Presentation on

Case Study: Fashion Statement Through Khadi

Presented By:

Abdur Rahman Sarwar

KHADI“A symbol of self

dignity.”

What is Khadi

• Khadi - a cloth

-soft twist threads

-imparted by the hand.

• allows maximum air to enter to body

• soothes the body better than any other fabric does.

• Known as one of the coolest and most comfortable fabric.

• The flag of India is only allowed to be made from this material

Khadi as a Brand

• These days Khadi Has become a brand name and under the name of this brand many other products is being launched some of the products are :

• Woolen Products

• Hospital Linen

• Leather Products

• Organic Manure

• Handmade Paper and products

Why Khadi is not popular ?

• Lacks in promotional activities – Advertisement

• Lack of Awareness among the masses.• Khadi Emphasis on other fronts rather than selling.

• Expensive

• Preference of Foreign Brands

Summary of the Case

In India, khadi is not just a cloth, it is a whole movement started by Mohandas Karamchand Gandhi. The khadi movement promoted an ideology, an idea that Indians could be self reliant on hemp and be free from the high price goods and clothes which the british were selling to them.

With the end of Colonial Rule in 1947, the congress government headed by Jawaharlal Nehru opted for state-led large-scale industrialization, instead of Gandhi’s idea of rule hut-industry development. But it also decided to provide employment to thousands of spinners by selling their output through a vast network of retails stores. Thus was formed the Khadi and Village Industries Commission (KVIC), a nodal agency to promote the fabric, with its Khadi Bhandar outlets in urban India.

Over the years, KVIC set up thousand of outlets across India. Sales were good. But with the evolution of technology, perhaps it was inevitable that the sentimental dreams of village self-reliance would be disrupted. And so it was. Modern machines of Europe’s industrial revolution were soon to arrive.

•Indian industrialists set up capital-intensive textile mills and began the mass-production of fine cloth. As the mills gained volume, they achieved economies of scale and started lowering prices. And so, the labour-intensive homespun fabric losing out to mill fabric.

• In 1990s, the vision of clothing the masses with khadi was beginning to look absurd. Despite all policy incentives to the sector, people were buying efficiently machine-made textiles. The forces of mass production were making polyester, which had gained economies of scale at the raw materials stage (made from petrochemicals), cheaper still.

• Yet KVIC continued to produce huge quantities and sell khadi clothes through its extensive retail chain. By now, khadi was more expensive than other fabrics and had acquired the image of an outdated clothing material worm chiefly by politicians and social workers. Ordinary people preferred cheaper alternatives.

•

By the start of the new century, KVIC discovered a pragmatic solution based on using modern marketing to revive the fabric.

KVIC started with a single-outlet experiment in Delhi’s Khan Market. The first air-conditioned shop opened here in May 2001, selling khadi muslin garments designed by high-profile designers (Rohit Bal and Malini Ramani), in addition to a well-packaged range of Ayurvedic products. It was a runaway success,with Delhi’s elite thronging the shop.

KVIC started marketing two brands, Khadi and Sarvodaya, to which it owns the rights. The former caters to the premium and export segments, and include essential oils, herbal oil soaps, face scrubs, anddry fruits honey. Sarvodaya, the mass-market brand, sells mass items such as toilet soap, honey, pickles,spices and incense sticks.

• The capital’s response to Khan Market shop has been so good that KVIC wants to upgrade a significant fraction of its network. The transformation is to be entrusted to a new marketing company that will function as any other professional firm. Plans to extend the concept include display units at airports and modern outlets at Delhi’s Ashoka Hotel, Nehru Place, Hauz Khas, and Kamla Nagar. The product range will be widened too.

•Ahmedabad’s National Institute of Design (NID) has proposed a special cell for design support, while Delhi’s National Institute of Fashion Technology (NIFT)may also pitch in.

•KVIC has hired three and agencies to promote its brands: Appeal for Khadi; Market Missionaries for Sarvodaya and Pressman for the corporate and promotional schemes. Khadi campaign is likely to start by highlighting the brand’s eco-friendly credentials.

QUESTIONS:-

1. Suggest an approach to make Khadi garments popular among Indian youth.

2. Would marketing in foreign countries require study of a popular country’s culture aspects and buyer behaviour before marketing Khadi there? What aspects would need to be studied?

SuggestionsQues.1: Suggest an approach to make khadi garments popular

among the youth.

• Collaboration of Khadi brand with Premium Brand, so as to achieve the popularity and market share.

• Use advertisement in TV and print media may promotes the brands of khadi and convey a message of integrity and indigenous belongingness .

Contd……

• Manufacturing of khadi in more colors , design and varieties will perceive the potential customers.

• Involving community like students, professionals youth and mass media in purchasing the product through their active participation in advertisement, publicity

Before Entering to Foreign Market We Need to Study:

Culture Taste & Preference Economic Condition Government policies Market Norms Channel Partner

Culture:

Cultural differences and especially Language differences have significant impact on product.

Example: Initially, Coca cola in China sounded as “Kooke Koula” which means “A thirsty mouthful of candle wax”.

They manage to find new pronunciation “Kee Kou Keele” which means “joyful taste and happiness”

Taste and preference:

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, ofvarious bundles of goods. They permit the consumer to rank these bundles of goods according tothe levels of utility they give the consumer.

Example: what would you like to do on weekend?

Watching TV Go out with friends Study Spend time with family

Economic condition:It is important that international Marketer has an understanding of economic condition of host country nationals.

Government Policies:

The government policies of international marketing includes any factor that affect the organization's operations or decision making.

Market Norms:All markets have unique characteristics, Prior to entering a foreign market, a supplier must study and develop an understanding of the norms in the market.

Channel Partners:After deciding to enter a foreign market, determine the shape of the sales organization. Opening with a direct sales organization is probably the most difficult, expensive and risky alternative. Opening with sales channel partners is generally less difficult, less costly, and poses less risk.

At the end ……

• I would request us all to buy Khadi instead of buying foreign brands.

• By buying khadi you will help to generate employment and also get quality product