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A Project Report On

International Marketing Of Safety Footwear


At

SUPERHOUSE LIMITED
Submitted to
INSTITUTE OF MANAGEMENT SCIENCES, UNIVERSITY OF LUCKNOW

For Partial fulfillment of requirement for the On Job Internship Course In MBA (IB)

Under Guidance of: Mr. Mohd. Zeeshan PREFACE

Submitted By: XYZ

On Job training is an integral part of the MBA program. The main objective of the on job Training is to work in the Organization and gain the valuable knowledge of management skills that will be useful in the future career building. Due to this reason ON JOB TRAINING of eight weeks has been made an integral part of the syllabus of: - INSTITUTE OF MANAGEMENT SCIENCES, UNIVERSITY OF LUCKNOW, U.P. On Job training report is considered a major component of the training. Training remains incomplete till the report has been presented and / or written. The purpose of On Job training is not well served unless the findings and experiences gained are made known to other. Writing of report is the last step in the On Job Training Program. This report is result of whatever I have understood of the subject in my On Job internship training. I have tried my level best according to my capacity regarding the subject and I am presenting the same with dual sense in the sense that as somebody is interested to enter the export field this project can be utilized as preliminary guidelines. The subject of export is so wide and deep and hence I have tried to expose all important things related to that. Every attempt has been made to discuss the topics as lucidly and clearly as possible, according to my understanding. If any shortcomings remain the responsibility for these will be mine and hence any suggestion or opinion in this regard will be solicited to enable me to improve. The training has done under SUPERHOUSE LTD. UNNAO (U.P.). The On Job Training report, which is prepared after SEVEN WEEKS of training period, is here for the partial fulfillment for the award of the degree of MBA (International Business). The topic International Marketing of Safety Footwear was selected to understand the various activities involved in export department. In which we got there are many different process of export & production flow processes also. I hope this project will be found useful to anyone who likes to start export business.

ACKNOWLEDGMENT
It is very common to see that a mans quest of knowledge never ends. Theory and practical knowledge are essential and complimentary to each other. I am indebted and thankful for the assistance received from various individuals in making this project a success. The success of any project is never limited to the individuals undertaking the project. It is the cooperative effort of the people around an individual that spiel success. For all efforts, behind this successful project, I am highly intended to the following personalities without whom this project would ever be completed. I find no words to express my gratitude towards those who were constantly involved with me throughout development process. I am deeply indebted to Mr.Y.S. Rathore (HR Department) for giving me an opportunity to undergo training in the Marketing division of the company. I am very grateful to Mr. Mohd Zeeshan (Deputy General Manager, International Marketing) for his support, help & kind cooperation throughout my training period. I am also very thankful to Mr. Ajay Singh (Senior Executive, International Marketing) & other staff initiating my interest in the present topic, for providing me with his valuable suggestions & for always finding time for me from his busy schedule. I take this opportunity to thank Dr. Vimal Jaiswal (Course Coordinator), Dr. Avinash Bajpai (Placement & training in- charge) for their motivation, continuous support & guidance throughout the course. You all are the light that shows me the way. A Heartful thank to Superhouse Ltd.

(XYZ)

EXECUTIVE SUMMARY
Export industry is a knowledge driven industry. This project gives us overall idea about the basic procedures and formalities regarding export. Also an attempt to know about the feasibility to do export and its hurdles. This On Job training project is made by keeping in mind with multipurpose. The major aim is to high light how to start and export and import business and its registrations as well as the important areas of operations like export clearance and its documentation to avoid any eventualities. I have also thrown some lights on what, where and to whom to export. What are the factors to assess a market or a country so that exporter can avail the benefit? I have also explained about preliminaries and core elements of business plan. The Project is all about INTERNATIONAL TRADE which emphasizes on EXIM department. EXIM means export and import. All the export and import procedures were practically observed by me. I had especially observed documentation procedures in the SUPERHOUSE LTD. Some light is also thrown about foreign trade policy, its objectives, and its strategy. The various methods of payment are also described so that proper mode can be selected. I have tried my level best to explain regarding the importance of each and every incentive schemes and promotional schemes and its documentation. In this project I have explained about procedure for excise clearance under bond and under rebate as excise clearance has to be done accordingly as and without this clearance export cant be done. And hence it includes preparing of invoice, filling up A.R.E form (approval for removal of excisable goods), Application to assistant commissioner of central excise (ACCE), Information to range superintendent of central excise (RSCE), Deputation of inspector, processing of A.R.E form, refund, or release of bond. The whole procedure of export is explained in steps for ease. Also export cycle is explained that enhances knowledge. A brief idea on types of stuffing is also mentioned which includes stuffing and factory stuffing.

SUPERHOUSE LIMITED

BOARD OF DIRECTORS MANAGEMENT PHILOSOPHY OF THE COMPANY SUPERHOUSE GROUP OF COMPANIES

SuperHouse Limited
Established Work force Annual Turnover (Group) Total Production Capacity
Class of goods Shoe Upper Leather Hides Leather Skin Shoes Leathers products Textile Garments Animal Feed unit Pair Hides Pcs. Pairs Pcs. Pcs. Mt.

: : : :

14 jan.1980 5000 personnel US $120 million

Capacity(per Annum) Licensed Installed 10,00,000 9,12,000 14,20,000 9,00,000 15,00,000 46,60,000 50,000 11,00,000 900 17,50,000 33,15,301 N.A. 10,80,000 270

Actual production 2,57,774 3,63,120 14,30,976 24,55,247 85,090 7,05,414 123

Global Business:Unique Selling Proposition: Selling self manufactured products only Business Philosophy : Long-term Business Association Win Win policy

SUPERHOUSE LTD.
Head Office : D-15/B, Industrial Area, Phase II, Unnao - 209 801 Tel : (0515)-2829452, 2829657,2 829923 Fax : (0515)-2829190, 2829325 E mail: shoes@superhousegroup.com Website: http://www.superhousegroup.com

BOARD OF DIRECTORS
MR. Mukhtarul Amin
(Chairman & Managing Director)

Mrs.Shahina Mukhtar
(wholetime Director)

Mr. Vinay Sanam


(Executive Director)

Mr. Anil Kumar Agarwal


(Director(Finance))

Mr. S.M.Rais
(Director)

Mr. Mohd. Shadaab


(wholetime Director)

Mr. Zafarul Amin


(Joint Manging Director)

Mr. K.K. Agarwal


(Director)

Mr. Sartaj Ahmed


(Director)

Mr. Anil Soni


(Director)

Mr. N.C. Jain


(Director)

Mr.Kamal Agarwal
(Director)

Company Sacretary:

Mr. R. K. Agarwal

HEAD OFFICE-

SUPERHOUSE LTD. D-15/B,UPSIDC, Industrial Area Phase-2 Unnao-209801 150 Feet Road, Jajmau, Kanpur-208 010

REGISTERED OFFICE:

MANAGEMENT PHILOSOPHY OF THE COMPANY


The Company has well defined Vision, Mission & Values that the company follows on its path to success:

Vision And Mission


The last three decades have been dedicated to building strong foundations for Superhouse brick by brick: from infrastructure to technology, from solid relationships with employees to market acceptance. We are now poised to take the next giant leap to establish ourselves as the undisputed leader in leather products be it footwear or finished leather or leather accessories. Retaining our leadership through growth as a consequence of customer satisfaction is of paramount important to us. To achieve our vision, the framework for quality inputs and , processes is in place, and is constantly monitored and upgraded. Superhouse Group aims to constantly improve the quality of its products by fulfilling its customers expectations

Values
Care for all stakeholders. Continuous learning and growth. Commitment to excellence. Concern for society. Corporate governance based on trust and integrity.

SuperHouse Group
Fashion Shoe Division Unit- l Fashion Shoe Division Unit- ll AD-15,UPSIDC Industrial Area, Site-ll, 3,Export Promotion Industrial Park, Unnao-209801 Agra Fashion Shoe Division Unit- lll Fashion Shoe Division Unit- lV A-5,UPSIDC Industrial Area, Site-B, D-18,UPSIDC Industrial Area, Site-ll, Sikandra, Agra-282007 Unnao-209801 Tannery No. 1 Tannery No. 2 A-l, Site-ll Industrial Area, B-16,UPSIDC Industrial Area, Site-ll, Unnao-209801 Unnao-209801 Tannery No. 3 Tannery No. 4 B-17,UPSIDC Industrial Area, Site-ll, B-3,UPSIDC Industrial Area, Site-ll, Unnao-209801 Unnao-209801 Safety Footwear Division-l Safety Footwear Division-ll B-6,UPSIDC Industrial Area, Site-ll, 150 Feet Road, Jajmau, Unnao-209801 kanpur-208010 Upper Division Leather Garments 71-A,Jajmau C-10, Sector-58, Phase-ll, kanpur-208010 Noida Readymade Garments Division-l Readymade Garments Division-ll A-14 Sector-65, Phase-lll, A-5 Sector-59 Noida-201303 Noida-201303 Safety Garments Division B-6(ll),UPSIDC Industrials Area, Site-ll, Unnao-209801

PORTERS 5 FORCES MODEL

BARGAINING POWER OF SUPPLIERS Bargaining power of suppliers totally depends on the situation of market. BARGAINING POWER OF BUYER Bargaining power of buyer totally depends on the situation of the market and price of the product. Currently bargaining power of the buyer is very high. Due to China market because they provide cheaper product than us. THREATS FROM NEW ENTRANT China market is a great threat for new entrant as company is doing business with their fixed customers so it has fixed customers who will not change their supplier. And this company claims best quality in the market so new entrant cant be threat for SUPERHOUSE PRODUCTS. THREATS FROM SUBSTITUTES This company manufactures leather products (formal shoes, bags, belts etc) and there are no perfect substitutes for this.

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INTRODUCTION EVOLUTION OF THE INDIAN FOOTWEAR INDUSTRY OVERVIEW OF GLOBAL MARKET IN SAFETY FOOTWEAR PRODUCT-WISE BRANDS SOURCED FROM INDIA EXPORT SCENARIO FOR THE LAST 5 YEARS INDIAS LEATHER & LEATHER PRODUCTS EXPORT BASKET(2009-10) FUTURE OUTLOOK COMPETITIVE ADVANTAGES OF LEATHER INDUSTRY SCOPE OF LEATHER INDUSTRY UTTAR PRADESH

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INDIAN FOOTWEAR INDUSTRY OVERVIEW


Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. India produces more of gents footwear while the worlds major production is in ladies footwear. In the case of chapels and sandals, use of non-leather material is prevalent in the domestic market. Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market. The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. Design and Retail information is regularly made available to footwear manufacturers to help them suitably address the season's requirement. The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labour, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced 12

footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country. The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sector is the most significant segment of the Leather Industry in India.

India has emerged in recent years as a relatively sophisticated low to medium cost supplier to world markets The leather industry in India has been targeted by the Central Government as an engine for economic growth. Progressively, the Government has prodded and legislated a reluctant industry to modernise. India was noted as a supplier of rawhides and skins semi processed leather and some shoes. In the 1970s, the Government initially banned the export of raw hides and skins, followed this by limiting, then stopping the export of semi processed leather and encouraging local tanneries to manufacture finished leather themselves. Despite protestations from the industrialists, this has resulted in a marked improvement in the shoe manufacturing industry. India is now a major supplier of leather footwear to world markets and has the potential to rival China in the future (60% of Chinese exports are synthetic shoes). India is often referred to as the sleeping giant in footwear terms. It has an installed capacity of 1,800 million pairs, second only to China. The bulk of production is in mens leather shoes and leather uppers for both men and ladies. It has over 100 fully mechanised, modern shoe making plants, as good as anywhere in the world (including Europe). It makes for some upmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer (UK). The main markets for Indian leather shoes are UK and USA, which between them take about 55% of total exports. India has not yet reached its full potential in terms of a world supplier. This is due mainly to local cow leather that although plentiful, has a maximum thickness of 1.4 1.6mm, and the socio / political / infrastructure of the country. However, India is an excellent supplier of leather uppers. Importation of uppers from India does not infringe FTA with Europe or the USA. The potential is set to change albeit slowly, but with a population rivalling China for size, there is no doubt the tussle for world domination in footwear supply is between these two countries.

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INDIAN FOOTWEAR INDUSTRY


The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and nonleather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry. . Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. MNC Brands sourcedMNC Brands Sold in In-Indian Brands sold in Infrom India dia dia Acme, Clarks, ColeHann,Aldo, Bally, Clarks, Ecco,Red Tape, Bata, Liberty, Deichmann, Ecco, Ele-Florshiem, Ferragammo,Khadims, Lakhani, Metro, fanten, Florsheim, Gabor,Hush Puppies, LeeAction Hasley, Hush Puppies,cooper, Lloyd, Marks & Double H, Justin, Marks &Spencer, Nike, Nine West, Spencer, Nautica, Nike,New Balance, Reebok, Nunn Bush, Reebok,Rockport, Stacy Adams Salamander, Stacy Adams, Tony, Lama, Next, Bally US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years. 14

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness. The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located. There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal. Footwear Global Scenario and Indias share The global import of Footwear (both made of leather as well as non-leather) increased from US$ 59.77 billion in 2004 to US$ 87.23 billion in 2008, growing at a CAGR of 9.91%. During 2008, the Indias share in the global import is 1.76%. (In Million US$) 2004 2005 2006 2007 2008 Global import of Footwear59779.5267066.2172747.3580722.2987234.28 India's export of Footwear & Footwear Components 910.77 1045.24 1236.91 1489.35 1534.32 % Share of India 1.52% 1.56% 1.70% 1.85% 1.76% Source: ITC, Geneva & DGCI &S, Kolkata Footwear is the engine of growth of the leather industry in India. Indias export of Footwear touched US$ 1507.51 million in 2009-10, with a share of 44.33% in Indias total export from the leather sector. Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 9.58% in the last five years ending 2009-10 Indias Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. Today, Indias footwear export is valued at US$ 1507.51 million, constituting 44.33% share in total export of leather & leather products.

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Footwear exports have increased from US$ 82.56 million in 1979-80 to US$ 1507.51 million in 2009-10 Major Markets: During 2009-10, the main markets for Indian Footwear are UK with a share of 19.66%, Germany 14.88%, Italy 13.93%, USA 8.20%, France 9.58%, Spain 6.37%, Netherlands 4.32%, Portugal 1.50%, U.A.E 2.63% and Denmark 1.13.%. These 10 countries together accounts for 82.20% share in Indias total footwear export. Nearly 90% of Indias export of footwear goes to European Countries and the USA. Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear. Partnerships that spell success Formas Kunz Brazil - This facility is coming up in the Footwear Component Park. Chennai, India. Feng-Tay Enterprises Co. Ltd., Taiwan - This is an SEZ-proposed facility in an area of 275 acres, coming up in SIPCOT Industrial Estate, Cheyyar (TN). Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes for Nike and other global brands. Apache Footwear, China - This FDI is coming up in Tada Mandal, Nellore (AP), in an area of 340 acres. Apache is a supplier of shoes for Adidas and has manufacturing facilities in China. A few other examples are, Mondial (Italy), Suolificio Malaspina (Italy), Fagus(Germany), Zahonero Virgili SL, (Spain), Top Fondi (Italy), Xie Zhan Moulds (China) * India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology 16

and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.

OVERVIEW OF GLOBAL MARKET IN SAFETY FOOTWEAR


The major product segments analyzed are Athletic Footwear (Aerobic, Baseball, Basketball, Cricket, Cross-Training, Soccer, Running, Tennis, Walking, Hiking, Hockey, Athleisure, & Others), Outdoor/Rugged Footwear, Casual Footwear, Dress/Formal Footwear, safety Footwear and Footwear Accessories. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Middle East/Africa, and Latin America. Annual forecasts are provided for each region for the period of 2001 through 2015. A ten-year historic analysis is also provided for these markets with annual market analytics. The report profiles 849 companies including many key and niche players worldwide such as adidas AG, Reebok International, Bata Shoe Organization, Bata India Ltd., Brown Shoe Company, Inc., Deckers Outdoor Corporation, ECCO Sko A/S, Gucci Group, Kenneth Cole Productions, Inc., Lacrosse Footwear, Nike, Nine West Group Inc., Puma, R.G. Barry Corporation, San Paulo & Alpargatas, S.A., The Stride Rite Corporation, The Timberland Company, Vans, Inc., Weyco Group, Wolverine World Wide Inc., The Athletes Foot, The Finish Line, Inc., Foot Locker, Inc., Payless Shoe Source Inc., and The Sports Authority, Inc. Industrial demand Demand for Personal Protective Equipment (PPE) in the UK grew by 1.8% in the period 20032008 and reached 1,761 million. The UK is the second largest PPE market in the EU behind Germany and above other major countries France and Italy, accounting for 17% of total EU expenditure in 2007. The UK has the highest per capita expenditure on PPE of the major EU countries. Developments in the UKs market for PPE were: Increased penetration of imports from low-cost countries replacing lower national production, especially in protective footwear, followed by work wear. For example, approximately 90% of high-visibility garments worn in the UK are imported. This development keeps prices down. On the demand side, a downturn in market-services, manufacturing and construction. Progress in market value was partly a result of a high level of product innovation. Increasing awareness by corporations, especially SMEs, of the need to protect employees. Market size, in terms of volume, for the distinguished product groups is not measured by the regular statistical sources, because the variety in products is extremely high. The market for safety footwear can be estimated at 9.2 million pairs and the market for safety helmets at 12.3 million units.

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Imports of safety footwear by the UK decreased 4% in volume to 9.9 million pairs and 0.1% in value to 127.5 million, during the period 2005-2007. 76% of the imported volume by the UK came from DCs and 20% from other EU countries in 2007. In 2005, these percentages were respectively 81 and 18. China remained the leading supplier of safety footwear to the UK and exported 5.8 million pairs at 10.93 in 2007 against 5.9 million pairs at 9.96 in 2005. However, 5.0 million pairs at 11.77 per pair came from China in 2006. Tunisia remained the second largest exporter to the UK and exported 1.1 million pairs (at 13.29), followed by Italy 632 thousand pairs at 20.98 and India 471 thousand pairs at 14.56. The average import price of safety footwear with leather uppers (accounting for 95% of total imported safety footwear) was 13.81 per pair in 2007 and 12.97 in 2005 and respectively 11.88 and 11.34 per pair for imports from DCs. It is axiomatic to say globally, the footwear industry has an expanding market. World population increases, living standards rise, so does the demand for footwear. The following charts published by SATRA (Shoe and Allied Trades Research Association, UK) show the trends. The largest market for footwear in terms of pairs is Asia including the Indian sub continent. The figures for global footwear consumption (2002) and forecast to 2008 are as Follows:

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Export Scenario for the last 5 Years

Indias Leather & Leather Products Export Basket(2009-10)

Country-wise share in Total Leather & Leather Products Exports


19

(2009-10)

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SCOPE OF LEATHER INDUSTRY UTTAR PRADESH


U.P. is one of the most important states in India holding sizeable population of live stock. Claiming a share of 22% U.P. ranks Ist in case of Buffalo and IInd in case of Cattle having a share of 12% . With regards to Goat and Sheep it has IVth and VIIth position respectively. Thus, U.P. has a very strong raw material base and all types of main raw material for leather industry are available. Major production centers and Number of leather and leather products industries in U.P. are to the tune of approx. 11500 of which Kanpur and Agra are the two famous production centres in the world. Kanpur is a prominent centre for leather processing. About 200 tanneries are located in Kanpur. Kanpur tanneries specialize in processing hides into heavy leather (Sole, harness and Industrial leather). This is the only centre in India where saddlery products are manufactured. Agra has been the biggest centre for shoe-manufacturing in the country. Apart from these traditional centers for leather and leather products manufacturing in U.P., NOIDA has recently emerged as another major centre especially for leather footwear and leather garments. NOIDA provides very good infrastructural facilities and establishment of FDDI in NOIDA is expected to promote more footwear. Meerut is another centre for production of sports goods.

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SWOT Analysis of Indian Footwear Industry


STRENGTHS Existence of more than sufficient productive capacity in tanning. Easy availability of low cost of labour. Exposure to export markets. Managements with business background become quality and environment conscious. Presence of qualified leather technologists in the field. Comfortable availability of raw materials and other inputs. Massive institutional support for technical services, designing, manpower development and marketing. Exporter-friendly government policies. Tax incentives on machinery by Government. Well-established linkages with buyers in EU and USA. WEAKNESSES Low level of modernisation and up gradation of technology and the integration of developed technology is very slow. Low level of labour productivity due to inadequate formal training / unskilled labour. Horizontal growth of tanneries. Less number of organised product manufacturers. Lack of modern finishing facilities for leather. Highly unhygienic environment. Unawareness of international standards by many players as maximum number of leather industries are SMEs. Difficulties in accessing to testing, designing and technical services. Environmental problems. OPPORTUNITIES Abundant scope to supply finished leather to multinationals setting up shop in India. Growing fashion consciousness globally. Use of information technology and decision support software to help eliminate the length of the production cycle for different products Product diversification - There is lot of scope for diversification into other products, namely, leather garments, goods etc. Growing international and domestic markets. THREATS Entry of multinationals in domestic market. Stiff competition from other countries.(The performance of global competitors in leather and leather products indicates that there are at least 5 countries viz, China, Indonesia, Thailand, Vietnam and Brazil, which are more competitive than India.) Non- tariff barriers - Developing countries are resorting to more and more non tariff barriers indirectly. Improving quality to adapt the stricter international standards. Fast changing fashion trends are difficult to adapt for the Indian leather industries. Limited scope for mobilising funds through private placements and public issues, as many businesses are family-owned. 22

GENERAL OVER VIEW SUPERHOUSE HISTORY

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INTRODUCTION OF SUPERHOUSE LTD.

GENERAL OVER VIEW:


Superhouse Group is a multi- unit and multi- product conglomerate with brand leadership in the field of footwear manufacturing and exports. The Group is well equipped with the most modern machineries and a specialized workforce and produces all types of quality leather, leather goods and textile garments that are appreciated all over the world. A US $75 million group, Superhouse Group has 15 units, with a workforce of over 5000 and a presence in more than 35 countries. Our commitment to quality is reaffirmed by our ISO 9002 certification. Stringent EN 345-norms make us one of the most respected manufacturers amongst importers from European countries. Being equipped with requisite infrastructure and strict adherence to high standards of quality, we are able meet CSA, ANZ & and SABS standards. A perfect blend of highly technical, skilled and semi-skilled workforce and competent managers has helped us in carving out an enviable position for ourselves in the global market. Nine state-of-the-art units involved in manufacturing footwear and Shoe accessories, are ably backed by our marketing offices strategically located in the USA, the UK, the UAE and Romania. Our four modern tanneries provide us with the finest quality leather for our footwear production. To meet the exacting demand of clients we also import leather from Brazil, Italy and Columbia. The Group has two leather goods manufacturing units including leather garments units. The Group is also engaged in the manufacturing and export of Readymade Garments and Riding Products. In addition, we are approved vendors for global brands such as Wal-Mart, Filanto, Auchan, Andre, Shoe Fayre, Hudson Bay, Heckel Securite, Secura and many more. Our existence in the trade for over three decades has given us a wealth of knowledge, which allows us to offer our customers the maximum in choice, value and quality.

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SUPERHOUSE HISTORY
Superhouse Group is a conglomeration of several companies engaged in manufacturing and export of finished leather, leather products and textile garments. The parent company, Aminsons Leather Finishers Pvt., was incorporated as private limited company on January 14, 1980. It was converted into a public limited company on December 22, 1984 and its name changed to Aminsons Limited on February 21,1989. In addition, five group companies - Superhouse Limited, Super Garments Limited, Sharp Leathers Limited, Super Footwear Limited and Allen Shoes Limited - were merged with Aminsons Limited in 1994, 1995 and 1996 as per the orders of the Honble High Court of Judicature, Allahabad. The name of the company was changed to Superhouse Leathers Limited on March 4,1996 and finally Superhouse Limited on November10, 2006 with the approval of the Registrar of Companies, Kanpur (U.P.). From a single tannery in the 1980s producing finished leather, Superhouse Group has emerged as one of the largest players in the industry. We started with a commitment to excel, achieve and deliver the very best. Towards this end, we engineer, optimize and control every phase of the manufacturing process from raw material to finished products to ensure that end products are of the highest quality and also the best value for money for our clients. The Group have four overseas companies in the UK, the U.S.A., the U.A.E. and Romania, primarily engaged in marketing and distribution of leather, leather products and textile garments. The group has crossed an annual turnover of Rs. 4,000 million. The Group has 15 manufacturing units located in Kanpur, Unnao, Agra and Noida

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TYPES OF SAFETY SHOES REQUIREMENT OF SAFETY FOOTWEAR QUALITY ASSURANCE IN SAFETY FOOTWEAR PRODUCTION PROCESS

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SAFETY FOOTWEAR
Protective footwear shall be worn to protect from falling objects, chemicals, or stepping on sharp objects. Safety shoes are used to protect the feet against injuries from heavy falling objects, against crushing by rolling objects, or against lacerations from sharp edges. Safety shoes are required for employees whose job duties require the lifting, carrying, or moving, etc., of objects weighing more than fifteen (15) pounds, which, if dropped, would likely result in foot or toe injury. Examples of job classifications likely to require safety shoes or boots include, but are not limited to, carpenters, welders, electricians, plumbers, maintenance mechanics, laborers, grounds workers operating power machinery or tools, and power plant maintenance workers. En345 defines safety footwear as footwear fitted with safety toe-cap intended to deliver protection against impacts with an energy level equal to 200 J. The toes are subjected to a falling weight of 20 kg from a height of 1 meter. Six or eight-inch safety shoes are recommended for employees involved in activities which include, but are not limited to, climbing, crawling, construction and demolition.

Types of safety Shoes


Wearing the right type of foot protection can reduce the possibility of injury to the foot. Many people avoid wearing safety shoes because they believe they are uncomfortable or costly. However, this is not the case, Superhouse creates safety shoes that are both affordable and comfortable. These shoes also come in a wide array of styles. 1. Safety Toe Safety-toe shoes are shoes in which the toe area is reinforced with a cap. These shoes are lighter than steel-toe shoes but still offer protection for the toes. 2. Steel Insoles Shoes with steel inserts are meant to protect those who have toe joint problems. They work by stabilizing the toe to prevent it from moving while walking. 3.Metal Instep Guard Shoes with metal instep guards are meant to protect the foot from nails or other sharp items that might puncture the shoe. These are also available in combination with steel-toed shoes. 4.Steel-Toed Boots Steel-toed boots are made with a toe that is reinforced with steel. These shoes are common among construction sites, and other jobs that require work with heavy lifting or machinery. 5.Plastic Shoe Covers Plastic shoe covers are made with elastic to hold the shoe in place. These covers go over the normal shoe to protect the floor and area from germs. They are common in hospitals and daycares.

Requirement of safety footwear27

Safety footwear required due to following reasons: 1. Severely aching feet blisters, calluses, corns, hard flooring, rheumatism, arthritis, malformations of toes, fallen arches (flat feet), bunions, sprains 2. Long periods of standing, hard flooring, and poorly fitted footwear: high heels, pointed shoes, lack of arch support, too loose or too tight footwear 3. Sweaty feet, fungal infections (Athletes Foot) 4. Hot and humid environment, strenuous work, footwear with synthetic (non-porous) uppers 5. Safety footwear shall conform to ANSI Z41.1-1967 Class 75, and subsequent revisions. Need of Safety footwear- For protection of feet from falling or rolling objects, sharp objects,molten metal, hot surfaces, and wet slippery surfaces workers should use appropriate safety shoes, or boots. To meet globally what are Safety Footwear StandardThere are the following standard that SUPERHOUSE GROUP PVT LTD follows to meet globally; ISO-9001-2000 (International Standard)

EN: 20345 : 2004 / A1: 2007 ( European Norms) AS/NZS ISO 9002:1994 (Australian and New Zealand norms) CSA-Z195-M92 (Canadian Norms) ANSI-Z41-1999 (American Norms)

Quality Assurance in safety footwear- Superhouse Group is committed to continuous Research and Development, technological innovation, up-gradation and improvements to achieve ever-higher standards of quality.

The Quality assurance facilities of the Group: * * * * * * * Separate Research and Development Departments for every factory. Separate Design Centers for Shoes, Bags, and Garments. Specialized design center in China. Renowned designers from various countries. CAD-CAM facilities at shoe factories. State-of-the-art laboratories at the tanneries. R & D and design centers.

Production process
Shoemaking can be considered a traditional handicraft profession. However, now it has been 28

largely taken over by industrial manufacture of footwear. A variety of materials are used for making shoes- leather fabrics, plastic, rubber, fabrics, wood, jute fabrics, and metal. More than 200 operations are required for making a pair of shoes. However, with the development of modern machines, a pair of shoes can be made in very less time as each step in its manufacturing is generally performed by a separate footwear making machine. Footwear can be defined as garments that are worn on the feet. Their main purpose is protecting one's feet. Of late, footwear has become an important component of fashion accessories. Although, their basic purpose remains that of protection, adornment or defining style statement has become their additional and a significant function. There are many types of footwear- shoes, boots, sandals, slippers etc. They are further categorized into many more types. Parts of a Shoe A Safety shoes consists of sole, insole, outsole, midsole, heel, and vamp (upper). They are the basic parts of a shoe that are mostly included in all types of shoes. Other parts of a shoe are lining, tongue, quarter, welt and toe-cap. These parts are included as per the design of the shoes. Sole: The exterior bottom part of a shoe is the sole. Insole: The interior bottom of a shoe, which sits directly beneath the foot, is its insole. They can be removable and replaceable too. In some of the shoes, extra insoles are often added for comfort, health or other reasons, such as to control the shape, moisture, or smell of the shoe. Outsole: It is that layer of the shoe that is in direct contact with the ground. These can be made of various materials like leather, natural or synthetic rubber etc. Often the heel of the sole is made from rubber for durability and traction and the front is made of leather for style. Special purpose shoes often have refined modifications, for example, athletic cleats have spikes embedded in the outsole to grip the ground, dance shoes have much softer or harder soles. Midsole: The layer that lies between the outsole and the insole for shock absorption, is the midsole. Some special shoes, like running shoes have other materials for shock absorption, that usually lie beneath the heel where one puts the most pressure down. Materials used for midsoles depend on the shoe manufacturers. Some shoes can be made even without a midsole. Heel: The rear part at the bottom of a shoe is the heel. It supports the heels of the feet. Heels of a shoe are often made from the same material as the sole of the shoe. It can be high for fashion purpose or for making a person look taller. They are also flat for comfort and practical use. Vamp or upper: The upper part of a shoe that helps in holding the shoe onto the foot is the vamp or simply called the upper. This part is often embellished or given different styles to make shoes attractive. 29

Lining; a Vamp lining: covering the inner surface of the forepart of upper. b Quarter lining: covering the inner surface of the quarters of the upper. Cleats; protruding part of the outer surface of the sole. Safety toe-cap; footwear component built into the footwear designed to protect the toes of the Wearer from impacts up to energy level of at least 15KN Seat region; back part of the footwear (upper & sole)

Shoe Making Process A footwear company has mainly four departments in which a progressive route is followed for producing finished shoes. These ares1. 2. 3. 4. 5. Clicking or Cutting process Closing or Stitching process Lasting & Making process Molding process Finishing / packaging process

Clicking or Cutting ProcessIn this department, the top part of the shoe or the "upper" is cut. The clicking operative is given skins of leather, mostly buffalo leather but not restricted to this type of leather. Using metal strip knives, the worker cuts out pieces of various shapes that will take the form of "uppers". This operation needs a high level of skill as the expensive leather has to be wasted at the minimum level possible. Leather may also have various defects on the surface such as barbed wire 30

scratches which needs to be avoided, so that they are not used for the uppers. The patterns for the vamp, straps and quarter (which make up the upper) of the sandal were cut out on paper and the cut outs served as a guide to cut out the patterns from the materials to be used for the upper. This process is very essential process as 60% of the production depends on it.

Defects found in clicking process Proper Cutting Leather damage Poor quality Skin fault Loose leather

Closing or Stitching ProcessHere the component pieces are sewn together by highly skilled machinists so as to produce the completed upper. The work is divided in stages. In early stages, the pieces are sewn together on the flat machine. In the later stages, when the upper is no longer flat and has become threedimensional, the machine called post machine is used. The sewing surface of the machine is elevated on a post to enable the operative to sew the three dimensional upper. Various edge 31

treatments are also done onto the leather for giving an attractive look to the finished upper. At this stage only, the eyelets are also inserted in order to accommodate the laces in the finished shoes. The closing process also involves attaching all the cut patterns of the upper with glue and stitching them, when the glue got dry. The upper was also lined with synthetic leather to enhance comfort and durability.

Defects found in Closing process Proper alignment of upper Stitching quality Cleanliness Labeling Attaching of components Eye letting D-ring

Lasting ProcessThis process involved correctly positioning the attached and stitched uppers on the last and then attaching the upper to the insole. To attach the insole to the upper, the inner part of the insole had to be made blunt to make for easy application of glue using the bench grinder After make the inner surface blunt, the insole was attached to the upper through the use of the evostick glue. The last remains in between the insole and the upper during the process. The toe cap area of the upper, had a piece of steel toe attached to the inner this serves as an 32

internal toe guard. The completed uppers are molded into a shape of foot with the help of a "Last". Last is a plastic shape that simulates the foot shape. It is later removed from the finished shoe to be used further in making other shoes. Firstly, an insole to the bottom of the last is attached. It is only a temporary attachment. Sometimes, mostly when welted shoes are manufactured, the insole has a rib attached to its under edge. The upper is stretched and molded over the last and attached to the insole rib. After the procedure completes, a "lasted shoe" is obtained. Now, the welt- a strip of leather or plastic- is sewn onto the shoe through the rib. The upper and all the surplus material is trimmed off the seam. The sole is then attached to the welt and both are stitched together. The heel is then attached which completes the "making" of the shoe. That was the process for heeled shoes. When a flat shoe is in the making, there are considerably fewer operations. The insoles in this case is flat and when the uppers are 'lasted', they are glued down to the surface of the inner side of the insole. The part of the upper, that is glued down, is then roughed with a wire brush to take off the smooth finish of the leather. This is done because rough surface absorbs glue to give a stronger bond. The soles are usually cut, finished and prepared as a separate component so that when they are glued to the lasted upper, the result is a complete and finished shoe. Soles can also be pre-molded as a separate component out of various synthetic materials and again glued to the lasted upper to complete the shoe.

Defects found in lasting process Grain problem Tongue sticker & insole sticker should be of same size Quarter & vamp attachment Strobelling Vamp lining not loose Back height should be equal

Molding ProcessWith more than a decades experience in the area under its belt, Superhouse produces safety footwear on different constructions such as Direct Injection pu/pu, pu/tpu, pu/rubber (made on most sophisticated machines from Desma Germany and CIC Ralph vulcanized machines from the UK) and Goodyear welted footwear with a traditional construction on rubber and leather soles. These are the certain methods that Superhouse adopt to mould a shoes or different types of construction process 33

Direct Injection PU/PU , PU/TPU and PU /Rubber Direct Vulcanized Rubber Genuine Goodyear Welted. Cement Construction.

.a Direct Injection PU/PU ,PU/TPU and PU/RubberThe direct-molded process allows manufacturers to produce a fully assembled shoe in one step. The inherent adhesive property of polyurethane is used in combination with a shoe upper in a closed mould. This process is typically used for reaction injection PU but can equally be used for TPU. Using the direct injection process, the shoe maker can adjust the color, density and hardness of the sole and produce multi-layer soles (three colors and densities) in one step, on a single machine. In this method the direct injection of sole on the upper portion of the shoes with the help of Desma machine from Germany as well as by pouring machine known as Gusberti Machine. In the manufacturing process, shoe soles are direct molded onto uppers. If the bottom of the sole requires enhanced mechanical properties, a thin layer of almost compact polymer is molded in combination with a midsole to create a dual density sole which is light, comfortable and hardwearing. In this DESMA machine 18 pairs of shoes can be prepared at a time so it contains 36 components while in Gusbarti machine there is 24 components that is it can produces 12 pairs at a time. PU that is polyurethane is formed by the reaction of Polyol and glycol. These two combines and form the PU. By the help of DESMA many combination of sole is being prepared like PU/PU, PU/TPU and PU/Rubber. b Direct Vulcanized RubberIn this type of construction a direct Vulcanization of rubber takes place in this method the rubber is firstly heated at high temperature so that the upper can be easily attached on the sole. c Genuine Goodyear WeltedGoodyear welted men's shoes are produced by a procedure that was discovered 300 years ago. These shoes are highly adaptable to any style, and are flexible, durable and comfortable. We have acquired the art of manufacturing Goodyear welted shoes from Northampton shire, which is the most renowned center of manufacturing Goodyear welted shoes in the world. Our Goodyear welted shoes are the choice of aristocracy, the rich and famous, the elite and celebrity all over the world. Our product range include classics, riding, hunting, western, biking and safety. d Cement ConstructionThis is the oldest method of safety footwear construction. In this method an adhesive material is being pasted on the sole of the rubber or PU then the attachment of the upper portion takes place. In this proper rouging should be done so that there should be no bubble in between the sole & upper. e Stitchdown (also known as Veldt or veldschoen) A cheaper method used to produce lightweight flexible soles for children's shoes and some 34

casual footwear. Here the upper turned out (flanged) at the edge of the last and stitched to the runner. In some countries it is known as 'veldt' and 'veldtschoen.' The technique is used for lower priced footwear. Defects found in Molding process Bubbling in Insole Logo of the company Size of the sole is equal or not Bounding of upper Back height Proper cleats height Finishing & packingThe finishing of a shoe depends on the material used for making it. If made of leather, the sole edge and heel are trimmed and buffed to give a smooth finish. To give them an attractive finish and to ensure that the edge is waterproof, they are stained, polished and waxed. The bottom of the sole is often lightly buffed, stained and polished and different types of patterns are marked on the surface to give it a craft finished look. A "finished shoe" has now been made. Before the packing the final inspection has been done in the Superhouse and if any shoes is found defective then it is send to that particular department for improvement. Specific defect to specific department. If the defect is small enough to be repaired then they repair the defect like roughness in the outsole they remove it. In the final inspection near about 4-5 pairs has been found per 100 pairs of shoes. For shoe room operation, an internal sock is fitted into shoe which can be of any length- full, half or quarter. They usually have the manufacturers details or a brand name wherever applicable. Depending on the materials used for the uppers, they are then cleaned, polished and sprayed. Laces and any tags that might have to be attached to the shoes, such as shoe care instructions, are also attached. The shoes, at last, get packaged in boxes.

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OVER VIEW OF INTERNATIONAL TRADE MEANING OF INTERNATIONAL TRADE NEED FOR INTERNATIONAL TRADE IMPORTANCE OR INTERNATIONAL TRADE FOR INDIA EXPORTS IMPORT EXPORTS BY COUNTRY MAP

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OVER VIEW OF INTERNATIONAL TRADE


International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. International trade is a major source of economic revenue for any nation that is considered a world power. Without international trade, nations would be limited to the goods and services produced within their own borders. The International trade has been growing faster than world output indicates that the international market is expanding faster than domestic market. There are indeed many Indian firms too whose foreign business is growing faster than the domestic business, Business, in fact, is increasingly becoming international or global in its competitive environment, orientation, content and strategy intent.

Meaning of International Trade


International Trade could be defined be defined as expansion of economic activities beyond the political boundaries of nation. It is step towards Globalization. It involves increasing economic interdependence between different nations of the world. To streamline it, it is movement of goods, services capital technology & information from one country to other.

Need for International Trade


A firm basically moves to foreign markets when it gets more than domestic market trade. 1) Insufficiency of Domestic Demand or fuller utilization of capacity installed. 2) Legal restrictions impose on certain firm on further growth & expansion ill domestic market. 3) Relative profitability as compare to domestic business. 4) Reduction of business risk owing to diversification of markets.

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Importance or International Trade for India


No country today can survive in isolation. No matter how strong & resilient its economy is but no country could be self sufficient in each and every thing. It has imported certain good from other country and exports its surpluses. Thus in todays scenario when the world economy is in transition to turn Global International Trade has become inevitable. Looking it from Indian Perspective the importance of it could be emphasized as below:1) To meet import of industrial need i.e. capital equipment, raw material, Technical knowledge etc. for the development of economy. 2) To export the surplus production of agricultural products like Rice, Wheat and Tea etc. To earn valuable foreign exchange to meet import requirement. 3) Export and economic development of country are interrelated. Without export, Indias economic development could not be imagined. 4) Opening up of foreign market increases its economic level of economic activities. Export plays a vital role in increase in national income of country. Hence, India should emphasize on export promotion. 5) There are many allied services associated with it and thus it creates a lot of employment opportunities in the field of clearing and forwarding, vessel booking, Indent placement etc. and also by setting up of new export oriented units. 6) Increases the standard of living of community owing to availability of best quality good at cheapest price. Moreover exports leads to rapid industrialization which in turn leads to increases in standard of living. Thus on the economic front to International Trade is very important from Indias point of view.

ExportsThe Export of Indian Leather has increased over the years mostly after decontrol, giving the much-required boost to the industry. India is a major exporter of leather and leather products. It accounts for 2 percent of world trade in leather and leather related products and 10 percent of leather raw material available in the world. Leather exports account for 7 percent of Indias export basket. US and some European countries to ether account for 80 percent of Indias leather products exports. New market being developed includes South Africa, Australia, New Zealand, Canada, Japan, Spain, Portugal, and Saudi Arabia.

Import The Export-Import policy offers facilities for the import of raw materials, parts, components other inputs and the capital goods to facilitate production of goods for the purpose of promotion of exports. Many a time, an export firm is required to make import of the various inputs and machines for the purpose of export production. The facility of import is allowed under the following categories: 1. Import of unrestricted items 2. Import of restricted item 3. Import of capital goods 38

Exports by country map

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INTRODUCTION RISKS UNIQUE TO EXPORTING FUNCTIONS INVOLVED IN EXPORT PROCESS BASIC PLANNING FOR EXPORT EXPORT CYCLE FOREIGN TRADE POLICY OF INDIA TYPES OF EXPORTERS CHOOSING APPROPRIATE MODE OF OPERATIONS CORE ELEMENTS OF BUSINESS PLAN FOR EXPORT WHAT TO EXPORT? WHERE TO EXPORT? TO WHOM TO EXPORT? FACTORS FOR ASSESSING MARKET NEGOTIATING CONTRACT

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Introduction
How to Start Export is a fair question that every first time exporter wants to ask. Export in itself is a very wide concept and lot of preparations is required by an exporter before starting an export business. A key success factor in starting any export company is clear understanding and detail knowledge of products to be exported. In order to be a successful in exporting one must fully research its foreign market rather than try to tackle every market at once. In very simple terms, Export may be defined as the selling of goods to a foreign country. However, As per Section 2 (e) of the India Foreign Trade Act (1992), the term export may be defined as 'an act of taking out of India any goods by land, sea or air and with proper transaction of money. Advantages of Exporting: Opportunity to expand market share Earn foreign exchange Increase production Decrease dependence on domestic sales or compensate for stagnating domestic market Diffuse domestic competition by expanding into less competitive foreign markets. Follow domestic leaders into foreign market to reduce foreign market research costs. Competition in international markets stimulates exporters to adapt their products to the needs of the market, leading to an improvement in their level of technological know-how.

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Risks unique to Exporting


Repartition of profits from the target country may be constrained or forbidden. Fluctuations in exchange rates may decrease or eliminate profits, or even result in losses. In cases of non-payment or other contractual problems, there may be question of jurisdiction; i.e. Indian courts may not be able to enforce contracts between parties in different countries. Instability in the target country can lead to losses from war or nationalization by the foreign government. The product may not be accepted in foreign market.

Preliminaries:
Readiness to cope with pressures Firm determination Top managements commitment

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Functions involved in export process


1. Feasibility analysis: Analyze domestic performance Assess the firms capacities Consider the demographic and the social, political and economic factors of the target market Confer the international trade experts Select target markets. 2. Planning foreign market entry: Conduct market research Evaluate market research Plan market entry strategy Comply with target country licensing, standards and certification requirements. File for the necessary patent, trade mark and copyright protection. Identify taxes, tariffs, duties quotas or other non-tariff trade barriers. Establish pricing schedule.

3. Implementation: Determine methods of distribution Establish marketing methods Choose sales representative or sales method Negotiate financial instruments Obtain insurance over Complete the required paperwork Package and label the product

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Basic Planning For Export


Before starting an export, an individual should evaluate his companys export readiness There are several methods to evaluate the export potential of a company. The most common method is to examine the success of a product in domestic market. One should also evaluate the unique features of a product. Once a businessman decides to sell his products, the next step is to developing a proper export plan. EXPORT PLAN: The main objective of a typical export plan is to:

Identifies what you want to achieve from exporting. Lists what activities you need to undertake to achieve those objectives. Includes mechanisms for reviewing and measuring progress. Helps you remain focused on your goals.

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Foreign Trade Policy of India


Introduction: To become a major player in world trade, a comprehensive approach needs to be taken through the Foreign Trade Policy of India. Increment of exports is of utmost importance, India will have to facilitate imports which are required for the growth Indian economy. Rationality and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the new Foreign Trade Policy of India, the past policies should also be integrated to allow developmental scope of Indias foreign trade. This is the main mantra of the Foreign Trade Policy of India. Objectives: Trade propels economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity. The Foreign Trade Policy of India is based on two major objectives, they are To double the percentage share of global merchandise trade within the next five years. To act as an effective instrument of economic growth by giving a thrust to employment generation. Strategy: Removing government controls and creating an atmosphere of trust and transparency to promote entrepreneurship, industrialization and trades. Simplification of commercial and legal procedures and bringing down transaction costs. Simplification of levies and duties on inputs used in export products. Facilitating development of India as a global hub for manufacturing, trading and services. Generating additional employment opportunities, particularly in semi-urban and rural areas, and developing a series of Initiatives for each of these sectors. Facilitating technological and infrastructural up gradation of all the sectors of the Indian economy, especially through imports and thereby increasing value addition and productivity, while attaining global standards of quality. Neutralizing inverted duty structures and ensuring that India's domestic sectors are not disadvantaged in the Free Trade Agreements / Regional Trade Agreements / Preferential Trade Agreements that India enters into in order to enhance exports. Up gradation of infrastructural network, both physical and virtual, related to the entire Foreign Trade chain, to global standards. Revitalizing the Board of Trade by redefining its role, giving it due recognition and inducting foreign trade experts while drafting Trade Policy.

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TYPES OF EXPORTERS
Exporters can be basically classified into two groups 1. Manufacturer Exporter: As the exporter has the facility to manufacturer the product, he intends to export and hence he exports the products manufactured by him. 2. Merchant Exporter: An exporter may not have the facility to manufacture an item. But, he procures the same from other manufacturers or from the market and exports the same. An exporter can be both a manufacturer exporter as well as a merchant exporter, he can export product manufactured by him or he can export items bought from the market.

CHOOSING APPROPRIATE MODE OF OPERATIONS


You can choose any of the following modes of operations: 1. Merchant Exporter i.e. buying the goods from the market or from the manufacturer and then selling it to foreign buyers. 2. Manufacturer Exporter i.e. manufacturing the goods yourself for export. 3. Sales Agent / Commission Agent / Indenting Agent i.e. acting on behalf of the seller and charging the Commission. 4. Buying Agent i.e. acting on behalf of the buyer and charging Commission. 5. Service provider i.e. providing service from India to another country.

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Core Elements of Business Plan for Export


Executive summary Current situation Objectives Management Description Market analysis Target customers Existing competition Focus group research Calculated risk Pricing/profitability Methods of distribution Selling tactics Advertising Public relations Business relationships Manufacturing plan Financial projections Twelve month budget Five year income plan Cash-flow projection Balance sheet Break-even analysis Source and use of funds Use of proceeds Conclusions Appendix

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WHAT TO EXPORT?
It is necessary to select very carefully the products to be sold in any particular market. The selected products must be in demand in the country where the product is to be sold. Exporter should select the product that can be manufactured and sourced with consistent standard quality at least equal to that of competitors. The exporter should take care of the following points while choosing the commodity which he wants to export: 1) Government of India policy and regulations in respect of commodities. 2) Matching of product features with market including technical specification if possible as per ISO standard should be accepted. 3) Import regulations in respect of such commodities by the importing countries. 4) Availability and profitability of such commodities. 5) Rates of duty drawback and import replenishment in respect of such commodities. 6) Demand in the foreign market and desirable variations in quality and design that the market demands. 7) Quota fixation in respect of such commodities in both countries. 8) Knowledge about competitive position, market penetration level and experience in respect of such commodities of other exporters from different countries. 9) Whether such commodities enjoy tariff preferences or not, in the importing country? 10) Seasonal aspects of the product and lead time. 11) Suitable packaging and labeling. 12) Mode of transport and suitability of logistics.

WHERE TO EXPORT?
The target markets should be selected after consideration of various factors like past performance, market size political embargo, scope of export of selected product, demand stability, preferential treatment to products from developing countries, market penetration of competitive countries and products, distance of potential market, transport problems, language problems, tariff and non-tariff barriers applicable, distribution infrastructure, size of demand in market, expected life span of market and product requirements, sales and distribution channels.

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FACTORS FOR ASSESSING MARKET


Demographic and Physical environment Political environment Economic environment Technological environment Social and Cultural environment Market Access Product Potential

HOW TO ASSESS A COUNTRY


Any exporter venturing into an overseas market is exposed to a number of risks which may or may not be prevalent in domestic trade. Information on the overseas market may be scanty as well as the geographical distance between the sourcing country and receiving country compounds the already difficult situation. Yet supplying to overseas markets is attractive for many an exporter not only to earn valuable foreign exchange for himself but also for the country. This is mainly on account of fact that the exporter has all the means of efficiently manage his risks which are fraught with such transactions. There are variety of factors that can be examined to determine whether a country is fairly good risk to deal with. Some of them are described below: Political stability/instability Gross domestic product Inflation Exchange rates Foreign trade Import cover Balance of payment External debt International reserves Late payment experience International ranking ECGC rating

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TO WHOM TO EXPORT?
Getting address of the Overseas Buyers The exporters can collect addresses of the prospective buyers of the commodity from the following sources: Enquiries from friends and relatives or other acquaintances residing in foreign countries. Visiting/participating in International Trade Fairs and Exhibitions in India and abroad. Contact with chambers of commerce, the export promotion councils, commodity boards and other Government agencies. Consulting International Yellow Pages by Dun & Bradstreet, USA. Collecting information from international trade directories/journals/periodicals Making contacts with trade representatives of overseas governments in India and Indian trade and other representatives/international trade development authorities abroad. Reading biweekly, fortnightly, monthly bulletins. Visiting embassies, consulates, etc. of other countries Advertising in news papers having overseas editions and other foreign newspapers and magazines, etc. Consulting ITPO, IIFT, etc. Contacting authorized dealers in foreign exchange with which exporter is maintaining bank account. Internet Exim bank for credit line. UN for deemed exports. Internet based B2B platform.

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Details which we have to register with the following for:


To export or import goods into or from India unless he holds a valid IEC number. Before applying for IEC number it is necessary to open a bank account in the name of the company with any commercial bank authorized to deal in foreign exchange. Permanent Account No.: A permanent account number has to be obtained from the companys bank. Import-Export code: The Customs Authorities will not allow the exporter. Bank Account: A current account (dealing with foreign exchange) should be opened in a good bank that will be doing all the bank dealings of the company. Excise Registration: Excise registration should be obtained from the franchised excise division/range nearest to the manufacturing unit or main business center (in case of the merchant exporter). CST/ST/VAT Registration: Sales of goods between two parties in India attract the concerned states sales tax (e.g. GST in Gujarat now VAT) OR THE CENTRAL SALES TAX (CST) if the sales is inter-state. In those cases of exports, where the merchant-exporter (trader) purchases goods, for exports, from manufacturers/others whether within the state or inter state ST/VAT or CST will be exempted, provided concerned buyer issues form H prescribed under the CST act. RCMC (Registration cum Membership Certificate from resp. Export): EPCs are autonomous bodies under societies act and function/operate in the interest of export promotion and as inter face between exporters and government. RCMC is granted upon application for 5 year period subject to entrance/first year prescribed fees and required documentation and payment of annual fee in subsequent years. Regis. With Chamber Of Commerce: For the most of the exports, exporters need to provide a certificate of origin (of goods) for use by buyer abroad in his country. Ministry of Commerce and Industry, Government of India, approves and authorizes certain chamber of commerce and industries/ trade associations/ EPCs (Export Promotion Council), to issue to their members/ non members certificate of origin as and when required and requested.

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NEGOTIATING CONTRACT
Once the prospective customer is found, the business deal has to be concluded. The following aspects may be considered before entering into a final contract with the buyer. Credit Worthiness of the Customer Availability of the Steamer/Airlines and the frequency The freight charges The full product specification The quantity, Price Terms of Payment Type of packing and markings on the packages Mode of shipment & Shipment schedule Tolerance of quantity to be shipped Documentation requirement for the customer Documentation requirement of the government of importing country Compliance of the local governmental rules and regulations Before entering into contract one should take note of the above factors. While these are indicative, the requirements will vary from country to country, product to product and buyer to buyer. EXPORT OF SAMPLES\GIFTS Exports of bonafide trade and technical samples of freely exportable items shall be allowed without any limit. Goods including edible items of value not exceeding Rs. 100000/- in a licensing year, may be exported as a gift. However, items mentioned as restricted for exports in ITC (HS) shall not be exported as a gift without a license/certificate/permission, except in the case of edible items.

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DOMESTICS & INTERNATIONAL MARKETING


The basic nature of marketing doesnt change from domestic to international marketing, but marketing outsides nation boundaries does pose special problems. International marketing unlike domestic marketing requires operating simultaneously in more than one kind of environment, coordinating these job operations, and using the experience gained in one country for marketing decisions in another country. The demands are tough and the stakes are high international marketers must not only be sensitive to different marketing environments internationally but also must be able to balance marketing moves worldwide in order to seek optimum result for the company.

Factors affecting International Marketing


Marketing Research processManagers need information in order to introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deduced from common knowledge. Rather, data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions. To explore the problemThe first step in any marketing research project is to explore the problem. In exploring the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly The decision problem faced by management must be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences. To Gather the information54

Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. Once your problem is better defined, you can move onto developing your approach. Generally speaking, your approach should be developed almost exclusively around a defined set of objectives. Clearer objectives developed in Step 1 will lend themselves to better approach development. Developing your approach should consist of an honest assessment of your teams market research skills, establishing a budget, understanding your environment and its influencing factors, developing an analysis model, and formulating hypotheses. Research designBased upon a well-defined approach from Steps 1 & 2, a framework for the designing your marketing research program should be apparent. This step is the most encompassing of all steps in marketing research, requiring the greatest amount of thought, time and expertise and is the point at which the less experienced will obtain assistance from an internal/external market research experts. Since the intelligence eventually gained from the research is so closely related to the selected research design, this is the single most important six steps in marketing research, and the step most vulnerable to the typical research errors. Research design includes incorporating knowledge from secondary information analysis, qualitative research, methodology selection, question measurement & scale selection, questionnaire design, sample design & size and determining data analysis to be used. A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps: 1. Secondary data analysis 2. Qualitative research and Methods of collecting quantitative data (survey, observation, and experimentation) 3. Measurement and scaling procedures 4. Questionnaire design 5. Sampling process and sample size 6. Plan of data analysis

1. Secondary data analysis Secondary data are data collected for some purpose other than the problem at hand. Primary 55

data, on the other hand, are originated by the researcher for the specific purpose of addressing the research problem. Secondary data include information made available by business and government sources, commercial marketing research firms, and computerized databases. Secondary data are an economical and quick source of background information. Analysis of available secondary data is an essential step in the problem definition process: primary data should not be collected until the available secondary data have been fully analyzed. Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased. There are several criteria that one should use to evaluate secondary data. Whether the data is useful in the research study. How current the data is and whether it applies to time period of interest. Errors and accuracy - whether the data is dependable and can be verified. Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined. Primary Data Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are: demographic and socioeconomic characteristics psychological and lifestyle characteristics attitudes and opinions awareness and knowledge - for example, brand awareness intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. behavior Primary data can be obtained by communication or by observation. Communication involves 56

questioning respondents either verbally or in writing. This method is versatile, since one needs only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication. Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses. 2. Qualitative research and methods of collecting qualitative data Information, industry experts, and secondary data may not be sufficient to define the research problem. Sometimes qualitative research must be undertaken to gain a qualitative understanding of the problem and its underlying factors. Qualitative research is unstructured, exploratory in nature, based on small samples, and may utilize popular qualitative techniques such as focus groups (group interviews), word association (asking respondents to indicate their first responses to stimulus words), and depth interviews (one-on-one interviews which probe the respondents' thoughts in detail). Other exploratory research techniques, such as pilot surveys with small samples of respondents, may also be undertaken. Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility.

Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Cross-sectional studies sample 57

the population to make measurements at a specific point in time. A special type of crosssectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments.

3. Measurement and scaling procedure Many of the questions in a marketing research survey are designed to measure attitudes. Attitudes are a person's general evaluation of something. Customer attitude is an important factor for the following reasons: Attitude helps to explain how ready one is to do something. Attitudes do not change much over time. Attitudes produce consistency in behavior. Attitudes can be related to preferences. Attitudes can be measured using the following procedures: Self-reporting - subjects are asked directly about their attitudes. Self-reporting is the most common technique used to measure attitude. Observation of behavior - assuming that one's behavior is a result of one's attitudes, attitudes can be inferred by observing behavior. For example, one's attitude about an issue can be inferred by whether he/she signs a petition related to it. Indirect techniques - use unstructured stimuli such as word association tests. Performance of objective tasks - assumes that one's performance depends on attitude. For example, the subject can be asked to memorize the arguments of both sides of an issue. He/she is more likely to do a better job on the arguments that favor his/her stance. Physiological reactions - subject's response to a stimuli is measured using electronic or mechanical means. While the intensity can be measured, it is difficult to know if the attitude is positive or negative. Multiple measures - a mixture of techniques can be used to validate the findings, especially worthwhile when self-reporting is used. There are several types of attitude rating scales: Equal-appearing interval scaling - a set of statements are assembled. These statements are selected according to their position on an interval scale of favorableness. Statements are chosen that has a small degree of dispersion. Respondents then are asked to indicate with which statements they agree. Likert method of summated ratings - a statement is made and the respondents indicate their degree of agreement or disagreement on a five point scale (Strongly Disagree, Disagree, Neither Agree Nor Disagree, Agree, Strongly Agree). Semantic differential scale - a scale is constructed using phrases describing attributes of the product to anchor each end. For example, the left end may state, "Hours are inconvenient" and the right end may state, "Hours are convenient". The respondent then marks 58

one of the seven blanks between the statements to indicate his/her opinion about the attribute. Stapel Scale - similar to the semantic differential scale except that 1) points on the scale are identified by numbers, 2) only one statement is used and if the respondent disagrees a negative number should marked, and 3) there are 10 positions instead of seven. This scale does not require that bipolar adjectives be developed and it can be administered by telephone. Q-sort technique - the respondent if forced to construct a normal distribution by placing a specified number of cards in one of 11 stacks according to how desirable he/she finds the characteristics written on the cards.

Attributes can be measured on nominal, ordinal, interval, and ratio scales: Nominal numbers are simply identifiers, with the only permissible mathematical use being for counting. Example: social security numbers. Ordinal scales are used for ranking. The interval between the numbers conveys no meaning. Median and mode calculations can be performed on ordinal numbers. Example: class ranking Interval scales maintain an equal interval between numbers. These scales can be used for ranking and for measuring the interval between two numbers. Since the zero point is arbitrary, ratios cannot be taken between numbers on an interval scale; however, mean, median, and mode are all valid. Example: temperature scale Ratio scales are referenced to absolute zero values, so ratios between numbers on the scale are meaningful. In addition to mean, median, and mode, geometric averages also are valid. Example: weight 4. Questionnaire design The questionnaire is an important tool for gathering primary data. Poorly constructed questions can result in large errors and invalidate the research data, so significant effort should be put into the questionnaire design. The questionnaire should be tested thoroughly prior to conducting the survey 5.Sampling process and sample size The sampling frame is the pool from which the interviewees are chosen. The telephone book often is used as a sampling frame, but have some shortcomings. Telephone books exclude those households that do not have telephones and those households with unlisted numbers. Since a certain percentage of the numbers listed in a phone book are out of service, there are many people who have just moved who are not sampled. Such sampling biases can be overcome by using random digit dialing. Mall intercepts represent another sampling frame, though there are many people who do not shop at malls and those who shop more often will be over-represented unless their answers are weighted in inverse proportion to their frequency of mall shopping. In designing the research study, one should consider the potential errors. Two sources of errors are random sampling error and non-sampling error. Sampling errors are those due to the fact that there is a non-zero confidence interval of the results because of the sample size being less than the population being studied. Non-sampling errors are those caused by faulty coding, 59

untruthful responses, respondent fatigue, etc. There is a tradeoff between sample size and cost. The larger the sample size, the smaller the sampling error but the higher the cost. After a certain point the smaller sampling error cannot be justified by the additional cost. While a larger sample size may reduce sampling error, it actually may increase the total error. There are two reasons for this effect. First, a larger sample size may reduce the ability to follow up on non-responses. Second, even if there is a sufficient number of interviewers for follow-ups, a larger number of interviewers may result in a less uniform interview process. Plan of data analysis All analysis that can be performed, from complex to simple, depends on how the questionnaire was constructed. Less complex analysis on smaller data sets can be handled with any of a number of office suite tools, while more complex analysis and larger data sets require dedicated market research analysis software. Types of analysis that might be performed are simple frequency distributions, cross tab analysis, multiple regression (driver analysis), cluster analysis, factor analysis, perceptual mapping (multidimensional scaling), structural equation modeling and data mining. Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. A Collect the dataData collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors. Often called data collection or survey fielding, this is the point at which the finalized questionnaire (survey instrument) is used in gathering information among the chosen sample segments. There are a variety of data collection methodologies to consider. In addition to the intrinsic sampling error, the actual data collection process will introduce additional errors. These errors are called non-sampling errors. Some non-sampling errors may be intentional on the part of the interviewer, who may introduce a bias by leading the respondent to provide a certain response. The interviewer also may introduce unintentional errors, for example, due to not having a clear understanding of the interview process or due to fatigue. 60

Respondents also may introduce errors. A respondent may introduce intentional errors by lying or simply by not responding to a question. A respondent may introduce unintentional errors by not understanding the question, guessing, not paying close attention, and being fatigued or distracted. Such non-sampling errors can be reduced through quality control techniques. B Analyzing the marketBefore analysis can be performed, raw data must be transformed into the right format. First, it must be edited so that errors can be corrected or omitted. The data must then be coded; this procedure converts the edited raw data into numbers or symbols. A codebook is created to document how the data was coded. Finally, the data is tabulated to count the number of samples falling into various categories. Simple tabulations count the occurrences of each variable independently of the other variables. Cross tabulations, also known as contingency tables or cross tabs, treats two or more variables simultaneously. However, since the variables are in a two-dimensional table, cross tabbing more than two variables is difficult to visualize since more than two dimensions would be required. Cross tabulation can be performed for nominal and ordinal variables. Cross tabulation is the most commonly utilized data analysis method in marketing research. Many studies take the analysis no further than cross tabulation. This technique divides the sample into sub-groups to show how the dependent variable varies from one subgroup to another. A third variable can be introduced to uncover a relationship that initially was not evident. C Preparing the reportReporting and presentation, if not the most important of the steps in marketing research, is easily the second behind research design. All business critical information and knowledge that comes from your market research investment are limited by how they are presented to decision makers. There are as many reporting styles as there are research reports, but some are definitely better than others, and there are definitely trends to be aware of. The format of the marketing research report varies with the needs of the organization. The report often contains the following sections: Authorization letter for the research Table of Contents List of illustrations Executive summary Research objectives Methodology Results Limitations Conclusions and recommendations Appendices containing copies of the questionnaires, etc.

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INTERNATIONAL COUNTRY

MARKETING

ITS

IMPORTANCE

FOR

International Marketing interaction in particular is required because of all the fundamental areas of a business. Marketing problems are the most fundamental and the most frequent While basic marketing decision do not changes as marketers expand their business from the domestic fields to the international field,the environments they must aspect of international marketing environment includes the economic, the cultural, and the legal and political environment. International marketing is also effected by international institutional arrangement, such as the international monetary system visa-vies the international monetary fund, and multinational agreements, such as the European community. A firm aspiring to enter the international scene may choose from the various entry modes exporting, contractual Agreement Join venture, and manufacturing . Each entry mode provides different opportunities and risk. Todays thrust for growth in international business comes from the MNCS. In recent year, the practices of the MNCS however become a subject of intense discussion: particularly with reference to their corporation will continue to be an institution of great interest of & beyond will require a greater awareness of the need of host countries.

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Merchandising Process
The merchandising process is important part as trading of safety shoes are mostly dependent on it. The merchandiser plays as a bridge between the buyer and the manufacturer. They follow up the order and update the buyer time to time about the status of safety footwear. The following are the steps under merchandising process: 1. 2. 3. 4. 5. 6. ORDER GENERATION ORDER PLACING ORDER PROCESS ORDER COMPLETION DESPATCHING THE ORDER CUSTOMER SATISFACTION

ORDER GENERATION The primary step of merchandising process is to generate the order. The order generation is the first step for merchandiser. Getting the order from the overseas buyer involves lots of hard work in having the faith from him in the companys & its product. This is the toughest job of the merchandiser. The merchandiser first of all searches the different buyers of safety footwear around the globe, then they contact them and give a relevant information about the company and its products. After that the merchandiser tries to convince the customer somehow to purchase their product. This whole process goes on until they generate the order. ORDER PLACING When order is being generated it is now placed by the customer. In order placing the customer gives its specifications about the product to the merchandiser and the merchandiser assure his customer that the product will be made according to its specification The customer or the buyer includes the following things about the product & this is known as product specification sheet which is being sent by the buyer to the merchandiser. This sheet includes: 1.Style of the safety boot- In this the buyer gives its style that either he wants HIGH LEG LEATHER BOOT or LOW ANKLE BOOT etc 2. Article no- This is the number given by the merchandiser to the production department for his recognisition. 3. Vamp 4. Quarter 5. Back strip 6. Tongue 7. Collar 8. Tongue foam 9. Collar foam 10. Lining 11. Tongue lining 12. Eyelets 64

13. Sock 14. Sock logo 15. Insole 16. Outsole 17. Lace 18. Toe cap ORDER PROCESS Under order process, the raw materials which are needed for production of safety footwear are purchased. Sourcing of material according to the quantity is also being done under this stage. This process is also being managed by the merchandiser that his order has being started or not & he have to sent the whole update to the buyer. ORDER COMPLETION In this process the merchandiser see that his order is being produced in time and while producing it does not have any hindrances in it like leather is available or not, proper finishing of goods. The merchandiser also see thats the order completion is according to the sample or not which has being approved by the buyer or customer. DESPATCHING THE ORDER In this the merchandiser takes the responsibility that his goods or the order has being dispatched on time or not from the factory and he has to make an updation to the buyer that his goods has being dispatched from the factory. CUSTOMER SATISFACTION Merchandiser plays a crucial role that his customer is being satisfied with his work or not that his time to time update given by the merchandiser to his customer. The customer got his order according to his preference or not that what sample he has passed was according to it or not. If the customer is being satisfied then he will like to do the business again with the organization.

Export Documentation
When preparing for Export Documentation, the exporter needs to be aware of packing, labeling, documentation, and insurance requirements. Because the goods are being shipped by unknown carriers to distant customers, the new exporter must be sure to follow all shipping requirements to help ensure that the merchandise is packed correctly so that it arrives in good condition; labeled correctly to ensure that the goods are handled properly and arrive on time and at the right place; documented correctly to meet local and foreign government requirements as well as proper collection standards; and Insured against damage, loss, and pilferage and, in some cases, delay. Because of the variety of considerations involved in the physical Export Documentation, most exporters, both new and experienced, rely on an international freight forwarder to perform these services. FREIGHT FORWARDERS 65

The international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination. These agents are familiar with the import rules and regulations of foreign countries, methods of shipping, government export regulations, and the documents connected with foreign trade. Freight forwarders can assist with an order from the start by advising the exporter of the freight costs, port charges, consular fees, cost of special documentation, and insurance costs as well as their handling fees - all of which help in preparing price quotations. Freight forwarders may also recommend the type of packing for best protecting the merchandise in transit; they can arrange to have the merchandise packed at the port or containerized. The cost for their services is a legitimate export cost that should be figured into the price charged to the customer. When the order is ready to ship, freight forwarders should be able to review the letter of credit, commercial invoices, packing list, and so on to ensure that everything is in order. They can also reserve the necessary space on board an ocean vessel, if the exporter desires. If the cargo arrives at the port of export and the exporter has not already done so, freight forwarders may make the necessary arrangements with customs brokers to ensure that the goods comply with customs export documentation regulations. In addition, they may have the goods delivered to the carrier in time for loading. They may also prepare the bill of lading and any special required documentation. After shipment, they forward all documents directly to the customer or to the paying bank if desired. PACKING In packing an item for export, the shipper should be aware of the demands that exporting puts on a package. Four problems must be kept in mind when an export shipping crate is being designed: breakage, weight, moisture, and pilferage. Most general cargo is carried in containers, but some is still shipped as break-bulk cargo. Besides the normal handling encountered in domestic transportation, a break-bulk shipment moving by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, chute, or other method, putting added strain on the package. In the ship's hold, goods may be stacked on top of one another or come into violent contact with other goods during the voyage. Overseas, handling facilities may be less sophisticated than in your country and the cargo may be dragged, pushed, rolled, or dropped during unloading, while moving through customs, or in transit to the final destination. Moisture is a constant problem because cargo is subject to condensation even in the hold of a ship equipped with air conditioning and a dehumidifier. The cargo may also be unloaded in the rain, and some foreign ports do not have covered storage facilities. In addition, unless the cargo is adequately protected, theft and pilferage are constant threats. Since proper packing is essential in exporting, often the buyer specifies packing requirements. If the buyer does not so specify, be sure the goods are prepared with the following considerations in mind: Pack in strong containers, adequately sealed and filled when possible. To provide proper bracing in the container, regardless of size, make sure the weight is evenly distributed. 66

Goods should be packed in oceangoing containers, if possible, or on pallets to ensure greater ease in handling. Packages and packing filler should be made of moisture-resistant material. To avoid pilferage, avoid mentioning contents or brand names on packages. In addition, strapping, seals, and shrink wrapping are effective means of deterring theft.

One popular method of shipment is the use of containers obtained from carriers or private leasing concerns. These containers vary in size, material, and construction and can accommodate most cargo, but they are best suited for standard package sizes and shapes. Some containers are no more than semi-truck trailers lifted off their wheels and placed on a vessel at the port of export. They are then transferred to another set of wheels at the port of import for movement to an inland destination. Refrigerated and liquid bulk containers are readily available. Normally, air shipments require less heavy packing than ocean shipments, but they must still be adequately protected, especially if highly pilfer able items are packed in domestic containers. In many instances, standard domestic packing is acceptable, especially if the product is durable and there is no concern for display packaging. In other instances, high-test (at least 250 pounds per square inch) cardboard or tri-wall construction boxes are more than adequate. For both ocean and air shipments, freight forwarders and carriers can advise on the best packaging. Marine insurance companies are also available for consultation. It is recommended that a professional firm be hired to package for export if the exporter is not equipped for the task. This service is usually provided at a moderate cost. Finally, because transportation costs are determined by volume and weight, special reinforced and lightweight packing materials have been devised for exporting. Care in packing goods to minimize volume and weight while giving strength may well save money while ensuring that goods are properly packed. LABELING Specific marking and labeling is used on export shipping cartons and containers to meet shipping regulations, ensure proper handling, conceal the identity of the contents, and help receivers identify shipments. The overseas buyer usually specifies export marks that should appear on the cargo for easy identification by receivers. Many markings may be needed for shipment. Exporters need to put the following markings on cartons to be shipped: Shipper's mark. Country of origin (exporters country). Weight marking (in pounds and in kilograms). Number of packages and size of cases (in inches and centimeters). Handling marks (international pictorial symbols). Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the language of the country of destination). Port of entry. 67

Labels for hazardous materials (universal symbols adapted by the International Maritime Organization).

Legibility is extremely important to prevent misunderstandings and delays in shipping. Letters are generally stenciled onto packages and containers in waterproof ink. Markings should appear on three faces of the container, preferably on the top and on the two ends or the two sides. Old markings must be completely removed. In addition to port marks, customer identification code, and indication of origin, the marks should include the package number, gross and net weights, and dimensions. If more than one package is being shipped, the total number of packages in the shipment should be included in the markings. The exporter should also include any special handling instructions on the package. It is a good idea to repeat these instructions in the language of the country of destination. Standard international shipping and handling symbols should also be used. Exporters may find that customs regulations regarding freight labeling are strictly enforced; for example, most countries require that the country of origin be clearly labeled on each imported package. Most freight forwarders and export packing specialists can supply necessary information regarding specific regulations. DOCUMENTATION Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country. * Commercial invoice. As in a domestic transaction, the commercial invoice is a bill for the goods from the buyer to the seller. A commercial invoice should include basic information about the transaction, including a description of the goods, the address of the shipper and seller, and the delivery and payment terms. The buyer needs the invoice to prove ownership and to arrange payment. Some governments use the commercial invoice to assess customs duties. * Bill of lading. Bills of lading are contracts between the owner of the goods and the carrier (as with domestic shipments). There are two types. A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods. * Consular invoice. Certain nations require a consular invoice, which is used to control and identify goods. The invoice must be purchased from the consulate of the country to which the goods are being shipped and usually must be prepared in the language of that country. * Certificate of origin. Certain nations require a signed statement as to the origin of the export item. Such certificates are usually obtained through a semiofficial organization such as a local chamber of commerce. A certificate may be required even though the commercial invoice contains the information. * Inspection certification. Some purchasers and countries may require a certificate of inspection 68

attesting to the specifications of the goods shipped, usually performed by a third party. Inspection certificates are often obtained from independent testing organizations. * Dock receipt and warehouse receipt. These receipts are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the international carrier for export. * Destination control statement. This statement appears on the commercial invoice, ocean or air waybill of lading, and SED to notify the carrier and all foreign parties that the item may be exported only to certain destinations. * Insurance certificate. If the seller provides insurance, the insurance certificate states the type and amount of coverage. This instrument is negotiable. * Export license. (When needed). * Export packing list. Considerably more detailed and informative than a standard domestic packing list, an export packing list itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on. It shows the individual net, legal, tare, and gross weights and measurements for each package . Package markings should be shown along with the shipper's and buyer's references. The packing list should be attached to the outside of a package in a waterproof envelope marked "packing list enclosed." The list is used by the shipper or forwarding agent to determine (1) the total shipment weight and volume and (2) whether the correct cargo is being shipped. In addition, customs officials (both local and foreign) may use the list to check the cargo. Documentation must be precise. Slight discrepancies or omissions may prevent merchandise from being exported, result in exporting firms not getting paid, or even result in the seizure of the exporter's goods by local or foreign government customs. Collection documents are subject to precise time limits and may not be honored by a bank if out of date. Much of the documentation is routine for freight forwarders or customs brokers acting on the firm's behalf, but the exporter is ultimately responsible for the accuracy of the documentation. The number of documents the exporter must deal with varies depending on the destination of the shipment. Because each country has different import regulations, the exporter must be careful to provide proper documentation. If the exporter does not rely on the services of a freight forwarder, there are several methods of obtaining information on foreign import restrictions: Foreign government embassies and consulates can often provide information on import regulations.. EXPORT IMPORT SHIPPING The handling of transportation is similar for domestic orders and export orders. The export marks should be added to the standard information shown on a domestic bill of lading and should show the name of the exporting carrier and the latest allowed arrival date at the port of export. The exporter should also include instructions for the inland carrier to notify the international freight forwarder by telephone on arrival. International shipments are increasingly being made on a through bill of lading under a multimodal contract. The multimodal transport operator (frequently one of the modal carriers) 69

takes charge of and responsibility for the entire movement from factory to the final destination. When determining the method of international shipping, the exporter may find it useful to consult with a freight forwarder. Since carriers are often used for large and bulky shipments, the exporter should reserve space on the carrier well before actual shipment date (this reservation is called the booking contract). The exporter should consider the cost of shipment, delivery schedule, and accessibility to the shipped product by the foreign buyer when determining the method of international shipping. Although air carriers are more expensive, their cost may be offset by lower domestic shipping costs (because they may use a local airport instead of a coastal seaport) and quicker delivery times. These factors may give the exporter an edge over other competitors, whose service to their accounts may be less timely. Before shipping, the firm should be sure to check with the foreign buyer about the destination of the goods. Buyers often wish the goods to be shipped to a free-trade zone or a free port where goods are exempt from import duties. EXPORT IMPORT INSURANCE Export shipments are usually insured against loss, damage, and delay in transit by cargo insurance. For international shipments, the carrier's liability is frequently limited by international agreements and the coverage is substantially different from domestic coverage. Arrangements for cargo insurance may be made by either the buyer or the seller, depending on the terms of sale. Exporters are advised to consult with international insurance carriers or freight forwarders for more information. Damaging weather conditions, rough handling by carriers, and other common hazards to cargo make marine insurance important protection for exporters. If the terms of sale make the firm responsible for insurance, it should either obtain its own policy or insure cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible, the exporter should not assume (or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain coverage or obtains too little, damage to the cargo may cause a major financial loss to the exporter.

Documents Required
Certain documentation takes place while exporting from India. Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export Inspection Agency. Some food and pharmaceutical product may require a health or sanitary certificate for export. Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies with regard to the goods being subject to certain conditions which are mentioned below: Export duty/ cess Free of duty/ cess Entitlement of duty drawback Entitlement of credit of duty under DEPB Scheme Re-export of imported goods 70

The following are the documents required for the processing of the Shipping Bill:

GR forms (in duplicate) for shipment to all the countries. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc. Contract, L/C, Purchase Order of the overseas buyer. AR4 (both original and duplicate) and invoice. Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:

White Shipping Bill in triplicate for export of duty free of goods. Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback. Yellow Shipping Bill in triplicate for the export of dutiable goods. Blue Shipping Bill in 7 copies for exports under the DEPB scheme.

Note :- For the goods which are cleared by Land Customs, Bill of Export (also of 4 types - white, green, yellow & pink) is required instead of Shipping Bill.

Documents Required for Post Parcel Customs Clearance


In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below: Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.

Dispatch Note, also known as CP2. It is filled by the sender to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted. Prescriptions regarding the minimum and maximum sizes of the parcel with its maximum weight : Minimum size: Total surface area not less than 140 mm X 90 mm. Maximum size: Lengthwise not over 1.05 m. Measurement of any other side of circumference 0.9 m./ 2.00 m. Maximum weight: 10 kg usually, 20 kg for some destinations. Commercial invoice - Issued by the seller for the full realizable amount of goods as per trade term.

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Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export. Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate. Legalized/ Visage Invoice - This shows the seller's genuineness before the appropriate consulate/ chamber of commerce/ embassy. It do not have any prescribed form. Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery. Packing List - It shows the details of goods contained in each parcel/ shipment. Certificate of Inspection - It shows that goods have been inspected before shipment. Black List Certificate - It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s). Weight Note - Required to confirm the packets or bales or other form are of a stipulated weight. Manufacturer's/ Supplier's Quality/ Inspection Certificate. Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and are available. Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc. Certificate of Shipment - It signifies that a certain lot of goods have been shipped. Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides, livestock etc. Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor, dry weight, etc. Antiquity Measurement - Issued by Archaeological Survey of India in case of antiques. 72

Transshipment Bill - It is used for goods imported into a customs port/ airport intended for transshipment. Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date. Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc. Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter. Short Shipment Form - It is an application to the customs authorities at port which advises short shipment of goods and required for claiming the return. Shipping Advice - It is prepared in aligned document to be used to inform the overseas customer about the shipment of goods.

Players in the market that deals in Safety Footwear


In Indian MarketIn India safety is given the preference but not as much as it has given more in other countries. In India due to availability of the resources and cheap labour the manufacturer produces the safety footwear. In India the leather is also available easily as compared to other countries. 1. ABDIN LEATHER CONCERIA Pvt. Ltd. Kolkata 73

All types of leathers for footwear, leather goods and leather garments in goat, sheep and cow leather. 2. ABDUL GAFFOOR & Co. Chennai We are manufacturers, specialized in Baby Buff Calf, Buff Calf leathers and Safety Footwear since 20 years. 3. ABU NAZAR EST, Chennai we are manufacturers and exporters of quality finished leather, leather garments and Safety footwear. We produce sheep nappa, semi-aniline, nubuck, goat lining, goat upper, sheep cabretta and suede especially from Saudi origin. We have a production capacity of 2 million sqf/month. 4. AHSAN LEATHERS Pvt. Ltd. Kanpur Since 1978 we are in the leather and shoe upper manufacturing. We have our own tannery, shoe unit and also micro rubber unit. Govt of India ranked us as Export House. 5. ASIAWIDE RESOURCES Pvt. Ltd. One of the largest Indian tanneries for Kid/Goat leathers offers a full range of materials including lining leather for Ladies/Men's shoe manufacture at highly competitive prices. Current production capacity of 0.6million sq.ft is to go up this year to 1million sq.ft. 6. ASIF APPARELS We are tannery based manufacturers & exporters of finished leathers & leather garments. Our export of finished leathers is especially for garments, shoes & leather goods. 7. Safety First International Bangalore 8. Juneja Industrial Company Hyderabad 9. Ven Ponn Shoes Pvt Ltd Chennai 10. Jyoti Rubber Industries Mumbai Manufacturer and supplier of industrial safety shoes. Also offering safety jackets, gum boots, rubber mats, rubber hoses, PVC water stop seals, asbestos covered furnace cable coolant hoses and oil resistant suction hoses. 11. Khemanand Enterprises, Mumbai Supplier and manufacturer of industrial safety shoe, asbestos safety shoe and aluminised safety shoe. Also offering hand gloves, rubber goggles, welding goggles, ear muffs, ear plugs, industrial helmets, asbestos suit, fire retardant suit and coverall. 12. 3B Workplace Solution, Karnataka Manufacturing and supplying industrial safety shoes, safety shoes. Also deals in head safety equipment, eye safety equipment, nose safety equipment, ear safety equipment, safety jackets, safety overalls and hand safety gloves. 74

13. Udyogi International Private Limited, Kolkata Manufacturing and supplying industrial safety shoes, industrial safety leather shoes, padded lining industrial safety shoes, waterproof industrial safety shoes, steel midsole industrial safety shoes and puncture resistant industrial safety shoes. 14. Industrial Components Corporation, Kolkata Deals in manufacturing and exporting of industrial shoes and industrial safety shoes. Also offering safety products like safety leg guards, safety boiler suits, safety hand gloves, safety aprons, safety belts, gas masks and respirators. 15. J. C. Enterprises, West Mumbai Engaged in manufacturing and supplying of shoes, safety shoes, safety leather shoes, industrial safety shoes, safety tango shoes, safety edge shoes, safety safari shoes and safety ground work shoes etc. 16. Qifayath Enterprises, Salem, Tamil nadu Bulk exporters and manufacturers of personal protection equipment such as safety shoes, industrial safety shoes, fire safety shoes along with body protection suits, head protection helmet, hand protection gloves and foot protection shoe. 17. Ladwa Safety Solutions Private Limited, Bangaluru Deals in manufacture and supply of a wide range of industrial safety shoes such as electric resistant safety shoes. Also offer convex mirrors, traffic cones, safety apparels, road humps, road marker paint, breath analyser, pillar guards, q-please etc. 18. M. M. Shoes, Tamil nadu Engaged in manufacturing, export and supply of industrial safety shoes, safety shoes, leather safety shoes, moisture absorbing industrial safety shoes, durable industrial safety shoes and heat resistant industrial safety shoes. Also offer mens shoes. 19. Raju Safety Products, Mumbai Manufacturer and wholesale supplier of safety shoes, industrial safety shoes and safety leather shoes. Also manufacture and supplies life jacket, safety harness and leather belt with pouch. 20. Arvind Footwear Private Limited, Ahmed Nagar Mumbai Manufacturers, exporters and suppliers of industrial safety shoes, general purpose safety shoes, industrial safety boots, industrial safety footwear, comfort safety shoes, oxford safety shoes, rakshak safety shoes, safex safety shoes, slipon safety shoes. 21. S. G. Exports, New delhi Manufacturers and exporters of safety shoes, industrial safety shoes, industrial protective shoes, industrial leg guard, industrial work shoes, safety footwears, industrial gum boots and industrial fire safety shoes. 22. Trimurti Industries Limited, Kolkata Engaged in manufacturing and exporting industrial safety shoes. Also manufactures mosquito net, industrial coated fabric, rubber coated fabric, ground sheet, rubber sheet, etc. 23. Metro Moulding Industries, Peeragarhi, New delhi Manufacturer and exporter of safety shoes, industrial safety shoes, industrial leather safety 75

shoes, oil resostance leather safety shoes and acid resostance leather safety shoes. 24. Star Enterprises,Pune Manufacturing and supplying of safety shoes, industrial safety shoes, water proof industrial safety shoes, PVC sole safety shoes and chemical resistant safety shoes. Also offering safety products like safety helmets, safety nose mask and safety ear plugs. 25 P M Enterprises, Indore Manufacturer and supplier of safety shoes, industrial safety shoes, construction safety shoes and mining safety shoes. Also offering body protection gears, eye protection gears and ear plugs. 26. Sure Safety, Gujarat Manufacturer and supplier of safety shoes, chemical resistance safety shoes and oil resistance safety shoes. Also offers safety helmets, head safety helmets, safety polymer helmets, general purpose polymer helmets and light weight safety polymer helmets. 27New Delta International,haridwar,rudrapur,greater noida Manufacturer of all kinds of industrial safety shoes. Also offering other safety products like fire extinguisher, protective ear muffs, safety helmets, gas detectors and safety respirators. 28 Zain International, Kanpur Manufacturer and exporter of industrial safety shoes, industrial leather safety shoes, buffalo leather industrial safety shoes, industrial black safety shoes and customized industrial safety shoes. In Global MarketAround the world safety is given the higher priority. Demand of the PPE as well as Safety footwear increase day by day and now a days companies mainly focus on the employees safety. In the safety footwear sector Germany is above all the countries which gives first preference to the safety of the employees then the UK, France and Italy. There are some of the countries around the globe which manufacture as well as supplies the safety footwear in different countries. FAGUM-STOMIL SA Poland TRADE STOMIL LTD Poland PERABUT SEONG AIK SDN BHD Malaysia WENZHOU HANSON SHOES CO,LTD China NINGBO QIAOPU ELECTRIC CO,LTD China 76

ROFI SARL - ROBINETTERIE INDUSTRIELLE France COSMOS SHOES INTERNATIONAL Taiwan SAMSON ELECTRIC WIRE CO LTD Hong kong, China

Standard norms that should be followed to meet globally


The Superhouse limited is the leading manufacturer & exporter of safety footwear. Which follows the various norms to meet the global demand of safety footwear: ISO-9001-2000 (International Standard)

EN: 20345 : 2004 / A1: 2007 ( European Norms) AS/NZS ISO 9002:1994 (Australian and New Zealand norms) CSA-Z195-M92 (Canadian Norms) ANSI-Z41-1999 (American Norms)

These are the standard norms which the superhouse limited follows to meet globally International Standard organization This is an international standard which is being followed by all the countries. The some points regarding this standard how it works & what it wants to get ISO certified. ISO is a worldwide federation of national standard bodies. Work carried out by ISO technical committees Main task of the technical committee to prepare International Standard then voting & only approved when gets 75% an above. ISO 21345 was being prepared by the European committees for standardization in collaboration with technical committee ISO/94. For personal safety protective clothing & equipment, subcommittee SC3. These are the certain Safety Shoes standard category which the superhouse limited follows: Code Properties: Leather shoes standard design: safety shoes for professional use, that include devices to protect the user against injuries caused by accidents liable to occur in the industrial environment for which the shoe has been designed. The shoes are fitted with safety toe-cap intended to deliver a protection against impacts with an energy level equal to 200 joules. Oil resistant soles. Leather shoes with closed back, anti-static properties and heel energy 77

SB

S1

absorption. S2 S3 S4 S5

Waterproof leather shoes like S1. Moisture absorbing interior. Leather shoes like S2 with anti-puncture and studded sole Synthetic footwear with anti-static properties and heel energy absorption Synthetic footwear like S4 with anti-puncture and studded sole

EN: 20345 : 2004 / A1: 2007 ( European Norms)

EN 344 : General Requirements This standard defines the general requirements and test methods on safety shoes, protective shoes and working shoes for professional use. It can only be used together with EN 345, EN 346 and EN 347 standard, which specify the shoes requirements according to specific risks levels. EN 345 : Specifications on Safety Shoes for Professional Use This standard defines the basic and additional (optional) requirements on safety shoes for professional use. These shoes include devices to protect the user against injuries caused by accidents liable to occur in the industrial environment for which the shoe has been designed, fitted with safety toecap intended to deliver a protection against impacts with an energy level equal to 200 joules. Class 1 : All materials except natural or syntetic polymers S1 Basic properties and closed back, anti-static properties, heel energy absorption S2 Like S1 and Waterproofness S3 Like S2 and anti-puncture sole, studded sole Class 2 : Natural and syntetic polymers S4 Basic properties and anti-static properties, heel energy absorption S5 Like S4 and anti-puncture sole, studded sole

EN 346: Professional Shoes This standard defines the requirements additional for the protection shoes relating to the strength to water, the protection of the metatarsus and resistance to the cuts. EN 347: Specifications on Working Shoes for Professional Use These shoes are different from safety shoes because they have no protective toe-cap against impact and crushing. O1 Basic properties and closed back, sole resistance to hydrocarbons, anti-static properties, heel energy absorption O2 Like O1 and Water profanes 78

O3 Like O2 and anti-puncture sole, studded sole

Distribution Channels
Distribution channel of the Superhouse limited is very strong as it reaches to the end consumer easily. Distribution channels are the pathways that companies use to sell their products to endusers. B2B companies can sell through a single channel or through multiple channels that may include

Direct/sales team: One or more sales teams that you employ directly. You may use multiple teams that specialize in different products or customer segments. Direct/internet: Selling through your own e-commerce website. Direct/catalog: Selling through your own catalog. Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers. Value-added reseller (VAR): A VAR works with end-users to provide custom solutions that may include multiple products and services from different manufacturers. Consultant: A consultant develops relationships with companies and provides either specific or very broad services; they may recommend a manufacturers product or simply purchase it to deliver a solution for the customer. Dealer: A company or person, who buys inventory from either a manufacturer or distributor, then re-sells to an end-user. Retail: Retailers sell directly to end-users via a physical store, website or catalog. Sales agent/manufacturers rep: You can outsource your sales function to a company that sells different manufacturers products to a group of similar customers in a specific territory.

Distribution is one of the classic 4 Ps of marketing (product, promotion, price, placement a.k.a. distribution). Its a key element in your entire marketing strategy it helps you expand your reach and grow revenue. To create a good distribution program, focus on the needs of your end-users. If they need personalized service, you can utilize a local dealer network or reseller program to provide that service. If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or a distributor to offer your product on their own sites. You can build your own specialized sales team to prospect and close deals directly with customers. Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market.

Competitors of Superhouse in Safety Footwear


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CMD at Superhouse Leather, Mukhtarul Amin says that at the moment, their competition is with China and just to cater to the biggest market, which is the American market, they have to have a big capacity. He expects that additional funds will be available for the industry and says that the government is definitely serious because they see a lot of employment opportunities from this industry. He further adds that this year they are expecting much better margins. Superhouse is the leading manufacturer and exporter of safety footwear so its has its competitor all around the globe. There are some of the manufacturer as well as exporter which gives tough competition to the Superhouse limited: tata international ltd. florind shoes ltd. mirza tanners ltd punihani international t. abdul wahid & company hindustan lever ltd. farida shoes ltd. rsl industries ltd. presidency kid leather ltd. perabut seong aik sdn bhd wenzhou hanson shoes co,ltd These are the few names of the manufacturer and exporter of the safety footwear all around the world. But itself in India there are near about 175 companies which manufacturer as well as supplies safety footwear. Leather safety footwear is an emerging field & government is also focusing on this sector. The companies of safety footwear are now day by day is being organized. Competitor in this sector that is safety footwear is increasing day by day.

Scope of Safety Footwear in Global market


Feet have a tough job to do in working life, a fact that is overlooked all too often. Prolonged standing, walking, climbing, handling heavy machinery, falling objects, and slippery or sharp surfaces are just some of the many workplace hazards that feet may be exposed to on a daily basis. According to Health and Safety Executive (HSE) statistics, slips and trips account for the highest number of work-related major injuries across all industry sectors, while TUC figures show that over two million sick days are lost every year owing to lower limb disorders. Over the thousand people suffer serious injuries every month as a result of slips, trips or falls in the workplace. Thats 12,000 injuries per annum, with their resulting pain, disability and time off work that could 80

be avoided completely by means of sensible actions and precautions, such as keeping floors clean and dry, and providing appropriate safety footwear. And it isnt just feet that may be affected by inadequate or badly fitting footwear. Many musculoskeletal disorders (MSDs) can be traced back to prolonged standing, which can damage joints around feet, legs, knees, hips and lower back and fatigue the wrist worker, not to mention, ankle and other problems caused by falls. Although the HSE reports that the number of over-three-day slip and trip incidents has fallen since 2002, the overall number of major injuries has remained much the same, although varying considerably by industry and occupation. Higher risk industries include construction, public administration and postal services Thus safety footwear has a huge demand in the global market. Scope of safety footwear in the market is very vast as mainly all the companies focus on the employees safety there are some of the sector in which safety footwear has a high demand. The company as well as the government is also very sincere with the safety of the people. List of the sector in which safety footwear requires: Automotive & Engineering Aerospace Construction Industry Food Industry Civil Engineering Chemical Industry Mining Industry Forestry and Agriculture Healthcare Industry Shipping Industry Military & Defense

Below, a short description of protective shoes and/or boots used for the several working sectors. Since this is a general summary, it is important to realize that each job may requires additional protection. For example, features such as slip-resistant soles will vary, depending upon the particular type of slip hazard each job can entail. According to the classification by end users, The personal protective equipment market in the EU, the following applications can be distinguished: Agriculture Besides agriculture this sector also includes horticulture, forestry and fishing. Protective boots, shoes and clogs have to cope with the many different hazards encountered in agriculture: resistance to mechanical damage (crushing, abrasion and cuts) also to chemical attack by such different substances as animal fats, manure, fertilizers and fuels; a specially treated sole should have a high level of adhesion on wet, slippery, greasy and steeply sloping floors and surfaces. Forestry work requires the use of boots lined with a fabric (such as Kevlar) capable of rapidly interrupting power to the chain saw when exposed by a cut. Industry 81

Food industry Protective boots need to be resistant to animal and vegetable fats, cleaning products and disinfectants as well as remarkable resistance to mechanical damage (abrasion and cuts). Their sole should have a high level of adhesion on wet, slippery, greasy and steeply sloping floors and surfaces. They should also be protective in different climates, for example in freezer halls or in bakeries. Manufacturing The type of safety and protective boots and overshoes for the manufacturing sector depends on the sector. Mainly they should be water-resistant, protect against chemicals and they need a special sole for anti-slip and absorbing shocks. They should ensure a high level of adhesion on wet, slippery, greasy and steeply sloping floors and surfaces. Electricity, gas and water supply Protective boots for high-tension work need to be fully molded, because this totally eliminates the risk of the sole becoming detached from the upper. For example: boots should be resistant at 13.000 V for a period of 1 minute. Special soles should have a high level of adhesion and provide enhanced comfort for ladder work. Construction Protective boots and shoes for the construction sector also have to cope with many hazards. Requirements are: totally impermeable; resistance to casting oils, fuels and concrete; no loss of resistance over time; water resistance and protection against chemicals. They need a special sole for anti-slip and absorbing shocks and must ensure a high level of adhesion on wet, slippery, greasy and steeply sloping floors and surfaces. Mining & quarrying Protective boots need to be antistatic and able to cope with the many different serious hazards encountered in this high-risk sector. For example: boots are used on all types of floors and surfaces: greasy, slippery, steeply sloping, etc. and should also be resistant to fuels, oils, abrasion, cuts and perforation. Market and public services Wholesale and retail Standard shoes in this sector need comfortable properties and are worn under uniforms or other work wear. Requirements depend on working circumstances, in many cases the retail sector chooses for lightweight and smooth sole. Some additional characteristics can be breathable, antifatigue and other more comfort aspects. Hotels and restaurants Protective footwear varies for specific functions or working circumstances. Special slip and oil resistant rubber outer soles are required for harsh working conditions, mainly in kitchen. In some cases special (kitchen: falling knifes) toe protection is required. Shoes in other functions have to be representative and more attention to styling is necessary. Health care Protective shoes in this sector protect feet from common hazards, such as falling or rolling objects, cuts and punctures. Footwear for health care should also be highly water-resistant, breathable and durable, are mainly in white colour and easy to wipe clean. Shoes for this sector also need to insulate against temperature extremes and may be equipped with special soles to 82

guard against slip, chemical, and/or electrical hazards. Transport and communications Special work shoes for the transportation sector need to have a smooth sole for driving and reduce risk of sprains. Also they should be lightweight and have a special sole, including shockabsorbent properties. Business activities Standard shoes in this sector need comfortable properties and are mainly worn under uniforms. No specific protective requirements are required.

Police Protective footwear for police has to cope with the many different hazards, depending on the level and region. Footwear made for the police should be comfortable to wear and made of waterproof leather. Some requirements are: reduce risk of sprains; lightweight and soles including shock-absorbent properties, anti-static and slip-resistant. Fire brigades Fire brigade boots are protective boots and should be resistant to heat, heat flows and flames, protection against weak and diluted acids. Their sole should have a high level of adhesion on wet, slippery, greasy and steeply sloping floors and surfaces. Fire protection boots come in many options: marker bands, leather straps, customization, etc. Armed forces Protective boots and shoes have to cope with the many different hazards depending on the level and region, in this sector, too. The entire toe box and insole are reinforced with steel and the instep is protected by steel, aluminum or PU materials. Protective boots made for military purposes need to be 8 to 10 inches in height and made of waterproof leather. The sole needs to be shock absorbing, anti-static and slip resistant.

Finding
During my 8 weeks On Job Training in Superhouse limited in safety footwear division was really challenging but full of knowledge. This was the first time when I faced exposure to the market of reality. During the period of On Job training I could find following truths: 1. Consumers final destination of products: Generally in any business there are some steps in making a product available to the ultimate customers. Manufacturer sells goods to wholesalers, wholesaler sells to retailers through distribution agents and finally the retailer sells goods to ultimate customers. Superhouse limited manufacture products and take on all jobs to make that product reach to ultimate customers by backward integration as well as forward integration. 83

2. Regular visits: In accordance to grasp the maximum share and to retain the customers it is very important for the employees to have a regular visit to the customer and also to gather the customers opinion. This makes a regular flow of passing information from consumers to manufacturer. This helps a lot to the consumers in getting the choice products and companies in wasting their time and money. Thus, the regular visits are very much necessary for an organization. 3. Distribution channel: To reach the end customer the distribution channel of the organization is very strong. Superhouse group has the strong distribution channel as it reaches its customer in time. In the organization I find that there is a team which looks all the work and update to its customer time to time with the status of the goods. Suggestion

On Job training period should be increased & twice in course. Effectiveness of training Should be monitored on regular basis. Compensation should be provided in suitable amount by the company. More of practical demonstrations should be included in training programme The guide should give maximum time to the trainee so that the result obtain will be more satisfactory.

This leather sector is developing day by day so the government of the country has to focus on this sector.

Conclusion
I have done my On Job training from Superhouse group limited (safety footwear division) this division includes many department like Designing Department Production Department Packaging Department Warehouse Department Merchandising Department Distribution Department Account Department My On Job internship is in Merchandising Department, this is a very important department for any organization as in Superhouse this is well organized & it works as: 84

Bridge between the buyer and manufacturer. To find the customer in overseas market. It also guide the production Department to prepare the product according the customer preference. It also update the buyer about the product. The responsibility given to me in the Superhouse includes : To search the UK market for Safety Footwear. To know how Merchandiser Department works. To study the Production department. Purpose of the Internship To know the working culture of organization. To know how merchandising department works. To analyze the organizational strategies. To know challenges faced by the organization.

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Annexure Project A
Model No. Art. Name

S.No.

Images

DC/PS/58 52

DC/PS/58 42

DC/PS/58 42

DC/PS/58 41

DC/PS/58 43

DC/PS/64 00

DC/PS/64 00 86

Project B
s.no. ARTICLE

792 S3 SMP NO. 1403

793 S3 SMP NO. 5 2

684 S2 amended SMP NO. 1452 3

789 S3 one SMP NO. 1 4 789 S2 two SMP NO. 2

RIGGER BOOT S2 SMP NO. 1403

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7884 S3 (STEEL TOE CAP/KEVLAR) SMP NO. 1475 7 7884 S3 (FULL COMPOSITE) SMP NO. 1475 8

700 S3 SMP NO. 1452

740 S2 SMP NO. 10

10

EL-556 S2 SMP NO. 1617

11

EL-557 S2 SMP NO. 11 12

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BIBLIOGRAPHY

Journals and Magazines: Export-import policy 2009-2014 EXIM Newspaper Other related journals given by company guide

Books: Export & import norms Foreign trade policy Some pamphlets by company guide Marketing management By Phillip Kotler International Marketing Varshney & D. Bhattacharya . Websites: www. superhousegroup.com www. leatherindia. org www.ccohs.ca www.commerce.nic.in www. teoline.com www.ieport.com

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