Currency depreciation in the far off Europe is giving the Carpet exporters and suppliers in India sleepless nights! That’s the effect of globalization. Here, everything and everyone is interconnected and a crisis in an all together different part of the world can have its impact in each and every related corner.
Indian carpet industry depends heavily on exporters and suppliers and the west is a huge market for them. The Euro crisis has rattled them and its quite natural for them to be perplexed about it, as it directly impacts their profit margins.
According to a news report, the Euro value had depreciated to almost Rs 54 and since the orders are normally booked 6 – 12 months prior to the delivery, the exporters have received devalued payments. Most of the carpet manufacturers and suppliers are worried as the fresh orders have slowed down and the importers are unwilling to renegotiate the prices. This is leading to a hit of around 40-50 percent on the carpet exporter’s revenue.
The most sought after carpets types that are usually sold are Woven, Needlefelt, Knotted and Tufted. The Major belts of carpets production include Bhadohi, Mirzapur and Agra in Uttar Pradesh, Jaipur, Bikaner in Rajasthan, Panipat in Haryana and Kashmir. Indian carpets manufacturers makes carpet of various types including Chainstich Rugs, Tufted Woolen Carpets, Hand-knotted Woolen Carpets, GABBE Woolen Carpets, Pure Silk Carpets, Handmade Woolen Dhurries, Staple or Synthetic Carpets.
The moment, the carpet exporters were about to take a breathe of relief as the US market (the largest importer of Indian carpets with 50 per cent market share) was showing signs of recovery, the news of Euro crisis arrived. This is now pushing them to explore new options as a remedy measure.
The new options include an effective online promotional campaign and participation in the trade shows abroad, which gives them a good ROI on their overall expenditure. Many of these traders are switching to the charm of online promotion in the B2B marketplace, which is helping them get better leads, leading to more conversion. These B2B online marketplaces are not only cost-effective in comparison to traditional media, they also mean better leads and more assured business.
Earlier only the small or medium level exporters used to deal in the Online b2b marketplace however now the top line exporters are also using it, to minimize their cost of advertisement and promotion. Needless to say, the carpet exporters in India have a fair share of worries on their mind, however now, they also have a ray of hope in the form of online b2b marketplace.