"the Doomed Looms"

THE DOOMED LOOMS

A paper on Banaras Handloom Industry RANJAN SHARMA IIND MBA

07471 SRI SATYA SAI UNIVERSITY School of Business Management Accounting and Finance

CONSUMER BEHAVIOUR MGT- 406 ASSIGNMENT NO.2

India stands for its culture and heritage. Since aeons, our culture has witnessed myriad changes. From Mughals to Rajputs to Portugese to Britishers, each one has left its indelible mark on Indian culture. One cardinal aspect of our culture are the various dresses worn in different parts of the country. And Indian saree is one such dress which is common to every state and the womenfolk of India. Amidst plethora of sarees, Banarasi sarees are hailed as the topnotch in quality and design. Banaras silk sarees are an integral part of the Indian sartorial landscape. The problem: Weavers are the soul of the Banaras handloom industry. They are the ones who toil day and night to give us exquisite piece of art and skill. But today this industry is facing a major downturn. There are numerous people who have been denied their share in the development process. One such group is the Weavers of Varanasi. Their poverty prevents them from satisfying their bare necessities. Their obscurity prevents them from making their sufferings known. Their illiteracy prevents them from fighting against the injustice.

Some statistics: There are about one lac handloom weavers at Varanasi, presently 40,000 are active. In addition, there are hundreds of traders, dyers, designers, cardmakers and ancillary support providers. The annual turnover (at Varanasi price) is estimated at around Rs.400 crores. While being concentrated in Varanasi City, the activity has spread to surrounding villages. 70% of weaver force is in the city. 90% of city weaver force is Muslim, while 30% of weaver force in villages is Muslim. The main product of Banaras Handloom Cluster is saree and its dominance continues. The other products are: • • • •

Dress material Furnishing fabric Fashion accessories, eg, stole, scarves Saree Streams: Yarn and Look

The saree segment typically consists of two subsequent. • •

Satin-based work (largely Karnataka yarn) Organza type work (largely Chinese yarn)

Most of the output (90%) gets sold at Banaras. The incidence of contractor weavers and co-op societies selling directly to traders /others outside Banaras is very limited. Market for saree: In the high end segment, A Banarasi silk saree is not so strongly on the priority list of an Indian bride from a prosperous family as it was earlier. The heavy work (embroidery) sarees are out-competing Banarasi sarees. There are two areas in which heavy work sarees apparently are exerting pressure on Banaras saree. Exclusivity: It is possible to make each heavy work or embroidered saree exclusive because it is easy to make variations. This is not so in case of handweaving and currently, there is emphasis on exclusiveness. Work pricing: A basic heavy saree may cost Rs. 2000 and work on it gets priced at, Rs. 8000; leading to a price of Rs. 10,000/-. Unlike weave, work pricing is somewhat discretionary and offers scope to the retail outlets for larger margins. The heavy work trend according to market observers is undermining the significance of exquisite weave in the traditional aesthetic consciousness. In the low end segment, Banarasi saree does not possess long-established or traditional brand equity. It has grown quantitatively in this segment as a result of expansion of weaver force and market conditions. It is fighting power loom sarees there. It manages to secure some volumes but mainly at the cost of helpless weaver. South India in recent years, has emerged an at attractive destination for Banarasi sarees in lower-end segment. At one level, the brand equity of high-profile retail outlets (e.g., Kala Niketan) now, in certain context, matches or exceeds that of Banarasi high-end sarees. This has affected the value-chain; such retail outlets securing a larger share of the price-cake; squeezing the share of Banaras-based players. In both price segments, saree has been facing problems and these problems do not appear temporary; notwithstanding occasional spurts in demand. There is a market for non-saree products too, but the dress material, furnishing fabric are selling on the strength of their own aesthetic /economic strength; without drawing strength from Banaras brand equity. The customers, unlike in case of sarees, do not actively seek Banaras weave in

respect of these products. In fact, for dress material and furnishing fabric, the sector has not attempted product development; it merely sells fabric.

Export market: The estimated of share of export in handloom output at Banaras varies from 2% to 3%. It is meagre. Besides sarees for ethnic population abroad, the products are • •

Furnishing fabric Accessories, e.g., scarves, stoles Buddhist brocade

The exports, in most cases, entail large volume (for a given trader); the industry does not have networking systems. The orders are time-bound. The exporter, many times, converts it into a power loom order. The products in the overseas market are largely positioned in purpose terms – saree, table runner, curtain, stole and its handloom identity remains either undeclared or low key. The export products move largely on the strength of intrinsic aesthetics and workmanship; bereft of Banaras brand-equity The foreign buyers remain fairly removed from Banaras in terms of reaching down directly to local traders and societies, leave alone weavers or asking explicitly for Banaras weave and design The industry has not been able to explore the neighbouring country saree/lahenga market, e.g., Sri Lanka, Bangladesh, Pakistan.

Other factors: There are a number of factors which gave rise to the grim situation prevailing in this industry. One of the main reason was the arrival of powerlooms. At Banaras, the two sectors are extremely inter-twined. While there are estimatedly 40,000 working handlooms, there are 10,000 active power looms

Powerlooms use the cheaper Chinese silk yarn, whereas the handloom uses expensive silk yarn from karnatka. Because of the trade liberalization it is very easy to procure Chinese silk these days and it is posing a threat to the handloom industry. A banrasi saree which takes about 10 days to be completed in a handloom merely takes a day in a powerloom. Power looms mix silk and synthetic. Handlooms have also begun doing this; reducing the gap. As handloom moved from higher end to lower end products, designs got simplified, rendering it vulnerable to copy by power loom.Handloom owners got to own power looms, it became easy for them to pass off power loom products as handloom produced. The customer knowledge, in some cases, declined. It is difficult for an average customer to tell handloom from a power loom product. There are simple, practical ways of educating and empowering the customer but the trade channels do not perceive any benefit from such education and have not invested in it. While there is an association of traders (gaddedars), there does not exist any association of weavers, designers, dyers, card-makers. A producer weaver, by and large, sells to local satti/grihastha/gaddedar. The incidence of his bypassing these local tracks and reaching out to non-local traders or local retail outlets is negligible. The weaver earnings vary from Rs. 18000 to Rs. 30000 per annum. The average is likely to be in Rs. 20000 to 24000 range. It is inappropriate to ascribe this fully to the current slump. If market conditions improve vastly, the worker earnings are likely to improve marginally because the weaver force-active and passive-is so large There has been absolute decline in earnings @ at least 30% to 40% over last 10 years. A weaver who was getting Rs. 100 per day in mid -1990’s gets Rs.60 per day now. If inflation is factored in, the decline is sharper. But today the situation is even grimmer; a weaver gets rs.60 for a week. Weaver feels that: •

Power looms are affecting handlooms

• • • • • •

No option available for shifting to any other work Efforts should be done to strengthen the marketing of Banaras handloom products Problem is due to slump in market No timely payment of wages Govt. should make efforts to improve marketing of products and condition of weavers Designer Survey

A brief swot analysis: Strengths: • • • • •

Traditional Value Availability of skilled weavers All the back word linkages are available Being a famous tourist place good Connectivity with major cities Existence of strong Traders Association

Weaknesses: • • • • • • • • •

Dependency on one product Highly unorganized cluster Over work force Products are relatively costly because of use of costly yarn Low credit from financial institutions City infrastructure is bad Brand Equity of product is declining Decline in wages of weavers No regular work for weavers

Opportunities: • • •

Brand Building Product diversification Exploration of new market

• • • •

Export Reduction in custom duties on Yarn Product/Design patenting Registration of Banarasi Products under Geographical Indignation Registration Act

Threats: • •

• •

Competition from other clusters Decline in demand of Saree Increase in demand of value added products Increase in demand of low cost power loom products

POSSIBLE STRATEGIES: 1. Revamping brand equity for banaras: The challenge is restoring the appeal/image of Banarasi handloom saree weave in the mind of contemporary Indian consumer. The brand equity campaign-ads, publicity, stories, events, contests- should be designed with specialized inputs from a market research/ad agency. Brand banaras needs to be rebuilt with a strong associations with the history and culture of the place. Government needs to play a major role in building a brand.just like they are doing with the incredible india campaign they can replicate the same stuff here too and make banaras and silk an inevitable part of Indian culture. Foreigners often visit agra for tajmahal, the campaign should be such that foreigners are lured to come to banaras to buy the prestigious banrasi saree. The stalls can be put up where actual saree making goes on and the visitors can themselves see and observe the craft of sari making in a traditional handloom. This will project a positive picture of the weaver’s hard work and make an impact on the consumer which will in turn lead him/her to buy the product. This will give an impetus to motivation levels of customers. To illustrate one campaign’s caption could be: “Art coupled with tenacity and perseverance is a lethal combination. A banarasi saree is an intricate piece of art, tenacity and perseverance weaved

together to give you the best you deserve. Come and experience the making of this exquisite piece of handcraft yourself and feel the difference.” 2. Designs: The design is the most dominant feature of Varansi product offering and hence is a determinant of market volume. Banaras design needs to be oriented, without undermining its traditional core, to the needs of present market at one level, and at another, to elevate it to the status of shaping aesthetic tastes and fashion trends in the Indian market place. Therefore creating and promoting new designs, which are the joint output of market-savvy external designers and local designers Capacity of Varansi-level designers must be strengthened in terms of comprehension of market trends, creative competencies and adapting creative genius to market context. Therefore organize orientation, training and exposure programmes for local designers.

3. Banaras can also build brand equity for non-saree products like: • • •

•

Dress material in general and ready-to-stitch units of dress material Upholstery and furnishing fabric Madeups, e.g., cushion covers, purses Scarves, stoles, ties and such other accessories

For the above there must be a constant cooperation and coordination between the weaver, local trader and the non local trader. The network will require design, product development, market-information, marketing assistance, brand equity promotion, export promotion, weaver capacity building, designer capacity building, and such other assistance. The network will function with support from steering agency. 4. There must be an alliance of these traders and weavers which must propagate ideas like: • • • • •

Privileged subsidized access to raw material Enforcement of handloom product reservation act Ban on production of certain kinds of designs on power loom Propagation of geographical indication system Advocacy for mandatory certification/declaration of handloom character of products in the overseas market

•

Campaign to enable the average Indian customer to distinguish handloom from power loom.

5. The import of Chinese yarn must be made expensive. Govt. must take steps to impose duties on the imported silk. 6. The support structure which are mainly cooperatives for these weavers must ensure not only up-gradation, work shed, market assistance, export promotion, design development and training assistance but it should also focus on Education, health, Social security ,Relief for artisans in distressnatural or manmade ,Women and children ,Saving and micro-credit ,Working conditions ,Wage related mode, Wage related models and practices ,Artisan rights and duties ,Some elements of quality of life related work, e.g., recreation, sport, library, personality growth.

7. The weaver is now far removed from the market in terms of access and knowledge. It will be premature to ask him to organize credit, raw material, production and marketing. He needs to acquire and sharpen competencies, confidence and collective strength. There is a need to encourage either an NGO or an activist organization to organize weavers and to enhance their capacities. There must be a legal framework to ensure minimum deal for weavers and unless there is capacity building, weaver will stay away from market. 8. The numerous small players at Varanasi have not been able to come together or pool capacity for dealing with the market or the policy environment. This is responsible for the continued decline. These small players can come together to form a big entity. The main merit such player will bring in technology market and financial resources required to give a decisive push to the cluster and be accountable for return on labour and working condition. 9. There is a huge export market waiting to be tapped. Neighboring countries like Pakistan, Bangladesh too use silk clothes in their major functions. Exporting to these countries can fetch higher margins.

Apart from neighbors, a Middle East country like Oman also uses silk as their prime wearing material. Men’s dress which is known as “dishdasha” is made up of silk purely. But for this to succeed government has to reformulate trade strategies and policies so that there is an open market for banarasi silk products and the margins must go to the weavers. A detailed consumer behavior study would lead to more valuable insights in this regard and help uplift the fate of weavers.