FEATURES NEWS THE RISING NEPAL (DAILY)

Increasing Carpet Exports Marketing Needs Attention

-By Bagala Basnet

INTERNATIONAL marketing can be said as the carrying of marketing outside the national boundaries. Due to the rapid growth of communication, transportation, and financial flow, the world has become nearer and they have created new marketing opportunities and challenges to the entrepreneurs. Given these circumstances, it can be viewed that companies either has to respond to the challenges posed by this new environment or recognise and accept the long term consequences of failing to do so.

Vital Role
Marketing across the border plays a vital role in the economy of any country, more so in the economic development of under-developed countries like Nepal. It is known as the vehicle of economic development. With the effect of international marketing, Nepal can expand its market and import technology from abroad. Besides these, it can help to increase the standard of living of the people by providing opportunities to go abroad as well as establish huge industries inside the country through joint ventures in various sectors of the economy.

Carpet industry has been flourishing with the development of international marketing. There is no doubt that Nepal is famous for the production of woolen carpet from the very beginning especially in the hilly region. It has done much progress for the production of standard carpet in the Fiscal Year 2017/18 B.S. However, the records show that export had started regularly only after 2026 B.S. Now it is viewed as the main source of income for the country and it has been providing lucrative employment opportunities to the people mainly the women.

At present, the number of hand knotted woolen carpet manufacturers and exporters are numerous, and they have been exporting their products to overseas countries especially to Germany, Belgium USA, UK and Japan.

The exports of hand knotted woolen carpets have contributed greatly in the improvement of balance of trade of our country. The total income earned from exports to overseas amounted to Rs. 770.37 million in the fiscal year 1994/95. It has been making much progress during the following years. As a result, the earning generated from this industry has increased to Rs. 803.22 million in the year 1995/96 and Rs. 914.46 million in 1996/97. However, there has been slight decrease in the subsequent year 1997/98, which amounted to Rs. 851.63 million.

The above figures show that through there is an expanding carpet market overseas, however, those who have involved in the export trade, they should have to spend much time and effort for the development and expansion of its market. The demand for this product can be increased substantially only when they try to identify and solve the constraints hindering it.

According to the view expressed by the number of carpet industries one of the obstacles for its development is the limited market for the product. 80 per cent of the carpet market is Germany and the demand for woolen carpets in USA, Japan, UK and other countries are very negligible.

Besides this, the child labour issue created a very vulnerable situation and it has also plagued Nepalese carpet exports for the last few years. However, the prospects for its promotion are very high if they do thorough market research for the product.

Research is necessary for identification of procurement sources, for quality improvement, cost economisation, preference identification, process efficiency, market exploration and expansion of the product. There is no adequate institutional infrastructure for this purpose. However, the exporters can consult private as well as foreign consultancy for way and means to enhance exports.

Besides this, quality control can be regarded as the basis for the development of the carpet market. It is found that there is a great difference between the procedure followed by the registered and unregistered firm in their carpet production process. Different firms have been using different processes for its production especially in weaving, cutting and dying. A few years ago, all the production would be carried out by manual method, while, at present these functions are being carried out with the help of machines.

It is very difficult for Nepal to compete in international market to promote exports. Cost increases because of transportation expenses in transit across the Indian territory. If there is no improvement in quality, it is not possible to sell poor quality goods at high prices. So, it is a necessity for the concerned department as well as the exporters to pay their full attention to set the minimum standard for the products.

Furthermore, for an industry like the carpet one, there is need of highly skilled manpower and technician to maintain its quality. However, in Nepal there is no such institution, which supply highly qualified manpower for such an industry which is giving high returns. Looking upon its economic contribution to the national income it can be realised that there should be provision for the establishment of a school, which can provide training to the people relating to the process of weaving, cutting and dying.

Export credit is also one of the paramount factors to take into account for the promotion of carpet exports abroad. Exporters require credit to finance export operation. However, Nepal’s financial institutions are shy in providing export credit to carpet entrepreneurs and this requires necessary measures to stimulate them to increase export financing.

Policy
Finally, it can be said that export can only flourish when the industrial and trade police of the government follow the time. However, the commercial policy of HMG undergoes frequent changes and exporters and importers cannot remain sure. They prepare programme in consideration of current policies, which may become useless, if unfavourable policies come up. So the government as a supreme body, it should create a favourable atmosphere for the development of international market by not radically changing its policy frequently.

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