Promising Pashmina Industry – A Paradigm Shift

Point of View 

It is a promising industry yet needing timely revitalization and redirection in the overall strategy to ensure a continuous growth trajectory and consonance with the changing business dynamics. We are not new to the business, but we cannot deny the position created by late entrants. Shawl industry has seen plenty of fluctuations in recent years. We have witnessed new products, new techniques, new strategies and more importantly a whole lot of new players making inroads into the trade. I term this development as a positive one as people always get into the trade that assures growth and returns. Here I can say – whosoever got into this business has made significant progress, fortunes, and if the graph has gone the other way, then they were able to move out without much of the exit load. 

Kashmir is the only place in the world where finely embroidered Pashmina shawls are hand-woven. Despite upheavals, the art of making the Pashmina shawls in Kashmir is unique, practised in the traditional way by local artisans. 

Talking about the raw Pashmina in a global context, the majority of the production is from China and Mongolia (by volume). However, if you are looking for the differentiated quality in terms of softness, fineness and feel, it will undeniably be the higher reaches of Kashmir (Changthang, Ladakh) – which is considered as the purest, ultra-fine in the world (12-18 microns in fibre) and predominantly used for manufacturing a Kashmiri Pashmina Shawl. I don’t want to delve deeper into the aspect of where it is obtained from, I will be spending time sharing my observations on how it’s sold, challenges faced by the manufacturers/ agents, trends that are affecting its growth, and the changing global economic paradigm. 

The success of the stakeholders involved in the production process (artisans and other manufacturing partners) depends largely on the consistency of the revenue stream of the business house. Production and the steps involved in the process (shearing – dehairing – spinning – weaving – clipping – dying – embroidery – washing and ironing etc.) should lead to the fulfilment of demand by catering to the market potential and at the same time creation of a healthy revenue stream. Demand-driven manufacturing is a prerequisite for the seamless selling, and this will ensure the realization of revenue and keep the whole value chain well-oiled. While industries are moving towards customer personalization (supplying to satisfy unique customizations) and not the old school segmentation, we should attempt to move towards that direction. 

This was a general context setting. Based on my little experience, inextricable ancestral connection with the trade, discussions with multiple stakeholders, and being a student of the business – I have come up with an approach: A Business Strategy aligned with the needs of the Pashmina industry (micro and macro level) as I do not see much of the following getting leveraged by the business houses:

1. Product Branding
2. Market Intelligence
3. Product Differentiation
4. Competitive Pricing
5. Relationship and Trust

Please note that I am primarily focusing on the sales and marketing perspective. I would like to believe that product sales (based on customer choices) drive and decide the manufacturing preferences while being mindful of the antique brand value that needs continuous protection. I cannot go on manufacturing what I have been and expect the market to embrace my product, with less or no innovation, always. Let me dive deeper into the points highlighted above:

1. Product Branding: There are two ways of improving the positioning of the products:

a. Brand Promotion Campaigns

b. Curbing the Malpractices vis-à-vis Spurious Goods

a. Brand Promotion Campaigns

This is the responsibility of everyone associated with the business and if I have to put stress, I would say it’s more to do with the big business houses, government-run emporiums, and product opinion (word-of-mouth) creators to ensure the reputation of the brand stays unblemished. A consortium of Pashmina manufacturers and dealers to vociferously promote/ push and encourage the marketing and awareness campaigns across the globe by detailing out the manufacturing-process related messaging/ product narrative (handcrafted embroidery, unique motifs, antiquated nature, weaving and spinning techniques etc.).

I will take a small example – if we can go buy a muffler from a branded outlet, it will cost us between 2000 to 15,000 INR depending on the brand we choose. However, if you see the quality of the Pashmina (softness, elegance), it will undeniably (in most cases) overpower the brand-manufactured muffler, but we will still struggle to sell because people are not aware of the brand. In today’s world, we are selling the brand, reputation of it, value and prestige it carries along. People prefer to buy usual wool for thousands of bucks but will mind spending the same amount on the Pashmina. It lacks the position in the market it deserves.

b. Curbing the Malpractices vis-à-vis Spurious Goods

Checks and balances required to counter the substitute or a fake product, which diminishes the position of the handmade pure Pashmina in the market. People indulging in selling spurious material under the label and legacy of Pashmina impact the genuine manufacturer and should be controlled by a robust mechanism through penalties and operational embargos. While Geographical Indication (GI) tagging acknowledges the purity of the material, but it is seen to be prevalent in a limited way. Dealers should be sure of what they are labelling as Pashmina; any distortion or deviation from the accepted standard of purity should result in heavy penalties and isolation of the business house. 

2. Market Intelligence

It is always a tricky part to understand the market sentiment, buying preferences, the specific choice of buyers, and subsequently and/ or antecedently (predicting) a right manufacturing mix to exactly satisfy the demand. Demand is not only knowing that there is a potential in the market, but having a clear view of what needs to be manufactured to cater to that demand. Proper due diligence in terms of gathering insights from the market is pivotal to the success of any business. Shutting down your eyes and ears, and keep on manufacturing the same stuff repeatedly, and expecting a different response from the market is a naïve way of doing business. Just because we are selling antiques and handicraft does not mean we will repeat the same design, embroidery, colour combination and weaving techniques.

Mass production has no place in today’s business landscape, its personalization. Understanding the needs of the consumer (or selling/ creating the needs by positioning the product appropriately) and trying to manufacture the products exactly as per the sense of liking/ choice of the customer. There should not be much of a conventional selling; it should be understanding and fulfilment of the need, a pull from a consumer more than a push from the seller. Products of high price and prestige do not usually sail through the market by aggressively pushing to unknown audiences; one will have to go for the target market identification supported by the capacity and capability to address the same market through a unique product line and competitive price.

3. Product Differentiation

Quoting Michael E Porter, “Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value.”

Product differentiation is a prerequisite in Pashmina industry. If the product is unique (not seen in the past vis-à-vis embroidery, design), it will fetch the audience, and if it is not, it’s going to take a lot of time to find that one buyer who may like to purchase. Apart from the originality and softness of the genuine Pashmina shawl, I feel it is imperative to focus on the following: 

• Clean, clear and thoughtful designs and a sense of symmetry in the handwork. The design should tell a story. 
• Quality of the fabric and any innovation/ variation that can be performed through weaving 
• Creativity in embroidery motifs like the use of silken and other unique threads 
• Overall product refinement/ polishing in how it’s showcased 
• Colour combinations 
• Open to choices like Kani, Kalamkari, and any other variations/ modifications with a view of not losing the sheen and prestige it carries 

4. Competitive Pricing

I may talk a lot about product differentiation, but the fact is that it is one of those unique products wherein customer looks for extreme differentiation and extremely competitive price.

Lately, with great inclusion of people getting involved in the shawl trade, the competition has been cut-throat. There are customers who have a lot of understanding about the quality and design aspects of the product and are able to appreciate the offering at a better price. However, if the customer is new in the arena, has not bought Pashmina in the past, and is looking for the cheapest price, it is actually painful to convert such a prospect. There are substitutes, spurious products, substandard embroidery and other replacements that people are selling in the name of high-quality handmade Pashmina and that too at a low cost. Business houses dealing with the handmade Pashmina (end-to-end except de-hairing) take the beating in this space. Nevertheless, it is something that Pashmina Shawl sellers should take cognizance of and come together, maybe create a consortium to restrict such malpractices and isolate the people/ firms encouraging such trade adverse/ destructive practices.

Let us be reasonable with the pricing and at the same time do not compromise in any way on the quality and designing of the product. Better wages to embroider, weaver and other factors of production depend largely on the selling price that a product is able to fetch. Paying well to the artisans who burn their midnight oil making a marvellous product is of utmost importance/ priority. Moreover, I believe it’s the responsibility of every stakeholder to show respect, care, and provide timely wages to every individual involved in the multi-step (arduous) process of manufacturing. Given the fact that it’s a handicraft, incentivizing the factors responsible for the manufacturing will ensure its growth and continuity.

5. Relationship and Trust

Given the price involved in buying a Pashmina shawl, it is important to develop a rapport with the buyer. Buyers mostly buy from their trusted sellers, and these sellers continue to pitch the products as and when they are ready with the new collection. Building a healthy relationship with your customers (B2B, B2C) plays a significant role in selling the products.

Exuding trust and confidence through what you are selling - the quality, competitiveness and uniqueness of the product will make it a saleable proposition. Sidelining the futuristic view (relationships) and only thinking about the short-term gains from the sales will negatively impact the trade in the long term. At the same time, a discount of a few cents in order to build a long term relationship with the potential buyer, will only embolden your chances of making a place in the market.

In the end, let us agree and understand that this business is a low margin affair owing to the factors of production and fierce competition, and if one thinks of making millions overnight, it is not the place to be in. Unless you want to indulge in malpractices like selling spurious, fake material at the price and positioning of the original.

Let us guarantee a level playing field to all involved in a genuine manufacturing and selling process. Firms indulging in any of the malpractices that I stated above tantamount to sinning as it jeopardizes the interests of all stakeholders especially the artisans. Let us not forget about the roots of Pashmina trade which goes back to Mir Sayyid Ali Hamadani (RA), Revered Saint, who entrusted the people of the valley with Shawl making/ trade. May His blessings towards the trade and the tradesmen last forever and help achieve all a successful future.

-Yasir Reshi