The textile industry in the developed countries is also restructuring itself in a manner so as to take advantage of product innovation. Some of the products, now being developed are jackets that cool the wearers down, warm them up, and send out soothing vibrations, textiles with healing and caring properties and protection from harmful radiation. Intelligent Textiles, Smart Clothing are receiving unprecedented attention and are in the realm of possibilities.

Immense opportunities are also being seen in the entire gamut of Technical Textiles given the range and diversity of row material, processes, products and applications that they encompass. "Technical textiles" have been breaking new ground due to their cost effectiveness, durability, versatility, user friendliness, eco-properties. In fact, it is estimated that around 40% of all textiles made in Germany are now covered under the field of "Technical Textiles".

While the developed countries are seeking to upgrade their presence in the textiles and clothing sector by moving in to the field of technical textiles, the developing countries are equally concerned about the need to adapt themselves to the changing requirements of the consumers and move up the value added supply chain by adopting innovative technologies and redefining the product mix.

Indian Textile Industry: Changing Profile

The Indian textile industry has embarked on an ambitious programme of modernization and technological upgradation in recent years to transform the textile sector from a state of low technology level to a producer of high technology products. Technological upgradation in India has resulted in: -

• A shift from commodity based trading to high value added fashion garments.
• Vertical integration and horizontal consolidation of production process leading to lowering of manufacturing costs.
• Improved productivity gains
• Efficient supply chain management
• Development of Economies of scale.

Developing Brands: The Indian Experience

Greater reliance on technology has led to good quality products, innovative designs, refining of consumer choices and needs. These factors have also led to the emergence of Brand Consciousness.

As is well known, "Brands" occupy a significant place in international marketing as they give a product better identification, differentiate it from competition, create long-term loyalties and make possible premium pricing.

Unbranded products, on the other hand, do save on costs of packaging, selling & manufacturing. However, a quantitative analysis of branded & unbranded products shows that costs so saved are far less than the margins that a branded good fetches. For instance, unbranded ladies knitted tops are being sold at US$ 2.50, whereas the same product with a few modifications & improvements fetches nearly US$ 20 when sold as a brand. The difference is thus nearly 9 times.

Brand-Building in India

The process of brand building in India has led to the emergence of the following main trends:

• Disappearance of the distinction between domestic and international markets.
• Expansion of organized retail networks.
• Localisation of global brands.
• Globalization of local brands.

Disappearance of the distinction between Domestic & International Markets

Purchasing power of the Indian consumer continues to increase due to India's increasing GDP Growth and "demographic dividend" in terms of youthful population leading to an expansion of the domestic market.

The size of the domestic market is expected to reach US $ 60 billion by 2012 from the present level of US 34.6 billion, growing at a CAG R of 10%.