The Indian carpet industry is one of the oldest industries in the country. Major carpet manufacturing centres in the country are Agra, Bhadohi, Kashmir and Jaipur. Since the market for domestic carpets in India is relatively small in size, most Indian carpets are exported to foreign markets such as the US and Germany.
Germany is the 6th largest trading partner of India. In 2007-08, total trade between India and Germany stood at around $15 billion.* Germany is also the largest export destination for the Indian carpet industry. Driven by the huge demand for Indian carpets in Germany, an increasing number of Indian SMEs in the carpet industry are targeting this European nation.
Over the years, Indian carpet exports to Germany have maintained a consistent growth. In 2007-08, India’s carpet export to Germany stood at around $155 million.** Consequently, this high growth has increased the revenues of Indian carpet manufacturers and exporters, particularly those belonging to the SME segment.
Outdoing competition
Apart from India, Iran and China are the other major carpet exporters to Germany. In terms of silk carpet exports, China accounts for nearly 52% share while India’s share is around 33%. This indicates that Indian carpet manufacturers should further look at tapping into the German market.
According to Industry Experts, the chief reason behind Indian carpet manufacturers’ inability to dominate the German market is their poor marketing skills. They also opine that the Indian carpet industry lags behind their Chinese and Iranian counterparts on the pricing front.
Therefore, it is important for Indian carpet manufacturers to use proper marketing channels to cater to the larger customer-base in Germany. To address these issues, Indian carpet companies, especially those belonging to the SME bracket, can tie-up with German distributors to supply their products across the country.
CEPC promoting the carpet industry
The Carpet Export Promotion Council (CEPC) a representative body of carpet wholesalers and exporters Manufacturers in India is supporting the carpet industry by organising exhibitions, conferences and seminars in foreign markets, including Germany.
With adequate government support, Indian carpet manufacturers can capture the German market in the near future.
David Parks is a well known author and has written articles on SME finance Guide, B2B Portal, Business Trade Leads, suppliers, Manufactures and many other subjects.
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