Marketing Practices In Export Units of Handloom Industry of Haryana

Examining Marketing Practices and Problems in the Handloom Industry of Haryana

by Poonam Madan*,

- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510

Volume 6, Issue No. 1, Feb 2014, Pages 0 - 0 (0)

Published by: Ignited Minds Journals


ABSTRACT

The present study is concerned with Marketing Strategies of Readymadegarments industries in India. The marketing practices of garments units,problems faced by them in implementing the marketing strategies and measuresneeded to solve these problems, come under the purview of this study. The mainfocus is on the marketing strategies used by the various sectors in the area ofproduction, promotion, distribution and pricing. In a layman language the term strategy is a term related to ‘warfareor a plan to win a war’. But in the business world it refers to plans relatingto marketing, financing and manufacturing operations. Executives of differentbusiness organizations concentrate their efforts to win the biggest possibleshare of the targeted market. The field of strategy planning is much wider. It deals with theadjustment of controllable factors, viz, production, physical distribution,promotion and pricing within the environment of uncontrollable factors, viz,competition, legal barriers, interference of different behaviors and scientificand technological differentiation. This paper is a study to find out the marketing problems and prospectsof the handlooms and handicrafts industry in B.T.A.D area. The sample size ofthe study comprised of 200 respondents who are the producers and retailers ofthe handloom and handicrafts products. The findings of the study show the differentmarketing problems faced by the producers and retailers in the area. In these efforts, we have been supported by weavers, traders,retailers, customers of handlooms, Experts and cooperative society electedpersonnel as well as officials of government in getting required information.The Handloom sector plays a very important role in the country’s economy. It isone of the largest economic activity providing direct employment to over 70lakhs persons engaged in weaving and allied activities. Due to effective government intervention through financial assistanceand implementation of various development and welfare schemes, this sector hasbeen able to with stand competition from the power loom and mill sectors.Handloom Industry is the symbol of self reliance and generating employment formillions of small weavers. Panipat is located 90 K.M. away from New Delhi inNorth having big population. Panipat is also called the city of weavers.Panipat is one of the developing city of Haryana. The economy of city is based on several industrial agriculture,tourism and handloom etc. Many Central and State Government Industrial unitshave been established here. Panipat is famous for “PANJA DURRIE” a kind offloor covering. In this paper, role of Handloom Industry, Schemes provided bythe Government to Handloom Industry, Marketing Strategies adopted by handloomindustry have been considered.

KEYWORD

Marketing Practices, Export Units, Handloom Industry, Haryana, Readymade garments, Marketing Strategies, Garments Units, Marketing Problems, Handicrafts Industry, B.T.A.D Area

INTRODUCTION

Handlooms are an important craft product and comprise the largest cottage industry of the country. Millions of looms across the country are engaged in weaving cotton, silk and other natural fibers. There is hardly a village where weavers do not exist, each weaving out the traditional beauty of India’s own precious heritage. The economy of Panipat city is based on several industrial agriculture, tourism and handloom etc. Many Central and State Government Industrial units have been established here. These are Panipat Thermal Power Station, National Fertilizers Limited (NFL), Indian Oil Corporation; many private companies also have been set up in this town like as

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Panipat is famous for “PANJA DURRIE” a kind of floor covering, which is in great demand in India and abroad. Originally, it was a traditional item made by village women meant to be a part of daughter’s dowry. But slowly the product came to be recognized beyond Panipat and growing demand for durries resulted in a burgeoning numbers of private and state owned weaving units within the city. The “Panja Durrie” is only one of the floor covering made in Panipat. There are several other kinds of floor covering like large sized handloom durries, chindi or fabric and leather scrap durries, rugs, druggist, and carpets. Also made and marketed locally are blankets, khes and vast variety of furnishing fabrics. Handloom goods are the important cottage and home industries taken up by the people. Among the women folk, handloom cloth weaving is the traditional occupation of the district. The whole handloom industry survives on heavy subsidies today, as it has always done. It means that sales depend on the rebates offered during festival times. There are no returns here for government as the weavers. Handloom is extremely a time consuming. The returns for weaving cotton fabrics are insufficient compensation for the labors. In general, no weaver wants his children to break their backs and hearts in this hereditary profession. Handloom and handicrafts industry is a traditional and also a cottage industry in India. It provides employment to the large section of poor people. However, the role and significance of the industry to the national development is declining. In fact, the industry is facing lot of problems such as men, material, methods, machines, money, marketing and management. In this study, the problems faced by the industry and the solutions to solve the problems are discussed. Haryana’s manufacturing base, though fundamentally strong, needs innovative policy measures to counter any such global competitiveness and economic uncertainties. To face challenges of global meltdown, there is a need to strengthen the industrial capacity and diversification of exports. The design & technology aspects play a very important part in marketing the handicrafts and in order to compete in the international market it is necessary to promote the organizations involved in export of handicrafts for development of new and innovative items. In order to meet out this requirement as per changing taste, fashion of the consumers in the foreign markets, it is proposed to provide financial assistance for development of exportable products, by way of selecting or involving reputed designers from India and abroad who will help to develop the items/range of items as per requirement of foreign market which will enable the exporters to compete in the international market. This part of the scheme also provide for market and to meet the increased requirement.

IMPROVEMENT REGARDING HANDLOOM MARKET

Under this scheme, the facilities and availability of margin money, supply of looms and accessories, setting up of work shed, training of weavers, setting up of dye house and go down, design input, publicity and advertisement, common facility centre, sale centre, infrastructure development etc. So far, 2809 weavers have been assisted involving an amount of Rs. 382.34 lakhs under the scheme. DEEN DAYAL HATHKARGHA PROTSAHAN YOJNA - This Scheme has come into operation with effect from April 2001. It is a comprehensive scheme for Handloom Sector to take care of wide range of activities such as; product development, Infrastructural and institutional and institutional support, training of weavers, supply of equipment and marketing support etc. Both at macro and micro levels in an integrated and coordinate manner for an overall development and benefit of Handloom Weavers. Promotion and Advertising of Handloom- Handloom sector is way behind in area of promotion and advertising of its products comparison to other competing textile sectors like mills and knitted wear. General practice that is followed for promotion is through exhibitions and fairs, the impact of these events remain for very less time on customer’s mind and again they start purchasing the other competing products, which are reminded them very frequently.

HANDLOOM DISPLAYS WITHIN INDIA

The handloom sector in India is one such sector that showcases the true blend of artistic beauty and durability of materials. In fact, this field of creativity is the representative of traditional culture in India. From the times immemorial, various styles, patterns, fabrics and designs of handloom have been prevalent in India. Each and every state in India has some or the other specialty associated with it, which lends them their individuality. The magic of Indian handloom is such that it has attracted numerous fashion designers, who have used this art in creating exclusive designer clothes and fusion dresses. In doing so, they have maintained the richness of traditionalism in Indian handloom. The Government also recognizes the need for development of planned industrial infrastructure in industrially backward blocks in the hinterland, outside the controlled areas of towns. It also appreciates that it becomes extremely difficult for the Private Sector to accumulate/ purchase contiguous land in required proportions through direct

Poonam Madan

payment of Annuity being in place, there are areas in the industrially backward blocks where land can be acquired with minimum resistance from the landowners.

TECHNIQUE

The present study has adopted descriptive research design. It has taken into account the survey and analysis of data of a cross section of sampling frame. Multi stage random sampling method has been used in the study to select sample units. First of all, on the basis of district and number of small scale units in Haryana, State divided into two zones- low industrial develop zone and high industrial develop Zone. Under low industrial develop zone- Kaithal, Kurukshetra, Karnal, Jind and Panchkula are considered.

While Faridabad, Gurgaon, Ambala, Yamuna Nagar and Panipat are taken as a representative of high industrial develop zone on the basis of random sampling. At first stage 5 District from each Zone were selected randomly. At the second stage sample of 240 non-exporting units and 60 exporting units were randomly selected. However, 50 units were closed among 2003 to 2005. So, fresh selection had to make from the respective categories to make for the deficiency.

This Strategy includes the liquidation or sale of a portion of profit centre, business or a major division. It is a part of restructuring and rehabilitation, it is adopted when a turnaround has been attempted but has proved to be successful. The option of turnaround may be ignored if it is obvious that divestment is only answer. This is a special case of consolidation where “two or more companies form a temporary partnership for a specified purpose” joint their existence. Joint ventures offer the advantage of achieving objectives mutually by participating firms, controlling, eliminating or reducing competition may be of strategic importance. Environmental threats with in the country or opportunities abroad may cause firms to undertake joint ventures. The study is an empirical analysis of the selected handloom and powerloom units in the study area. Data is obtained both from primary and secondary sources.

EXPORTING REPUTATION

Under exporting units, exporters, on the basis activity done may of two types-(1) merchant exporter (2) manufacturer exporter. Merchant exporter deals with exchange of goods produced by others. But, on other side manufacturer exporters are who manufactured Response of sample units is presented To identify and assist suitable Apex/Primary handloom cooperative societies & corporations in developing the products that are export-worthy by providing such interventions such as engaging of a professional designer for design development, up gradation of skill, engaging of a professional Marketing Consultant etc. Market penetration through participation in International Exhibitions, Buyer-Seller Meets including Reverse Buyer-Seller Meets etc. as also publicity and brand development through Handloom Mark and other measures. In order to diversify the marketing channels, in addition to National Handloom Expos, the Office of the DC(Handlooms) will organise Special Expos at national level, regional level and state level. National level Special expos will be for specific fibres such as Wool, Silk etc. or for specific products like sarees, home furnishings etc. Regional level Special Expos will be for products/items of a specific Region like Handloom Expo of North Eastern States, Cotton Handlooms of South, Cotton Handlooms of East etc. The State level Special Expo will be for handloom products of that State. The Special expos will be for duration of two to three weeks. In addition, ACASH will organize a special expo during India International Trade Fair organized by ITPO in Pragati Maidan, New Delhi.

CONCLUSION

The handloom industry has developed a lot over a period of time. It is spread throughout the country. Since most of the handloom units are run either as sole-proprietors or on partnership basis and the owners lack the needed professional outlook in the overall handing of their units, many of them are not even aware of the modern techniques of marketing such as product development brand promotion, packing, advertising market, surveys and demand forecasts. To maximize their sales volume, it has become very important to know how one can get maximum result/response by using different marketing strategies. For increasing the export, to provide satisfaction to customers there is need of the study of marketing practices. To bring superior quality in handloom products the pre and post loom process development should take place. Innovative and faster weaving processes and techniques to increase efficiency of weavers as well

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On the basis of the findings, it can be concluded that Haryana’s SSI are at developing stage in regard of marketing activities. This is specifically true that marketing activities are pushing force for expansion of any concern existing in a economy. Due to various incentives and benefits, SSIs concerns are coming into existence rapidly. But, the problem is related to sustainability of these concerns.

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