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Pricing Strategy in Garment Export Industry

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This dissertation project has been formulated to study a new kind of pricing strategy for the Indian garment exporters and their reactions for adopting or rejecting such strategy. This strategy recommends using of fixed numeric values instead of percentage values in their cost sheets.
Indian garment export industry is a doorstep of dramatic and far reaching changes. Garment is one of the most value added product in the export basket of India. From the point of view of employment generation as well as net foreign exchange earning, there are no parallel for the garment export industry.
This industry is facing a challenge as the date of removal of quota is getting nearer by the end of the year 2011. There are many factors on which Indian garment exporters have to work upon so as to regain their buyers and to survive in this arena where they have to compete with both internal (other exporters) as well as external factors (other competing countries). Increased competition, erosions of margins, lack of expertise in global sourcing, pressure on lead time and quality have begun to affect the prospects of growth and profitability. The industry as a whole needs to have a change in its attitude, concepts, concerns and strategies.
One of the strategies, in terms of pricing, has been suggested to the Indian garment exporters in this project. This project has been divided into two areas depending on the data sources which are primary and secondary. The primary data displayed is the analysis of the questionnaires got filled by twenty garment exporters of Delhi and NCRS, and the conclusion abstracted from it. The secondary data is the core collected from different articles, news journals, books, and internet sites. The entire core abstract from these sources have been organized and put under different chapters under different topics as per their relevance. A brief of each chapter has been given below:
The very first chapter is “Introduction and Problems” in which the main problem for the Indian Garment Export Industry has been indicated which would occur due to the removal of quota. Not only India but many other competing countries would face such problems in the post quota scenario. The main problems faced by the exporters would occur in terms of their margins as they have to cut down their mark ups and over heads drastically. Many other factors would also be affected like order quantity, quality, style variation, and production runs in the forthcoming year.
The next chapter is “What is Competitiveness”, which defines the actual meaning of competitiveness in the garment industry. This chapter indicates on the various factors, which make a product competitive in terms of export and it also focuses on the additional qualifications that need to be borne in mind for such products.
The next chapter as the name “Indian garment export till now” indicates the position of Indian garment industry till date. This chapter comprises of factors like the relevance of garment export industry as it contributes to 4% of the GDA and 14%of the industrial output. It is the second largest employer after agriculture, and is the largest net foreign exchange earner in India. The growth rate of garment export industry has also been highlighted in this chapter, which has been comparison of different decades. This chapter also highlights on the competitive performance of its competitors and the impact of several buying countries like US and EU till now. Finally this chapter tells us about the biggest garment manufacturing and export hubs of India.
Chapter four, “Garment Export Industry in the Post Quota Era”, gives a brief study about the garment export industry in the post quota era. This chapter defines the situation of garment industry from the year 2011 and the significance of quota. This chapter focuses on the possible impacts of removal of quota restrictions in India, its competitors, buying countries and the whole garment industry.
Chapter five -“China - Main Competitor”, highlights on the most competitive country China and its challenges in the quota free regime. It tells about the Chinese garment industry and about those factors which would affect India’s competitiveness and which could become the stepping-stone for India.
The next and final chapter gives the brief on the domestic factors affecting Indian garment export industry competitiveness. These factors have been

Number of Pages of Project Report: 99
Package Includes: Project Report
Project Format: Document (.doc)

Table of Contents of Project Report:
Chapter 1: Introduction
1.1: Hypothesis
1.2: Objectives
1.3: Research Methodology
1.4: Scope And Limitation
1.5: Executive Summary

Chapter 2: Introduction And Problem Definition
Chapter 3: What Is Competitiveness?
3.1: Competitive Performance- Operational Definition

Chapter 4: Indian Garment Export Industry Till Now

Chapter 5: Garment Export Industry In The Post Quota Era
5.1: Possible Impact Of Removal Of Quota Restrictions
5.2: Buyers Expectation

Chapter 6: China – Main Competitor
6.1: The Chinese Challenge
6.2: China’s Weaknesses Could Become Stepping Stone For India

Chapter 7: Domestic Factors Affecting Competitiveness Of Indian Clothing Sectors
7.1: Product Specific Cost- Supply Chain Management
7.2: Government Policy
7.3: Economy-Wide Costs
7.4: Non-Price Factors

Chapter 8: Primary Data Interpretation
8.1: Questionnaire Analysis
8.2: Summary And Final Conclusion
8.3: Recommendations

* Bibliography

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