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The textile and clothing sector in European Union is one the two biggest
players in the global market. The European textile sectors accounts for
29% of the worlds textile exports (this, however, does not include trade
between the European Union member countries). EU is just behind China
in textile export, which occupies the first position and accounts for 40% of
the worlds textile export.
The European Union market presents a perfect platform for foreign
investors to invest in the textile and clothing sector. The textile sector is
slowly but steadily is gaining importance in new and emerging markets of
the third world countries. The use of new innovative methods to produce
textile fibers and many other textile products in different sectors like
medicine, science, architecture, aerospace, transport and automobile
have opened up several avenues for foreign investors to exploit the textile
market and cater to the needs of the market.
Investment policies:
To facilitate foreign investors investing the textile and clothing sector in
European Union, the European Commission carries out bilateral
agreements with foreign countries and formulates a mutually profitable
industrial policy and lays down the regulatory framework. All foreign
players are required to operate within the set regulation framework. The
agreements help the foreign investors to have a better access to the
markets in the third world countries.
The (T & C) textile and clothing industrial policy dialogue carried out by
the European Commission with the Euro Mediterranean region is of great
significance. This strategically important region has an important role to
keep geographic proximity of the entire textile and clothing production
chain in Europe.
The Single Market policy adopted by the European Union is one of the
most significant landmarks of the European Union market base. The policy
has a very positive bearing on the growth of the business and people in
the EU in terms of increased employment opportunities, wider choice of
goods and services, information and consumer protection, mobility of
labour and creating competition amongst foreign players.
The European Textile sector is especially proactive in undertaking research
work for the development of new and innovative products. The EU textile
sector additionally has an active commitment within lead market
initiatives that aims to provide appropriate measure to boost the market
of the textile products.
The advanced technology used for the manufacture of textiles in EU is a
major factor responsible for attracting investors for foreign companies and
contribute to the exports of the EU. The ambitious plans by the EU to
attract foreign investors in the textile sectors by providing financial
incentives has paved way for long term sustainable development of
European Textile and Clothing industry.
Size of the European textile industry:
thirds
of
all
product
categories)
under
the
so-called
GSP+
and 2011.
Pakistani exports to the EU are dominated by textiles and clothing
as well as leather products. Textiles and clothing account for just
Marketing Mix
Product
Although Nishat Mills manufactures a number of different textile related
products but for now we will only export yarn, grey cloth and processed
fibre to Europe. The reason of exporting these products is that the
demand of Pakistani yarn in Europe is great and we can grab a lot of
market share in Europe with our top quality yarn and processed fibre. By
exporting these products we can fully utilize our production capacity. As
these are mostly industrial goods, we dont need to change a lot in the
product for European market.
Price
As far is Yarn and processed fibre is concerned, Chinese and Indian
companies are Nishats biggest competition. Both China and India are
penetrating in the European textile markets by offering yarn and
processed fibre at reasonably low prices. We too will offer yarn, processed
fibre and grey cloth at a low price, with our great quality we are pretty
much confident that we will grab a large chunk of market share from India
and China. We are not aiming for big profits in the start, our focus is just
on penetrating in the market and a low pricing strategy will help us in
achieving our objective.
Distribution
We will establish our company offices in different parts of Europe to cater
the rising demand of the textile and clothing industry of the continent. Our
company representatives will reach out to different European textile firms
and convince them to purchase their raw material from Nishat mills. Our
manufacturing units are in Pakistan but we will build storage houses in
Europe to stock the goods, so that in case of small orders our company
representatives can deliver the goods from the storage houses.
Promotion
Nishat mills enter into the European market on its own. We have the
financial resources to establish offices in different key places across
Europe. Our companys representatives will take orders from different
companies in Europe and our export marketing department in Pakistan will
deliver the shipment to the buyer.
We will advertise about our products in different trade magazines. We will
take part in different trade exhibitions to showcase our products.
Ham-Tex Fair
Ham-tex is a fair of textile held in Germany on every January of the year in
which all over the world well established organizations make their display
centres to attract new customers. Nishat mills will use this fair as a tool of
promotion for its yarn, grey cloth and processed fibre.