Professional Documents
Culture Documents
Home Textiles
Home Textiles
Submitted by:
Anjali Chhabra
Ayushi kanoi
Mini Bhandari
Justine
Contents
Abstract
a. Objective of Research
b. Sub Objective
c. Research methodology
Limitations of research
a. India
b. China
c. UK
d. US
e. France
Future projections
Glossary
Bibliography
ABSTRACT
The Textile industry is one of the most important industries in world trade.
India occupies the third position in terms of textile trade in the world
signifying the importance of this industry for India.
The Home furnishing Textile industry, after apparels is being seen as the
next being opportunity for trade. The impetus to this industry is mainly
provided by changing consumer lifestyle trends.
This report provides an overview of the world textile industry with key focus
on India.
Size and Growth of the Indian textile industry and its product
components
Home furnishing market divisions
RESEARCH METHODOLOGY
Internet Search
Limitation of research
The dismantling of the quota regime has brought the entire market at an
interesting stage with players like China and India beginning to make their
presence felt. On 1 Jaunary 2005, the WTO Agreement on Textiles and
Clothing (ATC) came into operation replacing the earlier Multi-Fibre
Agreement (MFA). The phasing out of the MFA is triggering off exponential
growth.(In the first quarter of 2005, India's textile exports to the US has
risen by an estimated 22 per cent.)
India is the third largest producer of cotton with the largest area
under cotton cultivation in the world. It has an edge in low cost cotton
sourcing compared to other countries.
A key driver of global textile trade is also low cost sourcing of textiles
and clothing.
Average wage rates in India are 50-60 per cent lower than that
in developed countries, thus enabling India to benefit from global
outsourcing trends in labour intensive businesses such as garments
and home textiles.
Design and fashion capabilities are key strengths that will enable
Indian players to strengthen their relationships with global retailers
and score over their Chinese competitors.
The US market is growing at 5 per cent per year while the EU market
is growing at an estimated rate of 9-10 per cent.
The global trade in home textiles will grow from $8.6 billion to $23
billion in 2010.
Demand for embroidery is on the rise and export to countries like the
US, UK, Africa, Middle East offers a huge market for embroidery
products.
Geo textiles
Home textiles
Agro textiles
Industrial textiles
Medical textiles
Mobile textiles
Packing textiles
Sports textiles
Protective textiles
Building textiles
The Indian textile industry -- garment and home furnishing -- is one of the
largest and most important sectors in the economy in terms of output,
foreign exchange earnings and employment in India.
Rapid growth is projected for this industry at the rate of 14% with the
market size increasing from Rs. 530 Crores (2007) to Rs 1000 Crores.
Home textile exports are projected to increase by more than 400% by 2010.
Before the arrival of spinning machines, power looms and synthetic dyes,
textiles were very expensive to produce. The fact that they were highly
valued, preserved and collected is shown by their inclusion in household
inventories. Particularly, highly prized were fabrics brought from distant
places and they were regarded as heritage of the future.
The roots of Indian home furnishings industry lie deep in age old traditions.
Especially known for their ethnic, intricate carvings, weaves, pattern themes,
motifs, color schemes and workmanship, Indian home furnishings have
become popular the world across. Handcrafted ethnic home furnishings are
one of the most fascinating art forms in India and lend an unmistakable
grandeur to the decor.
The Categories
The home furnishing industry mainly exports fabrics, bed linen, table
linen, toilet and kitchen linen, towels, cushions, curtains, pads,
tapestries and upholstery's, carpets and floor coverings, etc. The
industry has adopted several measures and techniques to offer
premium quality and eco-friendly products to the global industry.
The home furnishing products can be broadly categorized into
five categories, which include –
o window dressings,
o bathroom textiles,
o kitchen linen
o Table linen
Andhara Pradesh: it is famous for block printed and made ups,bed spreads
and house hold textiles
Assam: it produces 90% of country’s Eri silk and 100% of Muga silk
Gujarat: It is popular for its block printed fabrics and made up, Tinsel
printing fabrics, Tie n dye materials, Mashru fabric and embroidered fabrics
Jammu &Kashmir: It is famous for woolen carpets and durries, silk items,
crewel embroidered fabrics and made ups.
Karnataka: It is not only famous for silk, raw silk, and silk good but also
famous for cotton and cotton textiles.
Kerala: It is popular for its blended fabrics and made ups and also for
towels, bath mats, table &kitchen linen
Madhya Pradesh: It is known for its block printed fabrics and made-ups,
tinsel printed fabrics, fine muslins, cotton saris with silk borders
Maharashtra: It is known for cotton textiles, block printed fabrics and tinsel
printed fabrics.
Orrissa: It produces fine cotton textiles, Tassar silk items and Batik printed
fabrics
Jaipur:
Punjab: It has highest number of woolen mills and produces woollen items
and phulkari embroidery
While players in the apparel business have upgraded their product mix to
meet customised demand of apparel exporters and developed made ups
from fabrics, the home textile players enjoy a distinct advantage
against their peers in the neighbouring countries in terms of being
‘first-movers’.
HOME TEXTILES EXPORT: AN OVERVIEW
innovative designing,
strategic partnerships with global brands and
better supply chain management
Key trends in the post-quota regime have helped the Asian trio to increase
their share as global retailers stepped up outsourcing to cut costs.
Home textile capacities in the EU and the US are shrinking due to the lack of
competitiveness. This downscaling, and the dismantling of quotas, is likely to
create additional markets estimated at US$ 1.3 bn in towels and US$ 1.8 bn
in bed linen for the rest of the world. With outsourcing now becoming the
norm amongst global textile retailers, and the EU and US imposing export
limits on China, Indian home textile industry stands to benefit.
Also, while the apparel segment enjoys higher margins (as compared to
home textiles), the home textile division is a hedge against changing
fashion trends in the apparel segment. The two business models thus,
offer diversification in terms of products, customers, fashion cycles and
currency risks.
Geared with expanded capacities...
Indian home-textile companies have expanded rapidly across the value chain
to take advantage of the emerging growth opportunities. The bulk of the
capacity expansion has been commissioned over the past three fiscals with
the help of low cost funding through the TUF (textile upgradation
fund) route. The expanded capacities have not only enabled the players in
this segment to meet bulk orders but also customise their products as per
the demand.
India is the largest supplier of terry towels (with 21% market share) and the
third largest supplier of bed linens (with 19% market share) to the US.
The home textile segment is well leveraged to drive the growth in the
domestic textile industry. Besides export opportunities, longer fabric cycles
(as compared to the apparel cycles) and fewer design variations make the
business better hedged as compared to the apparel business.
With their ethnic, intricate carvings, weaves, pattern themes, motifs, color
schemes and workmanship, Indian home furnishing products are gaining
immense popularity among buyers the world across.
Made- Total
Year Fabric Total
Ups (Value)
1998-
503.581414.76 1918.34456
99
1999-
488.481491.57 1980.05447
00
2000-
489.631637.82 2127.45466
01
2001-
496.471568.47 2064.94433
02
2002- 842.941790.33 2633.27544
03
Unorganized players are mostly in small size stores (<1000 sq ft.) selling unbranded products or
export surplus. These stores are typically in high streets or furniture markets but lack any
“quality retail” positioning or imagery
Unorganized Organized
• Dependence on store
staff for showing
products
Branding Aspects
Branding is a relatively weak phenomenon within the home linen category
– the retailers itself is the brand for the consumer
Branded products, whether retail brand or product brand, are most
popular for bed sheets. For all other products, usage of smaller brands or
unbranded players is more popular
Very few brands are actually recalled by most consumers. Consumers
rarely ask for specific brands even if some exist.
Bath Towels, Bath Robes & Other Bath Linen & Bath Textiles 75
Kitchen Tablecloth, Kitchen Towels, Napkins & Other Kitchen Textiles 119
Tablecloths, Table Covers, Placemats & Other Table Linen Manufacturers 776
Welspun India
Alok Industries
Arvind Mills
This surge is the direct result of increased level of aesthetic sense and
standard of living in people of China.
The textile products, which are now used in hotels, restaurants, cars and
other fields are of high quality.
The top three largest export markets are USA, EU and Japan.
.
The statistics said that China's top export of home textile by province
are Zhejiang, Shangdong, Jiangsu, Shanghai and Guangdong
With financial assistance pouring in, it is expected that within next three
years, home textile sector in China will become one of the biggest revenue
earner for the country.
However, Chinese home textile industry is still going through many problems
like
o the management level in many companies is still not up to the mark,
o technological upgradation is required in designing of products and
o most importantly, increasing investment may result in unhealthy
competition among domestic manufacturers.
UNITED KINGDOM AND HOME TEXTILES
Since the latter half of 1998, the UK market for soft furnishings has
benefited from increased consumer spending and is showing a great
potential for crafters. Value growth has been stimulated by more frequent
replacement cycles as fashion trends move towards increasingly
contemporary designs and styles.
Materials vary across the different segments of the market, however certain
types feature more predominantly in the high end of the market (e.g. silk)
than in the mid to low end. However, cotton is the most popular material
overall.
Competitor analysis
Magazines/Publications
The price points differ from one type of outlet to the next, based on the type of consumer visiting
the outlet and the consumer’s spending capacity. The table below gives an indication of the
pricing structures in each market segment, as well as an approximation of the relative mark-ups.
Departmental
< 10 10 – 100 100 + 150 – 300/400
Store
Chain and department store retailers in the UK market operate within the
price structures outlined in the pyramid below. As a potential supplier to the
UK market it is important to understand which segment of the pyramid is
most applicable to your type of product range in order to identify the most
appropriate target location for your product within a retailer’s product range.
Core items – Refers to the low -end product ranges items that
guarantee sales and remain fashionable (in most retail outlets this
category represents the volume products which are dependent on quick
turnover and therefore require consistent supply)
The real value of the pyramid is in understanding where (within these three
3 categories) you are most likely to gain access as a supplier given your
particular product.
Volumes in all categories are still relatively small when compared to the rest
of the world, and the United Kingdom's imports of blankets and rugs of
synthetic fibres represent only 3% of world imports for this product. It is
ranked 8th in world imports.
During 2001, tablecloths made from pulp, cellulose and wadding accounted
for the highest import value within the table linens category. Additionally,
this product category also experienced the highest growth rate of 37% for
the period 1997-2001, proving to be a very popular import within the UK
table linen market. UK imports for this product category represent 9% of
world imports and are ranked 4th in global imports.
Table linen made from flax showed positive growth in excess of 30%, but
the import value was low for 2001. This indicates that this product category
is still in its early growth stages and offers possible (but limited) opportunity
to exporters based on the UK’s 2% share of global imports in this product
category.
Articles made from cotton and synthetic fibres dominate the window
treatments category. The United Kingdom is the 2 nd largest importer of
cotton products with a 12% share of the global market. The import value for
this product for 2001 was $53 million, coupled with a growth rate of 15% for
the period between 1997-2001. Articles made from synthetic fibres
increased by 26% during the same period. The import value of this product
category was the largest within the Window Treatments group at $58
million. UK imports represent 9% of world imports, and it is the 4 th largest
global im porter. Collectively these two product categories are high
opportunity markets for South African exporters.
Products from China dominate the low-end segment. The South Asian
countries, such as India dominate the ‘low to mid’ segment of the market.
The extremely low cost of manufacturing in these countries (due to low
labour cost and materials) makes it difficult for manufacturers from other
countries to compete with them on price. The availability of high quality,
domestically produced textiles in these countries has ensured a constant
supply at minimal cost.
The price competitive, low end of the market is also a difficult one for SA
suppliers due to the high costs of shipping, combined wit h SA’s production
costs. This makes it difficult for suppliers to be price competitive.
High-end
Italy and France dominate the high-end segment of the market. Branding is a key component of
the high-end products, as it promotes exclusivity. Both Italy and France have successfully
branded their products.
These purchasers have some concerns about the labour and environmental
standards under which products are produced, and the degree of benefits
that go to producer groups. They are also interested in cultural authenticity.
They form a far smaller potential market than the mainstream consumer,
but are expected to grow.
Besmo (http://www.besmo.com/)
Conran (http://www.conran.co.uk/)
Debenhams (http://www.debenhams.com/)
Liberty (http://www.liberty.co.uk/)
Beales (http://www.beales.co.uk/)
Copes (http://www.copes.co.uk)
Home furniture
The furniture market is valued at more than 10 billion euros, it is
constantly growing, although the French production know a drop.
France lies the tenth exporter of furniture and the fourth importer in
the world respectively with 10 and 7 billion dollard. France will lose its
competitiveness as a result of competition more and more strond of
the countries with low labour costs. The french furniture manufacturers
realize three-quarters of their export furniture in the European Union
and mainly to Spain, Germany, Belgium and Luxembourg, the United
Kingdom, Portugal and Italy. Outside the EU, the main exports are
made to Switzerland and the United States. The French imports of
furniture is rising steadily over the past decade and nearly 80% in
France draws in the European Union from Italy: 24%, Germany,
Belgium and Luxembourg, Spain, Poland, Portugal, Denmark and
Austria. Other countries with low labour costs are taking significant
market shares furniture, including China, Romania and Indonesia.
Home textile
The following diagram shows the various types of distribution for home
textiles in France in 2005:
Household consumption in 2002 (the different segments of Home
Textile) :
Home décor
The consumption of home decor follows the same pattern as for home
furniture (cf I A).
A few years ago, the french bought furniture for good quality “for their
entire life" (often on the occasion of marriage). Now they prefer to buy
home furnishing cheaper to move more often. So far, the French
spend more money for hobbies than for decoration, but it is being
reversed. While some did not hesitate to go into debt to afford the
living room of their dreams. In some stores, 40% of sales are made on
credit. Each year, one out of three French buys at least one piece of
furniture. The lifespan of sofas rose from 15 to 10 years and reaches 4
or 5 years for products in vogue. In 2004, households spent french
8.57 billions of euros to purchase furniture, a figure up 3.1%.
Home furniture
Home textile
Carré Blanc
Descamps (Zucchi Group)
Home decor
Given that the important companies of home furniture sell often home
decor, the leaders of home furniture are the leader of home décor :
Conforama and Ikea.
Traidcraft (http://www.traidcraft.co.uk/)
Tearcraft (http://www.tearcraft.org/)
Mainstream department and chain retail stores selling multiple
product ranges (not recommended because of their high volume
demands)
Direct exporting
Indirect exporting
Buyers are likely to have an initial screening on the basis of the fit of your
product and price. The initial screening may be done off the basis of photos.
Many will then have another level of screening in relation to:
Quality standards
Reliability of supply
Production volumes
Ability to interpret design briefs
US MARKET
3.1 Overview of the US market
The United States is easily the world’s single largest market for consumer
goods and demand has largely been satisfied for decades by mass
production resources. The US Home Furnishings category alone (comprising
Furniture & Accessories, Home Textiles, House wares, Home Appliances,
Table-Top, Floor & Wall Décor, and Consumer Electronics) had a 1999-
estimated wholesale value of $146 Billion, with a 13.5% growth rate.
Paradoxically, the dominance of mass-produced goods within the
marketplace has created significant opportunity for handcrafted merchandise
in many categories as consumer look for interesting new products to
consume. However, this opportunity is one filled with challenges for the
handcrafters.
For instance, handcrafted products in the above categories, which were imported from Africa,
Central & South America, developing Asia (China, Pakistan, etc.) accounted for less than one -
half of 1% of the total estimated US demand in 1999.
In recent years, the industry has faced many changes, including the
consolidation among retailers through the growth of retail chains, catalogue
showrooms, and TV home shopping networks; a decline in the number of
wholesalers; reduced tariffs; increased imports; economic depression etc.
Consumers in most categories have become very price sensitive. Crafters
therefore need to be creative and focus on serving niche markets.
The major product groupings in home textiles and soft furnishings that are
used by the NAICS (North American Classification System) are listed below:
Home furnishings
o Toss/decorative pillow
o Throw
o Cushions-patterned/plain/textured
o Floor pillows
Table linens
o Tablecloth
o Runner
o Placemat
o Coaster
o Napkin
Flooring
o Rugs
o Mats
Curtain/window treatments
o Drapes
o Valances
o Curtains/Blinds
o Tie-backs/holdbacks
3.2 What are the design/style and material trends in the US market?
The US is vast and its sheer size means that enormous cultural variations
occur from state to state. These factors have led to the development of a US
market that is both broad and fragmented. Styles, designs and trends also
differ from region to region. It is particularly vital for crafters to be aware of
these variations.
A wide range of materials are used in the US home textiles market. There
are two trends, both of which incorporate strong textural dimensions that
encourage touch.
The dominant craft techniques in decorative pillows and table linen are beading and embroidery,
while occasional examples of patchwork and ribbon work are found. Both China and India
dominate as suppliers of beaded and embroidered items, particularly in the luxury fabrics such as
silk which tie well to their “traditional” products.
Trend related information with reference to design; style and material can be
accessed through the following resources:
The current recession in the United States has put a lot of pressure on most
retailers, resulting in many liquidations and closures. As a result, in a highly
competitive retail market, retailers push their suppliers to provide at lower
cost. For many of the large “value” or discount retailers, they make profit
from selling large volumes rather than high mark-ups on individual items.
On the other extreme, the very high end of the market (which is a much
smaller but more lucrative side of the market) is more concerned about
quality and branding than price. In between these two extremes are a range
of variations, which South African crafters will need to explore to find the
potential opportunity for them. Please see Appendix B for some
examples of price poin ts in various retail outlets in the US.
Quality of materials
Quality of workmanship
Reliability of supply
Branding - much of the high-end market for home textiles and soft
furnishings in the mainstream retailers is depending on brand names
and designer labels, or acceptance as a supplier of own brand/private
label goods.
o Table linen of cotton, not knitted accounted for over $232 million
worth of imports and the second largest import product
category, table linens of man - made fibre not knitted accounted
for over $57 million
o The US's imports of the product category table linen made from
cotton, represents 38% of world imports for this product, and
once again it ranks 1st in world imports
Window treatments
The US import values of window treatments are generally larger than the
imports of table linens, with window treatments made from synthetic fibres
and from cotton dominating US imports by both value and growth
Products from China dominate the low-end segment. The South Asian
countries, such as India dominate the ‘low to mid’ segment of the market.
Low labour costs and the availability of high quality; domestically produced
textiles in these countries are key sources of competitiveness. The price
competitive, low end of the market is also a difficult one for SA suppliers due
to the high costs of shipping, combined with SA’s production costs. This
makes it difficult for suppliers to be competitive in pricing.
High-end
Italy, France and Portugal dominate the high-end segment of the market.
Branding has been the main source of competitiveness for these three
countries as it is an integral part of the high-end product. Branding
(associated with a ‘tradition’ of handcrafting excellence) is essential to
transacting in the high-end market segment that is aimed at promoting
exclusivity.
These purchasers have some concerns about the labour and environmental
standards under which products are produced, and the degree of benefits
that go to producer groups. They are also interested in cultural authenticity.
They form a far smaller potential market than the mainstream consumer,
but are expected to grow.
The items classified under “homeware and gifts” are wide ranging. They can
be made from of a wide variety of raw materials, ranging from paper to
metal, and they can range from purely decorative to utility products.
Therefore, there is a clear overlap with products falling under different
categories such as household articles, home decorations (including small
furniture), toys, fancy jewellery, arts and antiques and garden articles.
The criterion for buying by the consumer is whether it will fit into his/her
particular fashionable style, or whether it represents a certain image that
may be useful as a gift. A remarkable common characteristic in all these
articles is their decorative and/or emotional value; consumers seem to
purchase them just because of this feature.
Homeware purchases are viewed as becoming an increasingly important segment in the gift
market, as many US residents increasingly see their homes as a “retreat” where they can feel
secure and pampered. Gifts may be purchased in major mass retailers, specialist chains and
department stores, but may also be done in the thousands of small, independent gift stores across
America.\
Lowe’s (http://www.lowes.com/)
There are altogether 40 000 independent gift stores in the US. Founded in
1952, the Gift Association of America is the oldest and largest trade
association comprised of retail stores and wholesalers in the gift industry. It
has around 600 retail members, as well as over 50 wholesale members.
These consist of gift stores, boutiques.
Other retailers
Indirect exporting
Contact the CCDI for a list of recommended online trading houses, agents
and intermediaries.
Trade Shows of high Importance:
India is on a fierce race to become a more dominant player in the U.S. home
textiles industry, but some experts say it may need to do more to get there.
Rapid growth is projected for this industry at the rate of 14% with the
market size increasing from Rs. 530 Crores (2007) to Rs 1000 Crores.
Home textile exports are projected to increase by more than 400% by 2010.
INDIA has emerged as the top supplier in major product categories in the
`cut-throat' US home textiles market, leaving erstwhile leaders such as
China, Portugal, Brazil and Turkey to bite the dust.
KSA Technopak expects India's home textile exports to grow from $1.2
billion now to $5 billion by 2010. With manufacturing facilities closing down
in the West, international retailers are stepping up their sourcing of home
textiles from countries such as China, India and Pakistan.
McKinsey estimates that the global trade in home textiles will grow from
$8.6 billion to $23 billion in 2010. India's presence in the US home textile
market is growing. India is the largest supplier of terry towels, bed linen and
second largest vendor of cotton made-ups to the US markets. China,
Pakistan, Bangladesh and Vietnam are major competitors for India in this
segment.
These acquisitions will help the companies create a foothold in the brand
conscious markets such as the US and EU.
Average wage rates in India are 50-60 per cent lower than that in
developed countries, thus enabling India to benefit from global
outsourcing trends in labour intensive businesses such as home
textiles.
Design and fashion capabilities strengths will enable Indian players to
strengthen their relationships with global retailers and score over their
Chinese competitors.
Production facilities are available across the textile value chain, from
spinning to garments manufacturing. The industry is investing in
technology and increasing its capacities.
Large Indian players such as, Welspun India, Alok Industries and
Raymonds have established themselves as 'quality producers' in the
global market.
OBJECTIVE:
-Bed sheets are being made from Coolmax and Thermolite fabrics. Coolmax
fabric incorporates a moisture management technology and has traditionally
been used in active performance wear.
Home textiles are also being made from various functional materials,
including Lycra stretch fabric, thermally adaptive bedding, environmentally-
friendly textiles, anti-microbial fabrics, stain protective treatments, flame
retardant materials and fragrance encapsulating technologies.
OBJECTIVE:
HOW does one create brand consciousness in consumers' minds for home
furnishings, a category which is highly commoditised and where brands don't
matter much to the consumer? This is the biggest challenge facing all the
major Home Furnishings companies.
“We want to become the number one home textile company by the end of
this year, but apart from this, we have a larger mission on hand — and that
is to get the category to evolve,”. says Anshuman Singh, Chief Executive
Officer, Welspun India
“Krishna Mehta plans to come up with his exclusive range of designer home
textiles”
OBJECTIVE :
GLOSSARY
Home furnishing
A field dealing with products for interior design and decoration, such as upholstery, rugs
and carpets, or bedding,furniture,lighting and other decorative items
Home textile
A field dealing with soft furnishing but doesn’t include furniture ,lighting and decorative
items
Home décor
Household textiles
Household textiles include bath linen (bath maths, bath rugs, towels,
washing gloves, etc.), bed linen (bedspreads, blankets, pillowcases, quilts,
sheets, etc.) and kitchen linen (table linen, dish towels etc.).
Furnishing textiles
www.india-export.com
www.google.co.in
www.china.org.cn
www.ksa-technopak.com
apparel online-journal
CITI reports
Textile view