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 nave marketing practices adopted by the institutions compared to todays 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 Sales bhandars, exhibitions and pamphlets High quality production New variety / designs Opening new bhandards/sales outlets Combination of above four strategies
Source: Institutions questionnaire

Percentage 68.80 2.10 2.10 2.10 24.90

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 Yes No No response Total
Source: Institutions questionnaire

Percentage 37.5 47.9 14.6 100.0

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 Cooperatives (A.P) Central govt. scheme Yemmiganur Society Master weaver (Gadwal) (Private) Khadi Cost-Chart 27.34 48.43# 24.83* 100 Inputs 44 40 27.5 25 Wages 44 40 27.5 25 Margins 12 20 45 50 Total 100 100 100 100

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 todays 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, institutions 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-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 Yes No Cant say Total
Source: Institutions questionnaire

Percentage 63.8 25.5 10.6 100.0

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 bettertrained 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 todays 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 countrys 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 artisans, 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 weavers 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 cant 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. 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 nights 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-upBut most institutions continue to buy from outside due to monetary or other reasons which needs to be

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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 todays 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 firms 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
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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 customers 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 1980s 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).

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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, 19932000, 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 nave. 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 nave. The amount allocated to market the product in cost-chart is also meager compared to other

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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
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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.

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Annexure 9 - Marketing Annexure 9.1: Education wise Distribution of Customers. Sr. No. 1. 2. 3. 4. 5. 6. 7. Education Level Primary Middle Secondary H.S.C. Graduate Post Graduate Any other Total
Source: For the following Tables is Customers questionnaire.

Percent 40 6.7 13.3 16.0 38.7 17.3 4.0 100.0

Annexure 9.2: Occupation wise Distribution of Customers. Sr. No. 1. 2. 3. 4. 5. 6. Occupation list Service Business House-wife Unemployed Any other Student Total Percent 46.7 18.7 16 1.3 12 5.3 100.0

Annexure 9.3: Monthly Income wise Distribution of Customer. Sr. No. 1. 2. Income Range Less than 2000 2000-5000 Percent 2.9 22.1

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3. 4. 5. 6. 7.

5001-10000 10001-15000 15001-20000 20001 & above No reply Total

33.8 13.2 5.9 20.6 1.5 100.0

Annexure 9.4: Advantages of Wearing Khadi. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Reasons Expressed Comfort/texture Looks unique/status Soaks sweat Easy washing Gandhi principles No reply For comfort and status Looks unique and durable For comfort and easy washing Durable and giving justice to artisans art Soaks sweat and for helping artisans Good to wear and soaks sweat Looks unique and Handmade Good to wear, looks unique and handmade For comfort, soaks sweat and durable Comfortable and durable Good to wear and handmade Silk quality Silk quality is good, its available on Percent 22.7 6.7 25.3 1.3 5.3 5.3 10.7 2.7 2.7 1.3 1.3 2.7 2.7 1.3 1.3 2.7 1.3 1.3 1.3

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credit Total 100.0

Annexure 9.5: Disadvantages in Wearing Khadi. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Reasons expressed Nothing Bad/rough finish Need maintenance No range/patterns Not durable Expensive No reply No variety in colour and no good quality of material Costly maintenance and non durable Uneven cloth, weak structure Uneven cloth and not good colours Not easy accessible Sometimes defective and expensive Needs maintenance and expensive Expensive and material quality not good No variation in pattern/design and expensive Total Percent 28.0 5.3 14.7 6.7 10.7 9.3 8.0 2.7 2.7 1.3 2.7 2.7 1.3 1.3 1.3 1.3 100.0

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

Sr. No. 1. 2. 3. 4.

Reasons Yes No No reply NA Total

Percent 44.0 20.0 13.3 22.7 100.0

Annexure 9.7: Are the Customers Satisfied with Price of Khadi? Sr. No. 1. 2. 3. Price is Very high/Should be less priced No reply Yes/Ok Total Percent 57.3 9.4 33.3 100.0

Annexure 9.8: Are the Customers Satisfied with Quality of Khadi? Sr. No. 1. 2. 3. 4. 5.

Reasons expressed Poor/can be improved Maintenance of clothe high 1+2 (Quality can be improved and maintainance not affordable) No reply Yes/Ok Total

Percent 38.7 1.3 1.3 6.7 52.0 100.0

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Annexure 9.9: Suggestions for Making Khadi Popular? Sr. No. 1. 2. 3. 4. 5. 6. 7.

Reasons Expressed Advertisement Reduce price Marketing More range/variety Mix tericot A combination of all the above five More rebate Total

Percent 6.7 9.3 2.7 20.0 1.3 58.7 1.3 100.0

Annexure 9.10: Percentage Distribution of Khadi Users from Different Years. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 1-5 6-10 11-15 16-20 21-25 26-50 Sometimes ago Many years ago Since childhood Actual no. of customers Percentage When did you start wearing Khadi (in Years)

Percentage 14.9 22.4 13.4 6.0 4.5 3.0 3.0 9.0 20.9 69.0 100%

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Annexure 9.11: Frequency of Visits to Khadi Bhandars Among Different Income Groups of Customers. (percentage)

How often do you visit Khadi Bhandar Once in a year Twice in a year Thrice in a year Four & above When I visit India (foreign customers) Actual no. of customers Percentage within 2 (2.9) 16 >200 0 -6.7 3.7 2000 15000 14.3 20.0 37.0

Monthly Income of Customers in Rupees 500110,000 47.6 33.3 50.0 22.2 10,001 15,000 14.3 6.7 50.0 7.4 1500120,000 14.3 7.4 20,001& above 9.5 26.7 22.2 Actual no. of customers and % within 21 (30.4) 15 (21.7) 2 (2.9) 27 (39.10) 2 (2.9) 69 (100%)

100

23 (33.3)

8 (11.6)

5 (7.2)

14 (20.3)

(23.2)

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Annexure 9.12: Frequency of Khadi Use Among different Income Groups of Customers. (percentage) How often do you wear Khadi >200 0 16.7 5.6 2 2.9 2000 15000 15.6 33.3 44.4 100 16 23.2 Monthly Income of Customers in Rupees 500110,000 34.4 16.7 11.1 60.0 100 23 33.3 10,001 15,000 12.5 16.7 5.6 20.0 100 8 11.6 1500120,000 9.4 5.6 20.0 5 7.2 20,001& above 25.0 16.7 27.8 14 20.3 Actual no. of customers and % within 32 (46.40) 6 (8.7) 18 (26.1) 5 (7.2) 1 (1.4) 1 (1.4) 2 (2.9) (69) 100%

Occasionally Regularly Often Sometimes Gifting to Someone For first time wearing Khadi Only in Summer Actual no. of customers Total percentage

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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 Rebate period Non-Rebate period All times/12 Months Rebate + Nonrebate period Actual no. of customers Percentage within 3.3 2.8 2 2.9 2000 15000 30.0 19.4 16 23.2 500110,000 43.3 27.8 23 33.3 10,001 15,000 10.0 8.3 100 8 11.6 1500120,000 3.3 11.1 5 7.2 20,001& above 6.7 100 30.6 14 20.3 Actual no. of customers and % within 30 (43.5) 1(14) 36 (52.2) 1 (1.4) 69 100

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Annexure 9.14: Type of Cloths Customers Prefer to Wear. (Percent) Type of cloths Jeans/T-shirts Formal Sarees Salwar kameez Kurta paijama Traditional Saree and salwar kameez Formal and kurta paijama Jeans and salwar kameez Formal, salwar kameez, sarees Jeans, Formal Formal, Traditional Kurta, Traditional Jeans, Kurta, Traditional Formal, Shorts Sarees, Traditional Male 14.3 31.0 4.8 -2.4 11.9 9.5 --4.8 9.6 2.4 2.4 4.8 -Female -3.0 36.4 33.3 --18.2 -6.1 3.0 -----10.0

Annexure 9.15: Opinion About Why Khadi Cannot Substitute Normal Clothe. (Percent) Reasons No range, variety in Khadi Very expensive Not durable/poor quality No range/poor quality Needs maintenance No range, needs maintenance No response/Not applicable Male 19.0 4.8 4.8 -4.8 2.4 64.2 Female 12.1 18.2 -3.0 15.2 -51.5

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Annexure 9.16: Opinion About Why Khadi Can Substitute Normal Cloths. (Percent) Reasons Comfort/good texture Soaks sweat Durable, quality Comfort and durable Good colour Gandhian philosophy behind Khadi Comfort, good colour Comfort and soaks sweat No response/Not applicable Male 9.5 4.8 2.4 2.4 -4.8 --76.2 Female 12.1 3.0 9.1 3.0 6.1 -3.0 3.0 60.6

Annexure 9.17: Customers Tendency of Wearing Khadi. (percent) Tendency of wearing Khadi Occasionally Regularly Often Sometimes First time wearing Only in summer Male 33.3 11.9 33.3 10.9 4.8 4.8 Female 66.7 6.1 12.1 15.1 ---

Annexure 9.18: Type of Khadi Preferred by Customers. (percent) Kind of Khadi Cotton Silk Polyvastra Cotton and silk Male 47.6 9.6 9.5 21.4 Female 24.2 9.4 -62.6

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Cotton and polyvastra Wool and cotton Wool, cotton and silk

9.5 2.4 --

--3.8

Annexure 9.19: Difference Between Khadi and Other Fabric as Perceived by Customers. (Percent) Particulars Other fabric cheap No range Costly, more variety in other fabric Khadi not durable Khadi is more comfortable Handmade, good gesture Khadi not durable and expensive Khadi silk good Khadi has great feel Cannot compare Male 2.4 4.8 4.8 4.8 23.8 26.2 19.0 2.4 4.8 2.4 Female 18.2 6.1 6.1 3.0 12.1 27.3 27.3 ----

Annexure 9.20: Reasons Mentioned by Customers for Wearing Khadi. (Percent) Reasons As a fashion Gandhian ideology Like Khadi More comfortable Durable Looks unique and durable To help artisans During political events Good to wear, looks unique Easy washing Male 16.7 16.7 4.2 12.5 4.2 4.2 8.3 4.2 -8.3 Female 23.8 -19.0 14.3 ---9.5 4.8 --

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Traditional Other reasons Total

4.2 16.5 100.0

-28.6 100.0

Annexure 9.21: Customer's Tendency of Visiting Khadi Bhandars. (Percent) Time Once in a year Twice in a year Thrice in a year Four times in a year Whenever visit India Rarely Male 28.6 14.3 4.8 45.2 4.8 2.4 Female 33.3 30.3 -30.3 3.0 3.0

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