Indian Clothing and Textile Industry-Dream to Reality

Ramanjit Kaur Bajwa

Assistant Professor, Clothing and Textiles Department, Govt. Home Science College, Chandigarh

Email: ramanbajwa2009@gmail.com

ABSTRACT

The Indian Textile and Apparel industry has a matchless presence in the economic life of the country. The global economic slowdown has severely hit the Textile and Apparel sector of India by eliminating thousands of jobs. But to sustain businesses in the present changing scenario, the Indian Govt. along with Textile companies need to prepare long term strategies like diversification of markets, product mix and adoption of new technologies besides investments in Sustainable Green Textiles and Technical Textiles which are essential for survival and rapid growth. In order to produce the product for the world, our companies need to be internationally competitive or else, we will be out of business.

KEYWORDS: Indian textile industry, Recession, Strategies, Green textiles.

INTRODUCTION:

INDIAN TEXTILE INDUSTRY UNRAVELS:

The Indian Textile and Clothing industry is at present one of the leading and most important industries in the Indian economy in terms of share in value added, foreign exchange earnings and employment.The industry contributes 14% to the country’s industrial production,4% to the GDP and around 12% share to the country’s total export basket. It is also the second largest employment generating industry. (Annual Report 2008-09, 2009-10, ministry of textiles)

But Indian textile industry is also highly susceptible to any commercial epidemic. The global meltdown in September 2008 has severely hit the textile and clothing industry of India.

MELTDOWN AND ITS IMPACT ON TEXTILE AND APPAREL INDUSTRY OF INDIA

Recession is a period of general economic decline, typically defined as a decline in GDP for two or more consecutive quarters and is accompanied by a drop in the stock market, an increase in unemployment and a decline in the housing market.

The industry has significant dependence on EU 27 being the largest export market, accounting for 33% of the total Textile and Clothing Exports by value and US is 2nd largest export market for Indian Textile and Clothing Products with a nearly 25% value share. (Annual Report 2008-09, 2009-10, ministry of textiles)

In 2008-09, world was passing through recessionary phase and clothing retailers in major markets like US, EU and Japan slashed orders amid slumping consumer spending and exports from India also declined. US the single largest importer of textiles and clothing items, observed a negative growth of 3.34% and 0.55% in its imports of textiles and clothing from world and India.

In 2008, EU’s overall imports of textiles and clothing recorded a growth of 7.32%. In the first two months of 2009, the US markets of textiles and clothing have shown a decline of 14.19% and India recorded a decline of 13.77% in the same period. (www.texmin.nic.in)

In January 2009, India’s growth rate recorded a decline of over 15% than over January 2008 while EU’s overall imports of Textiles and Clothing recorded a decline of 9.96%. In 2008-09, India slipped to 6th position from 2nd in export of clothing. (AEPC news) The textile exports had shrunk nearly 2% as demand from western markets fell and as per CII estimate approximately 8 lakh jobs were lost. Ludhiana, the largest city in Punjab with numerous textile factories accounting for 80% of India’s wool production also suffered great losses in the meltdown period where major garment making companies which create 400,000 jobs in Ludhiana alone suffered more than 50% loss in sales specifically exports and 30%to 50% of business in garment industry was lost. (www.stockmarketsreview.com). Gujarat in Western India and Tamil Nadu in South, two of India’s largest textile producers, have also been hit badly by the slump in exports. RMG imports by US also declined which negatively impacted the Indian textile and apparel industry resulting in a 3% decline in exports. (www. commodityonline.com)

FUTURESPECTIVE

India is an budding player in the global arena of textile industry with many areas to capture in coming times. India has a bright future to look and emerge as a leading contributor to world textiles. In order to ensure long term growth of Indian Clothing and Textile Industry all sectors of industry alongwith the govt. should work together to arrive at a common plan for facilitating the healthy policies.

POLICIES AND STRATEGIES TO MAKE TEXTILE AND APPAREL INDUSTRY GLOBALLY COMPETITIVE

· Green textiles

· The retail tale tell tool

· Technical textiles - opportunity india

· Adequate capacity building in terms of technology, manpower and processes.

· Diversify markets and product mix

· Lower transaction costs and power related issues

· Reforms in import duty structure and branding

GREEN TEXTILES

Indian textile industry is facing a challenging condition in the field of quality and productivity due to globalization of the world market. We live in changing times, where awareness is growing towards creating a healthy and ecofriendly environment. Consumers are giving importance to the performance characteristics alongwith colour, style, fit and other aspects of the garments they want to purchase. So, Indian Clothing and Textile companies should start production of ecofriendly fibres and fabrics and the early starters will earn huge profits as the present market size of ecofriendly products is small. Ecolabels guide the consumers and producers that the product is ecofriendly with fewer adverse environmental impacts. The EU Eco-label,also known as the ‘flower’ because of its logo,was introduced in 1992 is now one of the major voluntary instruments included in the New Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan adopted by the Europeon Commission in July 2008 (Images – Business of Fashion, Feb,09). With a strong workforce and a stronger economy, our markets are still flourishing and people are still coming to buy apparel. So, in the cutthroat competitive world, clothing companies should offer lines made from ecofriendly fibres as desired by the environmentally conscious young generation who are always willing to make change in their choices for the benefitof our planet. Even leading designers and other fashion labels should also catch on with this movement of green textiles.

THE RETAIL TOOL

Communication is the most important component of a business : service or retail. For a successful enterprise the tool or method adopted to make the very first connection with end user is important. So, visual merchandising or window display plays an important role here. Selling a product is incomplete without communicating its image. Right image is very important in building brand familiarity and loyalty. Visual merchandising is helpful in projecting uniqueness of the merchandise and thus can boost sales. Indian Clothing and Textile industry should understand and adopt the scientific and professional system of visual merchandising. Window display deserves a great amount of attention as it is the first handshake with the consumer.

Creative marketing is the need of the hour in retail sector. Innovative marketing strategies should be created to attract new customers and generate sales. Sales promotion is an important component of a small business’s overall marketing strategy, alongwith advertising, public relations and personal selling. Advertisements and sales promotion should be blended intelligently to deliver the message to maximum audience at low cost and reap the maximum benefit. In India, one has to develop solutions that are uniquely Indian. To be successful, retailers have to blend the best that the world has to offer and synergise these with the demands and expectations of the Indian consumer. Special events like fashion shows and loyalty programs like privilege and membership cards should be given to customers.

So, if we need to grow, we need to reorient our policies related to retailing. Although Brick and Mortar retailing still holds the lion’s share in fashion retail sales but Indian Clothing and Textile industries should also enhance sales through offsite retailing and electronic retailing or e-tailing. The future of e-tailing is extremely positive. Besides Department stores, chain stores,off-price merchants,speciality stores, we are having small businesses and boutiques involved in clothing retail. Fashion boutiques stock garments brought from local designers and can link emerging young designers with mainstream markets.

TECHNICAL TEXTILES -AN OPPORTUNITY FOR INDIA

Technical textiles offer new ways, means and opportunities to the Indian textile industry to thrive in future. With the population of over 1 billion, it is not possible to avoid the demand for technical textiles. At present the demand for technical textiles is met by imports and in developed countries it has reached a maturity level. Technical textiles are steadily gaining ground due to reasons like functional requirement, health friendly, cost effectiveness, durability, highstrength, lightweight, versatility, customisation, user-friendliness, eco-friendliness and logistical convenience. (Images – Business of Fashion, Feb09) Key segments like agrotech, meditech, buildtech, protech and geotech are expected to grow in range of 8-13% by 2012. Growth of technical textile in India is expected at the rate of 11-12% year-on-year by 2012-2013.

INVESTMENT IN TECHNOLOGY AND MANPOWER

Technology innovation is required for competitiveness to tackle different challenges in the present business world. Promote investments in real assets like plant technology, people and processes to excel in manufacturing and protect India’s position globally.There is an urgent need to improve our technology in production of fibres, fabrics and garments to become cost competitive globally.

Trained manpower is essential for any manufacturing company as well as in lifestyle retail chain.Employees should be updated frequently on new technology and IT systems. Leadership traits should be developed in all the managers and promotions should be done from within the group whenever opportunities arise. The whole team should be motivated in such a way that they not only meet the desired targets but exceeds them.

Steps such as specific plans for attracting investments and having more training institutes providing specialised training programmes should be undertaken. Industry associations should establish skill development centres to ensure availability of skilled labour to the industry. There should be congenial work environment for the health and safety of the workers. (www.ficci.com)

DIVERSIFICATION OF MARKETS AND PRODUCT MIX

Indian Clothing and Textiles industries need to expand their client base and sell to new customers and new territories. The Indian exporters are more dependent on Europeon and US markets. Both these markets have a tendency of parallel movement and they boom together and also fall together.So Indian exporters should explore and concentrate on other small markets centres like Mexico etc. (www.ficci.com). Our product mix is very generalised. Our product basket is limited to Tops, Trousers, T-shirts and some hosiery items. So, product innovation is required. We need to diversify our products also like kichen linens, bedlinen, home textiles and other items desired by our foreign customers. (www.indiantextilesinfo.com)

LOWER TRANSACTION COSTS AND POWER RELATED ISSUES

Documentary procedures at the ports should be simplified to reduce the transaction costs incurred by the exporters. Efforts should be made to increase port capacity and to improve rail/road connectivity to ports. Support captive power generation in the regions suffering from acute power shortage by allowing exemption of excise and customs duty paid for liquid fuels used for captive power generation. (AePC Weekly, June 2009)

REFORMS IN IMPORT DUTY STRUCTURE AND BRANDING

Import Duty structure need to be brought down and in line with other markets in today’s competitive world. Our manufacturers should build Indigenous brands to International Standards so that they become pride domestically and transcends borders to be valued internationally.( The population segment in the age group 17-35 years is more brand conscious and inclined towards look and feel good factor. So, apparel brands should offer high quality and value for money to the customers. Labels should convey the message to the rural, urban and semi-urban consumers about the potential traits of the products. (AePC Weekly, June 2009)

CONCLUSION:

Despite a slump due to global recession there is a bright future in store for the Apparel and Textile industry of India.While India has a great opportunity, India has to face certain challenges and overcome these before it can be a force to reckon with in the global markets.

WHAT SHOULD BE- THE MANAGEMENT MANTRA

To tackle the situation the address is Innovation strategy. Ecofriendly Sustainable Textiles and Technical Textiles are essential for survival. Only companies which are unique and focus on design, creativity and logistics will survive in the competitive world. So, if we need to sustain and grow, we need to reorient not only our policy goals but also the entire production system.

REFERENCES:

1. Annual Report 2008-09, 2009-10, ministry of textiles

2. AePC Weekly, June 2009

3. www.stockmarketsreview.com

4. www.commodityonline.com

5. www.texmin.nic.in

6. www.ficci.com

7. www.indiantextilesinfo.com

8. Images – Business of Fashion, Feb 2009

Received on 08.01.2012

Revised on 26.02.2012

Accepted on 28.03.2012