Fabric Trade Form India To Canada Essay, Research Paper
Canada, with its economic and political stability offers a variety of business opportunities. With such a large population of immigrants, Canada is known for its acceptance of diverse cultures. English and French are Canada’s official languages and there are many other languages spoken freely by diverse racial groups on Canadian soil. Many different religions are also practiced freely and peacefully in Canada.
India has a population of 986.6 million people. This country holds 15 % of the world’s entire population. Within this country, a variety of cultures and traditions can be found. Christianity, Hinduism as well as the Muslim religion are all practiced freely in India. With 18 official languages and over 900 dialects, India is one of the most culturally diverse areas in the world. Tradition and heritage are very important to the Indian people. Many Hindus in India still practice the same hymns and chants created over 3000 years ago. Many Indians, both male and female still wear traditional garments whether in their native country or abroad.
The population of immigrants in Canada represents approximately 1/6 of the total Canadian population. In order to facilitate the transition for Indian immigrants who leave their native country to come to Canada, authentic, quality textiles, ranging from silks to cottons, canvasses and rugs will be made available to them. Many traditions are expressed through these textiles. Some of them tell stories or express tradition. Others are exclusive to particular areas in India, based on their design or texture.
The accepting nature of Canadians when faced with cultural diversity, as well as the large population of Indian immigrants makes Canada an ideal market in which to sell authentic Indian textiles.
2.1 Research Objectives
The objective of this project is to obtain enough information to suggest that Indian textiles can be sold profitably in Canada. A complete analysis on both India and Canada will be established in the following pages. This information will determine whether selling authentic Indian textiles in Canada through retail stores is feasible. Our secondary objective is to learn more about the Indian and Canadian cultures, political and economic characteristics, legislative systems and infrastructure.
2.2 Research Methodology
We used the Internet as our main research tool. Statistics and facts about both countries were readily available on the World Wide Web. Many sources were referred to when trying to find statistics and facts in order to lend credibility and accuracy to our paper. There were differences between some of the sources, which forced us to verify yet a third source to find answers.
2.3 Data Analysis Techniques
The data found on the web was used to investigate the many factors that enable us to penetrate this market and establish trade with India. Economic and political stability for example, is critical to trade between the countries involved. Other factors such as the product fit with the market and the market size were also critical to this project. Through hard statistics and facts, we were able to obtain enough information about the countries to make our import plan seem feasible.
2.4 Action Plan Timeline
Between both partners, there was approximately 46 hours spent to completing this project. The first month was spent collecting data on both countries. Organizing the information took the most time. Establishing our implementation plan came next and finally structuring both the presentation and written assignment.
3.1.1 Country Profile
India, with its population of 986.6 million people, is the world’s second largest country in terms of population. There are 18 official languages in India and over 900 dialects or closely related languages. Hindi is the most common language used and English, is the second most common. There is a remarkable mosaic of cultural and racial people found in India. Many Hindus, Christians, Sikhs, Jains, Buddhists and Muslims practice their religion freely and peacefully in India. Refer to Appendix ?A? for a detailed map of India.
3.1.2 Political Characteristics
The Capital of India is New Delhi. There are 25 states and 7 union territories, which divide the country. India gained independence from the UK on August 15, 1947. The national holiday is celebrated on January 26 and the Indian people have been celebrating this Anniversary of the Proclamation of the Republic since 1950.
22.214.171.124 Political System and Leaders
The Republic of India has a federal republic government system. It is a functioning democracy with a free and vibrant press. There are many political parties in India. Some represent communism or Marxist-Leninist ideals; others represent religious groups for example the Sikh or Muslim. There are socialist parties and some pressure groups, which are either religious or militant organizations, including Vishwa Hindu Parishad, and Rashtriya Swayamsevak Sangh. These various separatist groups often seek greater communal and/or regional autonomy. The chief of state is President Kicheril Raman Narayanan and has been since July 25, 1997. The Vice President is Krishnan Kant who has been in term since August 21, 1997. The head of government is Prime Minister Atal Behari Vajpayee and the cabinet consists of a Council of Ministers, which are appointed by the president with the recommendation of the Prime Minister. The president is elected for a five-year term by an Electoral College, which consists of elected members of both houses of Parliament and the legislatures of the states. Parliamentary members of the majority party elect the Prime Minister following the election. The bicameral Parliament consists of the Council of States (a body consisting of not more than 250 members, up to 12 of which are appointed by the president. The remainder are chosen by the elected members of the state and territorial assemblies) and the People’s Assembly (545 seats; 543 elected by popular vote, 2 appointed by the president; members serve five-year terms).
3.1.3 Economic Characteristics
126.96.36.199 General Information
India’s economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. India’s international payments position remained strong in 1999 with adequate foreign exchange reserves, reasonably stable exchange rates, and booming exports of software services. Lower production of some nonfood grain crops offset recovery in industrial production. Strong demand for India’s high technology exports will bolster growth in 2000.
188.8.131.52 Economic Indicators
India’s GDP growth rate is between 6 and 7%. The GDP in $US is 466.1 billion. The GDP per capita is approximately US$1800. Agriculture represents 25% of the GDP composition by sector. Industry, which includes textiles, the product we are importing, and services represent 30% and 45% respectively. In 1995, India had the world’s 16th largest economy and rose to the 11th place in 1999. India’s purchasing power parity is at approximately $1.805 trillion and is the fifth largest economy in this category. 32% of India’s population lives in urban areas but there is a gradual and constant movement of the population from rural to urban areas. The labor force is mainly comprises occupations in agriculture 67%, services 18% and industry 15%. The inflation rate is approximately 4.7% and the income per capita is valued at US$ 472.
184.108.40.206 Social Development Indicators
The life expectancy in India is 62.5 years. Infant mortality rate is 64.9 per 1000. The labour force as a percentage of the population is 38% and people in absolute poverty represent about 1/3 of the population. The adult literacy rate is 52.1%. India occupies only 2.4% of the world’s land area but supports over 15% of the world’s population.
3.1.4 Legal/Regulatory Environment
The Indian legal system is based on the English common law. Supreme Court judges are appointed by the President and remain in office until they reach the age of 65. India is a member of many international organizations. These include the WTO, IMF, ISO, UNIDO and dozens more. In 1991, India began reforming economically. Tariff and tax rates were slashed and simplified and the rupee is now convertible.
3.1.5 Fiscal Characteristics
India’s budget revenues are worth $35.8 billion and its expenditures $66.3 billion, including capital expenditures of $15.9 billion. The industrial production growth rate is 6%. Textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum and machinery are the main industries in India. Exports from India in 1999 were worth approximately $36.3 billion. These include commodities such as textile goods, gems and jewelry, engineering goods, chemicals and leather manufactures. India’s main partners in trade are the United States, Russia, Japan, Iraq, Iran, and central and eastern Europe. India’s exports to Canada were valued at over $1 billion. India’s total imports were valued at about $50.2 billion in 1999. These import commodities included crude oil and petroleum products, machinery, gems fertilizer and chemicals. India’s external debt is valued at $98 billion. US$ 1 is equal to 45.797 rupees, which, is India’s currency.
3.1.6 Physical Infrastructure
The diversity of the Indian population is matched by its incredible physical diversity. India is the seventh largest country in land area with 3 287 263 sq. km. Northern India is home to the Himalayan mountain range and the third tallest mountain on the planet, Kanchenjunga (28,208 ft, 8,598 m). South of the Himalayas lies the valley of the great Ganges River. The river has created the wide and flat Gangetic Plain where millions of Indians live and rely on the water of the Ganges. The Ganges drains the south slopes of the Himalayas and flows eastward to the delta at the Bay of Bengal. India and Bangladesh share the delta. Floods as well as typhoons (hurricanes) often ravage this low-lying area, where the Calcutta is located. This explains why we are focusing mainly on the doing business in south India. Another major river, the Indus, flows through a small portion of India on its way from the Himalayas through Pakistan and out to the Arabian Sea. South of the river valleys lies to Deccan region. To the east and west of the Deccan lie the Eastern Ghat and Western Ghat, respectively. The Ghats are mountain ranges on the east and west coasts of the subcontinent. Much of India lies between the Tropic of Cancer and the Equator. The terrain in the south (Deccan Plateau) consist of upward plains, flat to rolling plain along the Ganges, deserts in the west, and the Himalayas are located in the north. Monsoon rains from the southwest in the Indian Ocean occur during the June through November wet season. India depends on the monsoon for much needed water for agriculture. The climate varies from tropical monsoon in south to temperate in the north. India’s natural resources are; coal (fourth largest in the world), iron ore, manganese, mica, bauxite, titanium ore, chromate, natural gas, diamonds, petroleum, limestone and (56%) arable land. Other land uses are; permanent crops (1%), permanent pastures (4%), forest and woodland (23%) and other (16%).
3.1.7 Commercial Infrastructure
There is a total of 62,915 km (12,307 km electrified; 12,617 km double track) of railways in India. The highways represent 3 319 644 km in length and the paved roads represent a little over 1/3 of this number. There are 16 180 km of waterways, 3 631km of which are navigable by large vessels. The main ports and harbors are located in Calcutta, Chennai, Cochin, and Mumbai (Bombay). India’s merchant marine corps is comprised of 321 ships. There are 238 airports with paved runways and 108 with unpaved runways. Sixteen heliports can be found in India.
There are 18.95 million main telephone lines in use in India. There are 1.9 million mobile cellular telephones. The telephone service is mediocre. Local and long distance services are provided however, throughout all regions of the country. The demand for communication services is growing rapidly. The major objective for India is to continue to expand and modernize long-distance network in order to keep pace with the growing number of local subscriber lines. The local telephone service is provided by microwave radio relay and coaxial cable with open wire. Obsolete electromechanical and manual switchboard systems are still in use in rural areas. There are 116 million radios and 63 million televisions in India. There are 562 broadcast stations; 82 of which gave 1kW or greater power and 480, which have less than one kW of power. Internet service is available although the number of ISPs could not be found.
3.1.8 Product Fit with Market
3.1.9 Competitive Barriers
3.1.10 Risk Considerations
3.2.1 Country Profile
Canada is the world’s second-largest country (9 970 610 km2), surpassed only by the Russian Federation. Canada?s population as of 1998 was 30 675 398. Canada has two official languages: English, the mother tongue of about 59% of Canadians; and French, the first language of 23% of the population. A full 18% have either more than one mother tongue or a mother tongue other than English or French, such as Chinese, Italian, German, Polish, Spanish, Portuguese, Punjabi, Ukrainian, Arabic, Dutch, Tagalog, Greek, Vietnamese, Cree, Inuktitut, or other languages. More than four-fifths of Canadians are Christian, with Catholics accounting for about 47% of the population and Protestants about 36%. Other religions include Judaism, Islam, Hinduism, Sikhism and Buddhism. Some 12.5%, more than any single denomination except Roman Catholic, have no religious affiliation at all. Diversity is the keynote of Canada’s geography, which includes fertile plains suitable for agriculture, vast mountain ranges, lakes and rivers. Wilderness forests give way to Arctic tundra in the Far North. Canada has six time zones. The easternmost, in Newfoundland, is three hours and 30 minutes behind Greenwich Mean Time (GMT). The other time zones are the Atlantic, the Eastern, the Central, the Rocky Mountain and, farthest west, the Pacific, which is eight hours behind GMT. Refer to Appendix ?B? for a detailed up-to-date map of Canada.
3.2.2 Political Characteristics
The Capital city of Canada is Ottawa, in the province of Ontario. Canada has 10 provinces and 3 territories, each with its own capital city. . On July 1, 1867, Canada East, Canada West, Nova Scotia and New Brunswick joined under the terms of the British North America Act to become the Dominion of Canada.
220.127.116.11 Political Systems and Leaders
Canada is a constitutional monarchy and a federal state with a democratic parliament. Her Majesty Queen Elizabeth is Canada’s Head of State and the Queen of Canada. Her representative in Canada is the Governor General, currently Adrienne Clarkson. The head of the majority party in Commons is the nation’s prime minister and the Head of Government (currently Jean Chr?tien, of the Liberal party). The deputy prime minister is Herb Gray. The Parliament of Canada, in Ottawa, consists of the Senate, whose members are appointed and the House of Commons, whose members are elected. On average, members of Parliament are elected every four years. There are several major political parties, the biggest of which are as follows: (Liberal Party of Canada, Progressive Conservative Party of Canada, New Democratic Party of Canada, Canadian Alliance Party, Bloc Quebecois a separatist party present only in Quebec).
3.2.3 Economic Characteristics
18.104.22.168 General Info
The principal natural resources are natural gas, oil, gold, coal, copper, iron ore, nickel, potash, uranium and zinc, along with wood and water. Leading Industries include automobile manufacturing, pulp and paper, iron and steel work, machinery and equipment manufacturing, mining, extraction of fossil fuels, forestry and agriculture. The official Canadian Currency is the Canadian Dollar ($). The Canadian dollar is divided into 100 cents. Canada’s leading exports are automobile vehicles and parts, machinery and equipment, high-technology products, oil, natural gas, metals, and forest and farm products.
22.214.171.124 Economic Indicators
Canada?s GDP stood at $US 617.6 Billion. The inflation rate steadied at 1.7%, while the unemployment rate dropped to 7.8%. In addition, Global Imports topped $US 217 Billion. Canada holds the keys to success in the new economy: Canadian entrepreneurs are at the forefront of key industrial and technological sectors; our workers are skilled and mobile; and the Government of Canada is an important partner in securing trade opportunities and supporting R&D. The government of Canada has undertaken to lay the foundation for an economy that is more flexible and better adapted to the challenges of the next millennium:
? By supporting R&D in key sectors – $2.55 billion across Canada
? By investing in partnership with the private sector in key growth areas such as environmental technologies, enabling technologies and the aerospace industry to increase our market share abroad and ensure economic growth at home
? By partnering with business in seeking out foreign investment in leading-edge and growth sectors through investment Partnership Canada
? By signing an interprovincial trade agreement designed to increase the free movement of goods and services within Canada;
? By implementing Canada Infrastructure Works, the national infrastructure program, this contributes to the successful renewal of our basic infrastructure
126.96.36.199 Social Development Indicators
A recent independent study by the consulting firm KPMG confirmed that Canada’s social programs represent an important competitive edge for Canadian businesses as well. For example, employer-paid health insurance premiums in Canada amount to only 1 percent of gross pay, compared with 8.2 percent in the United States. The immigrant population in Canada is steadily rising year after year; refer to appendix ?C? for a graph outlining Indian immigration in target areas.
Within the limits set out by the Constitution, laws can be made or changed by means of written statutes enacted by Parliament or a provincial or territorial legislature. Any Member of Parliament or a legislature may propose a new law, but most new laws are put forward by the government in power. A proposed law must be presented for consideration by all members, who study and debate it. The proposal becomes a statute only if it is approved by the majority. Federal laws must be approved by both Houses of Parliament: the House of Commons and the Senate. These traditions form the basis of Canada’s legal heritage. Over time, they have been adapted to meet Canadian needs. The courts interpret the law in a way that reflects changing conditions and circumstances. Canada’s Constitution is the supreme law of the country, and it establishes the framework for the system of law and justice. It sets out the basic rights of individuals in Canada, and defines the nature and powers of the federal and provincial governments. Under Canada’s federal system of government, the authority to make laws is divided between the Parliament of Canada and the provincial legislatures. The court system of each province is generally divided into two levels. At the first level is the Provincial Court, which deals with most criminal offences. This level may also include Small Claims courts, which deal with private disputes involving limited sums of money, and Youth and Family courts. Judges at this level are appointed by the provinces. At the second level is the provincial Superior Court, which deals with the trial of the most serious criminal and civil cases. Above this level of court is the provincial Court of Appeal, which hears appeals from the lower courts. Judges at these levels are appointed by the federal government.
3.2.4 Fiscal Characteristics
Canada?s budget revenues $79.2 billion expenditures $102.0 billion, including capital expenditures of $1.8 billion. Industrial production growth rate is 2.3%. Exports totaled $127.2 billion, commodities traded include; newsprint, wood pulp, timber, grain, crude petroleum, natural gas, ferrous and nonferrous ores, motor vehicles. Their main trading partners include US, Japan, UK, FRG, other EC, and USSR. Imports totaled $116.5 billion, commodities traded included; processed foods, beverages, crude petroleum, chemicals, industrial machinery, motor vehicles, durable consumer goods, electronic computers. Their main trading partners included; US, Japan, UK, FRG, other EC, Taiwan, South Korea, Mexico. The current external debt is $247 billion.
3.2.6 Physical Infrastructure
Occupying the northern half of the North American continent, Canada has a landmass of 9 970 610 km2, making it the second-largest country in the world after Russia. From east to west, Canada encompasses six time zones. To the south, Canada shares an 8892 km boundary with the United States. To the north, the Arctic islands come within 800 km of the North Pole. Canada’s neighbour across the Arctic Ocean is Russia. Because of the harsh northern climate, only 12 percent of the land is suitable for agriculture. Thus, most of the population of 30 million live within a few hundred kilometers of the southern border, where the climate is milder, in a long thin band stretching between the Atlantic and the Pacific oceans. Canada has one-seventh of the world’s fresh water. In addition to the Great Lakes, which it shares with the United States, Canada has many large rivers and lakes. Canada is divided into seven regions, each with a very different landscape and climate.
1.The Pacific Coast
Bathed by warm, moist Pacific air currents, the British Columbia coast, indented by deep fiords and shielded from Pacific storms by Vancouver Island, has the most moderate climate of Canada’s regions. Vancouver Island’s west coast receives an exceptional amount of rain, giving it a temperate rain forest climate. Although it does not contain the diversity of species of a tropical rain forest, the island’s west coast does have the oldest and tallest trees in Canada: Western Red Cedars 1300 years old and Douglas firs 90 m high.
2. The Cordillera
From British Columbia to just east of the Alberta border the land is young, with rugged mountains and high plateaus. Signs of geologically recent volcanic activity can be seen in Garibaldi Provincial Park in southern British Columbia and at Mount Edziza in the north. The Rocky Mountains, the Coastal Mountains and other ranges, running north to south, posed major engineering problems for the builders of the transcontinental railways and highways. Canada’s highest peaks, however, are not in the Rockies, but in the St. Elias Mountains, an extension of the Cordillera stretching north into the Yukon and Alaska. The highest point in Canada, Mount
Logan (6050 m) rises amid a huge ice field in the southwest corner of Yukon, the largest icecap south of the Arctic Circle. The British Columbia interior varies from alpine snowfields to deep valleys where desert-like conditions prevail. On the leeward side of the mountains, for example, a rain-shadow effect is created, forcing Okanogan Valley farmers to irrigate their orchards and vineyards.
3. The Prairies
To drive across the Prairies is to see endless fields of wheat ripening under a sky that seems to go on forever. The plains of Alberta, Saskatchewan and Manitoba are among the richest grain-producing regions in the world. Yet, even here are surprises. If you leave the road at Brooks, Alberta, and drive north, you descend into the Red Deer River Valley. Here, in desert-like conditions, water and wind have created strange shapes in the sandstone called “hoodoos.” The same forces of erosion have uncovered some of the largest concentrations of dinosaur fossils in the world.
4. The Canadian Shield
A huge inland sea called Hudson Bay extends into the heart of Canada, and wrapped around this bay is a rocky region called the Canadian Shield. Canada’s largest geographical feature, it stretches east to Labrador, south to Kingston on Lake Ontario and northwest as far as the Arctic Ocean. The Shield is considered the nucleus of the North American continent. Its gneiss and granite rocks are 3.5 billion years old, three-quarters the age of the Earth. Scraped by the advance and retreat of glaciers, the Shield has only a thin layer of soil that supports a boreal forest of spruce, fir, tamarack and pine. The region is a storehouse of minerals, including gold, silver, zinc, copper and uranium.
5. The Great Lakes-St. Lawrence Lowlands
Southern Quebec and Ontario, the industrial heartland of Canada, contain Canada’s two largest cities, Montreal and Toronto. In this small region, 50 percent of Canadians live and 70 percent of Canada’s manufactured goods are produced. The region also has prime agricultural land, for example, the Niagara Peninsula. The large expanses of lakes Erie and Ontario extend the number of frost-free days, permitting the cultivation of grapes, peaches, pears and other fruits. The Great Lakes and St. Lawrence region is sugar maple country. In the autumn, the sugar maple leaves, Canada’s national symbol, are ablaze in red, orange and gold. The sap is collected in spring and evaporated to make maple syrup and sugar, a culinary delicacy first prepared and used by the Aboriginal North American peoples.
6. The Atlantic Provinces-Appalachian Region
New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland are the smallest Canadian provinces, and were the first to be settled by Europeans. The Grand Banks have been called the “wheat fields” of Newfoundland. This shallow continental shelf extends 400 km off the east coast, where the mixing of ocean currents has created one of the richest fishing grounds in the world. Once thought to contain a virtually inexhaustible supply of fish, the Banks are now considered a vulnerable resource that must be wisely managed. The Atlantic Provinces are an extension of the Appalachians, an ancient mountain range. Much of the region has low, rugged hills and plateaus and a deeply indented coastline. Agriculture flourishes in the fertile valleys, such as the Saint John River Valley, in New Brunswick, and the Annapolis Valley, in Nova Scotia. Prince Edward Island in the Gulf of St. Lawrence has a gently rolling landscape with a rich, red soil. This fertile island is Canada’s smallest province, making up a mere 0.1 percent of Canada’s land mass.
7. The Arctic
North of the tree line is a land of harsh beauty. During the short summer, when daylight is nearly continuous and a profusion of flowers blooms on the tundra, the temperature can reach 30oC. Yet, the winters are long, bitterly cold and dark. The Arctic is no longer an inaccessible frontier. Inuvik, in the Mackenzie delta, can be reached by road, and every community is served by air. Most have electricity, stores and health services. North of the mainland is a maze of islands separated by convoluted straits and sounds, the most famous of which link together to form the fabled Northwest Passage, the route to the Orient sought by so many early explorers.
3.2.7 Commercial Infrastructure
Though Canada is the world?s second largest country, Canada ranks 28th in terms of population. With a population density of approximately three persons per square kilometer, Canada?s 30 million people are scattered across an area that is more than 10 million square kilometers in size, stretching 5,500 kilometers from the Atlantic Ocean to the Pacific. Canada?s domestic routes are served by its two major carriers, Air Canada and Canadian Airlines International, and their regional affiliates, as well as by smaller independent operators that use both jet and propeller-driven equipment. In 1997, some 1,502 licensed domestic carriers provided scheduled and charter services throughout the country. Scheduled international services to and from 60 countries are provided based on bilateral agreements between Canada and each country. The 1995 ?Open Skies? agreement with the United States, for example, has provided Canadians with significantly improved access to major U.S. business destinations. New international all-cargo air services policies have recently been announced for both scheduled and chartered flights to provide shippers and air carriers with additional opportunities and more flexibility for moving cargo by air. Canada has more automobiles per person than any other country in the world except the United States, with at least one automobile for every two Canadians. Today there are more than 900,000 kilometers of roads and highways; the national highway system is over 24,000 kilometers in length. Canada also boasts the longest highway in the world ? the Trans-Canada Highway ? and the busiest section of highway in the world ? Highway 401 through the Greater Toronto Area. Roads also support one of the most highly used forms of cargo transportation; in 1997, about 86 per cent of total freight surface revenues in Canada were generated by the trucking industry. An estimated 118,000 large trucks that haul freight commercially; trucking revenues and services (including for-hire, private and courier) were valued at approximately $31 billion in 1996. Railways continue to play an important part in Canada?s transportation network. Canadian National Railway (CN) and Canadian Pacific Railway (CP) are responsible for operating most of Canada?s rail freight services. VIA Rail Canada, a federal Crown corporation provides passenger rail service. Approximately 46 Canadian railways operate on some 50,000 route kilometers of track. In 1996, some 4 million-rail passengers traveled a total of 1.46 billion passenger-kilometers. Railways account for 280 billion tonne-kilometres of freight.
As households go in Canada you would be hard pressed to find a home without one phone let alone 2 or 3. Increasingly as phone companies compete for business both local and long distance the occurrence of numerous phones and/or phone lines per house increases. In addition, everywhere you look someone has a cellular phone, talk and go society. As phone communication moves to the digital age with digital phones in the home and portable phones it will become increasingly affordable and useful for everyone to have one. In addition, lets not forget the every growing Internet and its email and Internet phone capabilities. Almost 85% of people who own a computer are currently one way or another hooked to an Internet provider.
3.2.8 Product Fit with Market
Every growing immigrant populations say to us that we need to help the immigrants stay in touch with their culture. We feel that there is an untapped market in the Indian community for a store that will provide original clothing, materials, household products and artifacts.
3.2.9 Competitive Barriers
Our main competitors, when considering the import of textiles into Canada, are Indian weavers, dyers and craftspeople that may begin to export their own authentically made textiles. The textile shops that we plan to open will have only authentic Indian textile rugs and materials include; silks, wool, cashmere, cotton and more. Our stores will emphasize the culture, tradition and quality craftsmanship associated with the textiles and designs and patters found on them. Other competitors may include those that sell “rip-offs” of our product but the quality of such products will not compare to the quality and craftsmanship of our products.
3.2.10 Risk Considerations
The major risks involved in importing Indian textiles are the costs involved. In order to sell textiles profitably, we are convinced that shops and boutiques should be opened in downtown Toronto, Vancouver and Montreal. Rent in these types of areas can get costly. Distribution costs should also be considered. Another risk to consider is the consumer’s impression or receptiveness to the product. We are depending not only on Indian Canadians to purchase the product but also Canadians in general.
4.1 Market/Customer Characteristics
Canada has a population of approximately 31 280 000 people. Immigrants now living in Canada represent 1/6 of the Canadian population. Indians represent a sizable amount of the immigrant population. These Indian immigrants as well as anyone interested in authentic Indian textiles will be our target market. Tourists and Americans (Seattle for instance is near Vancouver) we hope will also take an interest in our store. This of course is dependent on location. Our shops will ideally be located downtown Toronto, Montreal and Vancouver where quality and uniqueness will be emphasized.
4.1.2 Domestic Mass Market
Canada’s GDP per capita is approximately $23 300. The unemployment is below 7.6%, which is low and the labour force comprises 16 million people. 75% of the labour force works in services, 16% in manufacturing, construction 5%, agriculture 3% and other 1%.
4.1.3 Cultural Characteristics
Multiculturalism is a fundamental characteristic of Canadian society. Our society has always been pluralist and diverse and is bound to become even more so. Already approximately two-fifths of the Canadian population has one origin other than British, French or Aboriginal. In 1971, Canada became the first country in the world to adopt a multiculturalism policy. In 1986, the government passed the Employment Equity Act and in 1988, it passed the Canadian Multiculturalism Act. Founded on a long tradition of Canadian human rights legislation, the Multiculturalism Policy affirms that Canada recognizes and values its rich ethnic and racial diversity. The Canadian Multiculturalism Act gives specific direction to the federal government to work toward achieving equality in the economic, social, cultural and political life of the country. Through its multiculturalism policy, the government wants to help build a more inclusive society based on respect, equality and the full participation of all citizens, regardless of race, ethnic origin, language or religion. In a recent report of the UNESCO World Commission on Culture and Development, Canada’s approach to multiculturalism was cited as a model for other countries. Canada is recognized today as a world leader in this field.
4.2 Market Opportunity
By using the knowledge of the native people we plan to start or business ventures with, we feel we are getting first hand expertise in the company, which will benefit in sales, pre-purchase information for customers and post purchase services such as specific cleaning instructions for certain goods. We feel by working together with the native Indian people we ca tap Canada’s diversity because it is increasingly recognized as an asset in both the domestic and the international market, and as a major contributor to Canadian economic prosperity. The Conference Board of Canada has worked with other business, industry and trade associations to identify new ways for Canadian organizations to use Canada’s linguistic and cultural diversity to their advantage at home and abroad. In addition, the Business Development Bank of Canada consults regularly with ethno cultural business associations in major centers. Canada’s multicultural nature will become even more of an asset in the emerging global economy. Canadian companies already recognize the benefits and are drawing on the cultural diversity of our work force to obtain the language and cultural skills needed to compete successfully in international markets.
We would like to be working with a manufacturer that prefers a Selective Distribution concept. We do not want the same products as everyone else; we would like to offer a new selection and changing selection exclusive to our store. We would like to fly into Vancouver and distribute from our Vancouver store to our Toronto and Montreal Stores. We will fly our merchandise in direct to Vancouver from the Manufacturer. From there, it will be shipped via a secondary company such as UPS or FedEx to our Toronto and Montreal stores. Therefore, we plan to have a bit bigger of a store in Vancouver to handle shipping and receiving.
6.1 Implementation Plan
We would like to Implement this as soon as feasibly possible, it will take time to gather all the loose ends meeting with manufacturers, distributors and possible store owners but its well worth the work
6.2 Product/Price Strategy
We will be carrying a small line to begin with, the initial lines will include; garments, haberdasheries, raw textiles, dyes and home items (i.e. rugs). We would like to eventually expand our lines to include native art, local cleansing products and continuing accessories. We have not set any rock solid prices, because we are receiving directly from the manufacturer we are going to cut out some wholesaler and dealer markups. Also buy using an establish delivery service such as FedEx we are going to save because they are reasonably priced. We will be covering any overhead and adding a 15%-20% mark up.
6.3 Advertising/Promotion Strategy
Our basic plan for advertising is to take a very informative approach because of our new idea; we want to raise awareness in the community and surrounding communities. To do this will advertise in local papers, daily and specialty. We would also like to look at some event sponsoring the beginning at the local ethnic clubs. We wont have a very large promotion are because we are dealing with a product that does not create a large amount of demand with competition.
6.4 Management Plan
We have decided to give a thought to franchising the store, by letting other people put the money up for the locations and using us as an upper management type role to conduct major business and deal with channel members such as the manufacturer and distributing companies. We feel this obviously cuts down on a lot of the risk in the monetary area. We would like to run the Vancouver store thought to ensure the main store taking care of orders is done properly. We would like also to pass down our philosophy on staff having a mix of Immigrants who already know our product, Indian children to help reach the younger market and Canadian counterparts to both groups to reach our goal of making this store popular to the Canadian population swell.
1. Statistics Canada on the World Wide Web www.statcan.com
2. Yahoo Search Engine www.yahoo.com
3. Excite Search Engine www.excite.com
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