In order to gain global acceptance several Indian companies are investing overseas and acquiring International brands. For example, in the Home Textile market, Welspun industry has purchased "Christys", a UK Towel Brand; GHCL has acquired "Dan River" and "Rosebys", Creative Garments has purchased "Portico" brand to facilitate entry into the US and EU markets; Alok Industries has purchased "Hamsard", a UK based retail chain.

Issues in Brand Building and Brand Promotion

While efforts are being made to popularize global brands in the Indian domestic market and globalize local Indian brands in world markets, there are a number of issues, which need to be addressed not only in the creation of brands but also in sustaining them over a period of time.

These issues are:

• Need to understand consumer needs and carefully differentiate the product offering.
• Reconcile differences in brand/product development across countries leading thereby to different product cycles for too same product.
• Choose between "standardization" or "customization" so as to take into account local sentiments and beliefs.

The popular adage Think Global, Act Local explains how to overcome the above issues. Coca Cola, which is truly a global brand has now come out with Think local, Act local slogan focusing on the need to customize the offerings as per the local requirements.

Another example is the way Mc.Donalds has changed its product mix in India to suit local flavors, tastes and purchasing power.

Joint ventures and collaborations could be a way of overcoming cultural constraints and managing the highly decentralized operations required to make a brand successful in the market. Indian companies are already exploring these possibilities by tying up with overseas companies to try leverage their reach in the global markets.

Conclusion

The Indian textile industry is rapidly repositioning itself as a global player. Towards this end, Indian manufacturers are increasingly integrating their operations, both vertically and horizontally. Yarn makers, weavers are moving forward into producing finished goods like Home Textiles and Garments.

Simultaneously, small and medium knitwear exporters are integrating backwards into yarn processing and even spinning. Firms are adopting Information Technology to not only manage supplies, but also control production and enhance productivity.

With the "explosion of expectations", driving consumer demand and investments in retailing, the Indian firms are now catering to requirements of the entire value chain from spinning to branded garments and home textiles. Coupled with increase in the purchasing power of the consumers, strong economic growth and demographic advantages, the stage is well set in India today, for production, sale and consumption of Branded goods.

Textiles are being increasingly viewed as Life Style products with consumers becoming more value conscious than price sensitive. With unprecedented levels of growth and investments taking place, India offers immense opportunities for brand building and brand promotion.

About the Author:

Prem Malik is associated with Indian Cotton Textile Export Promotion Council.

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