better working condition and remunerations for adult workers.

Care and fair-To ensure the medical, educational and career opportunistic needs of the labours and elimination of child labour.

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INDUSTRY OVERVIEWIndian Handmade Carpet Industry is ranked No. 1 in the international market ,market share of 35% of total world import of Handmade Carpets, Employs over 2 million rural workers.

Export oriented , 1215 carpet manufacturing units recorded and of that 190 are in the organized sector and the rest are in small scale industry sector.

Though it experienced a major set back during 1996 -2000 due to the involvement of the child labour, it has over come the jolt by implying special measures like "rugmark" and "kaaleen " labels that ensure the non involvement of child labour.

“Hand made carpet of Bhadohi” have been granted the Geographical Indication (G.I.).

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MARKET SHARE OF KASHMIRI CARPETS :

RANK

COUNTRY

OR AREAMARKET SHARE

(in%)

1 USA 14.9

2 Germany 11.5

3 United Kingdom

10.3

4 Canada 6.5

5 France 4.9

During 9-Jul-2014 to 9-Aug-2014, India exported Kashmir Carpets worth USD 2,846. UNITED STATES is the largest supplier of Kashmir Carpets accounting for imports worth USD 2,846

The developed countries absorbs 88-90% of Indian carpet exports

USA and Germany, the two largest and established markets for carpets together account for 76% of India’s exports

World flooring and carpet demand will rise 4.9 percent yearly to 18.6 billion square meters in 2016. Hence, India must concentrate more on the exports of Kashmiri carpets as it is predicted that the Asia- Pacific region will see the most rapid growth.

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COMPETITOR ANALYSISChinese carpets are emerging as the biggest threat in terms of pricing and volumes

Owing to cheap prices of the foreign carpets from Turkey, Belgium and China, the demand for the Kashmiri carpets have decreased by 20 per cent in the domestic market

Prices per square feet of Kashmiri carpet range from Rs 1000 to Rs 2000 while cost of Chinese carpets range from Rs150 to 400 per square feet

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Strengths1.Low labour cost and innovative carpet designs2. Low cost raw material, Availability of skilled labours3. Made up of Pure silk and wool, Hang Woven4. High durability due to its high knottage which makes these carpets stiffer and firmer

Weaknesses 1. High interest rates as compared to neighbouring countries

2. Under-financed handicraft producers and Traders/Exporters3. Cheap prices of foreign carpets 4. Channels for local selling and marketing is very low5. Highly unorganised sector- Access to local as well as foreign customers should be simple and easy

Opportunity1.Improving the productivity and quality of raw materials at reasonable price

2. Improvement in the R&D for improvement of fibre quality

3. Involve US importers, enhance the scope through road shows ,fairs & exhibitions.

5. Tie up with wal-mart and other retailer to have a huge customer base

Threats1. Artisans are forced to quit this industry due to recession

2. Low end carpets, made in China is driving the market and the growth of the carpet industry

3. Stiff competition from Pakistan and China

4. Child Labour has made carpet industry a defamed industry

SWOT

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GOVERNMENT’S INTERVENTION

• GOVERNMENT MUST COME FORWARD TO ASSIST THE INDUSTRY WITH SUBSIDIES TO MAKE CARPET COMPETITIVE IN INTERNATIONAL MARKET

• REMUNERATION TO WEAVERS AND ARTISANS SHOULD BE SUITABLY INCREASED TO BRING IT TO A LEVEL HIGHER THAN MNEREGA WAGES

• MDA ASSISTANCE SHOULD BE MADE AVAILABLE FOR CARPET EXPORTERS TO UNDERTAKE OVERSEAS VISITS FOR THE PURPOSE OF MARKETING, PARTICULARLY IN NON-TRADITIONAL AND DEVELOPING MARKETS

• PUBLIC- PRIVATE PARTNERSHIP TO IMPROVE INFRASTRUCTURE, POWER SUPPLY ETC.

• ENCOURAGING ORGANISATIONS LIKE CEPC, AICMA TO PROMOTE INDIAN CARPET BY INCREASING THE DEMAND

• LARGEST FINANCIAL INSTITUTION IN KASHMIR ANNOUNCED AN INTEREST-FREE AND MORTGAGE-FREE 18-MONTH BAILOUT PACKAGE FOR CARPET INDUSTRY ARTISANS

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BUSINESS STRATEGY AND EFFECTIVE MARKETING

• DEVELOP AND MARKET NEW DESIGNS BASED ON INDIAN ETHNIC THEMES

• CUSTOMER SOLUTION- ONE ON ONE WITH THE CUSTOMERS, EMPLOYEES TO SELL THE CARPETS DIRECTLY TO CUSTOMER OR PURCHASE THROUGH ONLINE PORTALS

• AGGRESSIVE MARKETING IN EMERGING MARKETS IN DEVELOPING COUNTRIES AND CREATING A STRONG HOLD IN THE DOMINATING BUYERS LIKE USA & GERMANY

• INNOVATIVE PRODUCTS RANGE WITH LOWER VOLUME COULD BE A SUCCESS MANTRA FOR INDIAN CARPET INDUSTRY -REGULAR RESEARCH & DEVELOPMENT, PROPER TRAINING TO THE ARTISANS IS REQUIRED

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THANK YOU