Marketing – Products or Oppor-tunities? · Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 1 Introduction The IGEP (Indo-German Exchange Programme)

Indian-German Exchange Programme (IGEP)

Exchange of Jamnabai Narsee School, Mumbai, India and

Rudolf-Eberle-Schule, Bad Säckingen, Germany

Marketing – Products or Oppor-tunities?

IGEP

2017

TVET1 – Technical and Vocational Education and Training

Marketing – Products or Opportunities?

Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 1

Introduction

The IGEP (Indo-German Exchange Programme) was introduced in the Spring of 2013 as a vibrant

cultural and educational exchange initiative between the leading International Baccalaureate (IB)

school, Jamnabai International School in Mumbai, India and the vocational education school

Rudolf-Eberle-Schule at Bad Säckingen, Germany. The EUMIND (Europe Meets India) Project TVET

1 (Technical and Vocational Education and Training 1) was added on to a small, existing

international studies programme for young adults in the school education system.

While in 2014, students focused on studying “History of TVET in Germany and India”, 2015 inves-

tigated “Production Lines- Challenge of Companies”. The 2016 chapter aimed at exploring a new

dimension of the economic system, “Distribution- Transport or Transformation?”. The 2017 topic

challenges the students with “Marketing – Products or Opportunities?”

As part of this project, students observed the labour intensive Indian Textile Manufacture at Shri

Khemisati Processors step by step. In Germany, on the other hand, the students had a field visit to

the KBC in Lörrach where an automated sorting, selecting and preparing system that prepares

different cloths for printing by some workers.

The project generally aims at the following objectives:

1. To expose the students to an integral system of an economy

2. To acquaint the students of each country with the socio-economic context

3. To reflect on the similarities and differences between the two economies and societies

4. To evaluate the impact of the changes in the Indian Textile Industries on society and the

welfare system

In order to achieve the objectives, the project adopts an inter-disciplinary method of inquiry and

investigation, under the following topics:

1. History of Marketing

2. Exposition and Analysis of the Indian Textile Industry -SHRI KHEMISATI PROCESSORS

3. Exposition and Analysis of the German Textile Industry - KBC

4. Technological View and Perspective for the Production System of the Textile Industries

5. Social Impact of changings in production system

6. KBC as Model for Indian Textile Industries

7. Creation of future gross prospects of Textile Industries

8. Future Models of Textile Industries

By Balamani Garlenki, Dagmar Wolff



History of marketing

Marketing emerged in the early 1900s. Issues such as price setting and consumer purchase

behaviors existed. Advertising was viewed as an economic concept. Marketing emerged in order

to direct the relationship between the buyers and sellers.

Before the 1950s, marketing simply meant adopting strategies to sell more products with no or

little regard for consumer wants. People used the strategy of “sell as much as you can” with little

concern for long term relationships. Post 1950s, competition increased and companies adopted

philosophy and understanding consumer needs.

Marketing advanced from trade to technology over the years as technology advanced. A belief

stands that it started with trying to present goods in a certain way and sell them to survive. Efforts

to develop persuasive communications for selling goods have been around since ancient China and

India. The Industrial Revolution in the 18th century introduced marketing as we know it today. The

social change was motivated by scientific and technological changes. The purchasing of products

became easier than producing the products. Mass production served the needs of growing

consumer markets. As time passed, different brands and high quality products were developed.

International marketing was increased by the evolution of the web. Websites acted as a tool for

communication and commercialization.

Textile exports play a significant role in earning foreign exchange for India. In the FY 2010-11 , the

total exports of textiles and clothing amounted to US $ 26.82 billion. Presently, the share of

textiles in India’s total exports is in the range of 10 %.

It is seen that export firms that adopt marketing mix elements get competitive advantage and

have better returns.

During our recent visit to the KBC textile industry, we came to know about some of the most

important marketing strategies adopted by the textiles of Germany. The producers focus on the

choices of the customers based on the following criteria.



Customer‘s criteria when purchasing textiles

Marketing strategies for textiles

Marketing is the process of developing and communicating value to your customers. The following

chat shows the marketing plan

They focus on the following:

• Expression of one‘s own image

– Age

– Sex

– Philosophy of life

The pricing strategy used by the textiles is usually competitive pricing as firms aim to lower their

costs and look for cheaper distributers. Production is currently made through automation as in



case of KBC, the German company, and is usually more capital intensive as opposed to being

labour intensive in the past.

The industries do not usually promote since they have a set list of buyers, in case of KBC they have

large buyers who are MNCs like Zara and H & M.

By Muskaan Berry, Ashna Arora, Felicitas Neumann, Saskia Yildiz

Source:

http://vaibhavmathankar.blogspot.de/2013/01/marketing-strategies-of-garments.html

https://www.termpaperwarehouse.com/essay-on/Export-Marketing-Strategies-For-Indian-

Textile/192208

https://www.ioew.de/fileadmin/user_upload/DOKUMENTE/Veranstaltungen/2003/SuA2Back.pdf



Exposition and Analysis of the Indian Textile Industry -SHRI KHEMISATI PROCESSORS

During our trip in Mumbai, India, we visited the textile industry Shri Khemisati Processors on 4th

February 2017 which is located in Bhiwandi, a city in the Thane district of Maharashtra state.

Spread over an area of more than 2, 00,000 sq. feet, it produces an average monthly production of

45 – 50 hundred thousand metres and 60 tonnes of hosiery (knitted fabric). This company was

founded by Mr. B. L. Tibrewal in 1979 but has regularly been updated in order to meet with the

demands of the consumers. In 1990, it converted from a hand-processed industry to a power-

processed industry in order to produce more refined products at a lower cost of production. While

still employing large number of employees it became less labor intensive in the process of this

conversion. Although a separate company, it lies under the same promoters as Shri Khemisati

Polysacks pvt. Ltd

The industry employs approximately 250 regular workers and 700 casual workers who rotate in

shifts. Like many other industries, it works towards the welfare and safety of the employees

including a government regulated Employee Provident Fund.

http://khemisati.co.in/index.html



Figure 1

There are hundreds of different types of fabrics which go

through different kinds of processes as shown in figure 1.

Figure 2

Each fabric goes through various processes. It

starts with Pretreatment of the fabric which

includes bleaching, mercerizing, textile sizing as

shown in figure 2. This removes all impurities and

dirt from the fabric and the unprocessed fabric is

then separated for dyeing depending on the fabric

base like cotton, polyester, viscose, high twist or

blended.

Figure 3

Polyester goes to a high temperature and high pres-

sure machine while cotton is dyed in an open bath

machine as shown in figure 3.

Polyester and cotton blended fabrics are put

through both processes, starting with polyester

and followed by cotton. After figure 3 dyeing, the

fabrics are put through finishing processes where

several additives are added which make the fabric

quality better. The cloth is dried using a stenter

machine. It is then measured and packaged

according to the orders.

The company is best known for Indian dress materials which are sold as end products in numerous

outlet stores.



The company plans to expand in the future in order to meet the increasing demands and level up

in technology.

By Dayana Annalingam, Sanchita Tibrewal, Yasshvi Nandu and Lukas Lauber

Source:

http://khemisati.co.in/about_us.html (13.06.2017 at 10:45)

http://www.maiervidorno.com/indian-textile-industry-ancient-tradition-rising-star/(13.06.2017 at

11:12)

http://www.khemisatipolysacks.com/index.html (13.06.2017 at 11:42)

http://khemisati.co.in/about_us.html

http://www.maiervidorno.com/indian-textile-industry-ancient-tradition-rising-star/

http://www.khemisatipolysacks.com/index.html



Exposition and Analysis of the German Textile Industry - KBC

We visited KBC Fashion GmbH& Co.KG, on 9th June, 2017. It was founded in the year 1753. It is

represented in more than 16 countries and sells to 115 different countries worldwide.

The purpose of our visit was to draw a comparison between the textile industries of Germany and

India. In Germany we found KBC was the largest textile industry which uses high technology and

specialized employees counting about 450, to produce good quality textiles.

They are the main producers for various multinational corporations such as Tommy Hilfiger, Zara,

H&M, Bershka, etc. They spin and weave garments. They receive their silk and polyester from Asia

and cotton from the United States of America. They occupy a large percentage of the textile

industry and have a high concentration ratio. They are an oligopoly and they face competition

from other large companies such as A&S Umann GmbH, A. Berger GmbH & Co. KG, A. Müller &

Söhne GmbH & Co.KG. It offers inkjet printing and rotary printing; technical fabrics, such as

sailcloth; and fashionable fabrics for hobby tailors, carnival, and culture and sport clubs through its

outlet store.

Changes in ownership of KBC over time

In 1808, the brothers Merian from Basel and the entrepreneur Koechlin from Mulhouse buy the

indienne printing plant. They start the production under the name “Großherzogliche Badische Zitz-

und Cotton-Fabrik”. The Koechlins keep the company a family property until 1917.

In 1856, the company changes its name from “Peter Koechlin & Söhne” to “Koechlin, Baumgartner

& Cie.”, registered as limited partnership.

In 1897, the private enterprise is transformed into the “Koechlin, Baumgartner & Cie. Plc.”. How-

ever, KBC still remains the property of the Koechlin family. The company name is still used today,

only the legal form has changed from Plc. to Ltd.



In 1917, the German Reich Chancellor enacts a regulation against French capital holdings; as a

result KBC is expropriated from the family French Koechlin and becomes German.

In 1928, the shares are transferred from the German “Blumenstein-Konzern”, to the French in-

dustrial group “Lederlin-Thaon” which, under the name “Gillet-Thaon-Konzern” and together with

“Dolfuss-Mieg & Cie.” (DMC) establish the “Texunion” in 1935.

We saw that they have two different types of printing: Rotary and Inkjet printing. The production

process is completely automated which leads to mass production. This helps KBC benefit from

economies of scale which helps lower their average cost. We also managed to see their various

machines and their new printing machines which helped us understand how they produce so

much quantity in such a short period of time.

KBC operates in only Fabrics and Garments and they obtain Fibers and Yarn as raw materials.

How did KBC become prosperous?

In 1753, Johann Friedrich Küpfer acquired the company in Lörrach, Germany with the financial support of

Peter Merian from Basel which led to its prosperity.

Horace Koechlin propelled the company to the top of the international printing plants focusing on the key

elements of design originality and quality fabrics. It also had an advantage as it used Rotation and InkJet

machines and thus relies on its automation for its success.



The table below shows the SWOT analysis of KBC textiles.

From the SWOT Analysis we can see the various opportunities and threats that KBC may face. For example

some opportunities are that they can be exempted from paying a large amount of Tax. They can also

provide to a wide range of European countries, thus adding to their revenue. Some threats are that this

kind of a market has high barriers to entry. Also they face a lot of competition which may erode some of

their profits.

There are strengths of operating in the market as it takes up the largest proportion of the European

economy. Also they do not need a large number of employees as everything is automated.

The weakness however is that it is very expensive to buy a large number of machines. Also the negotiations

with the stores occur at a very slow rate. Lastly the labor unions demand that more jobs are created for the

people.

To conclude, through the progression of time, KBC has evolved and shaped into one of the leading textile

industries in the world through various changes in ownership, funding, originality in design and quality

fabrics.

By Omar Furniturewallah, Ishaan Boxwalla and Riona Makshana

Source:

Primary Sources (Company Visit)

Secondary Sources – Internet – www.kbc.de



Technological View and Perspective for the Production System of the Textile Industries

Comparison

India (SHRI KHEMISATI PROCESSORS)

They are a labour intensive firm as they are located in India which has cheap labour available. The

inventory and funds possessed by the firm is lower as it is a sole proprietorship hence is a small

scale and has less market share in the industry.

Germany (KBC)

KBC is one of the largest producers of garments in Germany and has more efficient and productive

machines. They have invested significant amounts of funds in the buying capital goods as labour is

expensive in Germany. KBC hence is a capital intensive company, where all the processes of

production are automated and efficient.

1. Pre-treatment

SHRI KHEMISATI PROCESSORS (India)

One of the most renowned Indian textile firm, Shri Khemisati Processors, situated in Bhiwandi,

Mumbai produces 4,500,000 to 5,000,000 meters and 60 tonnes of knitted fabric per month. They

occupy a wide area of more than 200,000 square feet.

The most integral machine of this process is the super jumbo jigger (JT-10). This machine is used to

soak out the unnecessary, harmful, toxic chemicals from the raw cloth. This is vital to ensure the

standard of quality set by the Quality Council of India (QCI) is met.

Most of the parts are made of non-corrosive

stainless steel to make sure that capital does

not depreciate in effectiveness and doesn’t

decrease from its high output frequency of

20KHZ and working speed of 0-20m/min. the

red/brown rust could also cause significant

problems with the quality of the cloth which is

of utmost importance for the firm, as creating a

brand image through is vital as the cloth

industry is a form of monopolistic competition,

hence product differentiation is what helps gain

a higher market share and increase consumer base.



KBC (Germany)

KBC has been using the Inkjet printing process

since 1990. What makes the Inkjet printer

special is, that the design is sent directly from

the computer to the printer, so the printing

process can start immediately.

One print head consists of 16 small print

heads. Each of them prints one color.

One small print head consists of 2.500 jets.

One jet splashes 10.000 drops per second. In

contrast to the other printing processes in KBC, the colors are added directly to the textile.

With this nine-years-old machine, KBC can imprint up to 40.000 meters of fabric a day. Different

kinds of fabric, like cotton, viscose, linen and silk, are imprinted with the Injekt printer.

2. Dyeing

SHRI KHEMISATI PROCESSORS (India)

Winch Dyeing

They mainly deal with dyeing and processing of a wide range of fabrics as cotton, polyester,

viscose, high twist and multi blended yarns. With 3 decades of experience in textile business, Shri

Khemisati Processors in India climbed the ladder of success with gigantic efforts and constant

innovation to meet up with their company policy, “ Provide the best of quality.”

One of the most common types of machine for fabric dying is the winch dyeing machine. Fabric is

sewn in long continuous ropes but the overall speed of fabric movement is slow and it may take

several minutes for the rope to complete a full circuit of the machine.



The machine has high and chemical consumption which must also subsequently be remediated

before discharging into the environment, which is an extra cost to the company but they have to

incur it due to the legal requirements of India. Though India being a developing nation it has fewer

legal regulations than Germany which is a developed nation with a high standard of living, the cost

of production tends to be lower in India. Extensive heating involved in the process puts pressure

on fossil fuels and leads to pollution, hence is a drawback of this process.

KBC (Germany)

KBC also produces fabrics with rotary printers. In

the rotary process, templates with fine

openings press the design on the fabric. For

each color, one template is needed. Up to

19 colors per design can be used.

The colors will be mixed in an approach

station before printing. With their four

rotary printers they can imprint up to

50.000 meters a day fabrics like polyester,

silk and wool. Altogether KBC produces up

to 100.000 meters a day and each day

energy costs them € 25.000.

By Akshat Chhabra, Ishan Rajgarhia, Jasmine Colucci and Janna Küchle

Source:

http://www.khemisatipolysacks.com/images/pp_hdpe_woven_fabrics.jpg

http://khemisati.co.in/about_us.html

https://www.merriam-webster.com/dictionary/cross-dyeing

https://www.wateractionplan.com/documents/186210/186332/Best+Technology_Low+Liquor+Dy

eing+Machines.pdf/7483805e-604a-4c44-9f1c-9f81cda8fa02

http://www.kbc.de/en/home/

http://kbengineers.co.in/?product=super-jumbo-jigger-jt-10-machine

http://www.kbc.de/wp-content/uploads/2015/11/Rota1.jpg



Social Impact of changings in production system

Social impact of the textile industry in India

Shri Khemisati Processors has its state of the art

manufacturing facilities at Maharashtra in India,

well equipped with latest manufacturing facilities.

On our visit there we saw that, their unit is said to

be a cotton based unit occupying a wide area of

more than 200,000 square feet. They deal with

dyeing and processing of a wide range of fabrics

as cotton, polyester, viscose, high twist and multi

blended yarns and manufacture fabrics based on

the domestic as well as international market

requirements. On average they produce 4.5-5.0 million meters and 60 tonnes of hosiery (knitted

fabric) per month, their motive staying quality is their priority. Hence, all the products that are

produced by them are cost effective.

Because of the high population of India even if the company had the best machines it would not

be possible to have the low labor like KBC, the fabric company in Germany. Shri Khemisati is not as

big a monopoly as KBC and so may find it more difficult to achieve various economies of scale,

namely financial economies of scale and bulk buying. This can restrict their production to some

extent whereas the production is encouraged in Germany as this industry is a large part of their

GDP. In India, people are less affected by any changes made to the company as there are more

companies that consumers and customers can depend on.

The company is more inclined towards labor intensive production rather than automation. This

may lead to an increase in employment levels, but the Indian textile industry suffers from lower

specialization and division of labor slowing production compared to the German textile industry.

Also the employees that are hired by the Indian textile industry aren’t very skilled and require

more training and education because of the low literacy rates so that they can operate the

machines in the factory efficiently. However, the wages that the employees earn are much lower

when compared to Germany due to the excess supply of labor which will have a negative effect on

the social life of the people. When compared to Germany, lesser importance is given to the

protection of the environment because measures are not taken in order to reduce air pollution

levels.



Social impact of the Textile Industry in Germany

KBC Fashion GmbH & Co. KG, with its 450

employees, is a German textile company

based in Lörrach, with a 270 year

tradition. We visited the factory on 9th

June, 2017 seeing the differences of its

impact in Germany compared to Shri

Khemisati in India. KBC has been

producing textiles and fabrics since 1753

and is one of the most important textile

printing companies in Europe and is

represented in more than 16 countries

worldwide. Their main consumers are Zara,

Top shop, s.Oliver, Bershka. They not only produce designer clothes through inkjet printing, rotary

print but also have a whole separate department for sail cloths.

The German government imposes heavy taxes on KBC in order to prevent it from becoming a

monopoly. The company delivers to 150 countries hence having so many stakeholders.

The priorities that the textile industry and the KBC industry are based on are very different to

those in India. KBC operates in the quaternary sector due to the merging of the secondary and

tertiary sectors of the textile industries. Production of fabrics in KBC, or for any fabric industry, is

extremely systematic and organized because of the division of labor in the factories which

ultimately leads to specialization. The laborers are divided into different departments according to

their level of skills and comfort due to which they can achieve increased productivity.

The company affects all sectors of society so any change in the company, especially since it has

been running for so many years, affects the entire country. Their regular clothing is bought by

everyone; the carpets keep the entire nation warm in the chilly winters; the sail materials keep the

summers fun. This affects daily life environmentally, economically and socially. In Germany rules

are stricter and measures need to be taken like to improve conditions for workers and reduce

pollution. Textile producers, manufacturers and distributors launch initiatives built around

sustainable development in Germany, opposed to India where it is more economically based.

After the company reached prosperity due to huge amounts of funding and after four years of

shutdown, the brothers Merian from Basel and the entrepreneur Koechlin from Mulhouse bought

the indienne printing plant, seeing how important it really was. It stayed unaffected during the

world wars showing how mechanical it has been since the beginning. The company is capital

intensive and has one main person operating it. At KBC all the operations including, printing,



stitching, coloring, washing were being done mechanically with few workers actually operating it.

Every action is recorded and closely viewed via cameras instead of people and even the quality

checks are not visual like in India. This is possible because of the low population in the country

opposed to India where, if so mechanical, the unemployment rates would be even higher.

The textile production at KBC is extremely capital intensive with just a few employees who operate

the machines. This can ultimately lead to increased productivity and output since a larger volume

of textile can be produced. An example of this is when KBC uses digital printing in order to inno-

vate and mass produce its products. However, on the other hand, it leads to a certain level of un-

employment too since the demand for labor will be lower. In this way, Germany can experience

structural unemployment which can harm the economy.

The visit was a great learning experience and helped us understand the true impact that each

industry has on the country and the differences in every system throughout the world.

By Noshir Langrana, Aadhya Kocha, Phil Fischer, Anna Vierling

Source:

http://www.kbc.de/en/business/about-kbc/



KBC as Model for Indian Textile Industries

India’s Textile Industry

The fastest growing economy in the world, India’s industrial sector is largely dependent on

exports, precisely 11%. Almost at par with the agricultural industry, the textile industry comprises

of nearly 40 million laborers making it a labor intensive manner of manufacturing. India's overall

textile exports during FY 2015-16 stood at US$ 40 billion.

The textile industry is part of India’s unorganized sector which consists of handlooms, handicrafts

and sericulture using traditional tools and methods. The evolution of this industry has been aided

by the Indian government’s efforts, which include establishing vocational courses to upgrade the

skill of the laborers and increase employment. Adding on to this the government also encourage

new entrepreneurs to invest in sectors such as knitwear by increasing allocation of funds to banks

from Rs 1,36,000 crore (US$ 20.4 billion) to Rs 2,44,000 crore (US$ 36.6 billion). India’s textiles

have now also been purchased by market moguls such as Raymond and Snap deal. As a result

India has generated crores of rupees of revenue through the industry. However there is still a

backlog in the technological advancements that this industry is prone to.

India’s labor intensive approach is heavily contrasted with the mechanization observed in the

globally acknowledged KBC textile industry.

German Textile Industries – KBC

If we shift our attention to KBC in Lörrach, a technological boom is primarily observed in its overtly mecha-

nized and optimized textile industry. Using a digital printer in their manufacturing process, KBC is able to

increase its primary supply of output, thereby increasing the influence of the textile industry, and is

boosting the export industry of the German economic sector. As compared to India’s 40 million labor force,

KBC wields the skills of only 450 employees, thereby highlighting its dependence on increased investments

through capital. These factors have helped in establishing KBC as a monopoly of the German textile



industry, increasing its scope of distribution with multinational companies such as Zara, Mango and Forever

New.

Applying KBC's model to the Indian textile industry

KBC’s automated approach would greatly stimulate growth in India’s textile industries, since it

would better cater to its millions of patrons through an accelerated rate of production of various

fabrics and garments. Certain machines such as the digital printer and segregation into depart-

ments for washing and designing would require more capital investments, but would also provide

large rates of return on the aforementioned investment. Moreover, KBC’s internationally renow-

ned fabric and craftsmanship could seep into the workings of the Indian industry, with technologi-

cal advancements that could be provided by the Indian government. Apart from being beneficial

to just the industries, KBC’s optimized manufacturing methods also decrease the rate of emission

from the factory machines, decreasing the overall levels of pollution in the area. Were this philo-

sophy to be adopted in Indian industries, it would increase the general sanitation followed by in-

dustries in India. In saying that, India’s overwhelming population size often limits further invest-

ment owing to a need to employ more workers. However, with increased government aid and

facilitation, there is no reason that India and Germany cannot be at par with each other in the

future.

The government of India has various initiatives for this industry. It plans to introduce a mega

package for the power loom sector, which will include social welfare schemes, insurance cover,

cluster development, and up gradation of obsolete looms, along with tax benefits and marketing

support, which is expected to improve the status of power loom weavers in the country.

The most relevant implementation would be increased government subsidies on modern machi-

nery The Revised Restructured Technology Up gradation Fund Scheme (RRTUFS) covers manufac-

turing of major machinery for technical textiles for 5 per cent interest reimbursement and 10 per

cent capital subsidy in addition to 5 per cent interest reimbursement also provided to the specified

technical textile machinery under RRTUFS.



Under the Scheme for Integrated Textile Parks (SITP), the Government of India provides assistance

for creation of infrastructure in the parks to the extent of 40 per cent with a limit up to Rs 40 crore

(US$ 6 million). Under this scheme the technical textile units can also avail its benefits.

The major machinery for production of technical textiles receives a concessional customs duty list

of 5 per cent.

The future for the Indian textile industry looks promising, buoyed by both strong domestic con-

sumption and export demand. With consumerism and disposable income on the rise, the retail

sector has experienced a rapid growth in the past decade with the entry of several international

players like Marks & Spencer, Guess and Next into the Indian market.

In conclusion KBC advocates the following methodologies:

More structured layout of departments.

Increase in capital investment.

Optimization of manufacturing.

Increase in distribution with major companies.

If India were to adopt this, the surge in growth of Germany’s textile industries can undoubtedly be

observed even in India’s more primitive manufacturing methods. Helping the families and promo-

ting the social well-being of India’s citizens would also follow the increase in economic growth.

By Vikram Kishinchandani, Dhvani Dalal, Ryan Whyte, Lisa-Marie Roniger

Source:

https://www.ibef.org/industry/textiles.aspx

https://swarajyamag.com/business/modi-sarkars-latest-labour-law-reform-can-help-create-

millions-of-low-skilled-jobs-india-needs

http://www.kbc.de/en/home/

http://www.fibre2fashion.com/market-intelligence/countryprofile/germany-textile-industry-

overview/



Creation of future gross prospects of Textile Industries

Export of textiles

In 2013 India has overtaken Germany and Italy to emerge as the world's

second largest textile exporter. But China is still the leading position, whose

exports are almost seven times higher.

Data showed that India's textiles exports were estimated at $40 billion in

2013, compared with China's $274 billion. Textiles includes everything from

fibre and yarn to fabric, made-ups and readymade garments made of

cotton, silk, wool and synthetic yarn.

As the graphic shows, the exports of Indian textiles

are decreasing, but India, in this graphic at least, is

still the leading position right after China. It also

shows that Vietnam and Bangladesh are always

behind India. But in the year 2015 and 2016 you can

see, that Vietnam and Bangladesh increased their

exports and India decreased.

Textile Industry in India

India’s textiles sector is one of the oldest sectors in Indian economy. Even today, the textile sector is one of the largest contributors to India’s exports with about 11 per cent of total exports. The textiles industry is also labour intensive and provides employment to a major sector. The textile industry has two broad segments. First, the unorganized sector consists of handloom, handicrafts and sericulture, which are ope-rated on a small scale and through traditional tools and methods. The second, organized sector consisting of spinning, apparel and garments segment which apply modern machinery and tech-niques such as economies of scale. The textile industry employs about 40 million workers and 60 million indirectly. India's overall textile exports during FY 2015-16 stood at US$ 40 billion.



Market Size

By 2021 the Indian textiles industry is expected to reach at least US$ 223 billion. Currently it is estimated at around 108 billion$. The industry is the second largest employer after agriculture. It provides employment to over 45 million people directly and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production

(IIP). The Indian textile industry has the potential to reach US$ 500 billion in size. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are implied to increase to US$ 185 billion from approximately US$ 41 billion currently. Indian exports of locally made retail and lifestyle products grew at a compound annual growth rate of 10 per cent from 2013 to 2016, mainly led by bedding bath and home decor products and textiles.

Textile industry in Germany

Germany is a major player in foreign trade with textiles and clothing. The country is the fourth largest exporter of textiles and clothing worldwide. At the same time, the country is also the second largest textile importer after the United States and has become an attractive market for many textile exporting countries since the 1980s. Especially in the clothing segment, Germany



imports a vast majority of apparel products, thus offering an appealing opportunity for foreign companies.

The domestic industry is made up of almost 1200 mostly small and medium sized enterprises with a national workforce of 120,000 in the different industry segments. The structural change during the past decades has transformed the national textile industry from low-tech manufacturing into an innovative high-tech sector. Today the German textile industry is the global market leader for technical textiles with a market share of 45 percent.

What trends determine the future of the location “Germany” and what are its prospects for

development?

The future of the T&C industry is driven by the megatrends “Demographic transition”, “Globaliza-

tion III”, “Sustainability in environmental preservation and energy efficiency”, “Volatility and

Knowledge” and “Individualization”. All of these share a high demand for innovation, which hap-

pens to be one of Germany’s main strengths. If used properly, Germany will be able to improve its

competitiveness in the T&C industry in a decisive measure. If the country can maintain constant

progress on its competitive edge - quality and technological expertise - demand for German T&C

products is likely to increase in the next decades. However, due to demographic change this

demand will shift from Europe to developing and newly industrialized countries. Many of these,

which are already actively investing in German T/C products and services, are growing vigorously

in size. However, these countries are also gaining economical power and along with it wealth,

therefore these nations will, as Germany did decades ago, shift strategically from “Cost

leadership” to “Differentiation”. This is the most serious threat for the German T&C industry, next

to decreasing inland supply of skilled personnel due to an aging population. Additional

opportunities for the German T&C industry arise from the growing demand of sustainability,

another of Germany’s strengths, and the increasing trend towards synergy between branches.

By Jennifer Rychlik, Muskaan Kukreja, Adviti Bali and Friedrich Knoll



Future Models of Textile Industries

Textile engineering today is shattering decade-old stereotypes of a

labor-intensive, factory-based industry in which men and women

toiled over looms and spinning jacks. The clang of the early produc-

tion machinery has been replaced by a computer-driven enterprise.

Special scientists will be using high levels of nanotechnology, to

develop smart fabrics, in order to progress in the field of textiles.

Overtime, people are going to rely on individual personalized desig-

ners instead of large retail stores. Textile manufacturers will use 3D

printers, heavy machinery, and barely any manual labour. Everything

will be computerized and processed using binomial data.

The futuristic fantasy of fashion is going to

change the way textiles are produced and

worn. People are going to embrace mood-

responsive clothing and try to replicate

their personalities in how they dress. There

are going to be 6 major scientific

breakthroughs. The future of textiles id

called smart textiles. Firstly, in the last 12

months 3D-printing has taken off however

it is very grounded, over the next few years

designers will exploit this method in order

to make fashion more expressive. Secondly, while parts of the fashion world obsess over an ever-

changing parade of “This Season’s Hottest Color,” then future holds clothing that changes color.

The first ideas were drawn from the Sensitive Hyper-color T-shirts of the 90’s, however, modern

advances in photo chromatic technology are throwing up some more intriguing possibilities. The

scientists at the University of Michigan are exploring a membrane of tiny crystals that react

differently when exposed to various wavelengths of light. Thirdly, at Concordia University in

Montreal scientists are trying to harness electricity from the movement of the human body and

use it to power a new kind of “electronic fabric.” Using a very subtle current, the material would

trigger super-fine wires woven into its makeup to change its color or illuminate according to the

wearer’s actions. This type of textile would act like “Karma Chameleon,” changing color depending

on the surroundings. Furthermore, there are fabrics which protect from ultraviolet wave, and

radioactive rays. Moreover, an independent university at Budapest is trying to make use of small

12v Arduino controller the technology transforms sound waves into low level heat, which in turn

affects the properties of the dye in the fabrics to change their appearance almost instantaneously.



They

call this project “Chromo sonic“. Lastly, scientists at Deakin University in Australia are creating

fabrics that can repair itself in case of any rips, tears, liquids spilling, or any dirt. These are water

proof garments.

By Marvin Enderlein, Florian Kürz, Eesha Jain

Source:

Gwilliam, AJ. "5 Future Textile Technologies to Change Fashion | Highsnobiety." Highsnobiety.

Highsnobiety, 03 June 2015. Web. 13 June 2017.

"Transforming the Textile Industry." ASME.org. N.p., n.d. Web. 13 June 2017.

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Marketing – Products or Oppor-tunities? · Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2017 1 Introduction The IGEP (Indo-German Exchange Programme)