Khaadi SWOT Analysis- What is Khaadi?

Khaadi SWOT Analysis

Khaadi is a Pakistani clothing retail company privately owned by Shamoon Sultan. Around 22 years ago, Shamoon Sultan started this business on December 13, 1999, with a small 400 square foot store in Zamzama, Pakistan. This company has all its lines of production in clothing, lifestyle and operates 52 outlets in 17 cities all over Pakistan. Khaadi also has its recognition in Asia, Europe, America, North America, and the Middle East. The renowned brand focuses on individual preferences and customer needs to be met along with the latest trends which are there in the market. Because of its spontaneous popularity with the launch of its very first store, it started expanding to multi-store formats including the different range of products for the customers. Since then, it has become one of the leading business companies among Pakistan’s privately owned firms. Here, let’s know about Khaadi SWOT Analysis.

The company is built on the ideology of hand-woven material and a fabric that is made combining the old craft. 

What is Khaadi?

It is a natural fiber woven by hand along with cotton. This is a fabric that has its origin dating back to the time of independence when Mahatma Gandhi influenced and promoted the usage of Khaadi as a domestically available fabric. The texture of this fabric is quite jagged which is a brilliant alternative to wear in the wear winter season. Now, as per later trends and progress, this Khaadi fabric is available in different designs and prints, for example, block print and dye sublimation with a lot of modification.

What is SWOT Analysis?

SWOT is a combination of four tools that helps in accessing the organization’s current status. It is counted as a measure taken in advance before introducing new policies and frames of action. SWOT means- 

S- Strength   W- Weakness  O- Opportunities   T- Threats

These are four aspects that are present at every step of the operation of any business. They let the company and its associates realize different angles of accessing the firm’s performance. It is a technique followed worldwide by various companies irrespective of their nature of functioning.

SWOT technique provides a broader perspective to look from at a company’s functioning and growth. It helps in getting hold of opportunities available, in eliminating the risks involved, in analyzing the areas which need modification, and in working on critical and substandard areas. It is a form of marketing research that has a systematic order of collecting, organizing, and analyzing the data for the benefit of the organization. 

SWOT Analysis at Khaadi

Strength– Every business has its areas of strength which leads the company towards a very successful professional front.

  • Skilled labor at Khaadi- The company has a large amount of skilled labor because it has been working in this retail clothing industry for almost 20-22 years.
  • Adequate resources- Khaadi has an ample amount of supply of this fibre which is available to the company which is used in making Suits, wedding dresses, and kaftans. They also have a strong supply chain of the necessary resources.
  • Steady market and availability – Even though being one of the other largest operating businesses in the clothing industry, it has a good and steady rate of production of goods.
  • Effective promotion platforms – Having effective and attractive ways of promotion makes the sales increase and maintains a constant availability of the product in the markets. Using all forms and platforms of promotion helps in analyzing the demand of the khadi’s product. 
  • Relationship with the employees – At Khaadi, valuing employee’s suggestions is the biggest strength for the company as it is because of the employees the company reaches heights.

Weakness – Any weakness of the company leads to the cope of improvement in whichever field is required. the weak points of a company somewhat tend to act as an obstruction in the path of growth. 

  • Lesser expansion rate – Khaadi has limited across the world in comparison to its sales and demand. It also has a lack of technological advancements in terms of machines required in the production of output.
  • Low wages to the employees- despite having a good working environment, khadi does not provide a sufficient amount of pay to its employees which develops a sense of dissatisfaction among the employees and also reduces the motivation necessary for the functioning. 
  • Lower investment rates-  there is a lack of funds and fewer facilities needed to expand the business which stands in the way of the company’s development.
  • Higher cost of production – Khaadi as a material is expensive as compared to other fibres because it requires time, labor, and years of specialization in the weaving techniques. It also requires the necessary machines to produce the output efficiently. 

Opportunities– Opportunities are the external elements that help the organization to grow and move forward. If availed strategically, it can result in an increased growth bar.

  • Higher demand – Khaadi is one such fiber whose demand is constantly intensifying which is why there are various options available for the company to expand its line of production through new policies and functioning.
  • Goals- Since the demand for the company’s produce is higher, it can develop more ways to increase sales by achieving new markets to target.
  • Establishing outlets across the world – This is another aspect that leads to larger revenues. The more expanded a business line is the more revenue and opportunities to flourish are available to it.
  • The online mode of sales- Nowadays selling goods through online mode is a convenient and easy way for the business to gain popularity. It also allows establishing their presence in the market.
  • New lines of production- For now, Khaadi majorly deals in producing clothing lines for women and it can also add men’s clothing or children’s clothing to have the advantage in the revenue section.

Threats – The popularity of any business comes along with competition and fear of generating poor analysis. 

  • Competition- there has always been constant competition in the clothing industry which Khaadi needs to acknowledge and develop more ways to be at the top.
  • Lack of mechanical development – Old methods of weaving can prove to be harmful in the future where there is huge and intense competition in terms of production and sales.
Khaadi SWOT Analysis- What is Khaadi?

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