Product Category: handicraft Product: Hand knotted rugs Group Members: Asaad Imtiaz Abeeha Lone Haroon Nisar

Xainab Husnain

Introduction

Pakistan is amongst the worlds largest producers and exporters of hand-knotted Oriental carpets.

Hand knotted rugs are made in a cottage industry

Woolen Carpets( incl. Rugs of Hand Made)

YEARS 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 VALUE 247,068 217,122 228,828 273,093 254,750

Secretary PCMEA Carpet Association Of Pakistan

300000 250000 200000 150000 100000 50000 0 2001- 2002- 2003- 2004- 200502 03 04 05 06 Years

Secretary PCMEA Carpet Association Of Pakistan

SALES
YEARS 2004 2005 2006 2007 2008 2009 VALUE IN 000 231,449 277,842 257,263 233,334 216,444 142,771

Secretary PCMEA Carpet Association Of Pakistan

Sales of hand knotted rugs

300000 250000 200000 150000 100000 50000 0 2004 2005 2006 2007 2008 2009
Secretary PCMEA Carpet Association Of Pakistan

Years

Trading Partner
(Carpet)
S.NO. 1 2 3 4 COUNTRIES USA GERMANY ITALY UK

5
6 7

FRANCE
UAE JAPAN

8
9 10

CANADA
SPAIN GREECE

US Imports of Knotted Carpets and Rugs

Countries
India Pakistan Iran

Money
$108.7 million $55.2 million $49.5 million

Nepal China
Turkey Afghanistan Egypt Germany France

$23.2 million $21.4 million

$20.6 million $3 million $2.6 million $2.5 million $1.7 million

Hand knotted carpets and rugs from all 10 of the above countries amount to 98% of Americas import total for this category.
India, Pakistan and Iran supply over 70% of Americas knotted carpets and rugs
http://www.suite101.com/content/us-sales-of-imported-carpets-and-rugs-by-country-a267632

Branding

Pak Punjab Carpet is a brand

laws
ATC

SPS

Hand knotted rugs are not categorized under this agreement

No case on sps till now.

Reasons: Wool is of good quality. No chemical used in hand knotted rugs. There are no grounds to apply sps.

ANTI-DUMPING

We have lost our market share because of cheaper prices offered by china and India.

We should check their prices specifically in the same markets they are sending cheaper in than us.

If they are dumping then antidumping can be applied to take this agreement in favour of Pakistan.

This can help us gain the lost market share.

TRIPS

Copy right holds no value in the hand knotted sector of Pakistan. Major problem faced by Pakistan is the movement of Afghani weavers back to their home country. We are the biggest violators of copy right so we cant enact this agreement on anyone.

If everything is sorted from grass root level this will improve the imports and exports in all legal sectors.

TRIMS

There is a very small market of hand knotted rugs. Energy Crisis are one of the major issue which prevents investors to invest in this sector. Local Labour is already leaving because of low wages and lack of resources and inflation.

Labour is not available easily, not a very profitable sector.

SUBSIDIES & CV

Subsidizes can be given by government.

We should ensure that no other country is taking advantage of being subsidized by government specifically in the sector of carpets.
If there is a case of government subsidizing then countervailing should be enacted by Pakistan.

If action is taken then this agreement can be taken into favour of Pakistan in enhancing the exports of hand knotted rugs.

Tough Times
(Nov. 24, 2010)

Exporters have reduced from around 450 to 60 only following significant decline in exports during the last three years

Sales suffer every time when there is a recession as consumers cut their unnecessary expenses.

Devaluation of the rupee -as the rates of raw material increased and the wages also increased Inflation played a great role Buyers can get same from elsewhere on lower costs

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=16857&Cat=3&dt=11/24/2010

Competitors Analysis

India (took lead in US market) China (now they are finishing this sector because of time consuming)

Afghanistan (new emerging threat)

Iran

Conclusion

It provides jobs to 1.5 million people in the country.

Approximately $250-300 million in foreign exchange is earned annually.

More than 99% of carpets made in the country are exported. Local consumption is negligible. Average share in total exports is approximately 2.48 %. Iranian and Pakistani hand-made carpets dominated the USA market.

Conclusion

Due to economic recession their has been a great downfall of the hand knotted carpet industry. As its a luxury item its not preferred at a time of inflation and recession due to that their has been a decline in sales. Exporters have left this business due to late delivery charges which is not affordable.

http://www.articlesbase.com/business-articles/hand-made-hand-knotted-rugs-showroom-