Interwood Export from Pakistan

Interwood Export worldwide from Pakistan. Interwood getting new project from Pakistan based company located in aboard.

Question	Answer
Start Export	2009
Total share of Export in Total Production	25%
Falcon Wharf (London)	1st International Project
Major Project	United Wood UAE approx 2.3 million USD
Certifications	ISO 9001 , ISO 14001 BM Trada
Imports	Polish and Equipment
Export channel	FCL due to LCL damage and Delay
Fast Sampling	Air Cargo
Order	Shipping Line ( Mearsk , APL)
Major Category  in Export	Office , Home Solutions
Major Buyer	Hagger
Issues in Export	Improper Export Department

• Largest manufacturers and exporters of Home, Office, and Hotel Furniture in Pakistan. Interwood is the only company in Pakistan which caters to all the Home furnishing needs of a consumer from Doors to Occasional Home Furniture and Interiors.
• State of the art seasoning plants, machinery from Italy & Germany and the skill, motivation, enterprise and dedication of Interwood personnel result in products whose QUALITY – PRICE ratio is unmatched by any Pakistani or imported product. (Pictures of the factory machinery)
• There is no or little after sale service available in this industry. INTERWOOD has a full fledge Customer Service Department and provides service and parts, even after years.
• Eco-friendly production. Other competitors still using Sheehsam which is becoming extinct in Pakistan.
• (Stats of the factory and its production capacity)
• Total annual sales volume of US$ 10 Million to US$ 50 Million
• Export percentage 15% - 20%

HS code	Product
940330	Office furniture, wooden
940340	Kitchen furniture, wooden
940350	Bedroom furniture, wooden
940360	Furniture, wooden
940380	Furniture of cane, osier, bamboo
940390	Furniture parts
940410	Mattress supports
940161	Seats with wooden frames, upholstered
940169	Seats with wooden frames

Porter 5 forces Model :

1. Barganing Power of Buyer:

The barganing power of customers is week because of the new and improved technology and Quality.

2. Barganing Power of Supplier:

The Bargaing Power of the Supplier are also week due to the the bulk buy and routine contract buying for this it’s a win win situation for both Supplier and buyer.

3. Threat of New Entrants:

Not an alarming situation at this stage due to Technolgy and Quality which no one in pakistan can provide it.

4. Treat of Substitute :

Subtitude are available in markets but any substitute agains the wood will not be able to sustain for a large span of time.

5. Rivalry

Experience and giants rivals are there in the international market with Brand recognition and improved technolgy and Potential to fulfill large Order all over the World.

Pakistan – The Underlying Strengths

• Central location in South Asia…

Close proximity to high growth markets of China / India and the oil rich GCC countries
Strong geopolitical importance – gateway to land-locked energy trade corridor of Central Asia

• Domestic Economy Stabilizing

GDP of $177bn / per capita income of US$ 1,010
External foreign exchange reserve of about $17bn

• Impressive Demographic Potential

Increasingly consumption driven population of 175mn
More than 60% of population below the age of 24





What Pakistan enjoys:

Pakistan has:	Pakistan doesn’t have:
Favorable Location Stabilizing Domestic Economy Encouraging Economic Growth Big consumer demand	No government support to promote the industry
Cheap Human Resource Technical Know How of the wood and related products Pakistan’s expertise in traditional wood carvings design	Unavailability of middle-management human resource Lack of capital for investment in machinery and R&D
Availability of good quality of wood in    the domestic market Ability to produce customized designs Proximity to the countries providing other raw material	Increased cost of imported raw material Technological constraints Out-dated idea’s for the manufacturing of wooden products

Country	Value of Export (‘000 US$)	Change From Last Year (inc / (dec) in US$)
U.A.E	1,898	429
Afghanistan	1062	(31)
United Kingdom	774	(5)
United States	704	(187)
Saudi Arabia	248	(34)
Germany	180	(287)
Malaysia	254	26
Qatar	115	20
China	109	82
Turkey	15	4

SWOT Analysis

Strengths
Skilled Labor Force latest technology. Suppliers of raw material are available 2,000 people (approx.) are directly and indirectly attached with this occupation Strong historical background of craftsmenWeaknesses
 High cost of production due to high rate of Power. No R&D facilities available Lack of international marketing.Opportunities
 Technical up gradation International exhibitions International warehouses Networking & linkages of cluster players/stakeholdersThreats
 Migration of trained work forces from the sector Raw material and Power cost increase  Instable political set up of the country.
Four Ps

1. Price:

Interwood provides the best quality according to International Requirement and does not have different Price strategy for export. They follow the same rule as they do in local market such as no compromise on quality and no concession in price.

2. Product :

Best quality Product as they do not Compromise in Product which is supported by their Best technology. They Offer what Customers want to receive.

3. Promotion:

They use only trade promotions Such as exhibitions, events and magazine.

4. Packaging:

Includes handling, shipment , labeling , boxes , fixed , unfixed , touchups, finalizing which is supported by a team specially tasked for packaging with imported machinery.  

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