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Key Influencing Macro Factors of the Indian Clothing Industry

Macro environmental factors of an industry are usually not much moved by its associated players. Adhering this fact, the course of Indian Textile Industry greatly gets affected by a series of major factors. Manufacturers of textile components mostly don’t have much control over these external factors and thus, coping up with these parameters is the wiser choice.

The factors that mostly define the course of Indian textile industry are government influence, consumer characteristics, technology and the economy. Thus, if you want to explore the dynamics of this industry, identifying these key determinants will be of great importance for you. Following here we would like to discuss on some of the potential macro environmental factors affecting the clothing industry.

Technological Factors

Technological factors affecting this segment are demand and production, availability of resources. A very likeable instance related to it is; wholesale and retail companies selling more number of substitute leather products because of scarcity of leather. Furthermore, retailers might increase the cotton clothing line prices. Most likeably, introduction of a new clothing style might lower the demand of older fashions. Resultantly, small clothing manufacturers might need to discontinue the existing product line and manufacture new ones at par with the emerging trends. Furthermore, companies might start deploying advanced equipment in the production process which, further drive them to downsize on human resource costs.

Consumer factors

Some of the major factors affecting consumers behaviour include lifestyle, norms, cultures, population and demographics changes. For instance, small clothing manufacturers need to craft numerous styles which, will appeal to the cultural groups representing a large segment of the market. On the contrary, wholesalers, retailers and established clothing manufacturers generally avoid crafting too many clothing products which, typically fall outside the society norms. While considering the modern aging population, the demand for larger sizes of jeans, relaxed and loose-fitting styles are about to increase.

Economic Factors

Economic factors come with both favourable and adverse effects on the clothing industry. Most likeably, during the period of economic boom, people enjoy more disposable income in hands. However, recessions can bring an opposite effect as sales of these entities might become substantially lower. Thus, the retailers might get stuck with huge amounts of merchandise, thereby leading to sell the products at reduced prices. Retailers and clothing manufacturers might also have to sell the lower-priced clothing lines for coping up with the generic competitive race. With less disposable income in hands, people mostly prefer to opt for cheaper brands.

Legal and Political Factors

Numerous legal and political factors affect the participants of the Clothing industry. For instance, the industry has always been affected by critical issues including child labour laws and workers’ rights. The Union workers also might picket employees, especially in terms of unfavourable medical benefits or wages compared to other industries. This, in turn, affect the production process to a great extent.

The industry of textile components is one of the major pillars of the Indian economy. Keeping this in mind, manufacturers and associates of this industry always stay updated on the micro and macro factors influencing the industry.

Author Bio: 

Mohit Tiwari Is a business writer who likes to pen down informative stories and latest happenings on Indian Textile components, thereby advising readers to check out The Textile Magazine for industry updates.