sa analysis

ANALYSIS OF SURVEY:

Experience in Business

Almost 90 %of respondents have been working since 5- 10 years which shows that this industry is growing day by day and business has been improved. Shoe is one of the basic necessity of life, therefore, this industry has vast history. This also shows that this is growing as many traders lie in 5 to 10 years history.Nature of business operations

30 % of respondents were wholesaler and 70 % were retailers as actually. Mostly in Markets where we travelled, both were almost selling same volume of pipes. Retailers used to sell products in short volume not in bulk quantities.

Manufacturing facilities in other cities of Pakistan

35 % respondents have their outlets in other cities like Lahore but 65 % does not have. Actually it requires a lot of capital in having another outlet, therefore, traders used to have one unit at Karachi. Importance of plastic in industryAll the respondents replied that it is very important. Actually 200 grams are used in one pair of shoes. Without plastic, sole cannot be produced. Usage of PVC in productPVC is used in soles of shoes. Most of the soles are made of PVC.Grade of PVC in productsSince we are working on Soft Form PVC, therefore, all the suppliers were using soft form.PVC Weight in Shoe SoleIn one piece of Shoe sole, approximately 100 grams is used.Percentage of product comprise of PVC30-40 % is comprised of PVC. Therefore, it has significant volume usage in Shoes.

Average sales/ dayOn average basis, most of the sellers sell around 10 pairs of shoes every day. This leads to selling of millions of shoes in a month.Annual consumption of PVC in Kgs Most of the traders consume 500-1000 kgs per annum.Source of PVC

Almost 50 : 50 ratio is for both Local and Imported Material. Actually local suppliers do not have very good quality and availability, therefore, 50 % import of PVC.Confidence on Local resources of PVC

80 % said that Product is not available in Pakistan and if available then Quality issues. It is bad luck with us that Quality issues suffer our industry. Availability is also issue.20 % said about Quality issues and Supplies issues.Countries currently importing fromEvery respondent who is importing PVC is from China. As China is cheaper and readily available in China.Problems in supplies

80 % were worried about Quality and Timely Deliveries and 20 % did not share any concern.Most important aspects when selecting suppliers for PVCEvery respondent emphasized on Quality. As quality counts a lot. Actually bad quality PVC results bad quality Shoes. Therefore, Quality is major concern.Rate existing suppliers as (1-Worst, 2-Bad, 3-Neutral, 4-Good, 5-Excellent) on:a. Quality

80 % respondents said Neutral to their suppliers and 20 % rated good to suppliers.BTimely Deliveries

55 % respondents said Neutral to their suppliers and 45 % rated good to suppliers.

CPrice


D Availability


E Technical Expertise

30 % respondents said Neutral to their suppliers and 70 % rated good to suppliers.Current market structure of PVC Suppliers in industryThis sector is unorganized as suppliers are importing PVC based on their requirement..Top 3 suppliers of PVC

Respondents shared information like this:China: 40 %Engro: 35 %Local: 15 %Challenges in relation to PVC Products in PakistanEvery respondent emphasized on quality of local product as very inferior because it has to be good for good results.PVC industry prospectsEvery respondent thought that PVC industry is growing and will grow even more as consumption of shoes is increasing.Intended price/kg No respondent answered it.Intended order size in kgs for PVC

95% respondents answered 500-1000 kgs and 5 % respondents answered 1000-10000 kgs.

CONSUMPTION AND USE OF PVC

DESCRIPTIONUNITSVALUEREMARKS

PVC UsedKg / Pair0.2Average Based on Survey

No of Shoe Pairs sold per AnnumMillion Pairs 120

% of Shoes in which PVC is used%40%Average Based on Survey

Total Shoes with PVC Sold per AnnumMillion Pairs48

Total Yearly PVC ConsumptionKgs9,600,000

Tons9,600

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