 (1)_Big.jpg "Textile manufacturing units - A business model revamp?")
Its turbulent times for the textile manufacturing sector.Increased competition, the dollar woes, added to so many already in existence.Everyone waits, and asks, discussions take place, sound bytes recorded,concessions sought. Hoping and waiting. Real bad scene, all murmur. And callup their consultants to follow up on the expansion plans. Crazy? But true. Allaround, howls of too much competition, and, more coming up.
So, facts, the margins are squeezed and going to gettighter. Competition is tough and getting more so. Like it, or lump it. This isthe industry scenario and in this, you have to make money. What then, are the options?Before we go deeper into this. Let us look around. It is not as if this isunique to the Textile industry. Other areas have seen such times, and may beworse.
The example of the Mobile industry is glaring. From sale price unit of 24 Rs. per minute and incoming paid for, to 10 paise per unit and incoming free.Yet, they are making more money today. Its obvious, when planned; no project could have forecast a revenue downswing of more then 99%. Thus the money making model ofthat time, is obviously not making them the money. Then, how? They saw theevents unfold, and changed accordingly. Not just what they were doing, but howthey were doing. An entire business manual can be written in this saga. Enoughfor us to take a cue from this example.
So its not that for you to make money out of a decliningrevenue business you have to change the business, or even for that matter changethe technology. What you need to change, is the mindset, the way you dobusiness, where you focus, and more importantly, where your team and unitfocus. You would retort, arent they the same. Yes, theoretically so. But ourexperience shows to the contrary many a times. More on that later.
I think its time to remodel the way we run our business.Emphasis on business remodelling. And our business? Primarily, making money.The route to it? Customer satisfaction. Or, is mere satisfaction enough? Why notcustomer happiness? For long, we have tried to cater to the needs of thecustomer. Bound to be a margin squeeze there, for his need is defined, andsomething that has been defined and frozen gives that much less opportunity forextracting perceived value. Satisfaction, or his need, is defined, specifiedand a cost assigned to it by him. Happiness, is not, and the price he may pay for that happiness over and above the cost he is willing to pay for the need,open.
Reaching out, beyond satisfaction is the challenge. Definingand measuring happiness in the textile industry context is something novel. Dowe recall a customer happiness survey conducted by any textileunit/association? Rankings on the diff things that makes a customer happy? Idont think we have even listed what makes him happy.
Yes we grade our fabrics as per international norms ofpoints etc and ISO systems etc. Thats quantitative satisfaction. What aboutservice? What about really understanding his processes further on? And what isthat we can do to help him save or make money there? Can we use our expertise,to create value for him at that point and beyond? Eg. Mobile again. It is nolonger just a phone, and major portion of money is made in non phone usage andnot in talking. The mobile companies developed that potential for the customer.He pays for the happiness. Similar technological potential may not exist infabric itself. Still, if by refining the product, and delving into what more wecan do for the customer, we can make him happier, am sure it will paydividends.
This is food for thought at this moment. Maybe it willstimulate some reaction and discussion. Even if it pauses and makes one think,the purpose will be served.
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