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"The manufacturers
and marketers of cotton products need to work towards creating
a contemporary image for the natural fibre."
Harminder P. Sahni,
Associate Director,
KSA Technopak
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Most
of the arguments made by the various stakeholders are based on the
assumption of cotton being a commodity and not a consumer product.
There is also deep-seated scepticism as to whether cotton can stem
its decline vis-a-vis other synthetic fibres.
I strongly feel that cotton's fortunes depend largely on the industry
understanding the needs and preferences of consumers and offering
the right product solutions to meet these needs. The market tends
to produce alternatives for any product or service that fails to
evolve in keeping with shifting tastes of consumers. It is a well-known
fact in the industry that cotton offers all the benefits offered
by its synthetic rivals and much more. The big question is: Is the
consumer at large even aware of these benefits to the extent that
these outweigh any price advantage he may derive from buying synthetic
fibre? An even bigger question is: Has anyone actually tried to
reach out to the consumer and talk about the pluses of 'going' cotton.
It shouldn't be too difficult for the cotton industry to make up,
through an intensive image re-positioning, for the natural fibre's
relative lack of glamour. Perhaps, the industry has been taking
things for granted for way too long. Cotton, like all other products,
needs to be marketed to the consumer and perhaps re-positioned as
a consumer and fashion item with a glorious past and an even greater
future. This will definitely go a long way in reversing the dismal
projections put out at the Indian Cotton Board's anniversary summit.
It is also far from clear that the growth in demand for synthetic
fibres will happen at the expense of cotton. If the clothing consumption
pattern in India is compared with those of the developed markets,
it could be argued that there is enough room for all segments, given
that the players work towards growing the overall market with innovative
products and convincing marketing.
The real game is about creating
more options for the consumer. The industry should get down to the
main task facing it: promoting cotton's use through an image re-positioning
and an information blitz. The manufacturers and marketers of cotton
products need to work towards creating a contemporary image for
the natural fibre. The industry should tune in to the prevailing
consumer preferences and invest enough resources that would enable
it to make matching product offerings. Through image re-engineering
and slick branding, a premium can be built up for cotton products.
Finally, it must be pointed out that many of the ills of the industry
are primarily due to the short-sighted policies of cotton manufacturers
and marketers themselves. The only remedy for this can be a drastic
change in the attitudes of the industry bigwigs.
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" While
price often weighs against cotton, it would be not be true to
say that the market is solely driven by price. The issue here
is not so much price as value for money."
Darshan Mehta, President,
Arvind Brands |
Unquestionably,
manik raj is on the right track. There are strong indications that
the worst may be over for cotton and that things may already be
changing for the better. What's helping this reversal of its declining
fortunes is the increasing realisation that synthetic fibres don't
come within a mile of cotton in terms of breathability, moisture
management and the overall consumer experience.
Let's talk about fashion. World over, the trend now is that of "going
back to the roots". Take food, for instance. Genetically modified
food and food made with the use of inorganic fertilisers, insecticides
or pesticides are increasingly being spurned by the consumer in
favour of basic natural foods. The logical corollary of this in
the textiles industry is a return to natural fibres such as wool
and cotton.
At the premium-end in the apparel market, the consumer is increasingly
getting sold on cotton. Even in the mid- and low-price segments,
where affordability of cotton is an issue, synthetic fibres are
being blended with cotton and branded as Chief Value Cotton, Cotton
Rich etc., to highlight the cotton component of the fabric and,
in fact, to hide the presence of other fibres. This is proof enough
of the fact that cotton is on its way back.
One argument that often comes up when discussing the fortunes of
the cotton industry is that of competitiveness of synthetic fibres
vis-a-vis cotton when it comes to price. While it is true that this
often weighs against cotton, it would be an oversimplification to
say that the market is solely driven by price. The issue here is
not so much price as value for money (as the advertising line goes,
"the consumer is not a moron, she is your wife!"). The marketplace
is full of examples of white goods, passenger cars, and cellular
services, where the consumer is willing to pay more where he smells
better value, especially when he can feel and touch it.
A whole new consumer consciousness can be built up around cotton
through relentless campaigns and product launches. Giving the cotton
quality seal a premium image would be an additional pull factor.
One thing that will go a long way in making cotton manufacturing
more competitive would be to make improvements along the entire
chain of handling cotton, from the time it is picked up from the
farm till the yarn manufacturing stage, as well as resolving sticky
problems such as mixing of cotton coming from smaller farms and
the contamination of cotton due to mishandling in transit and at
the ginneries. Revamping this entire process would go a long way
in bringing Indian cotton closer to its international cousins not
only in terms of cost of production, but also quality-wise.
Cotton industry has lagged other textile segments in adopting new
technologies that could help it lower production costs and improve
product quality. Adoption of techniques and processes that add value,
e.g., imparting cotton with stain/wrinkle repellency without taking
away the inherent strengths of breathability and hand feel of cotton
(new age technologies are beginning to do just that in the US),
can also help push the envelope for cotton that much further.
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"The cotton seal can
at best be a strong catalyst. The entire industry, including
farmers, mills, brands, retailers and the government, need to
collaborate to make cotton a success."
Executive Director, Executive Director,
Vardhman Spinning and General Mills |
One
important thing all industries have to watch out for is how their
product caters to the consumer's interests. The product being offered
in the market has to possess attributes such as value, innovation,
trust, ability to provide excitement, and leadership (vital) in
order to find a place in the consumer's shopping basket.
Traditionally, cotton has enjoyed an advantage when it comes to
value, trust and leadership in India. Its natural qualities, breathability,
feel and absorbency have always evoked trust among consumers. What
it has lacked so far is the ability to excite the consumer and a
relative absence of innovative products. In recent times, however,
cotton's advantage in leadership and value have also come under
threat from synthetic fibres. Its declining share has made its leadership
position in the domestic market shaky. To make things worse, the
low prices of polyester have tilted the scales against it in terms
of value as well.
The cotton quality seal was introduced in the US in the mid-70s
when the share of cotton in consumer demand there was at an all-time
low of 34 per cent. Aggressive marketing, lower prices and easy
maintenance had made polyester the perfect cotton substitute for
most Americans.
The cotton quality seal sought to promote demand for the natural
fibre, by providing a branded identification to cotton products
through point-of-purchase signage (e.g., "If it isn't 100 per cent
cotton, it isn't real denim") and by increasing awareness through
focussed television advertising. The impact of the campaign is reflected
in the way consumer demand has shaped up for cotton since then in
the US -- today the share of cotton stands at over 60 per cent.
The cotton quality seal in India promises to bring in product innovation
and the missing excitement factor. A concerted countrywide campaign
to promote cotton consumption will also be crucial if cotton is
to reclaim its pre-eminence among fabrics. In addition, the campaign
will also reinforce the trust in cotton products and bring in world
class marketing and quality standards to the business.
It would, however, help to remember that the quality seal is no
magic wand. Indian cotton yields remain at less than half the global
average. Seed quality and farming practices need to be drastically
upgraded if the prospects for cotton are to improve. Research and
development efforts have to be stepped up with the help of the government.
On the innovation front, the industry must bring in products like
wrinkle-free, stain-resistant and easy-wash garments, and new yarn
like compact or core-spun yarns. This will help drive down prices
while improving industry competitiveness.
Though Raj's proposed strategy of adopting the world famous cotton
quality seal is a big leap forward, the benchmark can at best be
only a strong catalyst. The most important factor in making cotton
a success will be ability of all the sections of the industry, including
farmers, textile mills, marketers, retailers and the government
to collaborate to survive.
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