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Anna Peter

It won't be difficult for India to raise its cotton consumption, considering its capabilities and hi-tech infrastructure.

IT is an industry that kept the slave trade going in the US for a couple of hundred years. Cotton was among the most lucrative crops farmed by Southerners in the pre-Civil War era of the US and the dominant reason for the British colonial expansion in much of Asia.

In the US, in 1960, cotton apparel and home fabrics accounted for 78 per cent of all retailed textile products. But by 1975, this fell precipitously to 34 per cent. The gradual decline in the importance of cotton worldwide coincided with the increased use and popularity of polyester and other cheaper man-made fibres and garments. Cotton's fall was also attributed to their easy-care characteristics and customer-friendly pricing. Add to this the aggressive marketing, huge capacities created and producers such as DuPont and Celanese cultivating demand through promotions and technical service assistance.

Facing serious erosion in their customer base, cotton growers and producers petitioned the US Congress for a national marketing and research effort. It passed the Research and Promotion Act of 1966, which established a funding mechanism to promote cotton.

Ultimately, Cotton Incorporated was born in 1970.

From the start it was understood that an identity for cotton had to be created and the Seal of Cotton was launched in 1973. Essentially a trust mark, it is meant to instantly identify products with 100 per cent cotton products in a retail setting.

Cotton Incorporated (CI) research showed early on that women aged 18-49 years bought 70 per cent of all the textile items available, and targeted this segment through ad campaigns on daytime shows and soap operas. In a year, consumer awareness in the US soared 18 per cent and has been rising since 1974.

Part of the success can be attributed to the emphasis on innovation in products and processes, into which a lot of funds go. Cotton Incorporated's 2002-03 revenue was $63 million, and R&D activity, excluding the economic and fashion research, accounted for $17 million. Its facility in Cary, North Carolina, US, employs over 100 technicians, scientists and engineers, focussing on producing cotton that performs better and thus raising the manufacturer and consumer willingness to choose it.

"More than anything else, the Seal allowed cotton to become a `brand' in consumers' minds. Advertising efforts in the early years in the US focused on finding manufacturers willing to introduce new lines made of cotton. These manufacturers received co-op ad mentions and, of course, the use of the Seal. As consumers inherently liked cotton's attributes anyway, the efforts to encourage manufacturers to make more products from cotton worked quite adequately," said Mr Richmond S. Hendee, Vice-President, Marketing Services.

Of how the campaign progressed and bore fruit, he said, "By 1988, cotton was available in products everywhere and the advertising effort shifted to celebrating cotton (`The Fabric Of Our Lives') without specifically mentioning any products. We continue with thematic advertising using `The Fabric Of Our Lives' theme line on television and in magazines to this day. In addition to marketing effort, CI also strives to make cotton perform better in the manufacturing process and in end-benefit functionality (shrinkage, dye retention, non-wrinkling, colour vibrancy, and so on)."

Similarly, the cotton `tradition' has slumped in India, with consumption sliding to 57 per cent from 62 per cent some years ago. Many Indian players feel that an association with such a well-known concept will reap them benefits in terms of consumer awareness and sales. Plus, their product would bear a trust mark that is universally accepted. It is estimated that seven out of every 10 persons worldwide are aware of the mark.

In India, the benefits are expected to be two-fold. According to Harminder P. Sahni, Principal and Associate Director, KSA Technopak, the management consultancy firm commissioned to run the programme, it would raise consumer awareness and, in turn, demand for high quality cotton garments. Second, it would raise cotton sales for the Cotton Gold Alliance's (CGA) partners.

And those associated with the entire campaign say that the response has been positive. From the initial 15 that signed up at the launch in May 2003, there are now 22 participants and the list is growing. Fuelling the rush is the fact that the cost of the promotions is being borne by the CGA. And with every print ad, PR effort, mailers and Internet advertisements, all the participants get several important messages across to the consumer — especially for those who produce premium quality products and want to stand out from the pack. Over 40 brands sport the tag. By 2005, quality issues have to be tackled if domestic companies are to compete effectively on a global platform.

There are no licensing fees for the use of the Seal, but any producer/retailer wishing to join the alliance has to send samples of products to CI/Cotton USA, which is a Cotton Council Incorporated (CCI) programme, to be tested. The US Government has provided about $3 million towards the Seal of Cotton programme in India.

All about the tag

So what does the tag do?

Importantly, partners have proprietary access to consumer research conducted by CCI and CI, in support of CGA programme.

For those products that meet the criteria for Cotton USA licensing, companies will be encouraged to license and label with the Cotton USA mark in India and other Cotton USA licensee countries.

Raising cotton consumption

CI's efforts to fluff up interest have worked. According to Hendee: "Cotton consumption in the US is up to over 34 pounds per person per year. A big reason is the availability of cotton products in practically every product category (this was not true of the '70s and '80s when most sheets, towels, shirts, dresses, skirts and sweaters were blends or contained no cotton). Also the dramatic success of denim has helped. On average, Americans own about seven pairs of jeans, and 14 denim items in the wardrobe. Also, they are big consumers and tend to buy more items for wardrobes and homes (home and textile products are at the top of the list) than in Europe and Asia."

Hendee says consumers have preferred blended fabrics because of their easy-care properties, but "when an all-cotton product comes into the market with these properties, consumers want to buy the all-cotton item instead of the blend. That is the focus of our scientific efforts: to make cotton products perform better."

A point that Manish Kelshikar, Design Head, Shoppers' Stop agrees with.

Most customers were unaware of the percentage of cotton or the blends used in their clothing. A number of times clothing was passed off as pure cotton, while in reality it was blended to provide `stretchability', shrink, wrinkle-free qualities, and so on. "As the one of the biggest retail stores in India, we felt it was important to join the alliance. Also, we realised that educating customers about the content of the fabric/garment benefited them and raised the `perceived value', or the premium, of the product," he says.

However, product and process innovations have evolved so much that value-additions such as `stretchability' and better drape are factors that can be incorporated in 100 per cent cotton. And though cotton has never been priced humbly, the tag ensures a premium status.

With "cotton awareness" at a high overseas, and cotton the preferred fabric, consumers are only likely to expect to see the tag on all cotton products.

At Shoppers' Stop, it did excite notice and sales personnel were instructed to give a brief on the Seal of Cotton. Three of its labels — Kashish, Stop and Life — sport the seal. More than 60 per cent of the branded clothing sold in the retail chain carries the tag.

Fluffy cause

The US Government provided the funds for the three-year programme. The aim: to popularise cotton worldwide. However, India is the first country outside of the US in which the Seal of Cotton is being licensed out. For David B. Collins, Assistant Executive Director and Regional Director, South Asia, CCI, felt India's infrastructure and the textile industry's capability of dealing with high-technology demands were factors that tilted the balance in its favour of being the first for the Seal of Cotton programme. If the US could raise cotton consumption from 35 per cent to 60 per cent, it would not be difficult to replicate this success, considering that consumption levels in India had not sunk so low as 35 per cent.

Indian consumers, he said, are predisposed to cotton, despite consumption having slipped. Collins says India's forte lay in its world-class capacities in spinning, technology and in the understanding of the market. He said his organisation is hoping to acquire some of this understanding of the market, of the innovation process and the mix required.

For the textile industry and its players, finding a way around issues such as infrastructure, labour laws and productivity and product quality is key to capitalising on economies of scale. It is essential also to realise that smaller players can find niches and value-additions to products also go a long way. This is necessary if their products are able to compete come 2005. So, for a number of players, the process of making themselves quality-compliant in the most visible way makes sense. While a large number of products do find their way to the world market, it is also accompanied by a somewhat negative perception. This is what the industry, textile associations and associated industries would like to see change.

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