international market entry plan ppt
TRANSCRIPT
ARUN RAJESH Y B 11MBA1008 EDWARD DENNIS PRAVEEN D 11MBA1015 MONALISA SAHOO 11MBA1025 NITHIN KUMAR 11MBA1031 RAJASHEKARAN 11MBA1039
HANDICRAFTS: OVERVIEW India , country of rich culture, history and traditions. Major producer and supplier of Handicrafts products in
the world since long time. can play major role in the development of the economy in developing countries . Highly Labour Intensive ,Cottage Based & decentralized industry. Source Of Income For rural communities including large number of woman & weaker section society. 60% of industry is contributed for export & foreign revenue generation.
STRENGTH
Cheap ,abundant labor ,low capital
investments
& quintessential uniqueness of crafts. Technological infrastructure. Innovation. Better distribution channels.(Online , Craft Exhibitions). Emergence of e-commerce.
JUTE HANDICRAFT DECORATIVE ITEMS(jute bags , gift storage basket , hanging tapestry) Eco-friendly option instead of
poly and paper bags Fashion & promotional bags Reusable Quite strong (15 kg carry bag) Promotional Tool Elegant with their Natural variety of Colours Cheaper and cost effective Durable long lasting & washable
INTERNATIONAL MARKET POTENTIAL
USA ,France - major importer of Indian handicrafts.competitive country Germany.
BARRIERS lack of support from the Handicrafts Development
Corporation, and the Government. Lack of knowledge about new technology. Unable to get adequate details about market trend.
lack information regarding international requirements and
market scenario. Lack of proper infrastructure & communication
COMPETITION Importers United States, France, Australia, and European
union. natural products like bamboo and coir at competitive prices
and attractive designs . china, Vietnam, Germany and Uganda are the major
competitors in global market. Delay in Executing orders because of traditional method of
productions.
BASIC ENTRY DECISIONS USA and France - The people of these countries are
interested in getting new fashionable products. so good opportunity to open our market in these countries. Now-a-days people are interested in decorating their houses with traditional wall hangings, Tapestry and by other decorative items. Also, eco-friendly and mainly produced from Jute.
INDUSTRIAL POLICY
All producers of handicrafts are exempt from obtaining
Industrial License to manufacture Sector has to file an Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the Secretariat of Industrial Assistance (SIA)
SUBSIDY Due to the contribution of the Handicrafts Exporters in the
growth of GDP, export promotion and employment generation they are offered 100% subsidy . GS1 standards and numbering for universal & unique
identification of products/ consignments, across the globe. GS1 barcodes are accepted as de-facto standards in Retail
worldwide.
PRICING
Total value of products exported = Rs 400000
Price of one Jute handicrafts in India = Rs 100(Say) Ability to buy jute handicrafts in India = 400000/100 = 4000 Export Duty = Rs 107400 Shipping Cost = Rs 36000 Cost Price = (Total value + Export Duty + Shipping
cost)/Total products exported = (400000 + 107400 + 36000)/4000 = Rs 135.85/ Product Profit Margin = 30% of cost price Selling Price of One Product = Rs 176 = $ 3.91
Tectonics Jute Bag exporter