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    AAa

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    assignment

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    AAa

    Uploaded by

    sohail abbas
    assignment

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    You are on page 1of 2

    Starting a clothes brand in

    Pakistan.

    1. Economic Trends

     Inflation Rate: As of 2024, Pakistan's inflation rate is around 24%, significantly


    impacting consumer purchasing power. This means that while consumers want new
    clothes, they are also looking for affordability.
     Middle Class Growth: Approximately 45% of Pakistan's population belongs to the
    middle class. This group is projected to grow, meaning there’s a sizable market for
    budget-friendly clothing options.

    2. Competitive and Market Trends

     E-commerce Growth: Online shopping in Pakistan is growing at a rate of 15%


    annually, with e-commerce sales expected to reach $3 billion by 2025. This indicates
    a ripe opportunity for an online clothing store.
     Market Saturation: The clothing sector has over 1,000 registered brands in
    Pakistan, but many focus on traditional or high-end markets. Identifying a niche, like
    casual or sustainable fashion, can help you stand out.

    3. Political Trends

     Government Support: The government has allocated approximately $1 billion for


    small and medium-sized enterprises (SMEs) in its budget for 2024. This can help you
    access funding or incentives as a new business owner.
     Import Tariffs: Be aware that import duties on fabrics can be as high as 20%.
    Understanding these tariffs can help you budget effectively for sourcing materials.

    4. Technological Trends

     Adoption of Technology: About 70% of Pakistani consumers use smartphones,


    making digital marketing and online shopping platforms essential for reaching your
    audience.
     Production Efficiency: Investing in technology can increase production efficiency by
    up to 30%, reducing lead times and costs, which is crucial for staying competitive.

    5. Social Trends

     Youth Demographics: Over 64% of Pakistan's population is under the age of 30,
    making it a vibrant market for trendy clothing. Catering to this demographic with
    stylish, affordable options is key.
     Sustainable Fashion Demand: A survey found that 55% of Pakistani consumers
    are willing to pay more for sustainable products. This highlights the potential for eco-
    friendly clothing lines to attract conscious buyers.

    6. Geographic Trends

     Urbanization Rate: Urbanization in Pakistan is projected to increase from 36% in


    2023 to 50% by 2030. This urban growth indicates a rising demand for modern
    clothing in cities like Karachi, Lahore, and Islamabad.
     Market Access: Establishing your business in urban centers could increase
    accessibility to a larger consumer base, where over 60% of the retail sales are
    concentrated.

    Summary with Key Numbers

    1. Inflation: 24% affecting purchasing power.


    2. Middle Class: 45% of the population, indicating a growing market.
    3. E-commerce Growth: Expected to reach $3 billion by 2025.
    4. Government SME Support: $1 billion allocated in 2024 budget.
    5. Import Tariffs: Up to 20% on fabrics.
    6. Smartphone Penetration: 70% of consumers using smartphones.
    7. Youth Demographics: 64% of the population under 30.
    8. Sustainable Fashion Demand: 55% willing to pay more for sustainable products.
    9. Urbanization: Projected to reach 50% by 2030.

    Conclusion
    Starting a clothing brand in Pakistan presents a viable opportunity due to several favorable
    trends. The inflation rate of 24% impacts purchasing power, but the growth of the middle
    class, which makes up about 45% of the population, indicates a demand for affordable
    clothing. The rising e-commerce market, projected to reach $3 billion by 2025, provides an
    excellent platform for online retail.

    Government support for SMEs, with $1 billion allocated in the 2024 budget, along with a
    significant smartphone penetration of 70%, enhances the potential for reaching consumers
    through digital channels. The youthful demographic (64% under 30) is keen on trendy
    clothing, and a notable 55% of consumers express a willingness to pay more for sustainable
    fashion options

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