Sustainable Business Practices - Enablers & Barriers in the Indian Apparel Industry

Download or read book Sustainable Business Practices - Enablers & Barriers in the Indian Apparel Industry written by Dhiraj Jain and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Introduction The ever-increasing world-wide population, the demand for living standards, and the ongoing exploitation of natural resources has created a wider awareness for the necessity of sustainability in living, organizing, performing, and managing work. Sustainable practices are more than ever on the radar of organizations, triggered by a growing demand of the wider population towards approaches and practices that could be considered “green,” “sustainable,” and also “social.” In consequence, organizations are increasingly motivated to implement sustainable practices while still adhering to classical business imperatives such as revenues or costs. To survive, thrive, and to be distinct in a competitive business environment, industries must be restructured and existing and breakthrough technologies must be more innovatively applied to realize green growth. Business sustainability is often defined as managing the triple bottom line -- a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. The purpose is to generate a maximum increase in company, consumer, and employee value by embracing opportunities and managing risks derived from environmental and social developments. Sustainable business practices are characterized by environmentally-friendly practices initiated by a company for the purposes of becoming a more sustainable organization. These companies aim to reduce their environmental footprint through initiatives that cut down on waste, poor environmental stewardship and unethical environmental practices that offer a reduced level of sustainability within company practices. They differ among industries and are often specific to the company type and the product or service it produces. In the apparel industry these steps range from changes in processes for manufacturing raw materials to better working conditions for garment factory employees; from products that are made from recycled materials to a change in consumer psyche regarding throw away fashion. Creativity & innovations are the cornerstones of the apparel industry. Apparel industry is highly influenced by the change in tastes & preferences & adoption of western culture. Higher styled longer life, higher quality at higher price & eco-friendly apparels are the major determinants for successfully competing. Flexible automation is necessary to produce superior products efficiently, especially in the fashion market. Apparel have become the status symbol and the most prestige element. The various barriers hindering the growth of the apparel industry are competition, frequent changes in tastes and preferences, influence of advertisements and the growing western culture. To overcome these various enablers were identified to boost sustainability and profitability like skilled manpower, domestic availability of variety of fibers' and resources. . Purpose of the study The major objectives identified for the study were as follows: • The major factors affecting sustainability and growth of the apparel industry • The enablers for the survival and growth of the Indian apparel industry • Various barriers which are hindering the performance and the productivity of the industry. • Contribution towards the society in terms of social responsibility and producing the eco-friendly products. • Impact of the FDI in the apparel industry and its implications on the profitability. Research methodology used for the study The samples for the study were selected from various manufacturers and employees working in the apparel industry. Study area covered were apparel industries from Rajasthan, Gujarat, and Maharashtra. Two major cities from each of the western states - Rajasthan, Gujarat & Maharashtra were selected for the study. The responses were collected from Jaipur & Bhilwara in Rajasthan, Ahmedabad & Surat in Gujarat, Mumbai & Pune in Maharashtra. Total of 300 questionnaires were distributed - 50 in each city. Five apparel manufacturing companies were selected form each city and 10 questionnaires were distributed in each company and were filled only by the top and the middle management employees. A total of 280 completely filled questionnaires were received and were used for the study. Some of the respondents were approached personally while some of them were asked to fill online. The respondents were asked to give their opinions on the five point Likert Scale ranging from “Strongly Disagree” to “Strongly Agree.” There were 15 statements on the basis of which conclusions were drawn. A descriptive analysis was done to study the mean and the standard deviation of the scores. Cronbach alpha was calculated to assure the internal consistency and the relevancy of the data collected. One way F-test ANNOVA was used in order to find the association / non association between the variables. Findings /Conclusion It was found that there existed various barriers and enablers of the apparel industry. India is a country having people with huge diversity in the culture, tastes &preferences. There is a huge gap in the demand & supply which changed frequently due to the various enablers and barriers operating in the environment. Thus, as per the growing demand & competition, the industry has to focus more upon the tastes & preferences of the customers for better growth & sustainability. To compete effectively it must be converted from labour intensive to creative & innovation based. Improved design tools & practices must be integrated to enhance the productivity in the fashion segment. Contribution towards the society by being responsible & producing the eco friendly products helps in the growth of the industry. It must also focus on the recycling of the clothes as well as higher quality, high styled, high cost apparels have become the status symbol of the people. As it is a highly labour intensive sector, labor productivity could be enhanced through enhanced training, building efficient skills, satisfying them by providing handsome wages. The study also reveals that “design” had the greatest impact on the manufacturing, production cost and product quality of any process in the apparel manufacturing life cycle. Managerial implications Developing the products as per the demand with creative and innovative skills could help the industry to grow. It is the fastest growing industry with high employability and can contribute significantly to the Indian GDP. The study can help organizations to strategize their policies and adopt sustainable business practices to overcome the barriers to better manage. Future scope In the future, apparel firms will create new designs by intelligently using the information accessed rather than beginning each new design from scratch without regard to information that was previously not considered at all. Jobs in the apparel industry of the future will demand skills and knowledge that could be acquired in educational institutions as well as through training sessions. The sustainability and growth of the industry will highly be affected by the foreign competitors as well as the frequent change in the tastes & preferences. Limitations • The study was carried mainly among the employees manufacturers in some parts of India (Rajasthan, Gujarat, and Maharashtra) working within the apparel industry. The results & the findings may not be pertinent and does not apply wholly to the Indian apparel industry. • The study was conducted by taking the sample of 300 employees which could be increased to get better results. • The study did not include the private designers.