Silk has a miniscule percentage of the global textile fibre market - less than 0.2%. This figure, however, is misleading, since the actual trading value of silk and silk products is much more impressive. This is a multibillion dollar trade, with a unit price for raw silk roughly twenty times that of raw cotton. (The precise global value is difficult to assess, since reliable data on finished silk products is lacking in most importing countries.) 

Unlike some other textiles, silk-wearing traditions and demand go back a long way. A good example is India, where the local demand greatly exceeds supply (and hampers export growth). India has thus become the largest importer of raw silk, despite the fact that it is now the second largest producer. Some other silk producers are also experiencing fast-growing local demand, such as China, where consumers are increasingly able to afford the low price range silk products. This pattern is also expected to repeat itself in Viet Nam.

• SILK REVIEW 2002

• SILK'S HUMBLE ORIGINS

• TODAY'S CHALLENGES

• PROMOTING SILK

• ITC ACTS WITH SILK INDUSTRY

• SILK'S HUMBLE ORIGINS

Silk has been linked with sought-after creations by the biggest names in haute couture. Yet, many admirers of spectacular garments shown on the catwalks of London, Milan, New York and Paris are unaware of the modern origins of this illustrious textile. The fact that the raw material comes from rural areas in developing countries and transition economies is in stark contrast to the affluent environment where elegant garments of famous fashion houses are presented to a select few. Similarly, readers might wonder why ITC is involved with something as luxurious as silk in its work to help developing countries to improve their exports.

Rural village production

In fact, today's largest producers and suppliers of raw silk and silk yarn are in Asia, with the notable exception of Brazil. (There used to be raw silk production in some Mediterranean countries but it gradually disappeared.) A major reason why ITC stays involved is because sericulture and silk production are labour-intensive at the village level, employing both men and women at all stages of production. 

Environmentally friendly

Silk is also environmentally friendly. Silk is produced with few chemical fertilizers and practically no insecticides. Primarily made of proteins, it is close in composition to human skin, making it extremely comfortable to wear.

Regional slowdown. The fast-developing economies in Asia had been showing an increasing interest in silk products, as the standard of living rose steadily. Recent economic turmoil in southeast Asia, however, has been reflected in a decline in sales.

Dismantling production centres. Silk production centres are closing. This trend is well underway in Japan and Republic of Korea, due to the industrialization of the two countries. Millions of families in rural areas in China, Thailand, Brazil and other countries may now face the socioeconomic choice of whether or not to continue producing silk. If farmers turn from this activity for a more lucrative type of farming, the industry cannot easily recover. Working with silkworms requires strict discipline, learned by tradition through generations

A campaign should aim to reposition the image of silk, capitalize on new technologies and changing market demands and to encourage silk production. As campaigns require both coordination and investment, and may take several years before they have an effect, an effective approach may be to work through industry associations in order to craft national campaigns in the largest consumer markets.

Another alternative may be for the silk industry to work with major retailers in Europe and the United States. Ideally, an industry-wide action plan will have the most impact.

Based on ITC's analysis of recent trends, generic silk promotion campaigns should contain the following elements.

The image of silk

Silk should be marketed as an environmentally friendly, luxury product.

Demand for silk blends and knitted silk

Silk blends are one way to answer the challenge from synthetic fibres. Lately, silk has been blended with other fibres, such as cotton, linen, wool and even polyester. Developing country silk producers have not yet progressed very much in this field. They need to develop their research and technology to offer competitive new products.

Knitted silk products are an answer to the market demand for comfort, expressed during the sandwashed silk boom. Consumers, especially in the United States, were attracted by these garments that were soft, comfortable, casual and easy to maintain. Knitted silk has the advantage of being a casual, yet "quality" silk product, and can fetch attractive market prices. China has made progress in this product category. After introducing silk thermal underwear for outdoor living, other types of knitted silk garments are now being exported, such as T-shirts, camisoles, polo shirts and sweaters. This trend should be followed, because it may have a reasonable growth potential for a number of silk producing developing countries.

New product categories

For instance, there is scope to expand the role of silk fabrics for interior decoration.

The role of Asia

In the medium term, the role of the Asian markets will be vital. Asians will continue to be consumers, and it is likely that growth will resume in this area. It is important to safeguard their role as producers in light of the challenges facing them today.

Recognizing this, the World Bank is rehabilitating the sericulture and silk production industries in Bangladesh. Since the country has long used silk fabrics for saris (like in India), greater silk production in Bangladesh is aimed at reducing raw silk imports, as well as creating a new indigenous raw material for garment exports.

• TC ACTS WITH SILK INDUSTRY

For 15 years now, ITC has worked with firms, national governments and industry associations to promote silk and silk products in silk producing developing countries, particularly in Asia. ITC has closely monitored world production and trade in silk goods, working with key industry players such as the International Silk association, the International Sericulture Commission (both in Lyon, France), and relevant organizations in developing countries, including the China National Silk Import and Export Corporation, the Central Silk Board of India, the Indian Silk Export Council, the Thai Silk Association and others.

ITC projects gave an opportunity to local silk industries, particularly in China, India, Malaysia and Thailand, to develop products and markets. ITC provided technical assistance for silk fabric dyeing and printing, design, pattern-making and grading, cutting and other silk production techniques. Participating companies were introduced to new markets and customers through market contact missions in foreign markets. The message was always the same: move toward silk processing and finished products, in order to improve value-added, and stay competitive.

ITC also publishes a Silk Review, which surveys international trends in production and trade. First published in 1988, it has been updated six times. Silk Review 2002 is available free to developing country readers and sold at US$ 40 for readers in developed countries. 

In 1998, ITC produced a film "Silk: Tradition with a Future? with the United Nations Development Programme (Azimuths series). This nine-minute documentary highlights sericulture and silk production for export in developing country villages, to show that this activity continues despite the increasing industrialization of the traditional silk producing countries.