Introduction

Shahzad Elahi, Nadira Sabahuddin and Mohammad Ali Tariq conceived Styles and Trends as
part of their Entrepreneurship course project in LUMS in 1988. They wanted a fully integrated
knitwear unit capable of producing high quality garments for the export market. However, due to
shortage of finances they started a small stitching unit with the idea of learning the vagaries of
the markets and eventually using institutional debt to work towards an integrated unit. As they
had operated as a small stitching unit serving very limited markets over the last four years,
sanctioning of their loan from a financial institution would be a green signal for expanding into a
fully integrated unit. Tariq recognized that choosing attractive markets in the beginning would be
the key to success as the knitwear field was becoming increasingly competitive.
The product line had been mostly determined by ease of manufacture and Styles and Trends had
refused some larger orders because they felt uneasy about meeting quality and delivery
requirements. Apart from simple mens T- shirts they offered ladies blouses, baby garments and
jump suits. They had depended heavily upon personal and family contacts to seek customers.
Production and basic control appeared to be working well with minimal problems. Shahzad spent
considerable time developing basic systems that would give him quick information for fixing
problems before they assumed large proportions.

Quantitative Analysis

In 1992, Pakistan produced 13.2 million bales of cotton all of which was picked by hand.

The average knitwear selling price was $ 42 per dozen in 1992.

US knitwear market was estimated at around $ 15 billion in 1992.

By 1993, textile formed about 65 % of Pakistans total total exports of Rs. 6.8 billion

with knitwear clothing at $ 462 million.

By 1993 there were about 45 integrated units operating nationwide with the vast majority

located around Lahore.

In 1993, an integrated knitwear unit of about 10,000 dozens per month capacity required

a capital investment of about Rs 60 million.

Almost 80 % of the total apparel purchases for the US were made by a few large buyers,

which generated large orders and sourced from all over the world.

Qualitative Analysis

Promotion was done mainly through direct mail to prospective clients and trough trade

fairs and agents in Europe, manly Britain.

The US knitwear market for Pakistani knitwear was dominated by several large brand

names like Levis, Gap, and buying houses. They had stringent quality standards.

The knitwear sector performed knitting, finishing, dyeing, and stitching operations in

producing finished products.

There is high profitability in knitwear, the margins are also high.

In order to distinguish and maintain quality, careful attention to process controls was

essential. The quality of the garments had to exactly match the buyers specifications in
attributes.

The rapid development of the knitwear industry had not been matched by a similar

development in the ancillary industries.

All dyes used in the dyeing process for knitted cloth were imported mostly from the Far

East and Europe.

There are two types of units operating in the industry. First is the integrated units
encompassing the entire production process from knitting to stitching and the other are
small units comprising of one or two of these processes.

Styles and Trends main competitors were Ammar Textiles, Angora Textiles, Leisure

Garments, and Omega Knitwear.