Country study is generally been undertaken when any person/company wants to go global. But before going so many aspects need to be analyzed such as culture, economic conditions, political structure etc. As in today scenario capital is one of scare resources which cannot be invested blindly. These factors make us aware about threats & opportunities and based on that one can take decision properly.
Country analysis helps to know about type of people staying in that country & what are their needs, which are areas which are yet not covered because overall success or failure depend whether we properly understood people needs or not and even we can use our competencies in proper direction.
There are many factors which needs to be studied & every factor has its own importance & it can directly or indirectly affect functioning of any industry/company such as economics, political, demographics, ethics, environment, technology etc.
Change always force company to bring something innovative which differentiate us from other competitor because we cannot stick with one strategy otherwise our competitor will take over advantage & grab our market. As in today scenario “Customers are King” & if they would be satisfied with us then & then they will purchase otherwise they will move towards other competitor products.
Economic factors helps to understand the overall growth of economy of that country in terms of GDP(Gross Domestic Product),level of inflation, Inflation level prevailing in the economy, tax policy etc. Any person who wants to establish their business in that country first look over such things as they may need finance & based on the interest rate they will demand for borrowing because if cost of borrowing increase then it will affect on revenue of the company.
To start any business in any country is not easy because in many countries without paying reward your work cannot be carried out as in India & Sweden there is a system of paying inducements to get your work done that’s why they are coming under list of corrupted country.
There has been significant revolution in all sectors & this is all because of Technology has changed people lives what we were earlier & what we are there has been significant difference in that. The overall functioning of operations has been changed Earlier people use to send telegram to tell about any happening which takes too much time but now you can make use of cell phones & can send message, email to let the other person Know about recent things.
The clothing industry has a very prominent place in the globe economy. Even the poorest of the globe household buys cloth for his daily Consumption. Cloth is the country’s primary need, India the biggest Consumer of garment in the globe.
The Swedish retail market is well developed and dominated by a small number of large chains. This is especially true for the volume trade of clothing, furniture and food, where it is common for several different chains to have the same owners. Swedish H&M is the third largest global clothing retailer in the world. And IKEA the world’s largest furniture retailer. The success of the two multinationals illustrates that the Swedish retail market is mature and innovative and can compete well in the international market.
In The west Bengal textile industry plays a significant role in the economy in India. Apart from that this industry even contributes to the industrial output, export and employment sectors of the city. Among the different kinds of textiles manufactured in the city, jute products helped Kolkata in gaining prominence in the industrial sector.
Political structure of every country is different. Some may be easy to follow and some may be strict. The attitude of government also needs to be seen because many times political uncertainty affects many businesses which come under their control. The regulation/deregulation of policies by government can make entry barriers strong/weak. There are various tax policy levied down & every business may some or the other way affected by this. Certain countries have very strict norms & regulations which affect the overall operations of any industry. They have to operate within that legal framework only.
There should be transparency in the work carried out & there should not be any malpractice in the operations which can hurt the interest of common man. People vary from one country to other in terms of their language, their religion etc. Every country have different languages some may be mostly spoken some may be less. As many times language creates barrier and also creates miscommunication.
The business which is established in any country should hire employees those who can speak fluently the language that is widely accepted by those people. As with this reason many companies are coming up with joint ventures. Many foreign companies are making alliances with that domestic company of that country. So, that they can enter directly into that country.
With analysis of demographic factor any industry/company can understand the overall behavior of people and they will plan their strategy keeping in mind the overall demographics of that country.
The overall macro environment helps to identify opportunities lying within that country & how one can take advantage of this opportunity by leveraging their competencies & by knowing the underlying threats that can affect at any point of time.
This type of analysis should be done initially so that industry /company can plan out their work in that direction & it does not harm the overall functioning of business in that country. Many companies are incurring lot of cost but it results fruitful to them as they can come to know that whom to target & who are our competitors.
Firstly we are giving in introduction of the Sweden country and also include overview (geographic location, currency language, religion etc) of country. In second chapter studying swot (strengths, weakness, opportunity, threats.) and steepled(social,technological,environmental,economical, political,legal,ethical,demographical.) analysis of clothing industry, in the Sweden and India country. And in third chapter include information about the west Bengal industry of India/Gujarat.
STUDY OF SWEDEN
Sweden is a Scandinavian country with a huge number of beach front islands and inland lakes, alongside endless boreal woods and glaciated mountains. Its primary urban communities, eastern capital Stockholm and southwestern Gothenburg and Malmo, are all waterfront. Stockholm is based on 14 islands. It has more than 50 spans, and in addition the medieval old town, Gamla Stan, regal royal residences and exhibition halls, for example, outdoors Skansen.
Colleges and Universities
Lund University, Uppsala University,
Land area 173,731sq mi
Island of Sweden total 20 Biggest area (golland -2994 km Biggest by population (hisingen-1,25,000)
Lack of Sweden vanem & homavan
River of Sweden lagan & Nissan
Ocean Baltic sea, Atlantic
RANK 7TH ( richest country of the world)
GDP composition by sector ( 2013) Agriculture 2%
Swedish krona to Indian ruppy 8.4248
National day 6 June
Topography of Sweden is a nation situated in Northern Europe on the Scandinavian Peninsula. It is circumscribed by Norway toward the west and Finland toward the east and it is along the Baltic Sea and the Gulf of Bothnia.
Sweden has a population of about 9.8 million in 2015. The north is less populated than the southern and central parts, mostly because of its colder climate.
The flag of Sweden is a Scandinavian cross that extends to the edges of the flag. This Scandinavian cross represents Christianity. The design and colors of the Swedish flag are believed to have been inspired by the present Coat of arms of Sweden of 1442, which is blue divided quarterly by a cross pattee of gold, and modeled on the Danish flag. Blue and yellow have been used as Swedish colors at least since King Magnus III\’s royal coat of arms of 1275.
\”Du gamla, Du fria\”, is the de facto national anthem of Sweden. It was originally named \”Sång till Norden” and the first words of its lyrics have become adopted as the title in the interim.
Lutheran Christianity is officially the largest religion in Sweden, with 6.2 million Swedish citizens being members of the Church of Sweden. The high membership figure is mainly due to the fact that until 1996 all newborn children with at least one parent being a member of the church were also made members. Other Christian Churches include the Catholic Church and the Eastern Orthodox Church. Islam is the second largest religion in Sweden, practiced by 5% of the population. The rest of the population are either irreligious or members of other religious groups
Sweden has a multi-party system with numerous political parties, in which no one party often has a chance of gaining power alone, and parties must work with each other to form coalition governments.
The Social Democratic Party (S; Socialdemokraterna) was the largest political party in the Swedish Riksdag with 112 of the 349 seats. The Social Democratic Party had led a single-party government from 1994 to 2006, and had been the major political power of Sweden for much of the 20th century. For the 2010 general election the Social Democratic Party collaborated with the Green Party and the Left Party and sought to form a Red-Green coalition government. Similar cooperation did not take place prior to the 2014 election. Their current party leader Stefan Löfven has said they could potentially collaborate with the Centre Party and the Liberal People\’s Party in a future government. By the 2014 general election the Social Democratic Party had been in opposition for eight years, the longest such period in over 100 years.
LATEST DEVELOPMENT IN SWEDEN
• Top performing economy in Europe
• Largest market in the Nordic region
• Strong retail sales growth for 18 consecutive years
• Wealthy consumers with high purchasing power
• Population growth and a large well-educated middle class
• Recognised as a trendsetting and progressive country
• Sophisticated and early adopting consumers
• Strong appetite for new international retail brands
• Well established test market
• Availability of attractive retail space
• Transparent market and easy to do business
• The Sweden is the first cashless society
• The Swedish government invest a higher proportion of gdp in RND then most other nation
1 AUTOMATIC IDENTIFICATION SYSTEMS
Getting completely lost is difficult today thanks to global positioning systems (GPS), which are now an essential part of our daily lives; embedded in various technologies from smart phones to in-car navigation systems. Swedish inventor Håkan Lans is credited with taking GPS technology one step further to create automatic identification systems (AIS), now widely used in the shipping industry for tracking ships and vessel traffic.
2 HIV TRACKER
A recent addition to the list of Swedish inventions is the HIV tracker: a sensitive device used for mapping out and detecting the spread of HIV and other viruses. Conceptualized by Doctor of Biotechnology Martin Hedström and his team at Lund University, the device can detect extremely low concentrations of poisons, viruses or other substances in liquids – which also makes it potentially invaluable for fighting bioterrorism.
3 HÖVDING BICYCLE HELMET
To help combat the issue of people not using bicycle helmets, Swedish company Hövding has developed a cyclist’s equivalent of a vehicle airbag: an ‘invisible’ helmet that inflates within 0.1 seconds and protects the head before impact. This helmet for the vain, which is worn around the neck as a collar that blends in with clothing, has sensors that detect any erratic patterns in the cyclist’s movements and deploy the airbag immediately when they sense an accident.
4 THREE-POINT SEATBELT
Now a standard requirement in every passenger vehicle saving around one life every six minutes, the three-point seatbelt was developed by Swedish inventor and safety engineer Nils Bohlin in 1959 for Volvo. It’s designed with a Y shape to spread out energy across a moving body during an accident.
Ultrasound is so integral to healthcare today that remembering a time when it didn’t exist is difficult. Along with German researcher Carl Hellmuth Hertz, Swedish physician Inge Edler devised the modern day electrocardiograms – a Doppler ultrasound of the heart – that are integral to monitoring cardiovascular health. This invention netted both Hertz and Edler a highly coveted Albert Lasker Clinical Medical Research Award in 1977.
CONTRIBUTION OF MAJOR INDUSTRIES IN GDP BY PERCENTAGE
In GDP (%)
Food and beverage 1.18
Wood , pulp and paper 1.3
Iron and Steel 3.9
Telecommunication equipment 1.6
Hotel and tourism 0.6
Gas & oil 1.4
LIST OF INDUSTRY WITH THEIR MARKET SHARE IN SWEDEN
List of industry Company
• Fashion industry H&M 83%
• Pharmaceuticals industry Oriole-KD 36%
• Chemical industry Vinnova 30%
• Wood pulp and paper industry Holmen 62%
• Telecommunication Equipment industry Samsung 25%
• Food and beverage industry Coffee Queen 15%
• Petrochemicals industry Lundin Petroleum 34%
• Steel industry ThyssenKrupp 41%
• Electronic industry Alfa Level 26%
• Aviation industry SAS 34%
• Banking industry Nordea 25%
• Telecommunication industry TeliaSonera 31%
• Hotel and Tourism industry Kempinski 15%
• Automotive industry Volvo 19%
EXPORT AND IMPORT STATISTICS IN
Exporter rank 28/136
Importer rank 28/136
GDP of exporter 44.5
GDP of importer 40.85
Sweden exports mostly machinery, motor vehicles, paper products, pulp and wood, iron, steel products, chemicals. The country imports machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs and clothing. European Union is by far its largest trading partner accounting for about 61% of exports and 72% of imports. Norway, Russia, The United States and China play also an important role.
TOP 10 EXPORT PARTNERS
TOTAL EXPORT IN %
TOP 10 IMPORT PARTNERS
TOTAL IMPORT IN %
OVERVIEW OF SELECTED INDUSTRIES:
The Swedish retail market is well developed and dominated by a small number of large chains. This is especially true for the volume trade of clothing, furniture and food, where it is common for several different chains to have the same owners. Swedish H&M is the third largest global clothing retailer in the world and IKEA the world’s largest furniture retailer. The success of the two multinationals illustrates that the Swedish retail market is mature and innovative and can compete well in the international market.
OPPORTUNITIES IN SWEDEN
Universal organizations are pulled in to Sweden for various reasons. The nation is a worldwide pioneer of advancement with an exceedingly talented labourforce, complex shoppers, smooth business techniques, openness to universal proprietorship and a steady economy first rank of Sweden as the best performing economy on the planet.
OPPORTUNITIES IN MOST RETAIL SEGMENTS
There have been a number of new openings during the last five years. Examples are Hollister, Desigual, River Island, Sephora, Apple Store, Zara Home, Habitat, Decathlon and Picard. There is also an increasing interest from premium brands like Prada, Stella McCartney, Ralph Lauren and more, in establishing themselves in the exclusive Bibliotekstan in Stockholm. In addition to that, food and beverage players are also entering the market. For example, the US coffee giant Starbucks is to expand in Stockholm and open its second coffee shop in the Swedish capital. Jamie Oliver\’s Italian, KFC and Dunkin Donuts are also about to enter.
RETAIL SALES PER SEGMENT (2015)
STUDY OF GUJARAT
The retail area in Ahmadabad and in Gujarat generally, has started a rude awakening. As per industry players, retail part is as of now seeing diminishment in deals by 30 for every penny, aside from cutbacks.
The business is confronting a decrease in footfalls by 40 for each penny and deals by 30 for every penny, says Ashish Shah, overseeing executive of Aarvee Denims and Exports Limited. \”Numerous retailers outsource their items, particularly articles of clothing where the request books have been down.
Additionally, the footfalls have fallen definitely in Gujarat, particularly in Ahmadabad. This has brought about a decrease in deals by 30 for every penny. Besides, there has been cutbacks occurrence to some degree too,\” includes Shah. A year ago, the denim major propelled its retail image \”Dextase\” which is seeing a decrease in footfalls starting at this point.
STRONG GROWTH IN THE INDIAN RETAIL INDUSTRY
• The retail sector in India is emerging as one of the largest sectors in the economy
• By 2015, the total market size is estimated to be around US$ 600 billion, thereby registering a CAGR of 7.45 per cent since 2000.
• Retail industry is expected to grow to US$ 1.3 trillion by 2020, registering a CAGR of 9.7 per cent between 2000-2020
ORGANISED RETAIL IN NASCENT STAGE
• The Indian retail market is in its nascent stage; unorganized players accounted for 92 per cent of the market during 2015
• There are over 15 million mom-and-pop stores
• Between FY09-13, organized retail in India witnessed a CAGR of 19-20 per cent
• Organized retail is expected to account for 24 per cent of the overall retail market by 2020
SUB SEGMENT OF RETAIL INDUSTRY IN INDIA
• Food products — typically require cold storage facilities.
• Hard goods or durable goods (“hardline retailers”)
o Sporting goods
• Soft or consumables goods
o Contemporary art galleries
o Musical instruments
o Gift shops
MAJOR PLAYERS OF RETAIL INDUSTRY IN INDIA
1. RELIANCE RETAIL LIMITED
2. PANTALOONS FASHION AND RETAIL LIMITED
3. ADITYA BIRLA RETAIL LIMITED
4. FUTURE RETAIL LIMITED
5. V-MART RETAIL
6. FUTURE LIFESTYLE FASHIONS
LOCAL TAXES AND DUTIES OF CLOTHING RETAIL INDUSTRY IN INDIA
• Landing charges(1% CFI)
• Countervailing duty(12.5% (CFID + landing charges)
• CESS(3 %(duty +CEX (education & higher education (CESS)+ Countervailing duty))
• additional Countervailing duty( 0%(CIFD +landing charges+ countervailing duty +CESS+CEX( education & higher education CESS)))
• CEX( education & higher education CESS)(3 % countervailing duty)
• No sales tax
SPECIAL BENEFITS GIVEN BY GOVERNMENT TO THE INDUSTRY
The Government of India has taken various initiatives to improve the retail industry in India.
• Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating in India.
• The Government of Andhra Pradesh signed pacts worth Rs 1,500 crore (US$ 222.36 million) in a wide range of sectors including retail and steel and gas with Wal-Mart India, Future Group, Arvind Lifestyle Brands Ltd and Spencer’s Retail, during the Partnership Summit in Visakhapatnam, while also unveiling a retail policy aimed to attract retail businesses to invest in the state.
• IKEA, the world’s largest furniture retailer, bought its first piece of land in India in Hyderabad, the joint capital of Telangana and Andhra Pradesh, for building a retail store. IKEA’s retail outlets have a standard design and each location entails an investment of around Rs 500–600 crore (US$ 74–89 million).
• The Government of India has accepted the changes proposed by RajyaSabha select committee to the bill introducing Goods and Services Tax (GST). Implementation of GST is expected to enable easier movement of goods across the country, thereby improving retail operations for pan-India retailers.
OVERVIEW OF SELECTED INDUSTRIES:
RETAIL INDUSTRIES IN SWEDEN
The reason why the largest retail companies headquartered in Sweden are also some of the largest retailing companies in the world is partly due to the fact that Sweden has a strong economy and a favorable environment for business. The other big reason is because Swedish retailing companies like IKEA and H&M have found fanatically loyal customer bases in global markets, and are competing well with the largest retail chains in the U.S.and Europe.
• Åhléns, retail department stores.
• Clas Ohlson, hardware stores.
• Coop Norden, retail chain.
• Gekås, Swedish superstore.
• Hennes & Mauritz (H&M), retail clothing.
• Hästens, beds.
• ICA AB, retailing group.
• IKEA (founded in Sweden, but controlled by organisations based in the Netherlands)
The IKEA Group
2016 Global Ranking – #26
2010 Global Ranking – #30
H&M Hennas & Mauritz AB
2016 Global Ranking – #47
2010 Global Ranking – #60
2. JUSTIFICATION FOR RETAIL INDUSTRY IN TERMS OF BILATERAL TRADE OPPORTUNITIES WITH INDIA/GUJARAT
The retailer is an intermediary in the marketing channel because he is the both marketer and customer, who sells to the last man to consume. He is a specialist who maintain contact with the consumer and the producer, and is an important connecting link in a complex mechanism of marketing. Though producers may sell directly to the consumers, such method of distributing goods to ultimate users is inconvenient, expensive and time consuming as compare to the job performed by a specialist in the line. Therefore, frequently the manufacturer depends on the retailer to sell their products to the ultimate consumers. The retailer, who is able to provide appropriate amenities without an excessive advance in prices of goods, is rewards by larger or more loyal patronage.
Consumers benefit from retailing as retailers perform marketing functions that makes it possible for customers to have access to a broad variety of products and services.
A vibrant retail sector benefits the consumers by providing range of products and services efficiently. The term \”retailer\” is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power.
Retailing has great impact on economic development of a nation. Retailing is one of the most important industries in the world and plays a predominant role in economic development of the country.
BILATERAL TRADE OPPORTUNITIES BETWEEN SWEDEN AND INDIA
According to the most recent statistics, Swedish exports of goods to India amounted to SEK 10 053 million in the first eleven months of 2015, which represents an increase of 6.6 percent compared to the same period in 2014. This constitutes approximately 1 percent of Sweden’s total exports and makes India Sweden’s 19th most important market for exports of goods. Chemicals, manufactured goods and articles account for 88 percent and crude materials and mineral fuel for 12 percent of total exports.
Sweden’s imports of goods from India amounted to SEK 5 506 million in the first eleven months of 2015, which represents an increase of 12 percent compared to the same period in 2014. Swedish imports from India constitute 0.5 percent of Sweden’s total imports and makes India Sweden’s 29th most important country in this regard. The greatest share of Swedish imports from India at 92 percent consists of chemicals, manufactured goods and articles. Food, beverages and tobacco are the second most important imported items, accounting for 6 percent of total imports. Sweden’s import of crude materials and mineral funds from India accounts for 2 percent.
Sweden has a long history of investments in India; both Ericsson and Swedish Match established presence in India in the early 20th century. As of today there are around 160 Swedish companies established in the country, of which numerous are Swedish multinational companies such as ABB, Volvo Trucks and Buses, Astra Zeneca, Ericsson, Atlas Copco, Sandvik and SKF. Many of these companies have invested in marketing and sales offices, research and development, manufacturing, distribution and service centers in India. The inflow of Swedish direct investments to India has fluctuated over the years. Accumulated Swedish FDI assets in 2014 totaled SEK 15 billion, which is a substantial increase from SEK 11 billion the year before.
STEEPLED ANALYSIS FOR RETAIL CLOTHINNG INDUSTRY IN SWEDEN
• Swedes people are feasible high average life expectation Cultural differences are important because needs and fashions are different according to cultures. Brands have to adapt their products to these different person to person.
• Colors are a cultural measurement for example, the white color is connected with death in China but black is the color of death in Europe.
• Consumer micro environmental factors consider cultures, norm, demographics ,lifestyle and population changes.
• These factors affect the clothing industry in different ways. For example, a small clothing manufacturer needs to create styles that appeal to those of different cultures, especially if those cultural groups represent large enough segments of its market.
• Sweden is urbanized country so the people use online shopping.
• Mobile applications for I-Phone and Android: this strategy takes the clothing market into an all new era.
• Social-media marketing such as Face book enables to support consumers to connect to social media page of the brand and become fan. This strategy increases the sense of all people for the brand.
• According to Ademe (French Environment and Energy Management Agency), now there are new ways of producing clothes which enable to take care of the health and the environment.
• The clothing industry is faced with consumers who are increasingly challenging on environmental matters. The industry must provide sustainable and ethical products that respect the earth and consider the health of the environment or keep it pollution free.
• Reducing consumption of forest resources by using recycled material and reducing packaging.
• Swedish banks are extremely stable so the company get easily loan for starting new business.
• The Sweden is mostly export depending country.
• Global economic crisis situation the economic crisis of has affected the purchasing power of consumers, which is an important determinant of the size of a market.
• The stage of the economic development of a country affects also the advertising movement chosen by clothing manufacturers in Sweden.
• Competition in the clothing market is very strong.
• Increase in cotton prices because the decline in orders due to economic crisis, the industry has also faced rising cotton prices.
• In Sweden there is great political system that can affect the demand of a particular local market and retail of clothing.
• Governments pass legislation, which impacts the relationship between the suppliers and customers, firms , and other companies.
• Government of Sweden is liable for increasing the public interest so the company can get the idea and awareness about the customer choice.
• Here government actions influence the economic environment.
• Government is a major consumer of goods and services because it helps in the import and exports with liberal policy.
• Government established the policy increasing the clothing retail business participation.
• Government provide ability so, company can get strong leadership position.
• The Swedish legal system is a civil law system mainly based on statute, supported by foundation works and case law. There is no centralized system. Sweden is a full member of the EU and EU law is effective in Sweden.
• In Sweden Trade union are very strong they frequently tried to get better their standards.
• European regulation voted to control chemical utilization.
• “Sweden is the country has been placing significant importance on creating the conditions for modernization-led growth.
• Sweden’s competitiveness is manifest by large flows of capital, trade, and foreign investment. It is seen as a frontrunner in adopt new technology and setting new consumer trends
• Safety is a basic consumer right. It is safe guarded by the product safety act which ensures only safe products are available in the market.
• Majority of the organizations wanted to go green and many had done it business. It includes reducing CO2 production, reducing the power usage, reducing wastage, and using environmental open power sources.
• Mostly retail industries now target on environment safety.
• Customers are interested in the social behaviour of organizations. Those behaviours have a major impact on customers buying decisions. In most occasions, customers themselves claim that CSR profile of a company plays a major role in what brands they choose to purchase. Retailing plays a major role global supply chains.
• Growing income gap. The income gap between top earners and lower-income consumers is now the highest it has been since the Great misery, Personalization.
• From news to music to advertisements to credit card rewards, com¬panies of all kinds are using consumer data to craft personalized recommendation and experiences to enhance their market. So it’s no surprise that consumers are beginning to expect the same level of individualized treatment from retailers.
• We’ve all heard about Target sending promotional offers to pregnant women, but other retailers are using less controversial— but equally effective—methods.
• Technology is no longer a luxury. Even lower-income consumers are covers large shares of their incomes to purchasing technology.
• Consumers leading a sedentary lifestyle are searching for ways to maintain their health into old age, a trend that is also supported by growing incomes and an aging population.
STEEPLED ANALYSIS FOR RETAIL CLOTHINNG INDUSTRY IN GUJARAT
• Managers and policy makers cannot ignore social variables like education, knowledge, rural community norms and beliefs which are main in Gujarat
• Clothing industry of India based on cotton and cotton as the agriculture product, which found in rural areas so the social responsibility of the clothing industry.
• Social stratification plays a vital role in rural societies.
• Technology is considered to be one of the most important factors of textile industry. That is why the government, in its industrial policy resolution, industrial licensing policies, MRTP and FERA regulation, and in liberalization policies, assigned great importance to complicated technology and technology transfer.
• Structural weaknesses in weaving and processing.
• Fragmented and technologically backward clothing processing sector and garment industry affected in Gujarat.
• Insufficient capacity of the domestic textile machinery manufacturing sector and training facilities in clothing sector in Gujarat.
• 100% Foreign Direct Investment in the textile sector under automatic route, setting up of National Institute of Fashion Technology (NIFT) etc, for improvement and growth the clothing sector in India.
• At present, the textile industry is undertake a substantial re-orientation towards other then clothing segments of textile sector, which is normally called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers.
• Economical factors such as per capita income, national income, resources mobilization, development of natural resources, infrastructure development, capital formation, employment generation, and industrial development influence clothing industry.
• Clothing industry provides one of the most fundamental necessities of the people with huge value-addition at every stage of processing in Gujarat.
• Indian fabric is in demand with its cultural, earthly colored and many textures. The textile sector accounts about 30% in the total export.
• The Indian textile industry is the largest industry in terms of employment economy; it generates huge potential for employment in the sectors from agricultural to industrial.
• Employment opportunities are created when cotton is cultivated.
• Environment safety and protection is responsibility of the clothing industry. The Government of India is dedicated to the protection of environmental balance.
• Pollution free technology and recycling of industrial wastes and effluents has become a corporate concern now.
• The water (protection and control of pollution) Act, 1974 provides for the prevention and control of water pollution. The Air Act, 1981 aims at preventing, controlling, and reducing air pollution. The environment (protection) Act, 1986 ensures the protection and improvement in the quality of the environment.
• The foreign investment was kept out of clothing and clothing production. Now, the Government has gradually eliminated these limitations, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in Gujarat.
• In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textiles products; it can certainly provide a base for clothing industry.
• Now the Indian government has introducing measures such as the national technology up gradation fund and removing the differential taxation scheme which differentiate against large units.
• Legal environment plays very vital role in clothing industry. Laws relating to industrial licensing, factory administration, industrial dispute, monopoly control, and foreign exchange regulation are examples of legal business environment in Gujarat.
• Clothing industry has suffered by legal rules as unfavorable labor laws. Government has created strong labor laws. In India, labor laws are still found to be relatively unfavorable to the trades, with companies having not more than ideal model to follow a \’hire and fire\’ policy.
• At present, the single biggest factor influence the textile industry appears to be the end of the textile quota regime of quantitative import restrictions under the multi-fiber arrangement (MFA) on 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing. The removal of quota, seen as an opportunity by many, including the government, is driving investment and liberalization in the textile space.
• India can also grab opportunities in the export market for clothing industry.
• It all depends on their business culture. It is the duty of the every organization to be answerable to the society. All the textile industries are serving the public by fulfilling one of the basic needs by offering clothes.
• But still the textile industry is having certain mixture of ethical issues which has to be measured against few yardstick All the businesses should be ethical by the virtue of its existence to its stakeholders.
• The success of the business depends on the trust built in the people through its market offerings and through its social responsibility activities.
• Now a day’s almost all the organizations showing interest on various social activities. This paper examine the productivity growth of clothing industry in Gujarat, Tamil Nadu, India\’s contribution towards ethics and social responsibility with the parameters of consumer protection, labour, human rights, ecological aspects, welfare of the employees, supporting the deprived, developing the local communities, economic aspects and so on.
• In Gujarat Surat is the hub of textile and Ahmadabad and Baroda are the hub of fashion.
• Gujarat covers all kind of cloths specially in sarees banarasi, bandhni, patoda, and kachhi work on various rang of material so it covers all generation of women.
• Gujarat have wide range of materials like cotton,silk,saffern,fabric,etc
• People of Gujarat accept all kind of fashion in various age groups.
• Social stratification is affected to industry like income, age, culture, profession, preferences. etc.
COMPARATIVE ANALYSIS OF STEEPLED
NO POINTS SWEDEN GUJARAT
1 SOCIAL In Sweden people are expect high average life expectancy Cultural differences are important because needs and fashions are different according to cultures. Brands have to adapt their products to these different needs.
Social stratification plays a vital role in rural societies. Managers and policy makers cannot disregard social variables like education, knowledge, rural community norms and beliefs which are predominant in Gujarat.
2 TECHNOLOGICAL Development of online shopping and also using Mobile applications for iPhone and Android: this strategy takes the clothing market into an all new era.
It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers.
3 ECONOMICAL Competition in the clothing market is very strong and also the Increase in cotton prices because the decline in orders due to economic crisis, the industry has also faced rising cotton prices. • Economical factors such as per capita income, national income, resources mobilization, exploitation of natural resources, infrastructure development, capital formation, employment generation, and industrial development influence clothing industry.
4 ENVIRONMENTAL Here Reducing consumption of forest resources by using recycled material and reducing packaging.
Pollution free technology and recycling of industrial wastes and effluents has become a corporate concern now.
5 POLITICAL In Sweden the stability of a political system can affect the appeal of a particular local market and retail of clothing and Governments pass legislation, which impacts the relationship between the firm and its customers, suppliers, and other companies Legal environment plays very vital role in clothing industry. Laws relating to industrial licensing, factory administration, industrial disputes, monopoly control, and foreign exchange regulation are examples of legal business environment in Gujarat.
6 LEGAL Sweden’s competitiveness is manifested by large flows of trade, capital, and foreign investment. It is seen as a frontrunner in adopting new technologies and setting new consumer trends.
• Legal environment plays very vital role in clothing industry. Laws relating to industrial licensing, factory administration, industrial disputes, monopoly control, and foreign exchange regulation are examples of legal business environment in Gujarat.
7 ETHICAL Those behaviors have a major impact on customers purchasing decisions. In most occasions, customers themselves claim that CSR profile of a company pays a major role in what brands they choose to purchase. Retailing plays a major role global supply chains. It all depends on their business culture. It is the duty of the every organization to be answerable to the society. All the textile industries are serving the public by fulfilling one of the basic needs by offering clothes
8 DEMOGRAPHICAL Consumers leading a sedentary lifestyle are searching for ways to maintain their health into old age, a trend that is also supported by growing incomes and an aging population.
Gujarat covers all kind of cloths specially in sarees banarasi, bandhni, patoda,and kachhi work on various rang of material .so it covers all generation of women
Gujarat have wide range of materials like cotton ,silk,saffern,fabric,etc
• A person of Gujarat accepts all kind of fashion in various age groups. Social stratification is affected to industry like income, age, culture, profession, preferences. etc.
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