Indian Carpet Industry and Its SWOT Analysis
Carpet Industry is one among the industries prevailing in India since centuries. Indian Carpet Industry has always been a crucial part of Indian export industry. Moguls brought and introduced carpet weaving in India which survived and flourished greatly. Over the period, ancient weavers has transformed into modern artist who imbibe the magical colours to the Indian carpets. These artists bring aesthetic touch to the carpets by doing magic with colours and provide carpets an unusual beauty and elegance. The study revealed that the total carpet exported last year was worth Rs 2600 crores whereas the size of the domestic market was condensed to about Rs 200 crores. Carpet holds a grace and recognition from over centuries. Earlier, only a few centers in India were involved in carpet weaving but slowly, various clusters have risen in northern part of India for the same purpose. Each center has its own competitive advantage. These centers employ nearly millions of people all across the country. Mojor belts of carpets include Bhadohi, Mirzapur and Agra belt in Uttar Pradesh, Jaipur, Bikaner in Rajasthan, Panipat belt in Haryana and Kashmir belt.
Carpets are broadly classified into two categories, traditional and modern. Otherwise, Indian manufacturers make carpets in various types, these are;
o Chainstich Rugs
o Tufted Woolen Carpets
o Hand-knotted Woolen Carpets
o GABBE Woolen Carpets
o Pure Silk Carpets
o Handmade Woolen Dhurries
o Staple or Synthetic Carpets
Each type has its own individuality in terms of design, look and the wool used in its manufacturing. The variety in carpets caters to various needs of customers.
The distinct variety added to the carpets is inclusion of silk and cotton which are innovatively mixing with the wool to give an attractive look to the carpets. Silk carpets are considered high quality pieces and are comparatively high in price. Indian carpets are fundamentally following the old popular patterns such as floral, rhomboids, animal patterns and arabesques in its designs. These traditional Oriental styles are preferred even today. However, Indian carpet industry seems to be highly influenced by western patterns and designs which are giving a competitive edge to Indian traditional carpets, such as Chinese patterns and Persian designs.
Swot Analysis of Carpet Industry
Indian Carpet Industry is a unique industry which is highly unorganized but lacks proper channels. Somehow, it has managed to perform impressively in the past years. The industry has made significant contribution in Indian exports till 1990s. What was there behind the industry that drives the export? SWOT analysis brings forth the value drivers and tentative blocks this industry has experienced and experiencing even today;
Strengths- Over the years, carpet industry has flourished in India due to availability of artistic skills, cheap labour and low cost raw material, innovations in selling carpets and flexibility in manufacturing all kinds of carpets.
Weaknesses- The industry’s greatest weakness is its highly being unorganized. The carpet exporters and manufacturers lack marketing channels. Indian suppliers suffer due to poor infrastructure and internal competition, and lack professional approach and Intellectual Property Rights.
Opportunities- Home furnishing market is moving towards Carpet industry, which results in evolution of new carpet designs. It is used as a marketing tool, and gives opportunity to provide stocking and warehousing services to various players in the market.
Threats- Industry is suffering a lot due to unhealthy competition exiting within it. If not handled properly, current rebound in the industry may not be sustainable. Social evil such as Child labor has strong bonding with the industry. Hence, the industry invites risk of possible backlash on itself.
Carpet Industry in India has experienced a major change in recent years. The industry is moving towards the emergence of new market and old existing market is saturated and lost its identity. Low-end carpets manufactured in modern designs like hand-tufted carpets are highly preferred by new customer base. Chinese industry is emerging as the biggest threat to Indian carpet industry, in terms of pricing and volumes. However, innovative products range with lower volume could be a success mantra for Indian Carpet Industry. Inefficient coordination and ill management are what exist predominantly in the industry. Apart from it, industry needs to consolidate on the activities such as quality standards, cost reduction, better development of products and their on-time delivery to drive its growth.
Source by Sanjeev Pandey