MARKETING OF HANDLOOM AND KHADI PRODUCTS: STRATEGIES FOR ENHANCED EFFECTIVENESS Anu Varghese MARKETING OF HANDLOOM AND KHADI PRODUCTS: STRATEGIES FOR ENHANCED EFFECTIVENESS India | UAE | Nigeria | Uzbekistan | Montenegro MARKETING OF HANDLOOM AND KHADI PRODUCTS: STRATEGIES FOR ENHANCED EFFECTIVENESS By: Anu Varghese First Impression: 2019 MARKETING OF HANDLOOM AND KHADI PRODUCTS: STRATEGIES FOR ENHANCED EFFECTIVENESS ISBN : 978-81-944069-4-5 Rs. 650/- ( $18 ) No part of the book may be printed, copied, stored, retrieved, duplicated and reproduced in any form without the written permission of the author/publisher. DISCLAIMER Information contained in this book has been published by Empyreal Publishing House and has been obtained by the author from sources believed to be reliable and are correct to the best of her knowledge. The author is solely responsible for the contents of the articles compiled in this book. Responsibility of authenticity of the work or the concepts / views presented by the author through this book shall lie with the author and the publisher has no role or claim or any responsibility in this regards. Errors, if any, are purely unintentional and readers are requested to communicate such error to the author to avoid discrepancies in future. Published by: Empyreal Publishing House PREFACE Textile industry is a term used for industries primary concerned with the design or manufacture of clothing as well as the distribution and use of textiles. The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour in textiles. Handloom and Khadi segment of textile sector in in the Indian economy presents a sustainable model of economic activity that is not energy intensive and has low capital costs, as well as an extensive skill base. They are environment- friendly and their energy impacts are almost zero. Handloom and Khadi industries in Kerala play a significant role in generating employment in rural areas with minimum investment. The Handloom Sector in Kerala stands second to the coir sector in providing high employment opportunities compared to other traditional industries in Kerala. The aim of this book is to study the marketing practices of Handloom and Khadi industries in Kerala as it provides large employment in rural areas next to coir sector. The book aims to examine the influence of marketing practices in creating customer satisfaction and loyalty in Handloom and Khadi industries in Kerala. This study tries to explore the prevailing marketing practices in Handloom and Khadi industries in Kerala and aspires to provide suggestions to improve the present status. Research methodology involved the collection of primary and secondary data. Primary data was collected by administering a pre-tested Structured Schedules to the Customers of Handloom (Hantex and Hanveev) and Khadi showrooms in Kerala. Data analysis has been done using t- Test, MANOVA, One-Way ANOVA and Structured Equation Modeling (SEM). The findings of the study point out that Product Attributes of marketing practices in Handloom and Khadi industries in Kerala have a strong potential to enhance satisfaction in customers but not enough to create loyalty in customers. Place Characteristics of Handloom and Khadi industries in Kerala have contributed very low satisfaction in customers and they have failed to convert most of the satisfied customers into loyal ones. Price Affordability of marketing practices in Handloom and Khadi industries in Kerala also have a little potential to enhance satisfaction in customers. Whereas Promotional Effectiveness of marketing practices in Handloom and Khadi industries in Kerala have a strong potential to induce customers to repurchase or recommend Handloom/Khadi textiles during discount/rebate period even if they were not satisfied with other promotional effectiveness measures. Brand Image of marketing practices in Handloom and Khadi industries in Kerala also have a potential to induce customers to repurchase or recommend Handloom/Khadi textiles. Brand Image has a strong potential to create loyalty among customers of Handloom and Khadi Industries in Kerala. The use of attributes of Brand Image in promotional activities IV effectively can generate more loyalty. Handloom and Khadi industries in Kerala have to create awareness among the customers about the leading factors in Brand Image such as giving high weightage to traditional values, stressing more importance to appearance factor, then Khadi/Handloom clothes develops a distinguishable personality, increase status in the society and moreover brand name of Khadi/Handloom is a reliable one. It means that Brand Image of Khadi/Handloom will induce customers to repurchase or recommend Khadi/Handloom textiles rather than giving discounts/rebate. Therefore, Handloom and Khadi industries in Kerala should adopt marketing strategies to make correct proposition of marketing mix and to improve the current brand image of Handloom and Khadi in Kerala which will help to retain their existing customers which in turn will attract the new customers. V Preface IV – V Contents VI Chapter 1 1 – 14 Introduction Chapter2 15 – 29 Review of Literature Chapter3 30 – 49 Theoretical Framework Chapter4 50 – 61 Profile of Handloom and Khadi Industry Chapter5 62 – 70 Research Methodology Chapter6 71 – 124 Data Analysis and Interpretation Chapter7 125 – 142 Findings, Conclusion and Suggestions Bibliography 143 – 154 List of Tables 155 – 157 List of Figures and List of Charts 158 Abbreviations 159 Appendices 160 - 165 VI Marketing of Handloom and Khadi Products: Strategies for Enhanced Effectiveness Chapter1 INTRODUCTION 1.1 Introduction 1.2 Significance of the Study 1.3 Research Problem 1.4 Objectives of the Study 1.5 Hypotheses of the Study 1.6 Anticipated Outcome C o n t1.7 e n t s Scope of the Study 1.8 Location of the Study 1.9 Limitations of the Study 1.10 Chapterization 1.11 Summary 1 Marketing of Handloom and Khadi Products: Strategies for Enhanced Effectiveness 1.1 Introduction The textile industry is a term used for industries primarily concerned with the design or manufacture of clothing as well as the distribution and use of textiles. The global textile and clothing industry is estimated to be worth about US$ 4,395 billion and currently global trade in textiles and clothing stands at around US$ 360 billion. The US market is the largest, estimated to be growing at 5% per year, and in combination with the European Union nations, accounts for 64% of clothing consumption. The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour in textiles. The textile industry continues to be the second largest employment generating sector in India. It offers direct employment to over 35 million in the country. The share of textiles in total exports was 11.04 per cent during April–July 2010, as per the Ministry of Textiles. During 2009-2010, Indian textiles industry was pegged at US$55 billion, 64 per cent of which services domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India. The Indian textile industry is one the largest and oldest sectors in the country and among the most important in the economy in terms of output, investment and employment. The sector employs nearly 35 million people and after agriculture, is the second-highest employer in the country. Its importance is underlined by the fact that it accounts for around 4 per cent of Gross Domestic Product, 14 per cent of industrial production, 9 per cent of excise collections, 18 per cent of employment in the industrial sector, and 16 per cent of the country’s total exports earnings. With direct linkages to the rural economy and the agriculture sector, it has been estimated that one of every six households in the country depends on this sector, either directly or indirectly, for its livelihood. In India, major production of handloom goods is in the category of cotton fabrics. India is the World leader in global cotton yarn exports with 25 per cent market share. India’s passage into modernity/ industrialization has centred, to a significant extent, on the cotton textile industry. Tracing the importance of the textile sector in the Indian economy also brings us face to face with the different components – such as the mill segment, the handloom segment and the powerloom segment – that make up this whole. These segments differ in terms of volume of output, technology, the organization of production and so on and are often placed in competing positions with one another, competing for raw materials, markets, etc. These differences render futile any attempt to generalize about the textile sector as a whole. Indeed, successive textile policies of the government have been an exercise in striking a balance between these segments. The terms on which these various segments are appraised, however, have changed from time to time. For instance, while earlier policies stressed the employment potential of the handloom industry and sought to strengthen it with appropriate measures such as the provision of adequate yarn, reservation of products, etc., considerations such as productivity and competitiveness have become the ruling factors in judging performance of sectors over the last decade. Indeed, it was the textile policy of 1985 that announced such a shift by setting up the single objective of increasing cloth production, without looking into the basic questions of credit and raw material requirements. The implications of this shift in perception, both for the lakhs of people employed in these sectors and for the industry as a whole have yet to be fully examined. The focus of this report is on the Handloom and Khadi industry. In the present economic climate where dependency on foreign capital and know-how is increasing all round, the Handloom and Khadi industry presents a sustainable model of economic activity that is not energy intensive and has low capital costs, as well as an extensive skill base.