Embed Size (px)
Citation preview
CLUSTER REPORT
ON
KHADI – INDIA’S PATRIOTISM IN WEAVES
MFM
2014 – 2016
DEPARTMENT OF FASHION MANAGEMENT STUDIES
NATIONAL INSTITUTE OF FASHION TECHNOLOGY
KANNUR
DECLARATION
We hereby declare the project work entitled craft research documentation submitted to the
Department of Fashion Management Studies, which is submitted by us in partial fulfilment
of the requirement for the award of degree Master of Fashion Management to Department of
Fashion Management Studies (FMS), National Institute of Fashion Technology (NIFT),
Kannur. This report comprises only our original work and due acknowledgement has been
made in the text to all other material used.
Arjun V (MFM/14/334)
Dinesh P (MFM/14/485)
Divya M (MFM/14/301)
Madhu Reka.M (MFM/14/406)
Pooja Sagar (MFM/12/2014)
Bhuvanesh V (MFM/14/526)
Date: January 6th 2015
ACKNOWLEDGEMENT
With a grateful heart we would like to remember all the people who have helped us during
the course of this project. We express our deepest thanks to Mr. Raghunath of Khadi Cluster
who gave us some valuable information about the project and also Mr. Krishna Kumar
(Associate Professor, Department of Fashion Management Studies, NIFT Kannur) for giving
necessary advices and guidance and arranged all facilities to make life easier. We choose this
moment to acknowledge his contribution gratefully for his careful and precious guidance
which was extremely valuable for our study both theoretically and practically.
We would also like to thank all other Faculty Members of FMS department for guiding our
project all throughout.
We would never have been able to finish our research without the guidance of our faculty
members, help from friends, and support from our families.
ABSTRACT
In order to get an insight into the process and working around making Khadi, craft cluster in
Kannur was visited. Observing the process of making Khadi gave crucial inputs into
understanding the very concept of what Khadi is. Along with getting an overall know how of
the process of Khadi making there was an opportunity to interact with the artisans who work
on the looms and machines to turn the yarn into final products.
This project aims to study and come up with ways and means to disseminate the real message
of Khadi in order to make it a common man’s cloth as well as a fashion statement for the
elite. The information gathered at the Kannur craft cluster provided inputs for the process of
conducting various primary surveys from Consumers, Retailers as well as Artisans to
understand the consumer buying behaviour, the inputs from retailers about the operations on
store front along with identifying the needs and problems of the artisans.
The interaction with the artisans, their families along with interviews with the senior
management and heads of various institutional bodies gave insights into how the Khadi
industry is currently operating and gave us sufficient inputs to identify the gap in the current
system.
.
CONTENTS
Sl.no Description Page No
1 Introduction to Khadi 1
2 Origin Of Khadi 3
3 Government Policies 5
4 About the Cluster 7
5 Cluster Location 8
6 Products 9
7 Customer Analysis 11
8 Retail Analysis 14
9 Supply Chain Analysis 16
10 Labour Constraints 19
Sl.no Description Page No
11 Production Constraints 21
12 Inventory Constraints 23
13 Branding Constraints 25
14 Marketing Constraints 27
15 Visual Merchandising 29
16 SWOT Analysis 30
17 Recommendations 31
18 Cluster Interaction 32
19 Cluster Team 33
20 Bibliography 34
Introduction to Khadi
“Khadi is hand woven and hand spun fabric which takes time to be made. It
is mainly manufactured in rural areas of India. In previous times it was
considered as the fabric for the poor rural workers & farmers. But wearing
khadi is no more for the poor, many high profile personalities and
economically sound people prefer to wear it. It is considered as one of the
most beautiful Indian fabric. The khadi wearer gets a royal and
distinguishable look due to its fall and style. It symbolizes luxury and
uniqueness”
Khadi And Village Industries Commission
Khadi and village industries commission is the Indian government body which promotes the usage of khadi. Khadi production and selling comes
under the small scale industry sector. This government body was created by an act which was passed by the Parliament. This gave a boost to the
khadi manufacturing sector of India, as a result many new outlets of khadi gramodyog opened all over the country. These shops sell stitched as well
as unstitched khadi fabrics. Every year starting from the date- 3rd October to January 29th all khadi gramodyog bhavans provide discount to the
public on various khadi products. It comes under the category of Indian handloom. This sector also generates employment for the rural population
of India. Indian government conducts various exhibitions and trade fairs in India and abroad to promote this fabric. The small scale industries
engaged in manufacturing of khadi gets economic redemption for the raw materials and production costs by Indian government.
According to a recent survey done it provides employment to 14.97 lakhs of people, the total annual production of khadi is 111.49 million sq. mtrs.
Khadi over the decades has moved from a freedom fighters identity fabric to a fashion garment. 1
Introduction to Khadi
Today there is such an increasing demand for khadi that despite of the thousands of workers
involved in spinning and producing khadi fabric, the demand of the market does not gets fulfilled.
Khadi has gained worldwide appreciation as it is hand made, durable, long lasting and organic in
nature. The fabric is produced by the masses for the masses. It is associated with Gandhian
philosophy as well as makes a fashion statement. Through the medium of khadi weaving, the
weaver expresses art and designing by the spindle and loom. It is widely accepted in the Indian
fashion circle. Leading fashion designers now include it in their collection by designing clothes with
khadi material. There is huge demand of it in international market, especially in western countries.
Khadi And Village Industries Commission
“The 'fabric of freedom struggle' and a political weapon in Mahatma Gandhi's Swadeshi movement, khadi's time has come for
statutory protection. An association of intellectual property rights lawyers has sought Geographical Indication (GI) tag for khadi,
recognizing it as a product unique to India.
The GI tag is a statutory protection for products which are unique to a particular region, and it aims to prevent abuse of the
uniqueness by people who stake false claims to the product”
2
Story of Khadi Fort, in Mumbai, is where the British left their
architectural legacy. On the ground floor of one of the many colonial era
buildings there resides a store, housing another legacy from their times,
khadi. Flanked by a couple of massive, dusty, dull, almost neglected shop
windows, the doorway leads into Khadi Bhandar, whose sheer size and
location would be the envy of any retailer. Sprawled over two floors, the
shop has shelves stacked with myriad variety, colours and shades of
khadi. Fans, attached to the end of six-foot poles, hang from the distant
ceilings. There are some people around almost all salespersons.
Trunks the kind that our grandparents travelled with stand stacked near
the cash counter, along with piles of cartons. A few minutes away, in the
Kala Ghoda precinct, is a lane that is easy to miss. Along one of the
nondescript walls of the lane is a discreet door, polished a dark shade of
mahogany, so quiet it is even easier to miss. A small plaque, at knee-
level, on the left of the door reads ‘Sabyasachi’. Inside, it is dimly lit,
reflecting impeccable taste and design sensibilities. An awe-inspiring
collection of antique clocks and photographs adorn the walls of the
extended foyer. Eighty’s pop murmurs from almost-invisible speakers
nestled in the corners of the low ceiling.
Origin of Khadi
3
Origin of Khadi
Bright colours, impossibly intricate zardozi, flowing fabrics line the deliberately stark walls. Inside an antique wooden almirah sits
Sabsyaschi’s khadi sarees; each would cost the monthly budget of an upper middle-class family. The walk from Khadi Bhandar to
Sabysachi is short. But the journey of khadi has been a long one. Khadi first caught the imagination of the nation during the freedom
movement under Mahatma Gandhi, who propagated it as not just a fabric, but a way of life. One that is centered around the village,
where the practice of khadi would be able to generate employment, income and, hence, self-reliance. Khadi was meant to become a
supplementary industry to agriculture, a crucial element in a self-sustaining economy. But it was not simply about the making of
yarn at home, it was the spirit behind it. Gandhi’s vision was clear: “If we have the khadi spirit in us, we should surround ourselves
with simplicity in every walk of life… The khadi spirit means illimitable patience… The khadi spirit means also an equally
illimitable faith…
The khadi spirit means fellow-feeling with every human being on earth.” Adopting khadi as a lifestyle choice symbolized the move
away from British textiles and products — resulting in all those spontaneous bonfires into which people flung their rich silks and
laces from England — and the promotion of all things Indian. Spinning yarn on the charkha, Gandhi believed, inculcated discipline
and dedication. It was meant to be a great social equalizer — “It sits well on the shoulders of the poor, and it can be made, as it was
made in the days of yore, to adorn the bodies of the richest and most artistic men and women” — and was also a tool to bring
women into the fold of the freedom movement. Khadi was, in fact, a masterstroke, taking the freedom movement beyond the
rarefied circles of the social elite and the educated out to the masses. And the image of Gandhi sitting in front of a charkha acquired
the weight of historical symbolism.
4
Government Policies
KVIC is the Indian government body which promotes the usage of khadi. Khadi production and selling comes under the small scale industry (SSI)
sector. This government body was created by an act which was passed by the Parliament. This gave a boost to the khadi manufacturing sector of
India, as a result many new outlets of khadi gramodyog opened all over the country. These shops sell stitched as well as unstitched khadi fabrics.
Indian government conducts various exhibitions and trade fairs in India and abroad to promote this fabric. The small scale industries engaged in
manufacturing of khadi gets economic redemption for the raw materials and production costs by Indian government.
KVIC SCHEMES
1. PMEGP: Prime Minister’s Employment Generation Programme
About: The Prime Minister's Employment Generation Programme
(PMEGP) is the result of the merger of two schemes - Prime Minister's
Rojgar Yojana (PMRY) and The Rural Employment Generation Programme
(REGP)
Pre-Requisites: Under the scheme, the beneficiary is required to invest
his/her own contribution of 10 per cent of the project cost. In case of
Schedule Castes/Schedule Tribes and beneficiaries from other weaker
sections, the beneficiary's contribution is 5 per cent of the project cost. The
remaining 90 and 95% as of the project cost, as the case may be, is granted
by banks specified under the scheme.
Benefit: The Beneficiaries under the scheme are refunded a certain amount
of the loan (25% for General, 35% for weaker sections in rural areas) which
is credited after three years from the date that the loan was extended. 5
Government Policies
SFURTI: Scheme of Fund for Regeneration of Traditional Industries
Objective: It was launched in 2005-06 for making Traditional Industries more productive and
competitive by organizing the Traditional Industries and artisans into clusters.
Functioning: Initially, in the first phase, 71 clusters to be developed across the country involving an
outlay of Rs.149.44 crores. Under the 12th Five Year Plan it was proposed to take up 800 clusters
with funding from the Government of India and Asian Development Bank. Under the revamped
SFURTI, there shall be three types of clusters involving artisans from 500 to 2500. The three types
of clusters with their number and approximate artisan coverage for the first phase is as under:-
Type Of Clusters No. Of Clusters Under The Scheme Approx.Artisa
Heritage clusters(1000-2500 artisans) 2 5000
Major clusters(500-1000 artisans) 10 10000
Heritage clusters(1000-2500 artisans) 59 29500
The time frame for the implementation of the project for each cluster was decided to be three years
and the funding pattern under the scheme has provision for soft interventions including skill
training, capacity building, design development, etc. hard interventions including Common Facility
Centers, Raw Material Banks(RMB), training centers, etc. and cross cutting thematic interventions
which include brand building & promotion, news media marketing, e-commerce, innovation, R&D
initiatives and developing linkages between clusters.
Beneficiaries: Artisans and small enterprise cluster
KVIC SCHEMES
PMEGP: Prime Minister’s Employment
Generation Programme
About: The Prime Minister's Employment
Generation Programme (PMEGP) is the
result of the merger of two schemes - Prime
Minister's Rojgar Yojana (PMRY) and The
Rural Employment Generation Programme
(REGP)
Pre-Requisites: Under the scheme, the
beneficiary is required to invest his/her own
contribution of 10 per cent of the project
cost.
Benefit: The Beneficiaries under the scheme
are refunded a certain amount of the loan
(25% for General, 35% for weaker sections
in rural areas) which is credited after three
years from the date that the loan was
extended.
6
About the Cluster
Khadi Sarvodaya Sangh has its main office in Thalassery, a small district one
hour ahead of Kannur. The office has a board of eight members-Director,
Secretary, President, Vice-president, Treasurer, labor representative, Auditor,,
Administrative in charge. The office was setup in 1984 with its center in
Thalassery. Today this cluster has spread its spinning, weaving and dyeing units
all across Kannur and adjoining cities. The industry comes under NHDC
(National Handloom Development Cooperation). The office controls 22
spinning millpond 22 weaving units across Kerala. A unit in Quilandi has
spinning, weaving and dyeing unit all together.
Khadi Sarvodaya Sangh
Raw materials come from Kuttur, Thrissur in super form to the head office from where it is sent to the 22 production units to transform into finished
products. The finished products are sent again into Khadi Bhawan in Thalssery owing to the setup of sales units here. Finally, from here the goods
are sent to the shops for sale all over Kerala. A peculiar fact about the cluster is that it follows barter system- exchange of raw materials in return for
fabric from Tamil Nadu. It is a government aided industry. It receives a capital of Rs 2 Crore every year of which it has to pay only 4% of the same
bacon return either in instalments or one-time payment. It also comes under the Khadi Commission of India.
The timings are 9 AM to 5 PM for the office and 10AM to 6PM for sales units from Monday to Saturday.
Office Address: Cannanore Sarvodaya Sangh Khadi Bhawan, Chettamkumm, Thalassery, Kannur. Production Units: 1. Kelappasadnam Khadi
Bhawan ,Quilandi, Calicut, Kerala 2. Khadi Bhawan, Meladi, Payoli, Calicut, Kerala 3. Khadi Bhawan, Chirakkal, Kannur, Kerala 4. Khadi
Bhawan, Kololam, Mattannur, Kannur, Kerala 7
Cluster Location
8
Products
Khadi Fabric
Khadi Dress Material
Khadi Dhoties
Khadi Pillow Cover
Khadi Shirts
Khadi Mattresses
9
Products
Curtain Fabric
Carpets & Door Mat
Khadi Bedsheets
Durries
Khadi Pillow Cushions
Khadi Cushions
10
Customer Analysis
Objective - Importance and
Influence of the Store Layout on
a consumers buying behaviour
Methodology – Primary Survey
through personal interview
Question
1.) What motivates you to enter
a Khadi Store?
Question
2.) What would be your
suggestions for enhancing the
shopping experience in a Khadi
store?
Question
3.) How important are discounts
as a factor for motivating your
purchase decision for Khadi
products?
Customer 1 Gender – Male
Age – 55-60 years
Profession – Business
Ques 1) Khadi is my preferred fabric, so the product itself is all that matters.
Ques 2) Good knowledgeable staff and proper lighting in the store. The
ventilation of the tore also matters.
Ques 3) I prefer shopping during discounts, but otherwise fresh stocks are also
alright.
Customer 2 • Gender – Female
• Age – 20-25 years
• Profession – Student
Ques 1) The history associated with Khadi.
Ques 2) They should have proper in- store signage. Also they could use proper
browsers and racks to display their products instead of storing them in piles.
Ques 3) Yes, I generally buy during discount seasons.
Customer 3 • Gender – Female
• Age – 20-25 years
• Profession – Working Professional
Ques 1) Patriotism and the recent promotion of khadi
Ques 2) Proper display of merchandise and should have trial rooms.
Ques 3) Discounts don’t matter much. 11
Customer Analysis
Inference:
1.) All the customers that were interacted with had issues with the
store layout and the way the merchandise was placed and
displayed in the store.
2.) Since the khadi stores carry discounts all around the year, it
was not a major motivation factor for the consumers.
3.) The major factor motivating people to buy khadi is the recent
communication about the Make in India initiative and the
promotion of Khadi itself.
A majority of respondents almost 62% have a monthly household
income above INR 50000. The education scale shows that all the
respondents have completed their higher secondary education and
89% of the respondents are Graduates. Thus, indicating a class of
respondents who are educated and have sufficient resources
Gender Profession
Male 82 Student 63
Female 69 Job 41
Year Of Birth Government Employee 6
Before 1966 24 Housewife 10
1966-1980 23 Business 29
1981-1995 72 Others 2
1996 & Later 32
Monthly Household Income Education
Below 25000 29 Post-Graduation &
Above 69
25000-50000 29 Graduation 66
50000-100000 32 Higher Secondary 16
100000-150000 22
Above 150000 39
12
Awareness and Acceptance: On being asked if they know about
Khadi, 95% respondents said “Yes”. This shows a high level of
awareness about Khadi among the respondents. But only 74% of the
total respondents have purchased Khadi.
INFERENCE: This indicates that despite knowing about Khadi,
only a very few people have actually purchased it. So awareness is
not the key issue but acceptance surely is.
How much they spend on clothes? Almost 38% respondents said that
they spend between INR 1000-1500 on clothes monthly.
Willing to spend on khadi: Almost 77% of respondents are ready to
spend more than 1000 of which 43% are ready to spend more than
1500 too if it’s a khadi product. This clearly indicates a sense of
attachment that respondents tend to have with khadi.
Motivation to buy KHADI: Fabric Quality and "wear it any time-
any occasion" factor by 37% each respondents; Gandhian principles
and patriotism by 23%
Demotivation in Khadi: majorly due to the less variety in designs
(approx. 38%)
INFERENCE: This indicates if new designs are introduced keeping
in view the latest ongoing trends in the market with appropriate
marketing efforts, it surely will boost the acceptance of Khadi.
Frequency of Purchasing clothes indicates that nearly 50% people
purchase clothes on regular basis while the frequency of purchase of
48% of the respondents is not very high. Also, 50% of the total
respondents said Khadi was most suited for “Festivals and other
celebrations”
INFERENCE: If efforts are put in to promote khadi as daily wear
option then the people who said that they buy garments on a regular
basis or at least twice a year (which is seasonally) could be tapped
into as potential customers. Some premium brands offering ethnic
wear for festivals and other occasions could promote khadi to their
customers without having to lower their price points.
Out of different sources of information about Khadi, Exhibitions
(37%) and Family Members (32%) are the most popular mediums of
communication. Also, almost 13% of the respondents indicated
towards Internet, Movies and Narendra Modi’s “Make-In-India”
Campaign as a major influencer.
INFERENCE: Since now most of the Khadi marketers are aiming at
targeting the youth as their potential customers, social media and
internet, being the most popular source of information among the
youth, could be used as an effective and economically viable medium
of communication
Customer Analysis
13
Retail Analysis
14
Retail Analysis
15
Supply Chain Analysis
Supply Chain Analysis – Kannur Sarvodaya Sangam
The subjective Kannur Sarvodaya sangam is a general unit which acts as a main body on implementing and maintaining the different aspects of
Khadi from production to retailing. It maintains and generated the process flow. The flow of goods and services of Kannur Sarvodaya Sangam has
been studied on visit to different production units and distribution chain of Khadi which is under Kannur Sarvodaya Sangam. The study was
conducted to simplify and develop the process of Supply Chain of Khadi.
1. Procurement of Raw Materials
The basic raw material procured for this cluster include cotton and poly vastra rovings from the KVIC village basically from Thrissur and
distribute to all their spinning units in the cluster. The collected yarn from KVIC is in the form of rovings which is then converted into Hanks in
the nearby units under the cluster.
2. Production Process
The basic raw materials are procured and further implemented through Kannur Sarvodaya Sangam, which further distributes to different centers
for production and further collected in Kannur Sarvodaya Sangam (Thalasheery Sarvodaya Sangam).
Roving - from Thrissur
Spinning Of Yarn Sorting Sizing Warping Drawing - In
Pirn Winding Weaving Of Cloth Cleaning The Woven
Piece Sourcing & Bleaching Dyeing
Reproduce Defectives pieces by omitting
defective ends
16
Supply Chain Analysis
3. Warehousing
Woven fabrics in different forms are stored in the major warehouse (Thalasherry Sarvodaya Sangam) wherein different products from
different Khadi centers are Warehoused in Thalasherry. The below mentioned products were stored.
4. Usage of Defective Materials
The fabrics which has been procured from different centers are distributed to different product centers in the cluster for stitching, which
are then quality checked and stitched wherein fabrics with defects are sent back to the Thalasherry Sarvodaya Sangam, where the
warehouse is located and such fabrics are again quality checked and products are produced after defective ends are removed in the same
center.
5. Distribution
Finished products are further distributed to retail stores, wherein the incharge of retail stores procure from Thalasheery Sarvodaya Sangam
as per their requirement. No specific retail channel is maintained.
Bedsheets
Pillow covers
Carpets
Fabrics printed and plain Procured from different Khadi centers
Shirts
Kurtas
Dhotis
17
Supply Chain Analysis
6. Retailing
Traditional form of retailing is been maintained wherein manual accounting with no specific retail channel is maintained. All retail stores have
these finished products mentioned above and not categorized and visualized for selling or retailing.
18
Labour Constraints
• Shortage of labor exists in village industries sector despite chronic unemployment among the youth in Kerala. It means that this field
offers hardly any attraction for the unemployed people of the State.
• Fact: The Punjab Khadi and Village Industries Board (PKVIB) has announced to provide self-employment to the rural youth of the state
through sustainable industrial units under the Prime Minister’s Employment Generation Programme (PMEGP). The board would disburse
subsidies worth Rs 4.82 crore under the PMEGP to the rural youth for setting up self-employment units.
• Approximately, 400 units would be provided these subsidies, with a target of providing an overall employment base to over 4,019 rural
persons in the state.
• A capital investment of Rs 1 lakh on an average under this initiation programme is expected to provide jobs to at least 1 people, Sample
said, adding that the upper limit of disbursement would be Rs 25 lakh to any potentially viable enterprise.
19
Labour Constraints
• No educational qualification or precondition is required for availing subsidy for
projects involving investment of up to Rs 10 lakh in case of a manufacturing
unit and of Rs 5 lakh for a business or service unit.
• Majority of the units express the view that shortage of labour is because of
better pay and working conditions in alternative occupations. There is
reluctance even on the part of traditional artisans to continue in these
occupations due to meagre earnings.
Suggestion: A poorly supported khadi sector has meant that most khadi artisans in
the state possess only basic skills. They can focus largely on skill enhancements of
weavers rather than on design intervention. They work using items like lunges,
towels, and basic kora fabric that are already being produced by the state’s khadi
institutions, turning them into a wide array of products like napkins, quilts, home
linen, garments, and saris. Their aim should ultimately be to support the craft and
artisans in a way that that their products find a good place in the market. They
should adopt and revive a weaving institution on the verge of becoming defunct.
This will allow several spinners and weavers to remain in the craft. They should be
given though not pleasant but a hygienic environment to work
20
Production Constraints
• Adoption of Modern Technology The khadi industries are characterized by the use of
labour intensive simple technology and most of the operations are carried on by hand.
• Presently, there are technological changes like use of small machines in this sector which
improve productivity, reduce cost, and eliminate drudgery and strain connected with
manual work. Since consumers are always on the lookout for low priced articles, it is
necessary that khadi industries update their technology and thereby increase productivity.
• Reasons for not Adopting Modern Methods An enquiry was conducted into the reasons
for non adoption of modern methods such as lack of finance, non availability of skilled
workers, resistance from workers and ignorance about the change in technology.
21
Production Constraints
Restriction is imposed on certain type of technological changes by the Board as they reduce employment chances. Trends in Production The
units are not able to achieve steady production since they face many problems during production like shortage of finance, shortage of labour,
shortage of raw materials, lack of proper guidance and increase in cost of inputs. Availability of Labour Khadi industries are labour intensive
providing employment in large numbers to rural people. This is due to the fact that most of the processes are done manually and there is very
limited use of machines. These industries require both skilled and unskilled workers. But it is observed that this sector faces labour shortage
despite the fact that there is chronic unemployment in Kerala. Labour shortage is experienced in the matter of specialized work that requires
a lot of talent and skill. Labour shortage in the sector amidst chronic unemployment in the State shows that this field has very little attraction
for the younger generation. Poor earnings from khadi industries are the main factor which creates an aversion to these industries among the
unemployed. The children of traditional artisans are unwilling to follow their hereditary occupation. Social status consideration is also one of
the reasons which dissuades the youngsters from taking up khadi industries as a profession. Availability of alternative employment
opportunities with better pay and working conditions like NREGP (National Rural Employment Guarantee Scheme) and construction
industries in towns and cities also account for labour shortage in this sector.
Restriction imposed by the Board
• Lack of Finance
• Opposition from labour
• Unaware of improved technology
• Non availability of skilled workers
22
Inventory Constraints
Generally Khadi Institutions (KI’s) consists of Production Centers, Central Store, Sales
outlets and Administrative office (for accounts and consolidations). Also these branches
functions in a distance from Head office in utmost rural areas. All the branches will be
sending daily transactions details like Production, Sales and stock received/sent every week
to the head office. Every month these branches will prepare Trial balance and send to the
head office.
Solution: All the data that comes to institution from their centers / branches in the
form of hard copies are fed in the administrative office. Only Central Store and sales
outlets are to be provided with Hardware software on need base.
1. Administrative Office: One High-End Computer + Laser printer with Accounts/Artisan
Module software.
a) All the accounts/budget data will be processed.
b) b) All the consolidation of Production data.
c) All the consolidation of Sales data
d) All the Artisan wages, AWF etc., maintenance
2. Central Store: OneHigh-EndComputer+BarcodePrinter+ Barcode Scanner + Laser
printer with Inventory Module software.
a) All the semi-finished products and final products are bar- coded.
b) All government supply/whole sales are recorded
c) Goods dispatches/receive to branches are recorded and monitored. 23
Inventory Constraints
3. Sales Outlet: Computers + laser printer + barcode scanner for each Bhavan with sales/
accounting module.
a) All the sales activities are recorded with computerized billing.
b) All the discounts to the ultimate consumers are captured in the system.
A software linking module for collecting all the data from these locations to centralized
database has to be designed and developed. Training head would include fund required for
training of artisans for various skills development and up-gradation.
Advantages:
Speed and Efficiency - A computerized inventory management system makes everything
from inputting information to taking inventory easier. Doing a hand count of inventory can
take days, but with a computerized inventory management system, the same process can be
done in a matter of hours.
Document Generation - Once the computerized inventory management system is in place,
managers and workers can use it to automatically generate all kinds of documents, from
purchase orders and checks to invoices and account statements. Managers can also use the
system to automatically order products when they run low.
Timely Data - With a manual system, the data is only as accurate and up to date as the last
hand count. With a computerized inventory management system, the management team can
pull a report and instantly see how many units are on the floor, how many have sold and
which products are selling the fastest. 24
Branding Constraints
The Ministry of Micro, Small and Medium Enterprises notified the Khadi Mark Regulations 2013 in the Gazette of India on 22 July 2013 to ensure
the genuineness of Khadi i.e. hand spun and hand woven, containing natural fibers (cotton/wool/silk), produced in India. KVIC is the Nodal
Agency to monitor, verify and enforce the genuineness of products being sold as Khadi.
The word, ‘Khadi’, has a deep emotional connect with every Indian. It has distinction of being the only cloth used in making our National Flag. It
conjures up feelings of national pride. It is one of the most valued contributors of our national heritage. Khadi has an admirable history behind it. It
is synonymous with our freedom struggle. Both as a symbol of self reliance and a credible instrument for rejuvenation of the rural sector, Khadi
instantly brings to our minds its profound association with Mahatma Gandhi, the Father of this nation.
Importance of Khadi mark and awareness
Mr Pranab Mukherjee launched the Khadi Mark recently in 2013. The Mark is expected to
provide a much needed identity to the Khadi as an assurance of purity and genuineness to
customers to boost its sale, as a part of the ongoing reform measures in the sector to re-invest it
in keeping with the changing time. With the introduction of Khadi Mark, no textile can be sold
or otherwise traded by any person or institution as Khadi or Khadi product in any form or
manner without it bearing a Khadi Mark tag, sticker or label.
25
Branding Constraints
Khadi has over the years, kindled hope for over a million artisan families
to rise above deprivation and backwardness. It remains an important
vehicle for the development of rural India. It is way of life for many in our
country. There are at present around 10.45 lakh Khadi artisans of which
seventy per cent are women. The Khadi industry has boundless
potentiality. The President expressed his happiness on the efforts made by
the Ministry of MSME to revitalize this sector through a slew of schemes
and programmes.
The President said that Khadi Mark is a novel initiative and it will indicate
the quality and genuineness of a Khadi product. It will provide a distinct
identity for positioning and brand building in the domestic and
international textile markets. This is not known to most of the public.
There are so many competitors in the market who make the imitations of
khadi. People have to be made aware of the khadi mark. But there is not
enough publicity about the mark. And even some of the Khadi institutions
are not aware of this. This should be made compulsory.
26
Marketing Constraints
Khadi is a sustainable product but people are not aware of its existence, rater
it is not available online which is a biggest drawback,
Marketing Initiatives Suggested
• Category arrangement and creating awareness on products
• Proper category awareness to be created on products where the hoardings
has to be clear and mention the products in clear formats in front of the store
• Proper marketing through online websites where in ecommerce channels
like flip kart and amazon with extensive and strong distribution channels with
tier1 and tier2 cities, example flip kart which initiates products for 8% of
profit
• Exhibitions and fairs has to be included, though both are conducted
included in khadi exports, mainline channels do not have such initiatives
which has to be sustained and developed, also the
• KVIC had taken the initiative for the registration of Khadi as a brand under
World Intellectual Property Organization (WIPO) to promote KVI products
worldwide. International marketing with trade mark will be an effective way
of promoting Khadi products.
27
Marketing Constraints
• International ecommerce websites
• Brand Image through its sustainable product and trademark registration will
result in effective brand management with the support of different brand
marketing and enhancing team
• Full fledged utilization of student project teams with centralized
government institutions That is a set of NIFT team can initiate VM for a
Khadi retail store as assignment which will provide them exposure as well
work done for khadi and marks for students
• Sponsoring designers and private institutions, where in fabrics will be
transformed into designs and clothing with more commercial value
• Tie-up with top end retailers for dedicative section for its clothing display,
which are designed earlier
• Dedicating a separate section for its Herbal products where people are not
aware of khadi herbal launch and initiative
• Establish stalls in railway centers because it is a government initiative
28
Visual Merchandising Constraints
For decades, during the fight against colonial rule, Khadi was a symbol of self reliance. Inspired by Mahatma Gandhi's call, many wore khadi – the
hand-woven cloth - on principle. Post Independence, however, it became mostly the uniform of political power, worn only by established and
aspiring politicians. People in general preferred factory-produced apparel, which was cheaper and more easily available. Yet lately, thanks to efforts
of the government and other agencies, there has been a gradual change and the market for Khadi has only been growing though slowly.
1. Organized Display 2. Signage’s 3. Color Blocking 4. Mannequins 5. Music
2. Apart from this we also suggest on engaging the students of NIFT to involve in
taking the initiative to execute this method of Visual merchandising. The students
can do their projects by executing this task at the khadi stores. They can come up
with ideas to visually renovate the stores within their limitations, thereby executing
what they learned, exploring their creativity while making it beneficial for the
khadi store.
The renovations in 2011/12 being implemented at 1,200 khadi stores across the country by
the Khadi Reform and Development Programme (KRDP) has shown great results with sales
going up 75% post the renovation. This throws light to a high potential opportunity to
further increase sales through creating a better store experience to its customers.
The stores under the cluster were observed to be very low at its visual effect. There is no
doubt that a retail space is the most productive and most efficient salesperson. Considering
renovations being a costly affair, We can still optimize sales space for maximum revenue by
employing the art and science of visual merchandising. Here we recommend few ways to
keep the stores more live and attractive without much investment.
29
• Ignorance of technology
• Lack of appreciation/ acceptance
• Lack of infrastructure
• Lack of training in management functions
• Lack of interest among new generation
• Lack of proper knowledge of workers
• Maintenance of fabric
SWOT Analysis
• Eco friendly& sustainable
• Reflects Indian culture
• Tax exemption
• Economic growth & Market growth
• Employment generation
• In-Vogue
• Skin & Climate friendly
• Easy to sew
• Collaboration with NIFT
• Scope for product diversification
• Potential for exports
• Emerging Fashion trends
• Growing consumer preference
• Capturing an untapped market (Youth)
• Innovative cuts and designs viz. patch work, kantha, phulkari
• Improving the store ambience through internees
• Government Initiatives & Schemes
• Promotions
• Competition from machine made fabrics
• Surviving in a technologically driven industry
• Reduction in the per hectare yield of fibres
• Inability in passing on the legacy of khadi-making due to lack of
incentives
Strength Weakness
Opportunities Threats
30
Recommendations
• Product-wise inventory should be published and updated regularly. In the initial stage the
central website with link to individual clusters will serve as a facilitator for knowing about the
products and placing orders for the same.
• E-application tracking should be extended to KVI sector and this will lead to better
transparency, information and better service to enterprising entrepreneurs.
• The Board should encourage units to make use of solar power in village industries. This will
result cost reduction to a great extent. The Board should conduct research on the feasible
methods of adopting this technology.
• As part of quality assurance ‘Design Engravement Mechanism’ similar to ‘Khadi logo’ should
be developed for village industries products. Similar products made by all units under KVIB
should be branded with a common brand name and trade mark.
• The showrooms of the Board are unattractive and are not making any appeal to the public. The
showroom display should be made more attractive at par with other retail outlets.
• Gift coupons should be introduced especially during festival season.
• Export markets for Khadi and village industry products should be explored by the Board. This
market should be identified and products should be modified according to the specific market
demand and packed to attract foreign consumers.
31
Cluster Interaction
32
Cluster Team
33
Bibliography
34
REFERENCES:
1. Aaker, D. (1996). Building Strong Brands. New York: The Free Press.
2. Baker W, H., J, W., & Nedungadi, M. D. (1986). Brand Familiarity and Advertising: Effects On the Evoked Set and Brand
Preferences. In RJ Lutz (ed). Advances in Consumer Research (Association for Consumer Research: Provo, UT).
3. Gustafson, T., & Chabot, B. (2007). Brand Awareness. Cornell Maple Bulletin, 105.
4. Keller, K. (1993). Conceptualizing, measuring, and managing customer-based brand equity . Journal of Marketing, 57, 1-22.
5. Percy, R. (1987). Advertising and Promotion Management. Singapore: McGraw-Hill.
6. Schiffman, L. G., & Kanuk, L. L. (1997). Consumer Behavior. In L. G. Schiffman, & L. L. Kanuk, Consumer Behavior, 6th
Edition. New Jersey: Prentice Hall.
7. Stokes, R. (1985). The Effects of Price, Package Design, and Brand Familiarity on Perceived Quality. In J Jacoby & J Olson
(eds.). Perceived Quality. Lexington: Lexington Books. .
8. Wansink, B., & Seed, S. (2001). Making Brand Loyalty Programs Succeed. II Journal of Brand Management, 211-222.
9. Wansink, B., Michael, L., & Batra, R. (1994, June 2). Increasing Cognitive Response Sensitivity. Journal of Advertising , Volume
23, 65-75.
10. Young, & Ubicam. (1994). Brand Asset Valuator. London: Young & Rubicam.
WEBSITES:
1. Khadi & Village Industries Commission. (2015, December). Retrieved from KVIC: http://http://www.kvic.org.in
