MSP – KAAPAD KAROBAR

(MGT 641 - Advanced Business Strategy)

(Submitted to – Prof. Kunal Mankodi)

Submitted by:-
Swapnil Shah
Kaushal Shah
Deepesh Sangtani
Abhimanyu Bhati
INTRODUCTION
Indian textile industry was estimated at $150 billion (approx.) in 2018 and was expected to reach
$250 by 2019. In 2018-19, it contributed 2% to the GDP of India and provided employment to
45 lakh people. It contributed 15% to the export earnings of India in that year. These are the
numbers which are on paper. The industry is believed to be way more than these reported
numbers as it is known for its cash transactions on a huge scale. Despite being so big, the
industry is unorganized when it to comes to getting new customers (which one gets only via
references) as there are payment issues and credit delays involved.
VALUE PROPOSITION OF MSP
The numbers speak for themselves but unfortunately, because of various issues like that low
quality material and payments, the traders/manufacturers prefer to deal with only a select group
of clients due to which they cannot go for expansion. Also, due to these issues it becomes
difficult for new comers (be it from India or abroad) to find a proper client and have trade with
him. Gujarat is the textile hub of India. “Kaapad-Karobar” (based in Surat) steps in and acts as
a mediator to facilitate trade between 2 parties and makes sure right quality material is provided
and the money is delivered in return by charging certain fees from both the sides. This will not
only ensure smooth trade between the parties involved but help them in increasing client base
and eventually benefit the entire industry eventually.
Meanwhile, fashion bloggers are playing a more prominent role in the Industry these days with
the advent and boom of various social media apps. Well-known fashion bloggers would be
brought on board to promote the business who would give valuable inputs regarding fashion
trends and would be contracted on Barter system. In this system, well-known bloggers would be
allowed to give their inputs and post about the MSP and meanwhile, their blogs would stay on
our website.
Kaapad-Karobar would join the South Gujarat Research Institute. This would form an affiliation
whereby it would provide a kind of assurance to the parties involved in the transaction and
getting on board with MSP that it is genuine and their material and money is safe. At the same
time, they would provide research about the market trend and manufacturing of various
materials. This would help the MSP to share it with the clients. For this a nominal fees would
have to be paid by the MSP and the data of the manufacturers and buyers would have to be
shared with the Institute to get more insightful research about material required by them.
As there will be clause of secrecy among the buyers and sellers, we would also tie-up with the
Logistics to facilitate trade among the manufacturers and sellers. The same would be done with
the Photographers. Such tie-up would be commission based and would be 4-5% of the order
amount (negotiable).
PRICING MODEL
Subscription model for Buyers
Buyers will join this platform in order to get better idea about products they are looking. The
reason for creating this platform is that when new buyer enters the market, they spend large
amount time exploring the market as don’t know the capacity or kind of products available in the
market. This platform will actually introduce the industry to new buyers. Upon getting proper
detailed idea about the industry, buyer will be able to buy something she/he is exactly looking
for.
Considering this, the registration fee for first year will be absolutely free and from second year it
will be INR 1999/- ($26.29) yearly.
Details to be provided to Buyers through this platform
 Details of Manufacturers
 Product details (Type of clothes)
 Production capacity
 Quality standards
 Catalogue
 Standard Pricing Chart
 Available Logistics infrastructure (This is where Logistics company will register
themselves)
Subscription model for Manufacturers (Sellers)
There are large number of Manufacturers in Surat Textile, however it is quite unorganized sector
and that is the biggest drawback of the textile industry. These manufacturers don’t place their
product or production capacity or Infrastructure properly in the market and that is why exact
capacity of every manufacturer is not projected properly. For e.g. The digital Printing Machine
installed by Jinaam’s Dress Ltd. is the only machine in industry which has the highest color
accuracy in comparison of other machines available in the industry. This is not properly
projected or such information is not properly showcased and this where the opportunity misses.
So, in order to cater these manufacturers, three packages will be created:-
Following services will be provided according to the packages
1. Basic Package (Annual Fee 9999/-)
 Company Profile
 Company Bank Details
 Company Manufacturing Capacity
2. Medium Package (Annual Fee 12999/-)
 Basic package
 Catalogue Section with cloud space of 1TB with backend access to manage
inventory
  Profile Analytics
3. Premium Package
 Basic and Medium Package (Cloud Space of 2TB)
 2 Zopim Chat box for assisting potential clients
 Profile Analytics and Lead Generation
 Exclusive listing in Premium Manufacturers
Apart from this, we can charge for advertisements which will run on the Home Page. Starting
from 10000/-
The listing of Manufacturers will be ranked according to the rating given by buyers. In order to
leave rating on the platform buyer has to share the bill with the platform admin team, which
won’t be uploaded in public as per confidentiality pact between platform and buyers. Upon
receiving the bill copy through email or WhatsApp, a link for submitting the review will send to
buyer.
Once the sale is done, Manufacturer has to pay 0.5 to 1% of total sale as commission to the
Platform.
GOVERNANCE
In our platform, anyone who can be a garment manufacturer or a wholesaler can join this
platform. Retailers can join as a buyer. However, wholesalers can also join as a buyer. Since
wholesalers may want to connect with manufactures for their purchases.
As far as interactions are concerned, sellers cannot know who visited their listing. They will be
only given information number of visitors and other analytics related to it. However, buyer can
interact with the seller. Also buyers only interact with each other on the reviews and questions
asked section. Here, seller can always clarify any query raised by the buyer.
(link - https://www.ibef.org/industry/textiles.aspx)