Business In Production

Socks - consumer goods

The Perm region is one of the most economically developed regions of Russia. In the province different types of production are developed : mechanical engineering, electric power industry, oil and gas processing, chemistry and petrochemistry and woodworking. The textile industry in our region is not in the first place. In the market of hosiery in the Perm region, nothing new has happened in recent years: the domestic light industry is in the unprofitable category, the production of most goods is declining, investments in the industry are insignificant and imports are also growing at a rapid pace. This is evidenced by the statistics of the Perm Territory: the production of hosiery in 1990 39,7 million pairs, in 1995 14,8 million pairs, in 2007 32,1 million pairs, in 2008 29, 1 million pairs, in 2009 28.8 million pairs, in 2010 27.8 million pairs, in 2011 22.0 million pairs. Every year the number of hosiery production is declining.

Having glanced in our shops it is possible to see only a couple of manufacturers of Permsky Krai, everything else is either a country of China, or whatever. The question arises: Why does a country with such a developed industry carry goods from other countries.

Therefore, I propose to engage in the production of hosiery in the Perm region.

We will come up with a business idea and analyze it on some points:

1. Appearance of substitute products.

Such a threat is not completely available, as to replace socks, which is not possible. Mankind has not yet come up with anything.

2. Appearance of new players in the production market.

In the Perm region, the most common manufacturers of hosiery products are the Perm Hosiery Factory Karmenta and the Lysvenskaya Hosiery Glove Factory. They are considered leaders. If we take as a basis the statistics of Perm Krai for the production of hosiery, new players do not appear for several years. That is, you can not wait for competitors. This industry is now in decline. Hence, the right time to act, the fewer competitors have more opportunities.

3. The threat of power suppliers.

Cotton is not growing, it will need to be ordered from other countries. Equipment for the beginning we will take second-hand. The threat can only arise from the suppliers of cotton.

4. The threat of consumer power.

The degree of threat is very low, because the price will not be very different from the market price, but good quality will be offered for new technologies, and most importantly at an affordable price.

5. The threat of competition.

The competition is not great, only two manufacturers in the Perm region.

Great competition can make up products from China, it is in great demand among the inhabitants of our region. It is a bit cheaper than our products, but worse in quality. The amount of cotton is less used in products, which prevents the skin of the legs from breathing, thereby violating the normal temperature regime.

Define the strengths of our prospective business: quality and relatively cheap products.

Weakness: competition from the country China, products that are cheaper and substandard.

As for the possibility, in the Perm region there are many programs for the development of small businesses. The Perm Krai Government is implementing the project "Buy Perm!", Aimed at supporting local producers of goods and services.

The main threat is competition from the eastern neighbor - China. People buy cheaper things, despite the quality.

Let's draw a conclusion, whether it is necessary to make hosiery in the Perm Territory. In my opinion, it's worth it. Because it is necessary to raise that industry, which goes to the bottom. Why should we wear imported products, if we ourselves can produce what we need. Especially essential goods.