Final Project Marketing[1]

COMPANY PROFILE

MARKETING 3/12/2009 IUIC ASIM ALI RAJA 2361

Stitch & Style Garments Ltd.

E XECUTIVE SUMMARY

In this report, we have tried to present some information regarding our garment industry. The idea to start this business was first seem to be like a dream but as we put our efforts we realized that we can do some better work regarding our project. Each of us invested in the business according to their resources and we also got some loans from banks. Our main objective was to come up with some quality outwears and to stand side by side with other garment manufacturers. To meet this objective we appointed some highly qualified people from different academic backgrounds and experiences. Our product line as compared to our competitors was not that much satisfying but we struggled hard to bring some quality stuff for our consumers to satisfy their demands and needs. To reach that extent of high quality we have a complete cycle quality control. For distribution we have regional sale offices in different major cities nationwide. As far as market is concerned, our target markets are mostly middle class but we are also providing products to the upper class. As we have to design outfits for the consumers, we have to keep in mind that they belong to different cultural backgrounds and different geographical sectors. As we have studied the economic condition of Pakistan very thoroughly, we observed that after 9/11 events our economic conditions were not stable. Surprisingly, we have increased our foreign reserves. As our garment industry is linked with the textile industry. Every event related to textile industry, affects our industry – directly or indirectly, either in good way or bad way.

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Stitch & Style Garments Ltd. In a very short span of time our sales growth was quite impressive. We also mentioned the sales forecast for the coming five years. Our industry is providing full rights to its employee according to Pakistan’s rule and regulations, such as education, safety, health, and a good environment. We are looking forward to start exports in the future and for this purpose we are analyzing foreign markets, this will result in creating an image of Stitch & Style Garments Ltd.

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Stitch & Style Garments Ltd.

M I S S I O N S TAT E M E NT

Quality is achievement of accuracy, precision and consistency. We bring quality to endorse our designed outfits. And we are fully committed to satisfy the needs and wants of our consumers.

VALU E S

To conduct business as a responsible cooperate citizen and take constructive interest in supporting education and environmental causes.

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Stitch & Style Garments Ltd. OBJECTIVES

•

To create a brand name and image in the world of fashion keeping in mind the culture and values in Pakistan.

•

To promote the tradition of Pakistan and to bring all sort of upcoming fashion trends to our consumers.

•

To be the part of fashion world.

•

To satisfy the needs and wants of our customer, how they want to look, wear, and how they want to be.

•

A reliable manufacturer and supplier of good quality garments, by maintaining cost and quality, leadership in the national as well as international competitive environment.

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Stitch & Style Garments Ltd.

BAC K G R O U N D

Stitch & Style Garments Ltd. belongs to the group of Iqraians. The group is mainly consisting of three members who graduated from Iqra University Karachi in 1992 and the group is in business since 1994. These few years of operational excellence, experience and expertise have all formed a combined strength to empower the group as a leading name in fashion garments, synthetic textiles and trendy clothes in Pakistan. The group employs more than 200 people in the country. The group started its business from Islamabad. But with the huge success in few years it expanded its business all over the Pakistan and now it serving in the major cities of Pakistan.

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Stitch & Style Garments Ltd.

MANAG E M E NT TEAM PR O FI LE

Board of Directors Chairman

Shahbaz Azeem I.C.M.A., M.Sc – Economics (Quaid-e-Azam) Islamabad HangTen, Finance Manager (Karachi) (1995 – 1998) Ex-CEO Al-Falah Textile Mill, Faisalabad (1999 – 2002)

Chief Executive Officer (CEO)

Maliha Asif MBA – Executive Iqra University, Islamabad Aruj Garments, Sales Manager (1994 – 1999) Bonanza Garments, Regional Manager (Lahore) (2000 – 2002)

Directors

Farhan Munsif MTM (U.S.A.), MBA – Marketing Iqra University, Islamabad For Al-Karam, Managing Director (1994 – 1997) ICI Limited Assistant Managing Director (1997 – 2000) Givenchy, Marketing Executive (Doha – Qatar) (2000 – 2002)

Linette MBA – Finance (Pakistan), MBA – Quality Control (U.K.) Nike, Public Relation Officer (U.K.) (1991 – 1998) ChenOne, Branch Manager (U.A.E.) (1998 – 2000) Chancler Textile, Quality Control Manager (2000 – 2002)

Company Secretary

Imran Hameed LLB, MBA– H.R.M. Lahore Kohinoor Textile Mill, Legal Consultant (1990 – 1995) Lawrencepur Fabrics, Company Secretary (1996 – 2000)

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Stitch & Style Garments Ltd. Management Team Chief Executive Officer (CEO) Chief Financial Officer General Manager Plant

Maliha Asif Shahbaz Azeem Mir Moatazid B.Sc – Textile Faisalabad Mehmood Textile Mill, Plant Incharge (Multan) (1992 – 1998) Al Farooq Garments, Plant Manager (Lahore) (1998 – 2002)

General Manager Human Resource

Ather Hameed Butt BA (Hons.), IBA MBA – Marketing Management University of Lincolnshire (U.K.) Adidas, Branch Manager, (U.K.) (1996 – 1998) ARY Digital, Assistant H.R. Manager, (U.K.) (1998 – 2002)

General Manager Marketing

Suleman Khan M. Sc (Operation & IT Management) Worcester, U.S.A. InstaPhone, Sales Manager (Islamabad) (1992 – 1996) Kohinoor Textile Mill, Marketing Executive (1997 – 2001)

Head Designers

Feruza Amirova MFD Central house of Officers, Fashion Design Department Republic of Uzbekistan ChenOne, Head Designer (1996 – 2000)

Samantha Miki Bachelors in Fashion Design Santa Marcelina College Brazil Textilion, Designer (1998 – 2001)

Auditors

S. Zafar Shah Naveed Imran &Co. Chartered Accountants 3 – B ATS Center Blue Area, Islamabad Tel: (092 – 51) 2822785

Legal Advisor

Mr. Ali Ahmed Awan Advocate Supreme Court, Civic Centre Islamabad Tel: (092 – 51) 2879149

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Stitch & Style Garments Ltd. Bankers

Habib Bank Ltd. PICIC Commercial Bank

Location Main Office

Islamabad 2nd Floor, Kulsoom Plaza Blue Area Tel: (092 – 51) 2100506-9 Fax: (092 – 51) 2100510 E-mail: [email protected] Plot No. # 7, Street No. # 5 I – 9/3, Islamabad

Plant Showrooms

Islamabad Jinnah Super Market Tel: (092 – 51) 2855644

Lahore Liberty Market Tel: (092 – 42) 5870346

Karachi City Center Tel: (092 – 21) 5674881

Peshawar The Mall Tel: (092 – 91) 5434138

Quetta Agha Siraj Complex, Jinnah Road Tel: (092 – 81) 450180

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Stitch & Style Garments Ltd. PRODUCTS

In the field of manufacturing, quality of products is important for getting repeat business and establishing a name in the market place, we sacrifice some what on hourly quantity to keep a high standard of quality. We strive hard to improve the techniques and achieve diversity with quality and standard to stay on top of the game now as well as in the future. For work or leisure, we are manufacturing comfortable and sturdy range of Trousers, Pants and Denim Jeans etc. The woman of today has to keep up with the changing world. Stitch & Style Garments Ltd., as a connoisseur among Pakistan Garments Manufacturers, has the latest collection of ladieswear. We have a wide range of collection of smart and stylish dress, which are specially made for manly choices. Our garments are manufactured by qualified staff and treated on highly equipped plant. We ensure that our quality will satisfy our costumers. To make it sure material is being processed carefully, tested in a well equipped and the most modern laboratory to monitor the production of high quality garments. The principle that we follow is:

CHECK

KNOW

REACT

=

SUCCESS

We provide our consumers with the best quality and a variety of outwears with all colors to fit according to their needs.

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Stitch & Style Garments Ltd. PRODUCT LINE AND CHARACTERISTICS

ITEMS

Shirts

SEX

PRODUCT INFO.

Male Female

T - Shirts (polyester, cotton)

Male

Dress Shirts (cotton, silk)

Male Female

Cardigans

Pants

COLOURS

STYLES

blue (different shades) Black Maroon green (different shades) White Gray Black blue (different shades) White brown ( different shades)

round neck v - shape half sleeves full sleeves collars full sleeves half sleeves collars

Polo Shirts (cotton)

Red black blue (different shades) Yellow green (different shades)

half sleeves collars

Male Female

(cotton, woolen)

round neck v - shape open front full sleeves half sleeves

Male

Dress Pants (cotton, wrinkle free, stone wash)

Male Female

Cargo Pants (cotton, polyester)

Male Female

Jeans

Black Gray Brown blue (different shades) White different color combinations Black navy blue Gray Brown off white Black Brown Gray Blue off white black (different shades) blue (different shades) Brown

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SIZES

PRICES Rs.

S,M,L,XL,XX L

250 - 350

14",15",16"17"

300 - 375

S,M,L,XL,XX L

250 - 325

S,M,L,XL,XX L

450 - 800

straight fitting plate/plate less

24,26,28 30,32,34,36,39

400 - 600

six pockets eight pockets

S,M,L

350 - 550

Dockers straight fitting ball bottom

24,26,28 30,32,34,36,38

400 - 650

Stitch & Style Garments Ltd.

QUALITY CONTROL PROCESS We are totally committed for quality. We always assure quality to our customer. The checking of quality takes a whole procedure; like first we check the raw material, which is checked for variation, stability batch-continuity and hairiness, etc. before stitching starts. After a detailed inspection, the raw material is sent to the stitching department. The quality controllers in the stitching department again check the stitched fabric before it gets transferred to the washing section. In the washing section the fabric is tested for shrinkage and skewing. The material is rechecked in the stitching section. In the stitching section the team of quality controllers ensures that the specifications and the quality of the garments are being met. After stitching the garments are again inspected 100% before being packed. Finally, the garments are packed and a random inspection is done on the packed shipment.

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Stitch & Style Garments Ltd.

MAR K ETI N G AN D SALES

Our marketing and sales is very wide extended all over Pakistan and different cities in Pakistan come under the network of our sales.

The sale process involves one segment is the local sale. Two techniques namely regional sales and our showrooms carry out local sale. Around 250 to 300 customers exist only in Karachi and approximately 500 customers are in Punjab; this shows the potential of the market. Following are the key points that are important for making this venture a success: •

Assurance of consistent quality.

•

Surety of on time delivery.

•

Competitive rates.

•

Cost efficiency.

•

Better services to the customer i.e. claim settlement etc.

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Stitch & Style Garments Ltd. •

Better communication development with customers.

MAR K E T ANALY S I S

Pakistan is the fourth largest cotton producer in the world, and is an important player in the global textile market. Its knitwear industry is the highest value added textile sector in the country, and is distinguished by the high quality of its raw material and the competitive value of its end product. Total knitwear capacity in Pakistan is about 50 million dozens of pieces. There are about 600 knitwear factories of various sizes in Pakistan. Today this industry is a source of direct employment to the workforce for more than 20,000 knitwear exports is a major foreign-exchange source for Pakistani economy1. Before going into market analysis we want to specify that our garments industry is directly related to the textile industry because we have to deal with them at every moment. In garment manufacturing sector the demand for garments increasing rapidly within the country as well as in foreign countries especially for Pakistani garments. In order to meet the demand of our customers we will try our level best to increase the production. The existing suppliers/manufacturers of work wear in the country are very less in number. There are about 70 – 75 establishments all over the country who are exclusively involved in the manufacturing and exporting of work wear. Out of these manufacturers/exporters, about 8% are based in Lahore, 34% in Karachi, and 57% in Sialkot. Some other areas like Gujranwala, Kasur,

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Stitch & Style Garments Ltd. and Faisalabad also have some work wear stitching units. The Pakistani manufacturers are contributing a share of 4.5% in the total work wear exports to European Union states2. In spite of having a very strong textile base and huge market, work wear segment could not be developed effectively by our apparel industry during the past years. This is because that the concept of the work wear is relatively new in the international as well as in the local markets as compared to the traditional woven and knit-based garments. There is also a lack of awareness about this sub-sector of clothing in our country. TARGET MARKET In Pakistan most people are living below the poverty line and few people have luxurious facilities provided. The following facts and figures will clarify the whole picture:

Below poverty Poverty Lower Middle Class Middle Class Upper Class Rich

Population in % 40% 45% 8% 6% 0.90% 0.10%

Population in million 8.8 9.9 1.76 1.52 0.2 0.02

Rs. / month 3,000 3,000 - 7,000 7,000 - 15,000 15,000 – 50,000 50,000 - 150,000 150,000

Source: Dawn3 Our main target market is the lower middle class, middle class, and upper class. Our first aim is to focus on these areas. As far as our prices are concern, we are providing good quality stuff

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Stitch & Style Garments Ltd. within the resources of above-mentioned categories. We are actually targeting the people of ages 17 to 45 approx. because they are 54 % of our total population (Appendix). As population is not evenly distributed all over Pakistan, so it is very difficult to analyze that how much people are living in rural, urban, suburban areas.

(Appendix) The Pakistan’s population is not equally distributed like some provinces are heavily populated and some are not that much populated. Here is the population distribution for different cities of CONSUMER BEHAVIOR As we are approaching the customers of different backgrounds having different traditional values, believe, and cultures, therefore, when we design, we keep these factors in mind. As fashion trend varies from place to place, we have to remain up to date with the upcoming trends and fashion according to the regions (Punjab, Sindh, N.W.F.P., Balochistan). We also have to remain in touch about the climatic changes as to where and when supply the summer and winter clothing. As in different parts of Pakistan people use to wear “Shalwar Kameez” and they do not like “Pants and Shirts”. Like in Balochistan majority of people living there normally wear “Shalwar Kameez” but there are few cities in Balochistan where people usually wear “Pants and Shirts”.

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Stitch & Style Garments Ltd. While in Punjab , Sindh, and N.W.F.P. mostly people are well educated and the trend of clothing is a bit different from rural areas. In the cities people wear “Pants and Shirts” and this trend is now so much in their daily life that without “Pants and Shirts” they do not even feel comfortable. In Islamabad there would be hardly few people who are still wearing “Shalwar Kameez”, otherwise, most of the people in Islamabad like to wear casual dresses. Formal dressing is preferred more in feudal areas of Balochistan, Punjab, N.W.F.P., and even in Sindh. As the trends are changing rapidly and people in Pakistan are moving towards westernize culture, so they are moving away from their own culture and values.

THE ECONOMIC REVIEW

Despite a sluggish global economy, Pakistan’s economic performance for the year 2002 – 2003 stands out. The GDP growth at 5.1% compares favorably with global economic growth of around 2%. The growth was not only broad based but has shown signs of robustness under trying circumstances. Agriculture grew by over 4%; manufacturing at a healthy 7.7% and services by 5.3% The economy has clearly benefited from the post 9/11 events. The economic indicators prior to 9/11 were quite dismal inflation hovered at over 10%; interest rates neared 20% and the forex reserves had dropped below $ 1 billion. Additionally, the policy makers’ perseverance a devaluation based policy rendered any attempts at recovery meaningless. Ironically, the post 9/11 events have laid a strong foundation for a sustainable recovery. The increased home remittances year after year - of over $ 4 billion last year – have stabilized the resources as well as the balance

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Stitch & Style Garments Ltd. of payments position. Inflation has been brought down to below 4%. No doubt the appreciation of the rupee has lowered the imported inflation factor. Forex reserves now exceed $ 11 billion and the country credit rating stands improved4. THE GARMENTS INDUSTRY This sector is distributed in small, medium and large-scale units, most of them, having 50 machines and below. The sector is attracting considerable investment in the organized sector and now many new units are coming to production stream. The sub-sector is facing multidimensional problems like high value addition in competing countries and in-elasticity of the sector in shifting the burden of increased or decreased prices of yarn, cotton cloth or other inputs to the end user. Against all these odds the sub-sector has witnessed substantial growth (7.0%) in terms of value during the year 2001-2002, by moving to US $ 882 million from US $ 827 million in the previous year5. As such the Government is not providing the garments industry with any sort of benefits and incentives, what we are getting are only the benefits that are limited for the textile industry. Following are the factors that are effecting directly or indirectly to our industry •

World Trade Organization (WTO) has provided Pakistani spinning industry to explore the new markets. It has also made it possible to reach the markets that were previously protected by duties.

•

Textile industry in Pakistan is provided with some tax incentives. Especially in case of spinning mills these incentives have caused the spinning units to outnumber weaving and knitting mills. There is a gap available and increasing the production of value added goods to the desired level could fill this gap. These incentives provide a good opportunity of the

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Stitch & Style Garments Ltd. industry to control its expense and to invest in the value addition activities. This will help industry to grow and come out of the stagnation. •

The bumper cotton crop of around 12 million bales produced this year and the cotton imported last year has caused the cotton prices to be lower in the market. Cotton price has hit the record lows this time. This again provides an opportunity for the spinning industry to buy cotton a low price and provide quality yarn to its customers.

C O M PE T I T O R ANALY S I S

We have Textilion, Chen One, Soorty, Aruj Garments and along with them there are other units that are in weaving and knitting business and producing good quality garments. This has resulted in cutthroat competition in the market. This industry is highly competitive but the market is expansionary. Locally, there are large numbers of garment manufacturers and some of the weaving and knitting units that are our main competitors. However, the market size is large enough to provide room to all the players. The competitors mentioned above are manufacturing almost on the same product line and they have good image in the local market as well as in the foreign market. Beside all this facts these companies are doing good job but they are bit expensive and these garments, which are made by

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Stitch & Style Garments Ltd. these companies, are mostly not in the approach of ordinary people (middle class) because their prices are high. Here is the comparison of the prices:

ITEM

ChenOne

Textitlion

Stitch & Style

Rs.

Rs.

Rs.

Pants

500 – 800

450 – 650

350 – 650

Shirts

400 – 600

300 – 500

250 – 400

Cardigans

800 – 1500

550 – 1000

450 – 800

POT E NT IAL TH R EAT S AN D PR O B LE M S

As we discussed before that as such we have no direct potential threats in this industry, we are only suffering the conditions due to the textile industry. The only threat we would face in the garment industry is that, whether the customers will experience a new product in the market providing them with good quality with reasonable prices. Some of the threats that affects the textile industry, and also directly or indirectly affecting our industry:

•

This problem also has its roots in government policies of charging higher tariff to the machinery used in the weaving and knitting industry.

•

Pakistan also has no textile engineering industry where these machines can be fabricated.

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Stitch & Style Garments Ltd. •

Any shortfall in the cotton crop can result in serious losses and under capacity utilization for the industry.

•

In 1995 Pakistan suffered the imposition of anti-dumping duty on 100% cotton yarn by Japan, which has continued till today. In the same way imposition of provisional antidumping duty on Grey cloth and bed linen by the European Union countries is expected to result in reduction in exports of these commodities.

•

Other potential threat that might affect the textile and clothing industry is to retain its shares in the international market after the implementation of WTO. Despite that Pakistan is the fourth largest exporter of cotton; Pakistan's share in global textiles and clothing trade is less than 3 per cent. This is not only because of Government policies as well as industrialist are also responsible for this situation. For this purpose they have to think and review there polices regarding textile industries. They should give some subsidies to textile industry that they these industries can survive in critical situation of WTO. Government should explore some new markets.

•

Asia pacific markets are emerging as new players in the world knitwear trade. China, Hong Kong, Vietnam, Korea can give tough time in the coming years, so our local garment manufacturers have to do some better quality work with innovation.

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Stitch & Style Garments Ltd.

R E S EAR C H AN D FI N D I N GS

DATA COLLECTION To get some research and findings we distributed a number of questionnaires between people from different backgrounds. The main purpose of this survey is to know the consumer needs and demands, although, this method does not fulfill our requirements. But it helped us in many aspects; like their taste, color combinations, either they like designer clothes or made by them selves etc. Actually the main purpose of this survey is to get information regarding their preferences like:

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Stitch & Style Garments Ltd.

Gender As our Pakistani culture is male dominant, and even according to our survey we got more male candidates.

44%

Male 56%

Female

Age Group Age group is the factor that affects the overall impact of our designers’ thinking.

28%

15% 17 - 19 23%

19 - 21 21 - 23 23 +

34%

Color In our survey people helped us by giving us such options regarding different color combinations.

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Stitch & Style Garments Ltd.

12% 4% 5%

Black 31%

White Blue

5%

Gray Brown Maroon

22%

21%

Others

Quality Conscious or Price Conscious Quality and price are the factors which consumer always keeps in mind first while shopping.

17% Quality 17%

Price 66%

Both

Expense per Month (Wardrobe) People usually take care of how they look like and that is very much dependent on how much you spend on your wardrobe.

Rs.500 - Rs.1,000 29%

29%

Rs.1,000 Rs.1,500 Rs.1,500 Rs.2,000

15%

Rs.2,000 & above

27%

Designer Clothes or Self made 25

Stitch & Style Garments Ltd. There is a wide variety of designer clothes available in the market but still some people prefer designing clothes for themselves.

26% Designer 48%

Self made Both

26%

This survey has helped us a lot in making our products according to the needs of customers, and these types of surveys should be done rarely to innovate accordingly. Furthermore, as the world is becoming too fast and people do not even get time to have lunch with their families so it would be a difficult task for one to go to a tailor and design their own dresses. So we are trying our level best to overcome all this possibilities just to make our consumers satisfied in terms of quality as well as price.

B A LA N C E S H E E T

Rs. ASSETS: Current Assets Cash Debtors (A/R) Bills Receivable (N/R) Stock in Hands (Inventory) Investments Total Current Assets

Rs.

8,000,000 3,400,000 2,405,000 1,580,500 15,000,000 30,385,500

Fixed Assets Buildings Land Plant & Machinery Furniture & Fitting Total Fixed Assets

12,500,000 5,281,250 4,679,450 3,500,000 25,960,700

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Stitch & Style Garments Ltd.

Total Assets

56,346,200

LIABILITIES: Current Liabilities Creditors (A/P) Bills Payable (N/P) Total Current Liabilities

6,000,000 800,000 6,800,000

Fixed Liabilities Long-Term Loans Capital: Shahbaz Farhan Maliha Linette Total Capital Net Income Total Fixed Liabilities

10,000,000 11,500,000 9,000,000 8,500,000 8,500,000 37,500,000 2,046,200 49546200

Total Liabilities & Capital

56346200

I N C O M E STAT E M E N T

Rs.

Rs.

Rs.

Income from Sales Gross Sales

20,000,000

Sales Return

(50,000)

Sales Discount

(25,000) (75,000)

Net Sales

19,925,000

Cost of Goods Sold Opening Stock

5,080,500

Purchases

2,000,000

Purchases Discount

(12,000)

Net Purchases

1,988,000

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Stitch & Style Garments Ltd. Cost of Goods Available for Sale

7,068,500

Closing Stock

(580,500)

Cost of Goods Sold

-6,488,000

Gross Profit

13,437,000

Operating Expense Selling Expense

2,500,000

Sales Salaries

300,000

Advertising Expense

45,000

Insurance Expense; Selling

15,000

Store Supplies Expense

200,000

Total Selling Expense

3,060,000

General Expense Office Salaries

7,000,000

Taxes

200,000

Insurance Expense; General

15,000

Office Supplies Expense

5,000

Miscellaneous General Expense

15,000

Total General Expense

7,235,000 (10,295,000)

Net Profit from Operations

3,142,000

Other Expenses & Incomes Interest Income

12,000

Interest Expense

(6,000) 6,000

Net Income

3,148,000

Sales Tax (35%)

1,101,800

Total Net Income (Excluding Sales Tax)

2,046,200

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Stitch & Style Garments Ltd.

OT H E R I N FO R MAT I O N •

REMUNERATION OF CHIEF EXECUTIVE AND DIRECTORS

Chief Executive Basic Salary

Directors

Rs.224,000

Rs.160,000

House Rent

Rs.95000

Rs.72,000

Utilities

Rs.5,000

Rs.8,000

Rs.324,000

Rs.240,000

Total Number Of Persons

•

1

2

WAGES AND SALARIES Salaries & Benefits (Executives)

per month

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Stitch & Style Garments Ltd. Chief Financial Officer General Manager Plant General Manager H.R. General Manager Marketing Head Designer

Rs.150,000 Rs.125,000 Rs.125,000 Rs.125,000 Rs.90,000 No. of Persons 2 5 92 4 1 3 8 4 119

Salaries And Benefits (Non-Executives) Foreman Supervisor Labor Electrician Office Boys Data Entry Operator Security Guard Driver

per month Rs.9,000 Rs.7,500 Rs.6,000 Rs.5,500 Rs.4,000 Rs.4,001 Rs.3,500 Rs.6,500 Rs.46,000

Rs.5,474,000

* These salaries and benefits are provided to the non-executives on 12-hour shift basis.

SALE S FO R E CAST

(For the year 2003)

Pants Shirts Cardigans

Jan. Rs. 708,124 560,139 952,154

Feb. Rs. 655,400 552,246 800,554

March Rs. 652,298 676,002 722,543

April Rs. 713,254 692,321 100,054

May June July August Rs. Rs. Rs. Rs. 693,451 726,441 704,655 685,246 704,556 696,464 696,674 685,497 98,000 5,000 1,000 7,562

Sept. Rs. 684,251 674,683 23,556

Oct. Rs. 689,565 564,989 234,968

Nov. Rs. 694,667 567,687 388,724

Dec. Rs. 790,065 590,346 531,864

2220417 2008200 2050843 1505629 1496007 1427905 1402329 1378305 1382490 1489522 1651078 1912275

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Stitch & Style Garments Ltd.

(For five years, 2003-2007)

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Stitch & Style Garments Ltd.

In 2004 our sale will decrease drastically from Rs.19,925,000 to Rs.10,220,354 because of the W.T.O. issue. As W.T.O. is affecting third world countries, it will also affect our economy and garments industry. W.T.O. will open the gates between the developed countries and the developing countries for trade, this will affect our local market to a great extent.

S O C IAL R E S PO N S I B I LITI E S

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Stitch & Style Garments Ltd. We always remain conscious of our responsibilities towards the society in which we operate. Our emphasis remains primarily on education and health, and our funding toward these sectors has been doubled. We have the citizen foundation under which we have opened a primary school in our plant locality. The company also supports tertiary level education and provides considerable funding.

S A F E T Y, H E A L T H A N D E N V I R O N M E N T

Our company maintains a strong commitment to safety, health and environment performance in all its operations and this applies to the safety of everyone involved in or affected by our operations. This includes employees, contract partners in the work place, and our customers and is achieved through its leadership, the dedication of its staff and the application of the highest professional standard of work. All new employees are given an orientation on security, safety of man and machinery and fire fighting and also assigned an adviser to continually guide them in this regard.

FUTURE OUTLOOK

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Stitch & Style Garments Ltd. •

We want to give a brand name to our products like GUCCI, GAP, and Christian Dior etc. for that we have to struggle hard for which we are fully committed.

•

We want to expand our business internationally and planning to export our products in Middle East countries, the new emerging states of Far East Asia and Hong Kong etc. for which we are starting our export operation in 2005 INSAHA-ALLAH

•

We want to increase of our product line like sports wear, footwears, glasses, fragrances etc.

R E C O M M E N DAT I O N S

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Stitch & Style Garments Ltd. Stitch & Style Garments Ltd. is a typical Pakistani business. In a short span of time we have increased our sales very rapidly and this become possible just because of our well-qualified management. Following are few of the recommendations for Stitch & Style Garments Ltd. •

They have much more capability to increase their quality production or they can increase their efficiency.

•

They need efficient marketing and advertising campaign throughout Pakistan.

•

As the WTO threat is coming ahead, they have to deal with WTO policies regarding textile industry in Pakistan. For this purpose they have to adopt new technologies for mass customization, e.g., three-dimensional, non contact body measurement and digital printing will be learnt about and implement fast.

•

They need extensive market research for forecast the consumer preference in fashion and styles and necessary R. & D. to be able to meet such demands in minimum possible time.

•

They have ability to face tough competition in cut and sew industry from Far Eastern and Latin American market.

•

They have good and well-established competitors in the market and have to establish themselves, like they can come with some brand name. As in Pakistan most of the products lack branding, otherwise, Pakistan is producing high quality raw material as well as products.

CONCLUSION

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Stitch & Style Garments Ltd.

Stitch & Style Garments Ltd. is a good running business at present, if they keep on working with the same potential they would definitely be one of the best garment manufacturers in Pakistan as well as create impressive brand image all over. They have better resources to use in a better way. They are committed to customize their products according to the consumers. As compared to their competitors they have started a new business very effectively and they are maintaining and improving their quality. We would like to end up by saying; that Stitch & Style Garments Ltd. is doing a great job and good luck with their future plans.

APPE N D I X Target Market 36

Stitch & Style Garments Ltd. Population of major cities of Pakistan Karachi

9,339,023

Lahore

5,443,495

Peshawar

982,816

Islamabad

529,180

Quetta

759,941

Market Analysis

Population World Ranking Population Density Urban Population < 15 years 15-64 years > 65 Population Doubling Time Sex Ratio (Male : Female)

145.5 Million 6 166 persons/ Sq. Km. 32.52% 43.40% 53.09% 3.50% 33 years 108.5 : 100

B I B LI O G RAPHY

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Stitch & Style Garments Ltd. 1. http://www.inteletex.com/FrontPageFeatures.asp?Newsld=2097,

“Change

Management”,

Jawad S. Naqvi, 15/12/2003 2. www.smeda.org.pk/bopp/WorkWear.pdf, 16/12/2003 3. http://www.dawn.com, 06/08/2002, Letters to Editor, 06/12/2003 4. Allwin Engineering, The Annual Report 2003, 03/12/2003 5. http://www.ptj.com.pk/8-2002/art-noor.htm, “Textile industry: Performance during the year 2001 – 2002”, Dr. Noor Ahmed Memon, 27/11/200

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