Step out of the comfort zone and venture into the growth zone…

We at Suvin are on the verge of completing 15 years of consulting services, witnessing the swing ride of our textile industry as it jumps high, falls back, and again rises to the very top. I thought it was time to share the wisdom I have gained with my dearest textile industrialists about the extraordinary businesses that are growing today by taking the leap and trying out-of-the-box strategies.

The geopolitical dynamics, UK FTA, upcoming US tariff, in pipeline EU trade policy, sustainable solutions, and the pragmatic Chinese impact, etc. are all the phenomena that are expected to change the tides for favourable manufacturing in India. New opportunities are opening up. In case of textile industry, shifting of manufacturing units to India has not yet materialized into a scalable opportunity, or are we lagging in grabbing the opportunity?

Today we have the best of the technologies at our disposal, there is no longer a dry patch as far as innovation is concerned. Accelerating production, cutting-edge technology, Innovative product portfolio, circular economy, 360 degrees of sustainability, traceability and Customer focus are the few most looked at terms for textiles today. So, what’s holding us back? I feel as textile entrepreneurs there is always a risk associated with trying new and being pioneers that is where our big foot falls short.

We are simply the best at following innovation and finding practical multiple uses for these innovations. However, the monopoly fear of being the First to fall is always what keeps the foot small. And the strategy has played in our favour for decades. But now the era is different today be the change and invest in appropriate strategy and decide your product portfolio.  

The Indian government is introspecting the risk factor and has taken right steps to go a long way and bring in favourable FTAs. These FTAs are going to be our shield in trying out something new with a calculated risk factor. The government has come up with a solution for safeguarding the interests of the textile Industry.

India's first FTA with a European bloc (Iceland, Liechtenstein, Norway, and Switzerland) - India-EFTA TEPA is the first to include commitments on trade and sustainability, investment, and employment generation.  India has also recently signed an FTA with the UK, this agreement aims to double bilateral trade to $120 billion by 2030 and includes tariff reductions on 90% of British products, with 85% becoming tariff-free within a decade. The agreement is expected to boost Indian exports in sectors like textiles, toys, jewellery, and auto parts. Apart from this Indian government is also currently negotiating FTAs with several other regions and nations, including New Zealand, the US, the EU, Oman, Peru, Qatar, and Sri Lanka. All these FTAs will be our express ticket toward the growth and increase our exports substantially.

As an entrepreneur, one should always be on the watch to venture into a product with attractive & consistent demands that reap high profit margins at minimum project cost. Many times, instead of looking around and exploring what the market demands, we tend to oversee things that are trending in the market and follow the trend that is already flourishing. Just take the example of sustainability; for many years there have been talks about adopting sustainable practices, but it is today that everyone is on their foot to get things done to be a sustainable producer. Taking forward this attitude of doing at the bare necessity, we might stay in the race but never be the front runner to grab the golden opportunity.

Let us talk about trends of today with great potential. Today bio-based fibres, revolutionizing Meditech innovation, traceability, and global standardization are the concepts that are creating a space for themselves. It is still a niche area as far as the production scale is concerned. But today's niche space is tomorrow's biggest market.

Recycled Fibres:

Global brands are encouraging their customers to wear/use recycled products through a buy-back mechanism. Recycled fibres are being promoted by brands in their high-range product portfolio as their policy for commitment to Mother Earth. It also reduces operating cost for manufacturing same product as in most of the cases recycled fibres are cheaper than the virgin fibres Currently, there is a lot of taboo for using pet bottle fibres, but the dynamics of circularity have strong questions on its recyclable tag since it is not initially part of the value chain and also the endless dump of textiles remains untouched with it. So, the true textile recycled fibres will have scope not only for readymade garments but also in home furnishings and many upcoming technical textile applications. Many innovative & cost-effective products also can be generated by using recycled fibres. The way there is currently a big demand for recycled fibres in the clothing industry there will be a great demand for recycled fibres even in the technical textile industry in future.

Standardization & QCO Mandates:

Though the pandemic has seen many emerging players in Meditech there were no clear-cut specifications maintained by many players which resulted in poor quality of usability of the product be it a PPE kit or a simple mask shield. This is why harmonized standards for hygiene products are being developed by the EDANA. It has designed a program that lists the requirements the industry must meet. The government of India has also led many QCOs for technical textile products in recent times. Also, the Ministry of Textile under Govt of India has prepared a Quality Control Order in respect of the 12 textile goods for compulsory use of Standard Marking. There is no going around way for it and best practices often create exceptional products giving you the open market access for high-quality products. Hence it is important to look around, think, and introspect to grab and adopt the technology, and innovation that will be the driving force for the future.

Traceability

 Traceability and accountability are the complete package today. They are to be followed for export markets and adoption is the best way forward.

Disposable Home Textiles

The use of nonwoven technology in home textiles will give a different dimension to this segment by reducing extensive use of dyes and chemicals and we can use mechanical patterns produced by nonwoven technologies like needle punching etc. Disposable textiles using no dyes & chemicals can be used especially in Hospitals, hotels & offices thus contributing a small share for saving the environment. 

Similarly, spunlace curtains can take care of the aesthetic look of the fabric having the inherent capability of creating various structures & patterns that can be embossed on the fabric.  Thereby the manufacturing cost of the curtains can be minimized drastically by using spunlace technology.  So, the curtains which were once being used for years can now be replaced after identified occasions or events due to the price benefits and even additional set of curtains can be kept to replace them alternatively the raw material required for producing curtains using spunlace technology can also be the by-products of textile industry like spinning waste. So, the cost incurred on raw materials using spunlace technology is much lower as compared to woven curtains. Similarly, the entire spinning weaving & then fabric processing i.e. bleaching & dyeing technologies will be eliminated as the fibres will be directly converted to fabric by using the spunlace technologies.

Smart Textiles

They have been in the niche market for a long run but some promising technologies being developed year on year are driving its growth. Noble Biomaterials' Circuitex range of yarns, fabrics, tapes, foam, and wallpaper provides lightweight, flexible conductivity and EMI shielding.  This enables additional protection to military personnel allowing them to remain virtually undetectable to enemy advanced sensors. Many such innovations are happening all around us. Some might be the best fit with our existing product portfolio; some might not be. Some might be a replacement for our product. So, to look, observe, and introspect should be our continuous mantra before going forward.

Global Branding:

Today there is a lot more to branding than the conventional ways of obtaining celebrity footfall and mere advertisements. Today the branding dynamics are far superior and complex. It is about talking, making your presence heard in every situation world around. Positive Branding can take you a long way and similarly, one single negative narrative can tear you down hence it is the game of being committed to your loyal customer base, community, society, and Mother Earth. Also, branding can take mere products to iconic style statements. Take the example of the recent fashion showstopper “Indian Jhoola bags”. A high-end American department store, Nordstrom, is now selling what it calls the “Indian Souvenir Bag” for a staggering $48 (approximately ₹4,100). Produced by Japanese brand Puebco, the product is advertised as a creative, repurposed piece with a global flair. This is the classic example of creating brand talk for everyday products and taking the utmost opportunity from it.

India has to understand things happening now are different from the way things happened in the past. All brands are eyeing getting the final product. All technical textile products are the demands of not just the global market but of our domestic market as well. However, just producing a part of the final product and letting the Western world grab the higher margins on the finished products will not take us anywhere. We need to identify products with our experience and keep an eye on the complete development of the textile value chain. We need to take care of not just the technology, but also all aspects from production, quality, and social compliance to competitive marketing with certifications. Also, look at the scale of operation and select the appropriate technology, where we can be competent.

Now I think the time has come to introspect ourselves and think on

•                           What am I doing Differently? Am I producing products for the future?

•                           Which are the opportunities right now in front of me?

•                           How I can do something different not from the mere point of view of earnings and more profits but also a long-term recognition in a niche area and with sustainability.

•                           Which market I am currently catering and which market do I wish to capture? 

•                           Have I done market research properly? What is my SWOT analysis?

•                           Let us take an example if at all I am a regular spinner,

§  Have I over the years introduced something new to my product portfolio?

§  Whether I am trying something different? What my customers are using my yarn for?

§  What is my customer demanding additionally?

§  Is it use of recycled fibres? if so, do I have the technical capability to produce them

§  Finishes for technical performance capability- can I straightway introduce it?

Is there any possibility of introducing the innovative practice, product, or process to my regular ways? This is essential because if there is another way and some competitor is already doing it then doing extremely hard work to control operating costs and just compete will be the only option available with a simple yarn manufacturer. Simply following the four generations' products and being in the market or scaling up the production capacity is not enough. When many spinners are producing the same yarn as I am doing then it is difficult for me to survive in the long run. Simple and small innovations if not looked out for can soon lead one to be out of the race very soon. 

So, the mindset needs to be developed wherein small changes matter, the next generation should especially look out for the right small change that will make a huge difference in the not-so-far future. The conventional textile players should also eye the big avenues i.e. technical textiles which are available right in front of us. How, when, in what, and how much investment are the key questions for which answers must be sorted out. Especially look out for investments that are to be made only for introducing new product lines, innovations, or new processes that will altogether change the efficiency scale. Time is “now” or never…

Conclusion

A few of the things that are easily available for bringing into practice are the adoption of techniques for recycling fibres introducing new product variants, and adopting renewable energy resources this will make a huge difference in margins as it brings down the cost of production, thorough retrospection of what one is doing. Change is the answer for all of us.

All of the textile entrepreneurs are well aware of the above needs, however, out-of-the-box thinking needs to be practiced, great minds are also on the lookout however what is missing is the “Implementation” Two more steps are where it all falls short. Of course, this is because the existing knowledge base has many other job roles to look out for, the usuals have them all packed up, and also as the world knows there are limitations to the knowledge. But to be the front runner complete out-of-box thinking is needed further than this. It is a must to have a market study that backs the thinking approach.

 A detailed study that answers

•          Detailed SWOT Analysis

•          The demand and supply needs of domestic and global markets

•          The techno-commercial analysis of the existing setup

•          Adopting “Atmanirbhar Bharat” as a golden mantra

•          New innovative market segment adaptation

•          Introduction to Social compliance, green culture

•          Profitability projections for future

•          New production portfolio

•          Road map for success

These are the areas that we need to look into for better prosperity and long-lasting business philosophy.

We are ready to hand hold you for all your requirements to grow your exports in this changing global scenario. Our specialised advisory services will certainly help you in achieving your dreams in the global horizon. Please do not hesitate to contact us.