Launching Jeans in U.

Presented To:
Mr. Rana Shahzad

Presented By:
Nouman Saleem (011114)
 ACKNOWLEDGEMENT

All praises for Almighty Allah who is “THE CREATOR” of whole of the
universe and admires to our Holy Prophet Muhammad (Peace be Upon Him)
who taught us every thing of this life and the life thereafter.

Now it is our responsibility to convey the “WORDING OF SUCCESS” to

whole of the Ummah. As it was indicated in the last Address of our Holy
Prophet (Peace be Upon Him). And the graves of “FELLOW BEINGS” are
the proof of the completion of this responsibility.

I am thankful to my respected teacher Mr.Shahzad who taught us

“International Marketing ” with heart and also gave a guideline to this
report.
 Executive Summary
This report is about launching the Denim Jeans in U.K.It includes the
following aspects.
• Reasons for choosing this product
• Trends in international market
• Position of Pakistan in international market
• Internal process
• Machinery profile for Jeans
• Legal environment of U.K
• Political environment of U.K
• Trade environment of U.K
• Geographic environment of U.K
• Major imports profile of U.K
 Sheikh Garments
For manufacturing the Jeans and exporting it to other countries, I have
established a new garments unit named as Sheikh Garments.
The Product
The product my unit is manufacturing is Denim Jeans & we are exporting it
to U.K.
Why I Selected Jeans
I have selected the Denim Jeans for exporting it to U.K for the following
reasons.
• The overall imports of U.K are very good.
• Cheap labor is available for producing Jeans.
• Resources are available for producing Jeans.
• This industry is growing very fast.
• Pakistan has good relations with U.K.

Where did the name Denim Jeans come from?

The phrase denim jeans is thought to derive from several sources. No one is
totally certain where the words come from. A majority of source books
suggest that denim derives from the English translation of the South of
France French phrase 'serge de Nîmes'
It may well be that the fabric which was made in France also had a version
made locally in England and was called by the same name of denim in the
same way that Cheddar cheese is called cheddar all over the world. The
Serge de Nîmes was originally a wool silk mix, twill weave. Certainly by the
19th century in England denim had a white warp and a navy woof (weft).
Denim was considered a hard wearing sturdy fabric, ideal for heavy
laboring.
Category 603
Denim is known as Category 603 in Pakistan and other countries.
Trend
The trend for jeans is increasing in the whole of the world. It is not only
popular in Pakistan but also in the whole world.
The Most Important Issue
Not only for the Jeans, also for all products, it’s essential to know your
product. I am a manufacturer and if I have no idea about the processing of
my product, then I cant run my business well.
Our Unit
We are the manufacturers and we give product to the wholeseller .He sends
the product to U.K. The main strength of this unit is derived from the
availability of a large variety of fabrics in normal twills.
Denims
Greenwood of USA and Legler of Italy’s denim manufacturing facilities
around Lahore and because of a large number of other Denim producing
units, normal denims and stretch denims of almost all weights and qualities
are available.
Administration
Patterns / Sampling
Cutting
 Stitching
Laundry
Finishing
Quality Control
Stores
Boiler
Electricity / Generator
General Maintenance
Security
There are 250 people working for us divided into 8 departments excluding
security. These departments are administration, sampling, cutting, stitching,
washing, finishing, quality control and stores. Our employee turnover is low
and hence the skill level of our workers has grown with us.
We are a stitching (BROTHER brand machines) and washing unit (NGAI
SHING, Hong Kong) based on 4000 pieces per day production of 5 pocket
basic jeans. This essentially means that as the style gets complex the
production per day drops accordingly.
We are constantly adding new and more modern machines to our unit to
enhance our production. Lately we have added a computer controlled
automatic Brother brand "Pocket Welt" machine for any trouser type back
pocket welts and flap attaching as we anticipate that the market is going to
demand these pocket types in the coming seasons.
Contact with Buyers
We contact the potential buyers through following sources.
• We use secondary sources mostly
• Trade fairs
 • Agents
• E-Marketing
• Personal contacts
• Other sources

Competition
Internationally, we are facing competition from the following countries.
• India
• China
• Bangladesh

Marketing Mix
• Our product is a 5-pocket men’s jean. It can be made for any waist
and any length. The buyers from England send the sample & we
provide it accordingly.
• Our pricing ranges mostly from 4.7$ to 6.7.it is based on the length
and waist of Jeans. We deal in $ and not in the pounds.
• We don’t need too much promotion. It’s done by fairs, e.commerce,
agents etc.
• We export the product to U.K.The distribution channel is as follows.

MANUFACTURER (COMPANY)

WHOLESELLER
 JEANS SEND TO U.K

Internal Process
It is as follows.
Sample

Cutting

Stitching

Washing

Pressing and labeling

Finishing

Dispatched to store
 Packing and containers

Explanation
• The sample is first send by the buyer. It’s called a gold seal sample.
• In cutting dept, one piece is placed on the other and in this way a
bundle of 50 Jeans is made. Then the cutter cuts it.
• In the stitching dept, front end or the upper part is made. Then
backend is made and they are assembled together in the assembly end.
Then the belt is made.
• Washing can be done by simple garment wash or through the stone
wash and chemicals. It is done according to the buyer’s request.
• In Pressing and Labeling dept, the Jeans are pressed and then labeled
for identification.
• In finishing dept, the quality of jeans is checked and mistakes are
rectified.
• Then the Jeans dispatched to the store.
• Then packing is done. It is done according to the buyer’s request.
Then they are sent to the containers.
Machinery Profile
We are currently using the following machines.
Stitching Unit:
Lock Stitch 84 units
Double needle 16
Safety 5 threads 12
OverLock 3 threads 11
Loppers 02
Waist Belt 03
Belt attaching 04
Bartacks 12
Shank Buttoning 05
Plastic Buttoning 02
Feed of the Arms 10
Eyelets 04
Pocket welting 01
Pockets hemming 02
Elastication 02
Flap attaching 02
Total 170
Laundry:
Washing Machines
Double Chamber 800 lbs 3
Single Chamber 400 lbs 3
Dryers 1
Extractors 4
Total 10
Boilers:
2 Tone Capacity 1
Small Units 2
Total 3
Pressing:
Steam Vacuumed pressing tables 4
Normal pressing tables 7
Steam press 12
Total 23

Quality Control
Raw Material
All of the raw materials pass through a rigorous quality inspection and
materials not found within the acceptable criteria of our set quality standards
are rejected.
Production
A well-trained staff is deployed to ensure that quality produced is within the
set parameters of our quality standard.
Workers Training
Each of the worker is trained, tested and absolutely familiarized with the
jobs he has to perform. He/She is not deployed unless Quality Control
Department is satisfied of his/her ability to meet our quality standard.
Cost Schedule for One Piece

Fabric Rs .130
Accessories Rs.15
Thread Rs.10
Stitching Rs.20
Overhead costs Rs.15
Quota for 1 year Rs.20
Total Rs 210 or 3.5$
External Environment of U.K

SUMMARY
The United Kingdom (UK) is the world's fourth largest economy, and is a
trading nation with a generally open market and a "level playing field". The
UK is a member of the European Union (EU), but has not committed to
signing up for the Euro. It attracts U.S. exporters and investors as a place in
which to do business, because of the common language, a similar legal
framework and business practices, and relatively low rates of taxation and
inflation. Once here, it is easy for American firms to use the UK as a
gateway to the rest of the EU. There are very few sectors in which foreign
ownership is limited, and no restriction on the repatriation of capital and
profit. Within the EU, the British Government supports the rights of any
company registered in the UK, irrespective of the nationality of its ultimate
parent.

ECONOMY

The United Kingdom is the fourth largest economy in the industrialized

world. With the heavy emphasis on privatization and lowering of taxes in the
last twenty years, the wide economic cycles that characterized the economy
of the 1970's and early 1980's have become more moderate in scope.
The UK is entering its ninth consecutive year of economic expansion,
although growth has slowed in concert with the economies of the other EU
countries. The main economic focus of the Labour government, re-elected in
May 2001, is welfare reform, trade liberalization, productivity improvement,
and possible entry into the single European currency (Euro).

The two largest impacts on the British economy in late 2000 and early 2001
have been the global economic slowdown, including the downturn of the
U.S. economy, and the outbreak of foot and mouth disease. The slowdown in
the U.S. economy has the potential to contribute to a similar slowdown in
the UK economy, as UK exports to the U.S. are approximately 3% of overall
GDP. A U.S. slowdown could also contribute to a widening of the UK
current account deficit, which stood at 16.2 billion pounds sterling in 2000,
but which could widen to close to 20 billion in 2001. Moreover, over
investment in telecommunications infrastructure, including prices paid for
so-called third generation licenses by British firms, could exacerbate a UK
slowdown, as the companies involved struggle to service their debt.

The services sector, including finance, transport, storage, and

communications, accounts for almost 75% of the overall economy and
remains robust. In manufacturing, productivity has continued to increase, but
growth is slowing. The manufacturing sector, which accounts for 20% of
GDP, grew by only 0.7% in 2000. One of the major challenges facing the
Labour government is to improve this figure. It has signaled that it intends to
achieve this improvement by focusing on policies that promote greater
competition. Reductions in capital gains taxes, reform of insolvency laws,
and simpler taxes for small businesses are among the policies that will be
put forth by the new government in hopes of spurring productivity.
The UK has an essentially free and market-driven economy, with
independent regulatory bodies providing additional direction in those sectors
where private individuals are the principal users of the product or service.
Regulated industries include the privatized utilities: telecommunications,
electricity, water, and gas supply, and passenger rail transportation. The
Financial Services Authority regulates financial services, while the Office of
Fair Trading regulates consumer credit. Further liberalization of the financial
services, air travel, energy, and telecommunications sectors are all economic
goals.

The relationship with Europe also dominates the economic landscape of the
UK, particularly whether the United Kingdom should adopt the single
European currency (Euro). The Labour government has stated that a decision
on whether to join the Euro will be made on the basis of strict economic
self-interest, and only if approved by the electorate in a public referendum.
Most observers do not expect a referendum on the Euro before 2003 at the
earliest.
Private sector production, transportation, warehousing, communications, and
distribution facilities in the UK are adequate, although some of the physical
assets employed show the need for repair and replacement. Much of the
responsibility for public sector infrastructure in the UK has been transferred
to the private sector, and to independent executive agencies that are
accountable.

To supplement government investment, the Public-Private Partnership (PPP)

initiative enables Private Finance Initiative (PFI) schemes that create viable
business entities from public assets at minimal cost to the government have
been developed. PFI schemes transfer ownership of public assets to the
private sector, as well as transferring financial risk and reward – i.e. the
private company has no recourse to the government if the business fails.

Information on the UK's economic performance and prospects is published

in the Bank of England Quarterly, and similar data can be obtained from
many of the major U.S. banks and investment houses

POLITICALENVIRONMENT
The exceptionally close and productive Anglo-American "special
relationship" is anchored by a long-standing and vibrant political and
security purpose, common values, close trade and investment links, and a
shared cultural heritage. At the government level, the strength of the
relationship ensures continued cooperation on a very broad range of foreign
policy.
No important local political issues affect the business climate in the UK as a
whole, although resolution of the peace process in Northern Ireland is
important for business sentiment. The Labour Government has said that, if
certain economic conditions are met, it will hold a referendum on joining the
EU Economic and Monetary Union (EMU) and accepting the Euro as a
common currency. The Conservatives, by contrast, are likely to oppose such
referendum..
An important EU issue is the prospect of harmonizing direct taxation
policies among member states, as in the recent case of savings withholding
tax. Labour and Conservatives alike oppose this, as both political parties are
committed to defending individual EU member states' tax powers.
TRADE REGULATIONS & STANDARDS
The UK has no significant trade or investment barriers, and no restrictions
on the transfer of capital or repatriation of profits. The very few barriers that
exist are the result of UK implementation of EU Directives and regulations,
and do not reflect UK Government intentions.
Customs duty is assessed on the fair market value of imported goods at the
time they are landed in the UK. The commercial invoice value is usually
accepted as the normal price, but if a preferential arrangement has been
established between the overseas supplier and the importer, or an unrealistic
value has been declared, HM Customs reserves the right to assess a fair
market value for duty purposes. The duty is payable at the time the goods are
imported, but established importers can defer payment for up to 30 days. In
addition to customs duties, an excise tax is levied on sales of alcohol,
tobacco, road vehicles, and oil and petroleum products.
A limited range of goods requires import licenses, which are issued by the
UK Department of Trade and Industry's Import Licensing Branch. These
include firearms and explosives, nuclear materials, controlled drugs and
certain items of military equipment.
The UK participates in the Wassenaar Arrangement for the control of dual-
use exports, the Australia Group (AG) for the control of chemical and
biological weapons, and the Nuclear Suppliers' Group (NSG) for nuclear-
related goods, preventing the export of restricted goods and technology to
countries of proliferation concern. The UK also supports United Nations'
sanctions restricting exports to certain other destinations. Although sensitive
to the extraterritorial application of U.S. law in export controls, the UK
authorities cooperate with the U.S. in preventing the re-export of sensitive
goods and technology of U.S.-origin to unauthorized destinations, when the
enforcement action is based on multilateral controls.
The documents required for shipments include the commercial invoice, bill
of lading or air waybill, packing list, insurance documents, and, when
required, special certificates of origin, sanitation, ownership, etc.
A copy of the commercial invoice should accompany the shipment to avoid
delays in customs clearance. No special form of invoice is required, but all
of the details needed to establish the true value of the goods should be given.
At least two additional copies of the invoice should be sent to the consignees
to facilitate customs clearance. Consular documents are not required for
shipments.
Origin, weight and dimension, chemical composition and appropriate hazard
warnings are required for consumer protection purposes on any product
offered for retail sale. If the product cannot be labeled or marked, the data
may be included on any packaging or accompanying printed material or
product literature. Although metric units of weight and dimension are
required, the continued use of labels with both metric and standard U.S.
units is permitted. This continued freedom is supported by importers, and
also by British exporters of products destined for the U.S. market. European
and British clothing and shoe sizes are differently marked, and special
provision may have to be made for retail labeling of apparel.
Prohibited imports include AM citizens band radios, switchblade knives,
devices that project toxic, noxious or harmful substances (e.g., tear gas),
counterfeit coins and currency, and certain types of pornography.
The UK supports the use of ISO, EU and national standards, with the higher
standard superceding the lower as soon as it is issued. Although industry-
specific standards and approvals have no legal standing, they are often
accepted as an assurance of product quality if no relevant national standard
exists. Such acceptance, though, is invalidated when a national, EU or ISO
standard.

ECONOMIC AND TRADE STATISTICS

COUNTRYDATA

-- The UK population is estimated to be just under 60 million people.

-- The population is forecast to reach 63.6 million people in 2021. This 6 per
cent increase over the next 21 years equates to annual population growth of
just0.3percent.

-- The UK is a constitutional monarchy. The Head of State is Queen

Elizabeth II. The head of government is Prime Minister Anthony (Tony)
Blair. The monarch is hereditary; the Prime Minister is the leader of the
majority party in the House of Commons (assuming there is no majority
party, a prime minister would have a majority coalition or at least a coalition
that was not rejected by the majority). The legislative branch consists of two
chambers: the elected House of Commons (659 members) and the unelected
House of Lords (686 members as at June 18, 2001. The number varies as
peers are created). In addition to the UK government in London, there are an
elected Scottish Parliament in Edinburgh, an elected Welsh Assembly in
Cardiff, and an elected Northern Ireland Assembly in Belfast.
The official language is English. Welsh is spoken by a substantial minority
in Wales, and Gaelic by a minority in Scotland. In addition, there are many
large communities in the UK whose first language is not English. Numerous
languages are spoken in London, including thirty-three for which there are
resident populations of 10,000 or more.

--GDP(2000)=$1,355billion

--EstimatedGDP(2001)=2.3%

-- Government spending is estimated to be 39.7 per cent of UK GDP

-- Inflation: The underlying rate of inflation in the UK is forecast to be 2 per

cent in 2001. This compares to the UK government's target of 2.5 percent.

Samples of Our Product

Pictures of Processing
Sources of information
• Internet
• Journal
• Books
• Visit to a manufacturing unit (Delta Garments)