Khaadi is considering expanding into the Turkish market. As a Pakistani brand, Khaadi's strengths include its tradition-inspired designs and focus on modest Muslim fashion. However, entering Turkey also presents challenges as Khaadi does not currently have supply chain or brand recognition established in that market. It is recommended that Khaadi focus on high-value, furnished products from Pakistan to sell through a few flagship stores in major Turkish cities like Istanbul, Ankara, and Izmir, while maintaining Pakistan as its production headquarters. This approach would allow Khaadi to leverage its design expertise while minimizing risks as it introduces the brand to Turkish consumers.

2. Need to be written
Mission
1998
Started with offering
customers kurtas and
loose fabric made
from hand-woven
fabric.
Core Ideology
Hand woven fabric with blend
of both eastern and western
touch.

6. D
Design Department creates a
design and send it to R&D
department
R
Research & Development
department build few of the
Complete samples for
approvals.
S
Style is responsible for
approval and
M
Marketing is responsible for
marketing and segmentation
of products.

7. 01 100 % In-house
All The Products were
developed in-house and stores
were company operated
02 20-30 % In-house
Offloaded itself from in-house
development and adopted
franchise model.
03 5% In-house
Completely focus on design
and R&D. Increase global
presence.

8. Stores WWW

10. Khaadi SWOT Analysis - Pakistan
WS
O
Strength
Customer Equity
Tailoring Service
Supply Chain
New Stock every two weeks
Brand Name
Innovation Culture
T Recession
Intense Competition
Threat
Weak clothing line for
men
Cost Structure
Online Presence
Weakness
New Products
New Markets
Increase online presence
Opportunity

11. Low Quality
Low Price
High Quality
Low Price
High Quality
Low Price
High Quality
High Price
Quality
Price
STP – Pakistani Market

12. High Quality
High Price
Khaadi Segmentation-Targeting-Positioning
Customer with
High Purchase
Power
Segment who wants
unstitched clothes
Segment who want
Eastern Clothes
Segment who want
Western Clothes
Segment who want
Accessories
Segment who want
Kids Clothes
Segment who want
Home Accessories

14. 169 bn $ Exports 235 bn $ Imports 10 % Unemployment
Economic Growth 3.9 9 % Inflanation Rate 2.19 $ Exchange Rate
80 Million Population 10,500$ GDP/Capita 800 bn $ GDP

15. PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Democratic
Representation
Division among multiple
bodies
Stable Foreign Policy
Involvement in many
global initiatives

16. PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Service Sector
contributes 67% of GDP
10,000$ GDP/Capita
Reducing Public Debt in
Progress
Free Trade Agreements
Rigid Labor Trends
High Taxes

17. PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant GAP between
different classes
Islamic Culture but
blended with western
touch

18. PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political
Significant Growth in
R&D
National Innovation
Strategy
Double Digit Growth in
technology sector
Increase number of
skilled scientist

19. PEST
Analysis
Environment
Social
Technology
Legal
Economic
Political

20. 8765
52% of Women prefer to
wear Hijab
31% of women prefer to
wear western touch clothes
Clothing Preference
TV
Radio
Social Media
Print Media
Stores
Touch Points
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Point 5
72% Of Urban Population
Women 50%
70% Turks
20% Kurds
Urban Population
Istanbul
Ankara
Izmir
Bursa
Adana
Gaziantep
Konya
Antalya
Concentration
52% - 25-69 Years
17% - 16 to 24 Years
17% - 6-14 Years
Age Distribution
28% - Food
20% - Transport
19% - Housing & Utilities
8% - Furnishing & Maintain.
6% - Restaurants
6% - Clothing
4% - Recreation
$ Preferences
Consumer Analysis - Turkey

21. Women Clothing Preference - Turkey

22. Buyers
High Per Capita
So customer have high
bargaining Power /
Ample Brands
Suppliers
Limited suppliers for
raw material so higher
bargaining power.
New Entrant
Other Pakistani Brands
will follow Khaadi
Success Story
Substitute
Western products
/

23. • Nearly 58 thousand active companies and 1 mn people (2 mn including
unregistered) employed in the textile , ready wear and leather industry. (Source: Social
Security Institution, 2014)
Manufacturing Production
Value
(USD bn)
2014
Number of
Companies
2014
Share of SMEs
in
Total Number
of Companies,
20124
Number of
Foreign
Companies
2014
Number of
Employees
2014
Number of
Employees (incl.
unregistered
employees), 2014
Manufacturing of Textile 26,5 17.313 98.0% 493 430.213 450,000
Manufacturing of Ready Wear 19,5 33.977 99.5% 130 454.754 1,500,000
Manufacturing of Leather
Products
2,6 6.425 99.9% 107 60.591 NA
Total 48,6 57.715 99.1% 730 945.558 NA
Source: Ministry of Science Industry and Technology, Social Security Institution, Ministry of Economy, 2014
Turkey’s Position

24. Turkey’s Position
Turkey’s Position in the World and EU
Category World Rank EU Rank
Thread manufacturing 3 1
Knit fabric manufacturing 2 1
Woven fabric manufacturing 5 2
Textile exports to World/EU 7 2
Clothing exports to World/EU 7 3
Cotton manufacturing 8 NA
Cotton consumption 4 NA
Organic cotton manufacturing 3 NA
Knitted clothing exports 5 NA
Woven clothing exports 9 NA
Hosiery manufacturing 2 NA
Raw cotton imports 3 NA

25. of the clothing production is exported. (
of the clothing exported is cotton
clothing.
• Turkey is a of ready-
wear products but a net importer of
textiles.
Turkey Exporter / Importer ?

26. • Main threat: Low priced imports from China
• Main strategy: Concentration on high value
added products and branding
Industry Direction

28. Top Brands in Turkish Clothing Industry

29. Top Brands in Turkish Clothing Industry
Heavily westernized tilted brands have
occupied the ready wear industry

30. Strength Weakness Opportunity Threat
Khaadi SWOT w.r.t. Turkey
1. Country of Origin
2. Traditional culture
look
3. Fast Paced Products
Rollout
4. Muslim Brand
Inheritance
5. Foreign Policy
1.First time experience
of Turkish market
2. No supply and
Brand
1. Expats may act as
ambassadress
2. Additional
revenue stream
3. Use tourism hub
for brand
awareness of
khaadi to other
countries
1. Local competitors
2. Turkish may not
accept the brand
3. Small number of
Textile suppliers

31. Huge Potential
wrt customer
base
A High Priced
brand in Pakistan
may be perceived
as low price
Brand in
Low Priced Labor
Turkey as
country
People don’t
know about
Khaadi
Khaadi is still
closer to Turkish
Traditional
culture but not to
western brands in
turkey
Khaadi vs local
brands
Its already a big
ready to wear
industry .
Still Khaadi have
to optin for
textile import
from Pakistan if
Khaadi will
manufacture
product in Turkey
Industry
Pakistani
recession vs new
revenue stream
Core suppliers for
textile in turkey
will be a
challenge
Khaadi SWOT
Pakistan &
Turkey

32. Recommended Business Model
Send Value Added and Furnished Products to Turkey and Sell it in Turkey
Pakistan should be the headquarter for Production

33. Recommended Business Model
Izmir
Western Touch
Products Only
Istan
bul
Anka
ra

34. Recommended Business Model