3.

INDUSTRY ANALYSIS:
3.1 FUTRE OUTLOOK AND TRENDS:

Weaving Creation is starting a business in personalized stuff that needs some

analysis of environment it will face and the growing trends in the market.

Production of cloth (mill sector) increased from 921 million sq. meters in 2004-05
to 1,107 million sq. meters in 2008-09, thus showing an average increase of 5%
per annum. Out of total production of 1,017 million sq. meters cloth during 2008-
09 in mill sector, 57% produced in grey form, 30% dyed and printed, and 13%
blended and bleached and the trend is not much after the flood but slightly
increasing.

Table 1 : Production of Cloth

Year Production (Million. sq meters.)

1999-00 437.2

2000-01 490.2

2001-02 568.4

2002-03 576.6

2003-04 683.4

2004-05 920.7

2005-06 915.3

2006-07 1,012.9

2007-08 1,016.4
 2008-09 1,071.0
Source: Textile Commissioner’s Organization Government
of Pakistan.

Despite of the declining in the past record of GDP rate there is slightly increasing
trend that shows we are moving towards little growth like:

10%
9.0%
9%

8% 7.5%
6.8%
7%
5.8%
6%

5% 4.7%
3.9% 4.1%
4% 3.3%
3.1%
3%
2.0% 2.0%
2%

1%

0%
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Source: Pakistan Economic Survey 2009-10

The inflation rate in Pakistan was last reported at 12.69 percent in June of 2010.
From 2003 until 2010, the average inflation rate in Pakistan was 10.15 percent
reaching an historical high of 25.33 percent in August of 2008 and a record low of
1.41 percent in July of 2003. Before the flooding, the IMF had forecast 11.5 %
inflation for fiscal year 2010-11. Inflation in Pakistan is expected to be 13.5% this
year because of the floods, the International Monetary Fund (IMF) said in its
country report September 21. And the impact on local food prices lifted inflation
to 13.2% in August, and it is likely to head towards 17% by the end of this year.
Increasing inflation causes prices of products high that weaving corporation
would print as well as the prices of machinery it would use.
Despite of above facts and figure it is surprisingly noticed that over the last two
decades, Pakistan has continued to offer much greater upward mobility to its
citizens than neighboring India. Since 1990, Pakistan's middle class had
expanded by 36.5% according to an ADB report on Asia's rising middle class
released recently. An ADB report on Asia's rising middle class released this
month confirms that Pakistan's middle class has grown to 40% of the population
Here are the details of income level in Pakistan as reported by ADB:

Daily Income......$2-$4.......$4-$10........$10-$20.....Over $20

Pakistan............32.94%......6.56%........0.62%........0.15%

It has been reported in many industry trade publications that despite the
downturn in the economy, Pakistani consumers are spending more and more of
their disposable income on their home, their life style, accessories etc. The
economic survey of Pakistan 2009-2010 has shown a meager increase in per
capita income of Pakistan. This is only a 0.4% rise according to the economic
survey of Pakistan which was release by Ministry of Finance, Pakistan.

Per Capita Income InPCI Previous

No. Year Growth Rate Of PCI
Dollars Year
1. 2009-10 $ 1051 $ 1046 0.4 %
2. 2008-09 $ 1046 $ 1042 0.3 %
3. 2007-08 $ 1042 $ 925 18.4 %
4. 2006-07 $ 925 $ 847 –
5. 2005-06 $ 847 $ 736 14.1 %
6. 2004-05 $ 736 $ 657 13.5 %
Age growth:

• 15–64 years: 54.9% (male 48,214,298; female 46,062,933) (2006 est.)

• 15–64 years: 59.1% (male 53,658,173/female 49,500,786) (2009 est.)

Generation Y is not brand loyal and the speed of the Internet has led the Net
Generation to be flexible and changing in its fashion, style consciousness. The
one-of-a-kindness attribute of personalized gifts and their durability is most
valued by Generation Y’s.
• The home has become the most desired status symbol and growing
portion of the Pakistani family’s discretionary spending is budgeted for the
home. The home market has been transformed from a largely functional to
a fashion business, thus allowing consumers to dress and decorate their
houses like they dress and accessorize themselves. Consumers want
products that reflect their tastes, values and sensibilities like:
Personalized picture frames can fit well on top.

• Increasing population of youth have become a major focuses of

businesses today because youth more fantasized by personalized stuff.

• In the past two years consumers spent more money on home furnishings.
Consumers are not just striving to make their homes more 'beautiful,'
rather they are seeking decorative items that can positively impact the
mood and emotional climate of their home.

• As their lives become more 'virtual' and dependent upon computers and
technology, consumers will seek out gifts and decorative products which
will help ground them in the 'real' world.

• Since 9/11 there is huge change in Pakistan environment war and terror
news, bomb blast people want to go out of it they have now keenly urge
for entertainment in their lives they want to feel true colors of their lives.

• People are some how become fade up of trendy clothes and home
accessories they have now turned to find individuality in things,
customization, and personalization.

• Fast moving pace makes people realize that there should be some thing in
life that’s last long people prefer stability with entertainment.

• There is a growing trend that people giving gifts, decorate their homes
more with personal stuff. They striving for giving and feel the personal
touch in every walk of life.
 • Now-a-days for many people, nothing beats the uniqueness and
thoughtfulness with the individual who gives out personalized presents.
And why not? Customized presents are created from the sincerity and
creativity of one individual.

• There is a growing trend of custom gifts because they are for all those
who value true human emotions and relationships of friendship and love.
Giving and receiving custom gifts marks the moment as unforgettable and
the person gifting as a much remembered and cherished individual and
that what people wants.

• The most popular gift occasions to give personalized gifts are birthdays
(27.9%), new babies (12.8%), anniversaries (8.6%), Mothers Day (8.5%),
Eid (6.6%), Fathers Day (6.3%), weddings (5.2%), Valentines Day (4.4%)
and engagements (4.0%).

• People give personalized gifts to those they know well. The highest
numbers of personalized gifts are given to partners/spouses (63.1%),
friends (43.8%), children (43.1%), parents (40.0%), and nieces/nephews
(24.6%),

• The most popular types of personalized gifts include jewelries (18.5%),

day of birth gifts (including astrology reports, newspaper front pages -
17.9%), art (usually involving photography of the recipient - 17.1%), books
(10.7%) and home décor (9.6%).

Therefore there is a great opportunity of market in this industry for WEAVING

CREATION.

”Sometimes it is not the size or the cost of the gift that matters but the
thought that has gone into it by the person presenting it is what really
increases its value in the eyes of the person on the receiving end.”