Cluster Proposal

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table of CONTENT the CONCEPT why FARM TO FORK? executive SUMMARY statement of PROBLEM approach and METHODOLOGY our PRODUCTS market ANALYSIS market SEGMENTATION

the CONCEPT

Taking inspiration from the “farm to fork” model, which is right now getting really popular in the agriculture industry, we created a business model for Fab Himalaya who want to start a separate unit for knitting. The Integrated Cold Chain Model is a farm-to-retail model involving right from production to the retail end of the supply chain, i.e. purchasing produce at farm-gate and distributing produce after value addition to the retailers. We decided to apply “farm to fork” to our business model by combining animal farming and wool rearing to the hand knitting and selling so as to monitor the process for best quality wool and deliver the finest products to our customers. We also decided to take up product customization for this venture as it is not a much used concept by brands in the Indian retail market. Our products would also be available to the international customers. The aim of the model is to promote knitting as a craft and provide the people working for us with all the possible facilities so that they can have a better standard of living and have an identity as an artisan.

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why FARM TO FORK?

India is the 3rd largest producer of wool in the world! And do you know where does 85% of this wool go? Carpet Making! This is because the quality of wool produced here is not apt for the knitted apparel and accessories. In order to produce good quality wool , it is important that the animal farming should be carefully monitored so that the animals are healthy. Healthy animals would produce good quality wool and healthy offsprings. Thus, Farm to fork! We believe that if this model is used by every organisation working with wool manufaturing then not only we can be the largest producers of wool in the world but also the finest. The Farm to Fork model is supported by International Wool Secratariat (IWS).

executive SUMMARY Knit it is a group of people working towards empowering craftswomen from HP. The management will be working with an existing brand in Kullu which is Fab Himalaya. Women from villages will be given special training for hand knitting so they can make the products with modern designs and a little extra love and care. The main aim of the initiative is to revive knitting as a craft as well as to provide these “Pahari home-makers� a chance to take up their hobby as their profession. It also aims at providing the customers with high quality hand knitted products. Animal farming as well as wool rearing and yarn manufacturing will be monitired by professionals keeping in mind the minute details so as to provide the customers with the finest quality wool. Knit it will be a great place for people looking for distinctive

knitwear and other hand knitted products online. Eliminating the middle man will boost up the profit margins resulting in better standard of living for the artisans. The products made will be C-F-T i.e., creative - functional trendy. The women working with us will have a minimum of fifteen years of experience in hand knitting and will be given trainings at our workshops so they can create modern patterns. The concept of product customization is also being introduced. The consumers can choose from the listed options on the website to create their personalized product. The Company has also decided that it will maintain the inventory and will produce sufficient product to meet the planned demand.

GERMAN ANGORA RABBIT THIS BREED OF RABBIT IS REARED IN KULLU AND IS VERY POPULAR AS THE WOOL PRODUCED FROM IT’S FURR IS VERY SOFT!

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SUPPORT THE HANDS THAT KNIT FOR YOU WITH LOVE, WARMTH AND CARE...

statement of PROBLEM After a detailed analysis of the present situation of knitting in Kullu and Manali, listed below are the problems faced by both the artisans and the existing business organizations • Due to India being a hot country, there is very little demand for hand knitted Products; that too mainly in North and North East India. • The artisans receive very little payment for the products they make inspite of putting in hours of labor (Rs. 2-5 for each piece they make) • The presence of middlemen is a huge problem as they take most of the share of profits • There is a lack of artisans for knitting because almost 90% of them are women who do it as a hobby rather than taking it up as a profession.

• Most of the women prefer doing other household chores rather than doing knitting because of the very less wages. • Business organizations have a problem completing their orders because of the lack of artisans. • There is no proper distribution channel present for the artisans living in the upper Himachal like Lahaul and Spiti. • Most of the artisans need proper training to brush up their skills as they only know how to make the basic patterns and thus cannot meet the demand of the modern market. • Most of the organizations want the artisans to come and work at their manufacturing unit which is not possible because most of them live in villages which are at a distance from the units. • A lot of people have started preferring machine knitted products over the traditional hand knitted ones because of the modern designs and patterns and and the comparatively lower cost.

approach and METHODOLOGY A detailed analysis of the existing organizations led to the idea of setting up an organization which would overcome these problems. The possible solutions • • • • • • • •

Providing the artisans with proper wages so that more people would consider taking up knitting as a profession. Eliminating middleman by directly selling in the market. Providing the artisans proper training by conducting workshops for them. Rather than asking the artisans to come work at the unit, they will be given the freedom to work from home once they complete the required training. Coming up with designs and patterns that are more up to date to attract consumers by working with new age designers/ interns from fashion institutes like NIFT. Try to connect as many artisans as possible and creating a bigger production team. Providing the consumers with creative and high quality products. Providing the consumers with the option of product customization.

Danglers

Scarves

Caps and Gloves

Infinity Scarves

Sweaters

Socks

Blanket

our PRODUCTS We will provide products for all - Men, Women, Kids and Pets too! Following is a list of few products that have been finalized. The list may vary with future trends and customer demands. • • • • • • • • •

Sweaters Scarves Caps Gloves Socks Blankets Laptop sleeves Pouches Jewellery

market ANALYSIS In the past few years, knitwear has grown into a billion dollar niche in the clothing industry. The popularity of the Internet has launched a number of online stores for apparel but not a lot of companies are exclusively selling their products online only. There are a number of reasons for this. The strongest is that the concept is new and untested. Will customers buy something that they wear that can only be seen online? We believe they will, if the process is fun and the products are great and reasonably priced. • There is presently no brand in the market that has such a wide range of knitted products. • Product customisation is a relatively new feature, so that is also not available in the market right now. • Not many companies have adopted the farm to fork model in apparel manufacturing sector up till now, people mostly use it for the agricultural sector.

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market SEGMENTATION We are creating good quality products for all - men, women, children and pets too; giving an emotinal element to them. 1. Geographic segmentation • Country – India (for startup), International market (further expansion) • Climate – cold 2. Demographic segmentation • Age – 0-60+ • Gender – male-female • Occupation - Professional, self-employed • Social class – middle and upper class 3. Psychographic segmentation • Personality traits – humble, caring, affectionate, thoughtful, practical, responsive. • Values – empathetic, respectful. • Interests – quality conscious, social media, community welfare, trends, personalization

PERSONAS Name – Aditya Age – 25

Name – Neha Age – 34

Occupation – engineer at an MNC Aditya is an engineer and works for an MNC. He has recently shifted to a metropolitan because of his job and he is fascinated by hand knitted products because he thinks that they have an emotional touch, and would really like if he could get hand knitted products that were made just for him just like his mother and grandmother used to make for him back at home.

Occupation- branch manager at a bank Neha works as a branch manager in a bank. She really likes shopping online because she doesn’t have much time because of her job. She tries to save as much time as possible so that she can spend that time with her family. She really likes hand knitted products but doesn’t have much time to make them; she really wishes to get hand knitted woolens for her children and would buy them immediately if they were available online.

Name - Keisha Age – 17 Occupation – student Keisha is a teenager who really likes to have different products than her peer group. She would really like if there was a brand that would make customized products like laptop sleeves and sweaters for her pet dog which are not similar to what her friends have so that she can stand out.

Any consumer that likes shopping online and are social media users through which they would get to know about our brand and anyone who is interested in getting their products customized would definitely like to shop our products.

competitive EDGE

• Our focus on both the process and the product. • Our customers can depend on us for excellent quality products which are carefully manufactured to satisfy their needs. • Due to our farm to fork model we can assure our customers that we would provide them with the finest quality wool and carefully designed patterns. • The concept of product customization which is not much used in the market at present. • We will give our customers the option to help the artisans in various ways - adoption of an artisan by paying her monthly expenditure, donation options while payment etc.

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