The Export Promotion Bureau (EPB) has launched a
scheme for acquisition and franchising of foreign brand name for
Pakistani products with view to achieve incremental exports by
increasing market share and market penetration.
The scheme is aimed at helping the country to achieve
higher value for its products, achieve export of a wider range of
value-added products and to provide access to existing marketing network
of established brands.
Tariq Ikram, the Minister of State and the Chairman
EPB addressing the member of the business community at Karachi Chamber
of Commerce and Industry (KCCI) highlighted the salient features of the
He said that brand name is an important component in
the overall marketing of a product and carries a certain image of
product's quality, serviceability and after-sale support. Besides
marketing edge, established brands enjoy a definite price advantage.
Brand loyalty is a key feature of developed markets and is used in most
Some of the exporters in Pakistan are already selling
to foreign buyers who make onward sales under their own brand names.
Established brand names in developed foreign markets are often available
for purchase. Brand purchases/franchises as such could have far reaching
economic impact and can be utilized as a very useful tool in Pakistan's
strategy of export-led growth.
Those export-oriented companies interested in
marketing their products under the flag of foreign brand names would be
required to have an export performance of a minimum $5 million average
annual exports in the last three years.
The exporters should have their own manufacturing
facilities of international standard, preferably those already certified
for ISO-9000, ISO-14000 and SA-8000.
In this respect, EPB at its own cost will engage
consulting firms abroad to help identify brands available for
acquisition/franchising and ascertain probable costs. Products sectors
to be covered will be the value-added sectors from amongst our core and
developmental sector in accordance to the export strategy. These sectors
are including surgical goods, sports goods and sports wear, all food
products, pharmaceuticals, furniture, jewellery, marble and granite and
selected engineering goods. Exporters may also apply for products not
covered in this scheme which will be considered on merits. EPB will also
pay for the consultancy services required and will assist the exporters
in obtaining bank loans at economical mark up rates to meet the cost of
acquisition/franchising of foreign brands.
Under another export development plan namely
"Enterprise Capacity Building Scheme", the EPB has decided to
hire services of top class consultants of international repute for
technology up-gradation, export marketing and joint venture projects.
The selected consultants will assist the interested
company in improving quality of products matching to the world market
requirements, besides capacity building of the enterprise.
The cost of the consultancy would be paid at 50:50
ratios by the company and the EPB. In order to support the private
sector enterprise, the State Bank of Pakistan has also agreed to provide
soft term loans at fixed market rate for a period of 7 years.
Another important step being taken by the EPB is
promotion of products with the label of made in Pakistan. Under this
scheme sale of products through opinion leading stores enhances the
respect of the product and the country of manufacture. Experiment made
with food products promotions in Harrods and Selfridges in the UK
endorses this concept.
It may be mentioned that Trade Policy for 2003-04
envisages promotion of products made in Pakistan through display and
retail sale in high traffic shopping malls abroad. EPB will hire
display/retail sale space in shopping malls abroad and offer such space
to Pakistani exporters producing world class quality so as to project
Pakistan as a supplier of quality goods. Promotional scheme will be
called "Promoting Products Made in Pakistan". The operation of
this scheme will commence after agreements have been concluded for
hiring such space in selected countries.
The display and retail outlets will be arranged, in
first phase in Dubai, London and New York. The retail outlets will be
selected in consultation with the Pakistan missions, cities and the
exporters. Working on these lines, the EPB has already acquired land in
Sharjah where a display center and a retail outlet will be developed
The eligibility criteria for this scheme required
that the exporter should be one of the top ten exporters of any of the
The exporter should have a branded export product or
should undertake to have a brand name for the product duly registered
with the Registrar Trade Marks in Pakistan and the official registering
authority n the country where the product is put up for display or
retail sale. The product should be a consumer product that can be put up
for retail sale amongst categories. The items selected for this scheme
are including textile apparels and made ups, Carpet and floor coverings,
leather garments and leather products, Beauty care products, cutlery,
sports goods and sports wear, bicycles, electric fans, kitchen ware,
furniture, handcrafts and packaged food products.