A Theoretical Study Of Innovation And Niche Market In Organic Textile

This study focused on the importance of innovation and niche markets for the survival of businesses in today's competitive world and their growth potential with an exclusive example of organic textile and opportunities for the developing world, especially Pakistan. Consumers around the world are becoming more conscious about environmental and social concerns, consequently increasing the demand for eco-friendly products like organic textile. Using deductive approach, based on e-mail survey, I collected data from the Pakistani textile companies, engaged in organic textile business. A questionnaire was designed according to a conceptual model; focusing on the objectives of this research. I tried to identify: how companies apply the concept of innovation and niche market strategy with respect to organic textile? How they determine the market potential of organic textile products? What are the success factors? And what benefits companies are gaining by doing this business? To ensure the credibility of this study, only GOTS certified companies were selected, which is the main standard being used by most of the companies, to label their products as organic. Other standards like OE (Organic Exchange) are also available, but their share is small and no data are available for them. GOTS ensures that every step; right from the production in the farmyard, up to the finished product in the market, is in accordance with the environmental and social criteria.I received 51.12 % response and divided the respondents into three subgroups on the basis of their contribution in the value addition process of the organic textile products. First sub-group, the "low value addition products producing companies", produces only the organic yarn. Second sub-group, the "medium value addition products producing companies" are involved in the production of organ fabric, organic knitted fabric, organic bed wear, and even sometimes the organic yarn. The third sub-group, "high value addition products producing companies" are involved at multiple value addition levels such as the production of organic apparel, organic fabric and organic yarn.I used non-parametric approach to achieve the overall research objectives and then for deeper analysis of important organic textile success factors, I used the parametric approach to analyze the research results. This study identified the most important success factors for organic textile as an overall industry point of view along with for each value addition sub-groups. I focused on the organic textile niche market from market, product and competitive strategy point of view, and tried to identify the benefits companies are gaining, from organic textile exports. From the survey results I prepared a model of innovation, niche market and organic textile, which would be helpful for the developing world, exclusively Pakistan. It highlights all the important factors of this textile segment, which would be useful for the companies interested to start this business as well as with academic point of view. The theoretical contribution of this study includes the discovery and the respective forms of innovations, and its further sub-types, prevailing in organic textile. Another important theoretical perspective considered in this research is the analysis of cross border trade of the developing countries like Pakistan, in light of two trade theories. Third important theoretical contribution is how the companies view the organic textile in terms of a niche strategy? Fourth theoretical perspective of this study is the development of an organic textile model in relation to innovation and niche market for all the companies. Practical implication of this research include: how companies determine the market potential of organic textile products, identification of important success factors for the organic textile products and ultimate benefits, the companies are gaining from organic textile exports. Certainly more research is needed to elaborate the importance of innovation and niche marketing in organic textile, exclusively for the developing world.