Finding opportunities amidst challenges

The Indian home textile market is still at up-and-coming stage. The unorganised sector is dominating the market; there are vast opportunities for organised players for growth and development.

The home textiles industry in India is worth Rs 17, 000 crore. The home textiles such as bed linen, towels, hand towels, carpets, rugs, quilts, mattresses, cushion covers, bed sheets, etc. are the prime products of this market. The home made textile market in India is expected to grow as the demand both within the country and overseas is expected to rise. Heavily unorganised market, Indian home textile market is an untapped potential for the organised players in the trade.

The Textile Ministry has a utopian and promising vision for the home textiles segment as the trade agreements with EU and other major trade organisations are in the talks so as facilitate the ease-of-doing business. India also houses of the major home textile manufacturers in India i.e. Welspun and Trident.

The availability of raw material such as cotton, wool, silk, etc is in abundance wherein it provides an inbuilt platform for manufacturers and traders to commune the business in India. To add to it, the labour is relatively cheap and skilled artisans are in plentitude which makes the hand woven home textiles in India, a must have product.

Hand towels, towels, and other hosiery textiles are second largest exported products in the US markets. The desire to give their homes a personal touch will always act as a driving force in the development of home textile industry as the latest designer patterns in almost every product in home textiles motivates the traders and manufacturers to cater to the vast demands of the large buyer based global market.

The hegemony of a single factor in any business is harmful and hampering to any sector. The rule is no exception to the home textiles as well. Due to lack of competitive markets in US and EU, the Indian markets are favored due to cheap labor costs, supreme quality raw materials and the innovative designs which surely speak for the trend statement of the nation. China, Pakistan and India cover up maximum of the global import market constituting almost 70 per cent of the market size. But due to rising labour costs in China and the war driven economy of Pakistan, India is the only major player in the league now.

The bed linen manufactured by India is the best competitive product to the one manufactured in Japan. The carpets manufactured in India, which are mostly hand woven and are of natural fibres, have long durability, are easy to wash and require little to no maintenance, the towels and hand napkins are the cheapest and are the most inexpensive units of the home textile domain in India. The latest technology machines and power loom mils have ensured India’s success in the home textiles market and have cemented the position of India as the leading global exporter of home textiles.

The differentiating factor in India’s product base was the value addition that was done upon the products that were manufactured and that was the prime reason for the Indian products to survive the cut throat competition is because of going an extra mile!

The Textile Ministry has announced a special package for home textile industry for Rs 6,000 crore in order to expand and develop the sector by also arranging the means and methods to organise the market.

Major home textiles mill Trident India will now make antimicrobial treatment standard in every towel it produces. With consumers expressing heightened concern about their home environment due to the COVID-19 pandemic, the company said the decision felt right.

Welspun India’s leading innovation brand – HygroCotton – is an unique hollow core yarn is now revolutionising sleep. The new HygroCotton ‘Sequenced Sleep System’ is an extraordinary collection of mattress pads, sheets, comforters, blankets, and pillows – all of which regulate temperature to keep one cooler in summer and warmer in winter. Its sleep system enhances one’s comfort.

GHCL launched REKOOP 2.0, an evolved and expanded expression, which comprises of a total of 12 innovative collections. Furthering GHCL’s passion for creating sustainable bedding solutions, REKOOP 2.0, is a truly circular solution which can ensure that used sheets are recollected and depolymerised into fibre again. The polyester fibre can be used as a raw material for re-manufacture and the cotton can be used as a biofuel.

The REKOOP 2.0 collection revolves around exciting blends of recycled polyester with other sustainable fibres such as TENCELâ„¢ from Lenzing AG, modal, bamboo, cupro, linen and BCI cotton. Meaningful performance attributes are incorporated into some of the collections. Overall, the collections have a truly broad appeal in terms of weaves, textures, prints and finishes and are spread across the price pyramid.

Stäubli provides double-end detection as a standard feature and offers options for colour and/or S/Z-detection and management. The broad range of options allows equipping machines even further to optimise the drawing-in process for specific yarn types, such as those used to manufacture home textiles like wallpaper made of woven glass, tablecloths, bed linens, or curtains made of fantasy yarns or bouclé. Every Safir machine can produce a wide variety of fabric constructions with no need for specially trained personnel for drawing-in. The great flexibility ensures suitability for each specific case and consistently high-performance operation. Preparing warps with Safir makes for the highest quality of drawing-in and ensures continuity in the downstream weaving process. 

The craftsmanship, the artistic touch, the pastel work, jacquard print and many other indigenous designs are promoted and developed in the home made textiles market in India. It makes the overall scenario promising and investor friendly. The potential is untapped and the market conditions are favorable. The present market cap of $4.2 billion is expected to rise up to the target of $9 billion industry by 2020.

The large chain of wholesalers, retailers, suppliers and manufacturers in the plethora of homemade markets has made Indian market an all inclusive and export oriented market in the global arena. 

Rising demand for household products and growing consumer awareness have made home textiles a lucrative business segment. Secondly, fashion sensitivity towards household furnishing has increased as fast-fashion has hit not only the apparel market but the home market as well. Home fashion has become a separate segment as consumer consciousness towards high-quality living has increased.

To cater to the increased demand, the number of retailers entering the home textiles market is also increasing. Moreover, the advent of E-commerce in the segment is further making the market even more competitive, and with the increasing number of websites, the marketplace is also experiencing growth. Fuelling the market growth, research and development in the home textiles segment have been immense.

Growing bed linen, bed spread segment

Bed linen includes bedspreads, blankets, mattress, mattress cover, pillows, duvets, duvet covers, and bed covering, and others. Bath linen includes bath robes, bath towels, and bath mats, and others. In 2015, the bed linen and bed spread segment reached about USD 2.3 billion.

The home textile manufacturers with an eye for innovation have successfully explored the traditional textiles and shaped them into sophisticated end-products. These products not only suit the trendy market and attract the trendy generation but also have helped in reviving the dying traditional crafts. This artistry has opened a novel pipeline for all the consumers to decorate their home by contemporary designs thereby enriching the interiors.

India’s current position

The country produces a wide range of fabrics, made-ups and household linen. For a faster growth the exporters must analyse each major category and exploit its full potential. After cotton yarn, home textile is the second most important category where India has better competitive advantages over other countries.

World trade in textiles in the year 2008 stood at $520 billion of which home textiles was $2.6 billion, India registered a share of 6 per cent in home textile trade. India is poised to strengthen its position with an over three-fold jump in exports by 2012. India’s strength is further reinforced by acquisitions of international brands, manufacturing and retail businesses by leading Indian companies.

The Indian home textile market is still at up-and-coming stage. The unorganised sector is dominating the market; there are vast opportunities for organised players for growth and development. The sluggish growth of domestic home textile market and the growth in customers readiness to upgrade qualitative and price wise is a puzzle that needs to be analysed intensively. Product and channel-based segmentations could offer new opportunities to stimulate domestic demand.