Indo-French collaboration in textile industry

Abstract

The project as title suggests seeks to understand the Indian and textile industries and explore opportunities of collaboration between the textile industries of both the countries. At the first it is very important to understand the differences in the countries as well as the textile industries of both the countries. India and France are very different in terms of size, population and income level. Indian has been a raw material exporter for a long time. India’s textile industry could not develop during British colonial rule and it remained limited to handmade and artistic clothing. The state of economy just after independence in 1947 was bad. To protect textile industry from outside competition and ensure safety of jobs of millions in this industry the government took a protectionist approach. Handlooms and handmade textiles were promoted and mills were discouraged. As a consequence of that Indian industry became fragmented with a large number of small sized powerlooms producing a bulk of the total produce. French industry on the other hand from start focused on textile design and quality fabrics. Labor costs were high in France which led to mass outsourcing of production to developing countries once the Multi Fibre Agreement was phased out. Today French industry remains high on fashion with manufacturing shifting outside. It has become innovation driven industry. Indian industry is not able to take full advantage of its potential because neither it is the lowest cost, nor the lead times are low and productivity and scale are not there. France’s expertise in textile technology, in branding and designing fashion items and quality fabric can help India become competitive in export. There is need to develop collaborations in education, crosstraining, technical textile and providing technology to Indian market. Indian government is generating helpful environment for foreign companies to come in India. India is an emerging economy with huge population with rising income levels. India’s apparel market is witnessing strong growth. In the second part we focused on how French apparel companies can come to India and target apparel market. It is beneficial for French companies because they will tap into huge market with strong growth possibilities. India will also benefit because it will lead to increased production levels in the country. Arrival of manufacturing in India improve the existing industry, India will gain from French expertise in branding and designing. India could thus emerge global sourcing hub for French companies. Based on market analysis we suggested urban women’s apparels as the target segment in which French companies already have expertise. We suggested positioning, pricing, location and promotion strategies in brief. In conclusion, it can be said that both the countries can benefit immensely from increased collaboration and improve each other’s competitiveness in global market.