A Comparative Research on Various Marketing Methods In Export Items of Handloom Sector: a Case Study of Haryana

An analysis of marketing methods for export items in the handloom sector of Haryana

by Smt. Poonam Madan*,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 6, Issue No. 12, Oct 2013, Pages 0 - 0 (0)

Published by: Ignited Minds Journals


ABSTRACT

The handloom sector plays a very important role in thecountry's economy. The importance of handloom sector in the national economycannot be over emphasized on account of having the advantage of flexibility ofsmall production run, uniqueness, innovations and adaptability to the exportsrequirement. This sector also contributes towards export earnings. Export ofhandloom has been, therefore, identified as "Thrust Area" for theoverall development of the sector. The Government is exploring the possibilityof making optimal use of the resource. The handloom sector is the largesteconomic activity after agriculture providing direct and indirect employment tomore than 35 lakh weavers. This sector contributes nearly 22 percent of thetotal cloth produced in the country and also contributes substantially to theexport income of the country. Due to effective Government intervention throughfinancial assistance and implementation of various developmental and welfareschemes, this sector has been able to withstand the competition from thepowerloom and mill sectors. As a result of these measures, the production ofhandloom fabrics registered more than a tenfold increase from a level of 500million sq. meter’s in the early fifties to Secondary data are used foranalysis in the present study. The data were collected from the annual reportof Ministry of Textiles, Ministry of Industry, New Delhi. Moreover, Primarydata were collected from various handloom units through questionnaire, variousbooks and journals are also referred for the study. During the course of the study, many manufacturers viewedthat over a period, the powerloom sector expanded tremendously. Conspicuously,this segment provides a potent threat to the survival of handlooms. In fact,every powerloom could displace five handlooms and cause widespreadunemployment. Powerlooms are better placed than handlooms as the former havehigher loom speed and overall efficiency. It is found that, a handloom canturnout more than four to six metres of cloth in a day, where as a powerloomcan go upto 30 to 40 metres production in a single day and unit costs are alsolower.

KEYWORD

handloom sector, marketing methods, export items, Haryana, comparative research, export earnings, weavers, powerloom sector, loom speed, unit costs

INTRODUCTION

The handloom and powerloom industry in India is scattered over the various regions in the country. The data regarding the number of handloom and powerloom industrial units in various parts of the country is shown in Table no. 1.02. Clearly indicates that the number of units in India has increased from 3,68,500 to 500834 units in the last decade. These units includes handloom and powerloom units both actual in the early days of India’s independence, there were more handloom industries, but with the passage of time and technological advancement, entrepreneurs shifted from handloom to powerlooms. The table also indicates that we were having 1850 handloom units in 1999-2000 and it declined to 1834 units in 2009-10, which reflects that handloom industries are becoming obsolete and power looms are replacing them.

Table Showing Handloom and Powerloom Units in India

The products manufactured in the handloom industry are popular not only in India but also in the foreign countries. Handloom fabrics of India established their reputation in the international markets long before the historical Industrial Revolution in the west. Even in the days, when India was importing large quantities of British Textiles, handloom fabrics were being exported to several countries in the continents of Asia, Africa and Europe. The handloom industry During the last few years, there have been tremendous changes in the textile scenario particularly at the front of handloom sector. The new government's National Textile Policy announced on November 2, 2000 aimed at creating new opportunities for growth with the global market being more accessible to trade. Several initiatives for strong and vibrant textile industry including handloom industry capable of producing quality cloth at an acceptable price. The new policy also contributes to the provision of sustainable economic growth and employment of the country and competing with confidence for an increased share of global market. The new textile policy has earmarked Rs. one hundred crore for one time special rebate on handloom fabrics to kick-start the employment intensive industry and raise its production cycle.

LITRETURE REVIEW

The industry is providing avenues of direct employment opportunities to over 35 million persons. Basically, it is a labour intensive family occupation in which almost all the members of a family can participate. Majority of the handloom weavers in India are self-employed artisans who are carrying on their profession in their own homes. The sector provides livelihood to over 130 lakh weavers and artisans, a large percentage coming from the marginalized sections of the society. With the assistance of their family members in pre-loom and post-loom process. In addition to the direct employment, the industry also provides indirect employment to about 1.5 given unit weaver engaged in direct production. The handloom products are fast becoming major, life style statements and have secured a place for India in the lives of millions across the world. Further, the industry generates indirect employment in input supplying industries and occupations like loom manufacturers, dyers, twisters, processors, printers, and in trading, transporting etc. The share of employment providing the handloom industry in total decentralized sector is about 5.5 per cent. Thus, the industry constitutes one of the major sectors employing the largest number of persons next to agriculture about 27 percent of the total cloth produced in the country comes from the handloom sector which earns substantial foreign exchange.

DEVELOPMENT OF HANDLOOM

During the Moghul period, handloom industry in India was significantly developed. But with the establishment of British regime in India, this industry started deteriorating. Because of the British policy of not encouraging Indian industries, handloom industry received a great set-back. With the industrial revolution in Britain, the machine made goods with low cost, came to compete with the Indian handloom industry, severely hurting this largest During the First World War, most of the handloom were fully 2woolen2l in providing war supplies (blankets), with the result that they could not meet the growing civilian demand. After the war, there was, thus, ample civilian demand for handloom goods (woolen and cotton) but consumer tastes changed for better quality goods than were being produced by the Indian industry. At that time, the industrialized countries were better equipped than before and they needed foreign markets to generate sufficient demand to enable them to keep their machinery fully occupied.

REPORT REGARDING HARYANA

Haryana appeared as a separated state on the map of India on November 1, 1966; as a result of reorganization of the Punjab state into Punjab and Haryana worth just 1.37 percent of total geographical area and less than 2 percent of countries population. Haryana has made a glorious place on the map of India. Since then it has travelled a long journey and marched ahead galloping on the path of progress and prosperity. Since its inception the state has gone a considerable progress in the field of industry. The support being also extended in the area of poultry and cottage industry development has considerably helped in raising the incomes especially in rural areas. As a result of all these developments, Haryana today boasts of having the third highest per capita income in the country. Haryana is the 9th smallest state in the country accounting for 1.37 percent of total geographical area and less than 2 percent of country's population. Situated in the north of Indian union, it has bounded by Uttar Pradesh beyond Yamuna River, in the east, Punjab on the west, a position of Himachal Pradesh state on the North. The national capital Delhi is surrounded on three sides of Haryana. The state extends from 27°.3 to 31°.9 north latitude, and 74°.6 east longitude. Haryana population on per 2001 census is 2.30 million and its area is 44,212 Sq. Km. The state accounts an average diversity of 369 persons per sq. km. Literacy rate for the state is 55.33 percent the schedule last population constituted 19.07 percent of total population of the state. Industrializations in Haryana state is of recent origin. The state has always been an agricultural region. The industrial position in Haryana after the inception has been much below the position of industrial advanced state like Maharashtra, West Bengal, Tamil Nadu etc. It inherited a weak industrial base upon partition of the Punjab in 1966. Haryana today has become synonymous with development. Impressive infrastructural facilities

Smt. Poonam Madan

people have been central point to the development efforts of Haryana. From mere 16 large and medium industrial units in 1966 when Haryana came in to existence as a separate state, the number has touched a figure 1274 by December, 2008.

MARKETING STRATEGIES

These strategies are also known as durational strategies. Various strategy alternatives are available to a firm unit for achieving its growth objective. This strategy alternative can be classified and analysed by a firm with a view of their scope that firm choose the particular alternative. The grand marketing strategies can be classified into four broad categories, viz. stability, expansion, and retrenchment and combination strategies. The grand marketing strategies which are often called master or business strategies are intended to provide basic direction for fast actions. They are seen as the basic of coordinated and sustained efforts directed towards achieving long term firm’s objectives. Marketing in recent decades has assumed an astounding importance. It is an immediate cause and effect of rapid economic growth, globalization, technological up gradation, development of ever increasing human needs and wants and increasing purchasing power. Marketers are challenged to find the ways to get all units to think with focus on customer. In its search for competitive advantage, the firm needs to look beyond its own chain of activities and in to the chains of its suppliers, distributors and ultimately customers.

AVAILABILITY OF YARN

Yarn is the basic raw material for the cotton handloom industry accounting for considerable proportion of the total cost of production. Cotton handloom units in Panipat get their yarn from the spinning mills and composite mills. Panipat provides quite a big market for yarn. Shoddy yarn, it is the largest market in India. The yarn is spun locally which caters to the needs of woolen handloom industry at Panipat. It is also sold to outside market. It is interesting to note here that in case of cotton, silk and staple yarn, there is no spinning mill at Panipat. Cotton yarn is mostly supplied by spinning mills located at Bhiwani, Sirsa, Hisar, Rohtak and Kathura. Supplies of staple yarn are received from Birla Spinning Mills located at Calcutta, Bhiwani and Naini. Art silk comes from Bombay and Salem. Panipat is having so rich market that every type of yarn is available here. handloom industry. It influences customer’s decision whether to buy or not to buy a product. Design on the fabrin can be developed in two ways : by weaving and by printing. Printing is coloured out after weaving. In Panipat block printing method is generally used for carrying out printing on handloom fabrics. The production of printed fabrics is less than even one percent of the total handloom output. It is only for the woven marvels that Panipat is famous for. In order to know the importance of this crucial technique of handloom weaving among the manufacturers, they were asked about how they design their product. Since a product is essentially a source of need satisfaction, every manufacturer must see to it that the product offered to the customers is as best as possible. When a product is conceived in such wider context, product planning will have a more important role to play in formulating an appropriate marketing strategy. Hence, the product is the centre of marketing policies and decisions. The manner how a product is developed and finally presented in the market for sale are the two fundamental issues that go into the formulation of product planning with emphasis on winning customer’s affiliation and seeking greater market penetration. Product planning is more concerned with deciding an appropriate product mix.

CONCLUSION

The Scholar has made an attempt here to give some important suggestions of the study which may be proved valuable to the scholars, planners, industrialists and specifically for handloom sector and finally to the Government to frame out the policies for the development and growth of handloom industry in order to acquire a sizable share not only in the domestic market but also in the markets across the boundaries of our country. The central government needs to recognize the value of handloom sector in sustainable development. On its own, the government would never be able to provide employment to such a large workforce. Going by the logic of liberalization itself, the government intern ought to formulate, promote and encourage policies for the better marketing practices in handloom sector. Panipat handloom Industry is in its developed stage, but it has not yet developed a suitable marketing culture, especially for export to enlarge market for its product items. These concerns particularly to those marketing activities which directly affect the sale Majority of the export units have limited financial resources to spare to put even simple marketing concepts into practice. Majority of these unit are faced with multiplicity of problems. There exists a wide scope to bring about improvements provided sincere efforts are made to change the marketing culture in which they are operating.

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