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CHAPTER 9

MARKETING OF KHADI PRODUCTS

9.1 Introduction

Marketing is one of the very crucial elements when it comes to products like

Khadi. Further it is observed that Khadi has a limited market catering to few

consumers who either believes in Khadi ideology or in the good qualities of wearing

cotton clothes. It is therefore interesting to look at the marketing strategies adopted by

the KVIC (marketing wing) and Institutions in promoting Khadi. The data source for

most of the tables in this chapter is derived from the questionnaire of cutomers (75 in

number) surveyed in the Khadi Bhanders. Though the number is small it is due to lack

of availability of customers during the visits to the Khadi bhandars through out India.

However one can still draw some broad conclusions from this thin sample which can

be found true for majority of the states. In fact thi s is the one of the limitation of this

chapter. In section 9.2, aspects like marketing strategies of Khadi, investment in up

gradation of designs and products to suit the changing market needs and training of

personnel in marketing. Section 9.3 looks at the marketing linkages of Khadi. A brief

analysis of the customer perception of Khadi is undertaken by analyzing the

questionnaire of customers in section 9.4. Section 9.5 looks at the quality of Khadi

right from the time of its initial process till the final product to get an understanding of

the way quality is viewed by the institutions. It is further substantiated with our field

observations on the attributes of Khadi. Finally in section 9.6 we look at the emerging

textile marketing strategies in the Globalising era and its implication for Khadi

marketing to enhance its status. Summary and conclusions are presented in section 9.7

9.2 Marketing Strategies Of Khadi Institutions

It is found that the common Marketing strategy adopted by institutions are

opening up of new sales bhandars, putting up advertisements and banners and

distributing pamphlets during the rebate period. The primary survey data of the

institutions revealed quite a dismal picture about the naïve marketing practices

adopted by the institutions compared to today’s hi-tech marketing strategies. Table

9.1 shows that 69 percent of the institutions believed marketing as only opening new

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sales bhandars and exhibitions and very few (2%) believed in improving the quality

and design pattern of the Khadi.

Table 9.1: Sales Strategies Adopted by Institutions to Sell Khadi.

Type of strategies adopted Percentage

Sales bhandars, exhibitions and

pamphlets 68.80

High quality production 2.10

New variety / designs 2.10

Opening new bhandards/sales

outlets 2.10

Combination of above four

strategies 24.90

Source: Institutions questionnaire

Further, the sales bhandars of the institutions are not professionally managed,

their timings are also not suitable to the customers, to quote one of the KVIB

Directors ‘Why stock is increasing because at every place Khadi shop is there, but it

will be shut for3-4 hours in a day. If any farmer is coming from far off place then he

will have to go back. Khadi shop opens at 9 0'clock in the morning and shuts by 1

0'clock. Then it again opens at 3 p.m. and shuts by 6 p.m. It works on government

timing. For this 'central vastragar' should be made and rebate should be given on that

products. Whoever produces anything should send it to 'central vastragar' and then

can be sent to sales outlets’.

Table 9.2: Opinion About Share of Market Assistance in the Cost-Chart.

Is percentage of market assistance in cost-chart sufficient Percentage

Yes 37.5

No 47.9

No response 14.6

Total 100.0

Source: Institutions questionnaire

Marketing promotion of Khadi is essentially done by the institutions. They have just

meagre 0.5% of the total cost of the product to be spent on marketing the product.

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Most institutions find it quite insufficient (Table 9.2). Further if we compare the

marketing assistance given in the cost-chart to any other product we can easily guess

that it is largely insufficient and requires to be rectified.

Table 9.3: Share of Inputs/Wages/Margins in Cloth Prices in Handloom and

Khadi sector.

Organisations Inputs Wages Margins Total

Cooperatives (A.P) 44 44 12 100

Central govt. scheme 40 40 20 100

Yemmiganur Society 27.5 27.5 45 100

Master weaver

(Gadwal) (Private)

25 25 50 100

Khadi Cost-Chart 27.34 48.43# 24.83* 100

Source: Mukund (2001), Table 6.2.for Hand Loom Sector and KVIC Cost-Chart for institutions.

#Note: spinners wages are around (15.17 %, and welfare fund +incentive(2.77%), wavers wages

(16.78% and welfare fund +incentive(3.38%)

*Note: Total margin includes: Trade margin (2.26%), publicity (0.37%), insurance (0.76%) Bank

interest (4.16 %), Establishment margin (16.67 %)

Comparing the cost structures in handloom sector of Andhra Pradesh and that

of Khadi we find that though wages account for the major component in Khadi sector

but it is split into spinners and weavers wages. If we compare just the weavers wages

across the categories we find that Khadi (16.78%) falls far below even the private

wage standards (25%) (Table 9.3). Trade margin is quite low in Khadi (2.26 %)

compared to others but the establishment margin accounts for around 16.67 percent,

which is higher than even cooperatives. Overall the cost includes many other

components like, insurance (0.76%), bank interest (4.16 %), incentives and welfare

fund. Thus the customer bears all the cost of production including the bank loans

taken by the institutions. More over institutions get further rebate on selling these

products, which is also a subsidy. Thus overall institutions are subsidized in many

ways. And if we see the employment and wage generation it is quite low and

comparatively lesser than existing handloom sector.

The question of Khadi being costly because of wage component is something,

which needs to be taken with a pinch of salt. Another concern is, what have

institutions done with the establishment cost around (20 %) when they are supposed

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to be working on no-profit and no loss basis? In the field we found that institutions

have built up vast infrastructures, which needs to be critically examined by the

Commission. Ideally the establishment cost of Khadi should have been around 10-12

percent only like the cooperatives of AP handloom weaving which charges around 12

percent as establishment cost while working on the similar principles as Khadi sector.

Thus cost-chart in Khadi needs to be re-looked very closely and changed according to

current market scenario. The cost-chart currently in vogue was developed by mahatma

Gandhi to maintain good wage and product quality standards across the country. But

looking at today’s changing scenario it may not be that relevant. Except keeping the

raw material cost to maintain product quality and wages to maintain wage parity

across the regions the other components like marketing assistance, institution’s

establishment costs etc. needs to be done away with.

KVIC has a directorate of marketing and export at the central office in

Mumbai, but so far, it has essentially acted only as a support organisation with the

Institutions doing most of the marketing.

The problem we have seen is that due to the decentralisation policy, each

institution has marketing linkages mostly in rural or semi-urban centres. Also,

institutions only market their own products and in the best possible way given their

experience, understanding of the market, and the funds allocated to them for

marketing the products. The marketing strategy is fragmented, by fragmentation, we

mean that even if there are two institutions in an area, sharing the market, they do not

even try to come together to market their product, in spite of the fact that it would be

mutually beneficial and cost effective for them to work together.

Further, sale of Khadi has mostly relied on the rebate and the hope that people will

buy Khadi on Gandhian ideology or on the fact that rural employment will be

generated by buying Khadi but this is found to be fictional in today's context. For

example to quote a State Director, KVIB ----

- ‘Because Gandhiji has raised in the context of socio-political-economic.....which

may or may not be fully relevant in today's time. Just because Gandhiji found

something relevant in 20's, does not mean that Gandhiji would have found it

relevant today. He himself would have fallen in trouble today. So yes, that need is

very much there to address Khadi as a business, as a business to enhance to

sustain rural employment....’.

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Thus, it is found to be today's need to make Khadi competitive and look at it

from business angel. That doesn't seem to be happening anymore. The market in this

generation is more oriented to price and quality of the product.

We have also observed that selling of Khadi has up to now been supply

oriented which means that institutions first produce the goods and then try to sell it.

Hence, their stocks have been piling up, because their products are not being

produced according to the demand. We do understand that in achieving the objective

of rural employment the production process cannot be controlled by mere linking it to

the demand factor, however, one cannot ignore the competitive market economy and

the relevance of understanding the demand side aspect of the products.

Also, there has not been much change in the design, colour or type of Khadi

readymade produced by the institution since the inception of the Khadi programme.

Institutions which are understanding the current market scenario are now making

some attempts to make products that are more `in’ with the consumer, but these

attempts are few and without any admired support.

There has also been no attempt to find out who buys Khadi, who is going to be

the target consumer, what is the requirement and preferences of the target consumer

etc. This is because the product range is so vast that it covers products from dusters to

3 piece suits. In fact, the total product range of Khadi comes to about 5000 products.

It is imperative for Khadi to rationalize its product range from 5000 to a manageable

number so that the objective of Khadi i.e. production of salable products is achieved.

The decline in sales and increase in stock is also attributed to the fact that

government agencies have stopped placing orders with the institutions, which earlier

used to rely heavily on government buying to dispose of its product. This shift in

government buying could be due to the fact that they are getting better quality at

cheaper prices from elsewhere. During our interviews with the various institutions, we

wanted to know what they think about the competitiveness of the programme, vis-à-

vis other products in the current market situation and this is what they had to say

(Table 9.4).

Positively, 64 percent of the institutions felt that Khadi could compete with

other textiles in the market. The above Table 9.4 indicates that majority of the

institutions seem to think that Khadi can be competitive in the market, but they seem

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to think that this will happen with more subsidy. Institutions think that the stock

problems would be solved if KVIC could manage to sell their products to government

agencies, again in the name of employment generation.

Table 9.4: Competitiveness of Khadi.

Can Khadi become

competitive Percentage

Yes 63.8

No 25.5

Can’t say 10.6

Total 100.0

Source: Institutions questionnaire

Also, after having visited some of the sales bhandars, we felt that better

maintenance and presentation of the shops would help in selling Khadi. And better-

trained sales people with incentive based salaries would only help the cause. Further it

was observed that the wages paid to the sales persons was very low and further they

had quite low levels of motivations to sell Khadi.

The recommendation in Union budget in 2000 to set up a central marketing

agency which looks into all the aspects of Khadi marketing from demand oriented

designs to selling it through a centralised process is welcome and we are glad that this

step was taken.

Marketing not only means selling to the customer, what the consumer wants, it

also requires making a consumer buy products which are sold under brand name. In

other words it is creating demand for your own products rather than create what is just

demanded by the consumer. If the selling has to be market oriented instead of product

oriented, then there is a lot of homework to be done by the KVIC. In fact these are

preciously the strategies in vogue in today’s market scenario. Thus if Khadi can be

branded and then heavily marketed at the central level through Television and

Newspapers which have mass reach, and at the institution levels if a mass defined

marketing strategy is used, then it will go a long way in making Khadi a competitive

product in the market.

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In terms of export of Khadi, the problem faced is that due to lack of evenness

and quality, it is very difficult to export Khadi. But we feel that powerisation would

take care of that. Through talking to various experts and foreign customers, we feel

that there is a huge market for Khadi in foreign countries, and it is the job of the

KVIC export directorate to help export Khadi. A lot of institutions feel that they can

export cloth, and are also aware of various markets abroad. But they do not know the

strategies and procedures to export. Further, institutions did not try to capture even

local market, to quote one of the expert in Khadi industry ----

‘There should be a market survey done in order to understand the needs of

local market. Local requirements of the market should be understood first, then comes

the international market needs. There should be linkage between production and

sales. I issued a questionnarie to all institutions wherever bhandars were there, I

asked them to write down those products which does not have ready market and how

much quantity is sold? Is there people coming and demanding and going back without

that? Based on this date we can guide producers’.

If KVIC is to shift focus to the urban and niche markets in India and abroad,

then quality is going to be very important to them. Moreover as Scouller John (1999)

has pointed out, ‘growth therefore is not just a matter of increasing a country’s

capacity to produce goods by building more factories and machinery. It is about the

altogether more difficult task of increasing the countries capacity to generate value by

responding appropriately to information and signals about what potential consumers

value’.

Following of norms set by Ahmedabad Textile Research Association (ATIRA)

or any other agency would be a good step forward in this regard. Also, improvement

in the implements like putting a jack-up-motion on the frame-loom which increases

the evenness and quality of cloth etc. would also be very helpful in improving quality.

Also, at the raw material stage, if the input is of high quality, it will definitely

be carried forward to the final product. This will also save wastage, money and raw

material.

An analysis of the ‘Life cycle of the product’ for Khadi was attempted. But as

the product range in the Khadi sector is high around 5000, we found a limitation that

it was very difficult to separate which products are in demand and not. Therefore

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KVIC should conduct a product survey and rationalize the products range depending

on the demand and high value addition of the products and this will also benefit the

artisan’s, as they will produce the products that are in demand.

9.3 Marketing Linkages

Institutions provide all the raw material to spinners and weavers and there are

no intermediaries. The weaver supplies the finished clothe to the institution. In effect

the waver is totally isolated from the market. Information on the changing tastes and

market preferences never comes to him through the institutions. Thus weaver is

essentially being paid only a wage for his work depending on his output. One of the

most visible facts about weaver’s earnings is that the wage rates are extremely low.

One explanation that is offered for low wages is that the market for Khadi is limited

and declining and consequently the wages are low. Further, the technology of

weaving is still rudimentary i.e most of the weaving is done on the pit-looms by home

based weavers who are in majority, frame-looms are used though to a limited extent

in the shed based weaving by some institutions and for specialised products like

Kanchivaram or Patola jack-looms with traditional designs are used. Productivity is

therefore low, and the only reason why these products are surviving is because of

state support.

There are around 16 Departmental Bhavans, 15,441 Sales outlets, 11 Bhavans

in hill and border areas, which does the entire marketing of Khadi products

(Government of India, 2000). Most of these are situated in the major metro cities,

small and medium towns. Thus the linkages between the sales outlets, institution and

artisans are quite straight forward or linear. Further, there are no feed-back from the

market outlets to the institutions and artisans about the changing market patterns. Due

to paucity of funds and bureaucratic tendencies many of the institutions felt that the

marketing assistance provided by the marketing wing of the Khadi sector is quite poor

and insufficient. Thus every linkage looks more like a compartmentalized task

fulfilling rather than any round about linkages which feeds back into enriching the

each other.

Contrary to this in a case study of Andhra Pradesh it was found that handloom

weaving (which can be comparable with the Khadi weaving sector) was in a state of

crises in Telangana region, the only districts where weaving activites have ceased to

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exist are the Nalgonda, Mahbubnagar and, to a lesser extent, Warangal. In all this

districts, highly marketable, value-added fabrics are being produced and this has been

the major factor in the survival of handloom weaving here (Mukund, 2001). Similarly,

within Khadi also we find some institutions, which are able to compete in the market

and sell Khadi on par with any other foreign branded products in Ahmadabad and

New Delhi. If within the given structure some institutions are able to survive then we

can believe that marketing good Khadi products is not a chronic problem. It can be

tackled, only the mind-set of the institutions needs to be changed to the current

environment.

9.4 Customer Survey Data Analysis

Here we present the data analysis of a questionnaire capturing the customer

views regarding Khadi marketing, their preferences for variety of products, their

opinion regarding customer care by the salespersons and the major reasons which

make them prefer Khadi products over others. Due to lack of customers while

conducting the survey, the sample size is very limited and gives a brief insight into the

utility of Khadi as viewed by its customers. Around 80% of Khadi products are sold

in urban areas, that too during the rebate season. A brief profile of the customers

shows that most of the buyers are educated i.e., above secondary education and

belong to business or service sector and have monthly income ranging from

Rs.5,000/- to 20,000/- above and most of the customers were regular and started

wearing Khadi from a long time (see Annexure 9.1 to 9.3 & 9.10).

The most sited advantages of wearing Khadi are comfort/ texture, soaks sweat

and looks unique and has a status of its own (Annexure 9.4). When questioned about

the disadvantages of wearing Khadi there was no unique or significant reason given

except that it needs higher maintenance cost, its not durable, and it does not have any

good range/pattern of clothes (see Annexure 9.5). Many of the customers (57.3%) felt

that the price of Khadi was high (Annexure 9.7). Around half of the customers felt

that the quality of Khadi was Ok where as 38.9 percent felt that there is a need to

improve the quality (Annexure 9.8). Surprisingly rebate was the least (1.3%) way of

making Khadi Popular according to customers (quite opposite to the view of

Institutions, around 66.7 percent felt that Khadi can’t be sold without rebate. Most of

customers felt that steps like more range/variety of Khadi, advertising, reduction of

prices, marketing and a combination of all above are necessary for making Khadi

popular (Annexure 9.9). As regarding frequency of wearing Khadi by the customers

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data revealed that for most of the respondents Khadi is an occasional wear (46.4%)

and very few (8.7%) of them responded that they wear Khadi regularly (Annexure

9.12). Around 43.5 percent customers buy Khadi during the rebate period, which

gives an indication that a large number of customers have some preference for buying

during rebate period (Annexure 9.13). Male customers have preference for formal and

traditional wears whereas females have sarees and salwar kameez and the

combination of the two as their preference. Annexure 9.18 reveals that cotton & silk

are the favorite products of customers. Comfort and handmade nature of Khadi seems

to be the perceived difference between Khadi and other clothes (Annexure 9.19). The

major reasons identified for customers wearing Khadi were fashion, Gandhian

ideology and comfort/liking for the cloth respectively (Annexure 9.20). The frequency

of the visitors to the Bhandars reveals quite a dismal picture (Annexure 9.21). It also

highlights the poor marketing & promotional strategies adopted by the Institutions.

Although Khadi is a Monopoly seller market for its hand-made products, which is

Eco-friendly and Green. But customer survey reveals that these reasons hardly

qualifies to impress or woo a common customer to purchase it, therefore Khadi has a

limited market catering to few consumers who either believes in Khadi ideology or in

the good qualities of wearing cotton clothes. Therefore it is necessary to undertake

further detailed surveys of the consumers to understand their needs to make it a

popular product even if it is to cater to only niche markets.

9.5 Quality Of Khadi

Quality is another very important area of concern with changing consumer

tastes and fashions and rising competition. It is an important fulcrum to leverage the

sales of Khadi. Here we look at the quality of Khadi as observed during our field

visits along the various production stages involved. The real quality aspect of the

products needs a detailed analysis to be undertaken by the quality measurement

professionals in the textile field. However a description of the production process will

give some insights to explore what stages of Khadi production needs some immediate

attention to improve its quality.

9.5.1 Step I : Purchase Of Raw Material.

Obviously, quality starts from here. Better the quality of the raw material,

better is the quality of the finished good. Each state has a regional cotton purchasing

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committee (RCPC), which includes KVIC officials and representatives of institutions

that purchase cotton for the entire state. But institutions are free to buy raw material

from the local markets too. Thus each state does its own purchasing of raw material

at different costs and quality following the cost-chart norms. It was also found that

RCPC cotton was in most cases more expensive than local market prices, but the

quality was marginally better. It was found that due to bureaucratic processes

involved in the purchase, by the time the RCPC takes a decision to buy the raw

material, prices would have gone up in the local markets. Therefore suggestion is to

buy it at the right time so that there is no compromise on the price as well as quality.

9.5.2 Step II : Pre-Processing

This involves processing of the raw material up to the level where it can then

be spun into yarn. It was found that institutions would either do the pre-processing

themselves on the second-hand vintage machines purchased from the erstwhile mills

or get it done from private sliver plants, or directly buy the pre-processed raw material

from the Central sliver plants (CSP) set up by the KVIC.

We found that quality was best at the sliver plants set up by KVIC as

compared to other sliver plants because the CSP machines are brand new machines

giving quality output as compared to the other machines. But most institutions

continue to buy from outside due to monetary or other reasons which needs to be

rectified.

9.5.3 Step III : Spinning And Weaving

Lets take the case of a spinner who starts spinning at 9 a.m. after a good

night’s sleep. She is fresh in the morning and is able to spin very well and hard, so

the yarn produced then is of good quality. But as the day passes, and it gets hot by

noon, the spinner gets tired, and there is a reduction in strength and evenness with

which the charkha is spun, here there is deterioration in the quality of yarn. This same

example is applicable to the weaver who through the course of the day will produce

cloth of different quality. In fact this is the unique feature of the Khadi industry due to

the hand spinning and hand weaving nature of the cloth. However introduction of

power can solve the problems of evenness of the clothe in the spinning stage. Further,

innovation and improvement in the implements of weaving like putting a jack-up-

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motion on the frame-loom, which increases the evenness and quality of cloth etc.,

would also be very helpful in improving quality.

9.5.4 Step IV : Post Processing Of The Fabric

This step involves making of the finished-goods, which will finally be sold..

Designing, dyeing, stitching and finishing of the products is important because the

finished good is what the customer sees. How much ever the quality of yarn and

cloth, if the colour fades away faster from the cloth or if the stitching is poor, then the

product is not going to be sold. So finishing quality of the product is also very

important, we found that post- processing is usually left to the institutions, who

according to their understanding of the market decide on what to produce and

accordingly process it. Most large institutions had their own dyeing units, and those

who did not, would give it to certified institutions. Further, Institutions hired their

own tailors to make the finished readymade garments. However no good quality

market surveys are undertaken to understand the needs of the consumers.

It was found that most of the institutions were not aware of any R & D activity

undertaken by the KVIC indicating that there exists information dissemination

bottleneck between KVIC and the institutions. Many institutions have never

introduced any innovation in quality, design or pattern, as there is no pressure to

innovate. Some institutions did introduce, improved design/pattern along with

opening of bhandars and sales outlets. But there is a lot of time lag between

innovation and actual implementation and that too mostly irregular. Therefore KVIC

needs to be a facilitator in providing improved design/pattern, but its role will be

qualitatively enhanced if institutions also take up some more initiative in this process.

KVIC also needs to tie up with external agencies involved in this area like NID etc.,

so that there is an exchange of ideas and flow of information about changing market

scenario.

An elaborate discussion with the NID experts, associated with the Khadi

designing work, revealed that Khadi has an international market, as it is the sole

producer of cloth below 20 count (existence of Capacity). Export of such clothe could

be made possible with proper designing and dyeing to suit the international standards.

They also feel that the uniqueness of Khadi is its hand spun and hand woven

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characteristics. NID, on request of KVIC, has prepared appropriate designs and dying

to clear the stock from past 10 years. But there seems to be no utilisation of the work

undertaken either due to lack of funds or commitment from both institutions and the

KVIC.

The cloth quality checking and standardization norms followed by the KVIC

units are quite rudimentary and poor. If KVIC is to shift focus to the urban and niche

markets in India and abroad, then quality is going to be very important to them.

Following the quality standard or norms set by ATIRA or any other agency would be

a good step forward in this regard. Most of the institutions produce commodities

according to their understanding of the market and expect it to be sold in the name of

rebate or Gandhiji. Over the years continues piling-up of stock speaks volumes about

the poor understanding of the market situation by the institutions. In fact the post

processing stage needs a total face-lift if Khadi has to develop in future.

9.6 Emerging Textile Marketing Strategies In The Globalising Era And Its

Implication For Khadi Marketing

Recent changes in Global geographical trends in the production of textiles and

garments show a clear pattern of the continuing relative (and, in some cases, absolute)

decline of developed country producers and a geographical shift of production to

certain to certain developing countries, notably in East Asia and, to a lesser extent, in

Mexico, the Caribbean, Eastern Europe and some parts of the Mediterranean rim.

World textiles exports are dominated by Asia (primarily East Asia) and Western

Europe. Together these account for more than 80 per cent of the total and garment

exports around 75 percent (Dicken, 2003).

9.6.1 Changing Patterns Of Demand For Textile Products

Demand is a fundamental influence on the size, organization and location of

the textiles and garments industries in different parts of the world. Some 50 per cent

of all textiles production goes to the garments industry, the major influence on the

demand for textiles is the demand for garments. It is the affluent parts of the world

that largely determine the level and the nature of the demand for garments. The

generally low incomes in developing countries clearly restrict the size of their

domestic garments markets. The conventional economic wisdom says that, beyond

the level of basic necessities, demand for garments increases less rapidly than the

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growth of incomes. This poses a major problem for garments manufacturers and

retailers: they need to stimulate demand through fashion change. Enormous

expenditure has gone into promoting fashion products and creating ‘designer’ labels.

Such a practice covers a very broad spectrum of consumer income levels from the

exceptionally expensive to the relatively cheap. Designer labeling is basically a

device to differentiate what are often relatively similar products and to cater to – and

to encourage – the segmentation of market demand for garments (Dicken, 2003).

The Textile Industry in India has gone through significant changes in

anticipation of increased international competition. The industry has been forced to

tailor products to both the domestic and the international market which have

traditionally been quite different. The domestic market has huge potential but is also

very price sensitive whereas the international market tends to favor mass production

while also emphasizing quality service and price of production. India has the ability to

compete on the global scale but it is losing market share to Asian countries that have

cheaper labor, better investment in machinery and capital, and better ocean

transportation options for export to the U.S. While its market share has certainly

increased over the last decade, India still lags behind countries like China that have

seen phenomenal growth in recent years. However, India enjoys a similar comparative

advantage for serving demand in the European Union (Carver Brian, He Christy,

Hister Jonah, 2004).

In today’s fast changing environment the current engines of market growth for

textiles in India are, rising share of working population, higher disposable incomes

with the growing Indian middle class, increase in private consumption, credit

availability, fast changing consumer lifestyles and brand aspirations (Kaul

Vijay,2004). Further there is a rise of disposable income as the average GDP growth

rate is around six percent and people with the higher disposable incomes prefer the

good variety of the clothe and are ready to pay for the high priced products (Mukund

2001, Nagaraj 1998).

9.6.2 Rising Importance Of Cotton Products: Green Is In

There has been tremendous growth in membership of green groups in the

world such as Green peace, Friends of the Earth etc. These people are concerned

about the environment and are willing to pay a premium for goods and services that

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they believe have a reduced environmental impact compared to conventional

products. Today in the corporate world, Triple Bottom Line is used to describe

company accountability not only in financial terms to shareholders and investors but

also in social terms e.g. acceptance by the communities in which the firm operates,

and in environmental terms by assessing the impact on the environment of the firm’s

own activities or the activities of the manufacturing chain which supplies the products

that the firm sells (Easton, R John., 2004).

Consumer expectations of company behavior have increased and not only in

the rich G8 countries but also in many other parts of the world. In a Millennium Poll

in 23 countries 60% of 25,000 consumers said they expected businesses to tackle the

issues of fair labour practices, business ethics and environmental degradation in

addition to delivering profits and jobs. Over the last 10 years the development of

various eco-labelling schemes, designed to assure consumers of the safety and

environmental acceptability of a particular product, has raised the profile of

environmental issues within the textile chain. Recently there has been a rapid uptake

of ISO14001 by manufacturers in Asia as a means of assuring European and

N.American procurement managers of the environmental probity of their operations

(Easton, R John., 2004).

Importance of Cotton and demand for organic products is on a rise and India

being one of the global players needs to look beyond the horizons and expand the

market (Lienert, 2004). The global buyers would not prefer to put their sourcing from

one large country like China. The global buyers would also balance their risk of

sourcing from one country only, therefore demand for Indian textiles will not

diminish so as expected in the post liberalization era (Joshi, 2004). Therefore looking

at the current trends in the market scenario it is quite evident that the Khadi has a lot

of chance as the future market lies in the eco friendly cotton products. Further, Crill

Rosemary (2002) A senior curator in-charge of the textiles collection in the Indian

and South-East Asian Department says: ‘Handlooms can be revived and sustained in

India by the government aggressively creating markets for it within the country and

providing design inputs for weavers’.

9.6.3 Emerging Technologies In Modern Textile Products

As against synthetics fibers which cause environmental degradation, fibers

with renewable raw materials is a futuristic outlook of fiber Industry. Examples of

such clothes are already in vogue like textile fiber from sugarcane rind, soja protein

285

fibers of China, maize fiber, corn fiber including silk from bamboo etc. (Brueckmann,

Ralf., 2004). Further with technological advance clothes prepared to be anti-grease,

wrinkle free, U.V. protected, anti-bacterial, skin-caring substances vitamins like (E,

C) etc. are going to be ‘in thing’ in future.

9.6.4 Importance Of Fashion Designing

Consumers want clothes that mix and match and easy to wear for everyday

work. Fashion has spread to reasonable number of customers, cost is no more a

constraint. Indian designers like the counterparts elsewhere are trying to adapt to

customer’s social and economical realities and have evolved to offer better quality

products at reasonable rates. Further Increased participation of Indian Fashion

Designers in International Fashion Shows is expected to increase Indian Exports too

(Nikam, Sharada., 2004).

9.6.5 The Growing Power Of The Retailing Chains

Within the garments industry, in particular, demand is becoming increasingly

dominated by the purchasing policies of the major multiple retailing chains. In the

United States, big companies such as Wal-Mart, Sears, J.C. Penney, Dayton Hudson

and K. Mart, account for a very large proportion of garments sales, as do Daiei,

Mitsukoshi, Daimaru and Ito Yakado in Japan, in Germany, the leading garments

retailers include Karstadt, Kaufhof, Schickendanz (Badhe, 2004).

Product proliferation and shorter product cycles, reflected in ever-changing

styles and product differentiation, contribute to general demand uncertainty for both

retailers and manufacturers, thereby making demand forecasting and production

planning harder every day. In a world where manufacturers must supply an

increasing number of products with fashion elements, speed and flexibility are crucial

capabilities for firms wrestling with product proliferation, whether they are retailers

trying to offer a wide range of choices to consumers or manufacturers responding to

retail demands for shipments. Further, from the late 1980’s onwards, companies such

as Quello, Otto, Steilmann and Karstadt & Neckarmann, UK retailer Marks &

Spencer etc. developed standards or environmental code of practice encompassing the

whole of its textiles business (Badhe, 2004).

286

9.6.6 Changing Textiles Scenario And Implications For Khadi

What are the Implications for Khadi Industry in the changing textile scenario?

Scouller John (1999) feels that, growth of a country involves improving production

efficiency, organizational effectiveness, developing improved products, finding new

markets, finding a new source of supply, or a combination of these things.

Perennial Potential was the phrase used by Martand singh, a well known

scholar involved with crafts and culture in India, these two phrases aptly describe the

handicrafts development in India, and capture the frustrations of those who work in

the related areas. The potential is always and has been, enormous. In the 1990s, for

example handicrafts emerged as a major exportable from India. In eight years, 1993-

2000, the scale of handicraft and handloom exports increased from about Rs.30 billion

to Rs.100 billion (Liebl and Tirthankar Roy, 2003). Khadi also faces similar situation

as other traditional industries though it does not export much.

Marketing strategies adopted by Institutions are quite naïve. The poor

customer turn over in the Khadi bhandars during non-rebate period clearly shows that

Khadi is quite poorly marketed. With growing demand for Green Products, fashion

designing and rise in importance for cotton, Khadi needs to look at these positive

signals and take necessary steps to adapt to the changing market situations. In this

regard steps towards Brand building and creating niche markets for specialised

products of Khadi are components, which cannot be left out. Another step is to

promote Khadi through retail chains. It has two advantages first it saves the burden

and cost of institutions in marketing Khadi. Secondly institutions can now focus on

the production of marketable products.

As there is no pressure on Institutions to innovate and change the product

design. Therefore KVIC needs to be a facilitator in providing improved

design/pattern. Further, KVIC role will be enhanced if large institutions also

undertake initiatives in this product and process innovations. KVIC also needs to tie

up with external agencies involved in this area like NID etc., so that there is an

exchange of ideas and flow of information about changing market scenario.

9.7 Summary And Conclusions

Marketing strategies adopted by Institutions are quite naïve. The amount

allocated to market the product in cost-chart is also meager compared to other

287

handloom textiles. Cost-chart needs to be made more flexible for the institutions to

have the freedom to go beyond the existing limitations to improve the quality and the

salability of Khadi. The only component that requires to be retained is the wage

component to provide decent wages to the artisans. Therefore there is a greater need

for taking up marketing strategies quite seriously and collaboration among

institutions, KVIC Marketing department and state KVIBs is a must for surviving the

onslaught of competition.

Customer survey data revealed that rebate was least important for a regular

buyer of Khadi. What is required is the improving quality and design pattern to suit

the changing customer needs. The sales persons in Marketing Bhandars need to be

trained more professionally to boost the sale of Khadi. Further, regular in-depth

surveys of customers to upgrade the sale of Khadi is the need of the hour.

Marketing linkages are found to be poor among the artisans, institutions and

KVIC as the information flow regarding changing consumer tastes, designs and

competition is almost absent. This aspect needs further strengthening. It is imperative

for Khadi to rationalize its product range from 5000 to a manageable number so that

the objective of Khadi i.e. production of ‘salable products’ is achieved.

The cloth quality checking and standardization norms followed by the KVIC

units are quite rudimentary and poor. If KVIC is to shift focus to the urban and niche

markets in India and abroad, then quality is going to be very important to them.

Following the quality standard or norms set by ATIRA or any other agency would be

a good step forward in this regard. Introduction of power can solve the problems of

evenness of clothe in the spinning stage. Further, innovation and improvement in the

implements of weaving like putting a jack-up-motion on the frame-loom, which

increases the evenness and quality of cloth etc., would also be very helpful in

improving quality.

It was found that most of the institutions were not aware of any R & D activity

undertaken by the KVIC indicating that there exists information dissemination

bottleneck between KVIC and the institutions. Many institutions have never

introduced any innovation in quality, design or pattern, as there is no pressure to

innovate. But there is a lot of time lag between innovation and actual implementation

and that too mostly irregular. Therefore KVIC needs to be a facilitator in providing

improved design/pattern. Further, KVIC role will be enhanced if large institutions

288

also undertake initiatives in product and process innovations. KVIC also needs to tie

up with external agencies involved in this area like NID etc., so that there is an

exchange of ideas and flow of information about changing market scenario.

With growing importance of Green Products, fashion designing and rise in

importance for cotton, Khadi needs to look at these positive signals and take

necessary steps to boost its quality and salability of the product. In this regard steps

towards ‘Brand building’ and creating niche markets for specialised products of

Khadi are components, which cannot be left out. Another step is to promote Khadi

through ‘retail chains’. It has two advantages first it saves the burden and cost of

institutions in marketing Khadi. Secondly institutions can now focus on the

production of ‘marketable products’.

289

Annexure 9 - Marketing

Annexure 9.1: Education wise Distribution of Customers.

Sr.

No. Education Level Percent

1. Primary 40

2. Middle 6.7

3. Secondary 13.3

4. H.S.C. 16.0

5. Graduate 38.7

6. Post Graduate 17.3

7. Any other 4.0

Total 100.0

Source: For the following Tables is Customer’s questionnaire.

Annexure 9.2: Occupation wise Distribution of Customers.

Sr.

No. Occupation list Percent

1. Service 46.7

2. Business 18.7

3. House-wife 16

4. Unemployed 1.3

5. Any other 12

6. Student 5.3

Total 100.0

Annexure 9.3: Monthly Income wise Distribution of Customer.

Sr.

No. Income Range Percent

1. Less than 2000 2.9

2. 2000-5000 22.1

290

3. 5001-10000 33.8

4. 10001-15000 13.2

5. 15001-20000 5.9

6. 20001 & above 20.6

7. No reply 1.5

Total 100.0

Annexure 9.4: Advantages of Wearing Khadi.

Sr.

No. Reasons Expressed Percent

1. Comfort/texture 22.7

2. Looks unique/status 6.7

3. Soaks sweat 25.3

4. Easy washing 1.3

5. Gandhi principles 5.3

6. No reply 5.3

7. For comfort and status 10.7

8. Looks unique and durable 2.7

9. For comfort and easy washing 2.7

10. Durable and giving justice to artisans art 1.3

11. Soaks sweat and for helping artisans 1.3

12. Good to wear and soaks sweat 2.7

13. Looks unique and Handmade 2.7

14. Good to wear, looks unique and

handmade 1.3

15. For comfort, soaks sweat and durable 1.3

16. Comfortable and durable 2.7

17. Good to wear and handmade 1.3

18. Silk quality 1.3

19. Silk quality is good, its available on 1.3

291

credit

Total 100.0

Annexure 9.5: Disadvantages in Wearing Khadi.

Sr.

No. Reasons expressed Percent

1. Nothing 28.0

2. Bad/rough finish 5.3

3. Need maintenance 14.7

4. No range/patterns 6.7

5. Not durable 10.7

6. Expensive 9.3

7. No reply 8.0

8. No variety in colour and no good quality of

material 2.7

9. Costly maintenance and non durable 2.7

10. Uneven cloth, weak structure 1.3

11. Uneven cloth and not good colours 2.7

12. Not easy accessible 2.7

13. Sometimes defective and expensive 1.3

14. Needs maintenance and expensive 1.3

15. Expensive and material quality not good 1.3

16. No variation in pattern/design and

expensive 1.3

Total 100.0

292

Annexure 9.6: Will the Customers Visit the Bhandars if it is Located Conveniently?

Sr.

No. Reasons Percent

1. Yes 44.0

2. No 20.0

3. No reply 13.3

4. NA 22.7

Total 100.0

Annexure 9.7: Are the Customers Satisfied with Price of Khadi?

Sr.

No. Percent

1. Price is Very high/Should be

less priced 57.3

2. No reply 9.4

3. Yes/Ok 33.3

Total 100.0

Annexure 9.8: Are the Customers Satisfied with Quality of Khadi?

Sr.

No. Reasons expressed Percent

1. Poor/can be improved 38.7

2. Maintenance of clothe high 1.3

3. 1+2 (Quality can be improved and

maintainance not affordable) 1.3

4. No reply 6.7

5. Yes/Ok 52.0

Total 100.0

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Annexure 9.9: Suggestions for Making Khadi Popular?

Sr.

No. Reasons Expressed Percent

1. Advertisement 6.7

2. Reduce price 9.3

3. Marketing 2.7

4. More range/variety 20.0

5. Mix tericot 1.3

6. A combination of all the above five 58.7

7. More rebate 1.3

Total 100.0

Annexure 9.10: Percentage Distribution of Khadi Users from Different Years.

Sr.

No.

When did you start wearing Khadi (in

Years) Percentage

1. 1-5 14.9

2. 6-10 22.4

3. 11-15 13.4

4. 16-20 6.0

5. 21-25 4.5

6. 26-50 3.0

7. Sometimes ago 3.0

8. Many years ago 9.0

9. Since childhood 20.9

10. Actual no. of customers 69.0

11. Percentage 100%

294

Annexure 9.11: Frequency of Visits to Khadi Bhandars Among Different

Income Groups of Customers. (percentage)

Monthly Income of Customers in Rupees How often do

you visit

Khadi

Bhandar

>200

0

2000

1-

5000

5001-

10,000

10,001

-

15,000

15001-

20,000

20,001-

&

above

Actual no. of

customers

and % within

Once in a year -- 14.3 47.6 14.3 14.3 9.5 21

(30.4)

Twice in a

year 6.7 20.0 33.3 6.7 - 26.7

15

(21.7)

Thrice in a

year - - 50.0 50.0 - -

2

(2.9)

Four & above 3.7 37.0 22.2 7.4 7.4 22.2 27

(39.10)

When I visit

India (foreign

customers)

- - - - - 100 2

(2.9)

Actual no. of

customers 2 16 23 8 5 14 69

Percentage

within (2.9) (23.2) (33.3) (11.6) (7.2) (20.3) (100%)

295

Annexure 9.12: Frequency of Khadi Use Among different Income Groups of

Customers.

(percentage)

Monthly Income of Customers in Rupees How often do

you wear

Khadi >200

0

2000

1-

5000

5001-

10,000

10,001

-

15,000

15001-

20,000

20,001-

&

above

Actual no. of

customers and

% within

Occasionally - 15.6 34.4 12.5 9.4 25.0 32

(46.40)

Regularly 16.7 33.3 16.7 16.7 - 16.7 6

(8.7)

Often 5.6 44.4 11.1 5.6 5.6 27.8 18

(26.1)

Sometimes - - 60.0 20.0 20.0 - 5

(7.2)

Gifting to

Someone - - - 100 - -

1

(1.4)

For first time

wearing Khadi - 100 - - - -

1

(1.4)

Only in

Summer - - 100 - - -

2

(2.9)

Actual no. of

customers 2 16 23 8 5 14 (69)

Total

percentage 2.9 23.2 33.3 11.6 7.2 20.3 100%

296

Annexure 9.13: Income wise Distribution of Customers Buying Khadi During

Rebate Period. (figures in percentage)

Monthly Income of Customers in Rupees

When do you

buy Khadi >200

0

2000

1-

5000

5001-

10,000

10,001

-

15,000

15001-

20,000

20,001-

&

above

Actual no. of

customers and

% within

Rebate period 3.3 30.0 43.3 10.0 3.3 6.7 30

(43.5)

Non-Rebate

period - - - - - 100 1(14)

All times/12

Months 2.8 19.4 27.8 8.3 11.1 30.6

36

(52.2)

Rebate + Non-

rebate period - - - 100 - -

1

(1.4)

Actual no. of

customers 2 16 23 8 5 14 69

Percentage

within 2.9 23.2 33.3 11.6 7.2 20.3 100

297

Annexure 9.14: Type of Cloths Customers Prefer to Wear. (Percent)

Type of cloths Male Female

Jeans/T-shirts 14.3 --

Formal 31.0 3.0

Sarees 4.8 36.4

Salwar kameez -- 33.3

Kurta paijama 2.4 --

Traditional 11.9 --

Saree and salwar kameez - 18.2

Formal and kurta paijama 9.5 --

Jeans and salwar kameez -- 6.1

Formal, salwar kameez, sarees -- 3.0

Jeans, Formal 4.8 --

Formal, Traditional 9.6 --

Kurta, Traditional 2.4 --

Jeans, Kurta, Traditional 2.4 --

Formal, Shorts 4.8 --

Sarees, Traditional -- 10.0

Annexure 9.15: Opinion About Why Khadi Cannot Substitute Normal Clothe.

(Percent)

Reasons Male Female

No range, variety in Khadi 19.0 12.1

Very expensive 4.8 18.2

Not durable/poor quality 4.8 --

No range/poor quality -- 3.0

Needs maintenance 4.8 15.2

No range, needs maintenance 2.4 --

No response/Not applicable 64.2 51.5

298

Annexure 9.16: Opinion About Why Khadi Can Substitute Normal Cloths.

(Percent)

Reasons Male Female

Comfort/good texture 9.5 12.1

Soaks sweat 4.8 3.0

Durable, quality 2.4 9.1

Comfort and durable 2.4 3.0

Good colour -- 6.1

Gandhian philosophy behind Khadi 4.8 --

Comfort, good colour -- 3.0

Comfort and soaks sweat -- 3.0

No response/Not applicable 76.2 60.6

Annexure 9.17: Customer’s Tendency of Wearing Khadi.

(percent)

Tendency of wearing Khadi Male Female

Occasionally 33.3 66.7

Regularly 11.9 6.1

Often 33.3 12.1

Sometimes 10.9 15.1

First time wearing 4.8 --

Only in summer 4.8 --

Annexure 9.18: Type of Khadi Preferred by Customers.

(percent)

Kind of Khadi Male Female

Cotton 47.6 24.2

Silk 9.6 9.4

Polyvastra 9.5 --

Cotton and silk 21.4 62.6

299

Cotton and polyvastra 9.5 --

Wool and cotton 2.4 --

Wool, cotton and silk -- 3.8

Annexure 9.19: Difference Between Khadi and Other Fabric as Perceived by

Customers. (Percent)

Particulars Male Female

Other fabric cheap 2.4 18.2

No range 4.8 6.1

Costly, more variety in other fabric 4.8 6.1

Khadi not durable 4.8 3.0

Khadi is more comfortable 23.8 12.1

Handmade, good gesture 26.2 27.3

Khadi not durable and expensive 19.0 27.3

Khadi silk good 2.4 --

Khadi has great feel 4.8 --

Cannot compare 2.4 --

Annexure 9.20: Reasons Mentioned by Customers for Wearing Khadi. (Percent)

Reasons Male Female

As a fashion 16.7 23.8

Gandhian ideology 16.7 --

Like Khadi 4.2 19.0

More comfortable 12.5 14.3

Durable 4.2 --

Looks unique and durable 4.2 --

To help artisans 8.3 --

During political events 4.2 9.5

Good to wear, looks unique -- 4.8

Easy washing 8.3 --

300

Traditional 4.2 --

Other reasons 16.5 28.6

Total 100.0 100.0

Annexure 9.21: Customer's Tendency of Visiting Khadi Bhandars. (Percent)

Time Male Female

Once in a year 28.6 33.3

Twice in a year 14.3 30.3

Thrice in a year 4.8 --

Four times in a year 45.2 30.3

Whenever visit India 4.8 3.0

Rarely 2.4 3.0