Post on 07-Apr-2018
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Marketing of
Rural Artisan Products
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Introduction
India is one of important suppliers of handicrafts to theworld market and the sector has been amongst Indiasleading foreign exchange earners.
Export earnings from Indian handicrafts industry for theperiod 1998-99 amounted to US$ 1.2 billion (Rs.5,400crore). Yet, this sector is still not completely explored inlight of capability and potential that exists for it.
Central and state government entities, voluntary non-government organisations and co-operatives all aretrying to achieve holistic development of Indianhandicraft industry, large part of which has its origin in
tiny hamlets across India.
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Introduction
The development of rural artisan sector will lay a strongfoundation for the sustainable development of the rural
economy. It will lead to increased disposable income of
the rural artisans who are mostly belonging to the
relatively under privileged sections of society.
This will save the relatively less informed and less
privileged rural artisan from the exploitative designs of
traders and intermediaries, who make the maximum at
the cost of craftsmen and customer.
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Artisans
The specialists, who produce goods and renderservices, for and to others, are what we call
artisans today.
They are heir to the traditions and make it into a
work of art.
Most craft people have learned their skills fromtheir parents and grandparents as a continuity of
tradition, which is being passed on from one
generation to another.
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Artisans
As a socio economic group, artisans are amongst thepoorest. Research shows that households headed by
artisans, in general have much lower net wealth and
almost all (90%) are landless. Some have managed to
adapt to changing times, and a few even thrive but mostof them live in dismal poverty.
Many of artisans have given up, and moved away fromtheir traditional occupations. Others continue because
they do not know anything else.
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Artisans
Research indicates that majority of the crafts personsand their progeny do not want to join the crafts sector;
they would not even mind the tradition coming to an end.
In one of the studies it was revealed that in more than
half the traditional leather artisan households, several
family members have given up leatherwork, and are
working as casual labourers.
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Handicrafts
Handicrafts are rightly described as the craft of the
people. In India, craft is much more than an industry; its
produce is viewed as a creation and work of art.
As Craft Council points out, no Indian craft is ever
purely decorative. Most of them while fulfilling a
positive need in daily life of people, also act as a
medium of self-expression.
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Handicrafts
Craft is also viewed as one of the strategies adoptedby individuals/ households to support themselves
and to build on their existing assets.
Task Force on Handicrafts for the VIII Five Year Plan
defined the term handicrafts in 1989 as: Handicrafts
are items made by hand, often with the use of simple
tools, and are generally artistic and/or traditional innature. They include objects of utility and objects of
decoration6.
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Characteristics of Indian Handicraft Industry
Highly labour intensive
Low capital investment: minimum expenditure on
infrastructure or training to set up, no expensive
investment in energy, machinery or technology
Cottage or home-based based industry Unorganised and decentralized sector: spread all over
the country
Part of work executed on part-time basis
Uses existing skills and locally available materials.
In synthesis with socio-cultural milieu: does not disturb
the cultural and social balance of either the home or the
community.
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Characteristics of Indian Handicraft Industry
Many agricultural and pastoral communities dependon their traditional craft skills as a secondary sourceof income in times of drought, lean harvests, floodsor famine.
Handicraft skills are a natural means to social andfinancial independence
Traditionally have been viewed more as a part of thewelfare sector, which needs to be propped up by
subsidies and grants.
Institutions (Boards and Corporations) have been setup by central and state governments for institutional,financial and marketing support
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Nature of Indian Handicrafts
Handicrafts are classified in two categories on basisof use they are put for:
Articles of everyday use
Decorative items
Woodwork: India is known for its lacquered wood
articles and includes:
Ornately carved decoration pieces Absolutely simple wooden handicrafts
Toys
Furniture items
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Nature of Indian Handicrafts
On basis of media on which they are developed,
handicraft are classified:
Textile handicrafts:This segment provides employment
to 5 lakh people apart from those involved in designing,block making, weaving and packing. It includes:
Hand printed textiles: block and screen-printing, batik, kalamkari
(hand printing by pen) and bandhani (tie and die) for bed-covers,
dress material to upholstery and tapestry.
Embroidered articles of silk and cotton often embellished with
mirrors, shells, beads, and metallic pieces.
Embroidered leather, felt and velvet products.
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Nature of Indian Handicrafts
Stone Craft: Includes carved stoneware made of marble,
alabaster or soapstone, inlaid with semiprecious stones.
Glassware and Ceramic: Glass and ceramic products are
a fast growing segment amongst the handicrafts that areexported from India.
Clay, Metal and Jewellery: They are made from precious
metals, base metals, precious and semi-precious stones.Brass, copper, bronze, bell metals are used for a creating
variety of handicrafts.
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Key Areas for Production of Handicraft
Type of Handicraft Areas Renowned for Particular HandicraftArt metal ware : Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Rewari,
Thanjavur, Mandap, Beedar, Jagadhari, Jaselmer
Wooden Art wares : Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur,Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna,Madras, Behrampur (WB)
Hand printed Textiles& Scarves
: Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer
Embroidered goods : Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra,Amritsar, Kullu, Dharmshala / Chamba & Srinagar
Marble & Soft Stone : Agra, Madras, Baster, Jodhpur
Papier Mache Crafts : Kashmir, JaipurTerracotta : Agra, Madras, Baster, JodhpurZari & Zari Goods : Rajasthan, Madras, BasterImitation Jewellery: : Moradabad, Sambhal, Jaipur, Kohima (Tribal)
Artistic Leather good : lndore, Kolhapur, Shanti Niketan (WB)
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Selected crafts clusters for enhanced exports
Craft Cluster Area Type of Handicraft
Moradabad(UP) : For Artmetalwares and imitation jewellery
Saharanpur (UP) : For Wooden handicrafts & Wrought iron
Jodhpur(Rajasthan)
: For Wooden, Wrought Iron and Sea Shell
Narsapur (A.P.) : For Lace and Lace goods
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Country-wise Exports of Handicrafts
Countrywise Export of Handicrafts
1642
954
453
1440
57108
117171
466
164205
151
69
1139
539
68
122135195
536
190235
177
79
0
200
400
600
800
1000
1200
1400
1600
1800
Austr
alia
Cana
da
Fran
ce
Germ
any
Italy
Japa
n
Neth
erlan
ds
Saud
iArabia
Switz
erlan
d
U.S.
A.U.
K.
Othe
rs
Rs.
in
Crores
1997-98
1998-99
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Handicraft-wise Key Target Market for Exports
Type of Handicraft Key Target Export MarketArt Metal wares : U.S.A., Germany, U.K. & ItalyWood Wares : U.S.A., U.K., Germany & France
Hand Printed & Textiles & Scarves : U.S.A., U.K., Germany & CanadaEmbroidered & Crocheted Goods : U.S.A., Saudi Arabia, U.K., GermanyShawls as Art wares : Saudi Arabia, U.S.A. Japan & U.K
Zari & Zari goods:
U.K. U.S.A., Japan & Saudi ArabiaImitation Jewellery : U.S.A., U.K., Saudi Arabia & Germany
Miscellaneous : U.S.A., Germany, U.K. & France
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Importance of Indian Handicraft Industry
Provides additional earning opportunity to ruralpopulation, especially during poor agricultural seasons
when it is critical.
Adds to overall disposable income of rural economy.
High potential for export and foreign exchange earnings:
According to the Director-General of Commercial
Intelligence and Statistics, Craft exports in India were16% of total exports, in 1972-83. From 1960-1984, craft
exports earned 90 billion in foreign exchange for India.
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Importance of Indian Handicraft Industry
Total exports of Handicrafts went up to Rs.9,27,050 crore fromRs.2,54,318 crore between the years 1992-93 to 2000-019. Theaverage net foreign-exchange earnings for all handicrafts andhandlooms is over 90% of the value of output, which is well abovethe level recorded by exports from more organized sectors- bothsmall and large.
It provides employment to millions of artisans, which include alarge number of women and people belonging to weaker sectionsof society.
The 1984 Report on Handicrafts published by the All IndiaHandicrafts Board states that 21,76,740 people worked full time and4,33,260 worked on part time basis for craft production. In the year2000-2001 this figure went up to 4.761 crore persons per year.
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Importance of Indian Handicraft Industry
The number of new jobs created by craft industries wasalmost as large as the number created by the private
and public sectors combined.
For every rupee of value added in this sector, the capitalrequired is roughly 1/3rd of what is needed in large
industry.
For generation of employment of one person in large-
scale sector it requires six to ten times more investment
than in small-scale sector.
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Importance of Indian Handicraft Industry
For a large and overpopulated country like India, onlysmall scale can provide opportunities of work all over
the country.
It can ensure more equitable distribution of nationalincome.
This sector is maintaining the culture, heritage and
tradition of a region that are so vital to the cultural
identity of that particular region.
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Challenges for the Rural Artisan Sector
Disappearing Markets: Substitution by Mass Production Goods:
Cheap plastic products have wiped out the market forearthenware in many types of handicrafts.
In hugely competitive market, advertising and global trade
scenario, artisans are loosing on account of lack of viablesupport systems. Mass-produced goods are steadily replacingutility items of daily use made by craftspeople, destroying theirvery livelihood.
With ever-increasing competition from mill-made products and
decreasing buying power of village communities due toprevailing economic conditions, artisans have lost theirtraditional rural markets and their position in community.
It means that craft producers need more support than ever ifthey are to become viable and competitive.
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Challenges for the Rural Artisan Sector
Abject Poverty: In spite of the high percentage of peopleemployed in this sector and huge export earnings mostcraft people live in abject poverty. The average incomederived by a craftsperson is Rs 2000 per month. For anaverage family of five members this amounts to Rs 13.50
per day per head.
Lack of Financial Support: There is reluctance at thefinancial institutions local branch level or procedural
delay on account of lengthy paper work to providefinancial assistance to the craft people. They sometimehave to pay bribe even to get subsidies from thegovernment.
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Challenges for the Rural Artisan Sector
The Unorganised and Diverse Nature of CraftActivities: The nature of this industry has prevented
politicians and policy makers in India from
understanding or formulating effective policies or
strategies by which this segment of the populationcan be part of a general advancement.
Lack of Proper Quality Control and Standardisation:Along with the aesthetic and traditional values that
the handicrafts represent, they must maintain some
degree of standardisation and quality control.
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Challenges for Rural Artisan Sector
Correct Sizing: The sizes of the cotton made-ups needto be as per conventional standards so that the
exquisitely designed fabrics and made ups can be
ordered in bulk by the reselling institutions.
Lack of Training and Feedback on Product Design and
Product Development: Market trends and consumer
preferences for the colour, design, patterns change
quite fast these days. By the time the rural craftsmen
have changed to the newer set of preferences, they
have already changed significantly to something
different.
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Challenges for Rural Artisan Sector
Lack of Marketing Avenues with Least Number ofIntermediaries: The exhibitions, fairs and handicraftstores are now prevalent in much larger number thanthey were earlier. But still more needs to be done.
Fluctuating Rates of Raw Material: In carpet industrysmall producers making handmade carpets compete forsame supplies with large factories.
Inadequate Infrastructure: The infrastructure with which
rural artisans produce their handicraft is quite inadequatein comparison what there should be in order to satisfythe consumer demand.
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Challenges for Rural Artisan Sector
Wages for the Craft People are Meager: Even the highest wages arelow relative to the earnings of many others in the agriculture or
other non- farm activities. Weber, in her study on Chikan
embroidery workers in Lucknow, India discusses that low skilled
work been promoted for very low wages. Quality of work can only
be sustained if the craft people can obtain a living through working
for the market.
Irregularities in the Supply of Work: It means there is forced
underemployment. Even though the State Governments haveopened various centers for the sale of finished products, these do
not ensure sales high enough to sustain craft people (through out
the year would be ambitious) even for six months.
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Challenges for Rural Artisan Sector
Lack of Working Capital and Easier Access to Credit:Lack of finance and cash flow is crux of craft peoples
problems and restricts the economic development.
Inability to access government funds leads them to
taking loans from local middlemen and moneylenders- at
exorbitant rates of interest. This leads many Indian
craftspeople into a form of bonded labour. As more than
90% of rural artisan households are landless they haveminimal resources to mortgage or use as collateral for a
loan. Thus, informal credit plays a critical role in the
production and expansion of artisans enterprise.
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Challenges for Rural Artisan Sector
Technological Obsolescence: This gives factory sector
an edge over artisan sector in terms of efficiency and
quality. Modern technology has enabled machines to
imitate even the most intricate designs that were once the
exclusive domain of the artisans. Any form of innovation
implies an element of risk and investment of capital.
Given that most Indian artisans live on the margin ofsubsistence, they have virtually no reserves to invest in
technological innovation (physical capital).
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Challenges for Rural Artisan Sector
Lack of Marketing Acumen: The rural artisans belong to lowest
rungs of the caste hierarchy knowing only how to create
handicrafts as means of livelihood to support their families in the
hard conditions in the backward regions of the country. But, they
might not be good at skills to market them in the remunerative
markets in bigger towns and cities.
Lack of Access to Key Markets: Difficulty of access to urban areas
that are the main markets for craft products.
Production Problems: Rural artisans lack guidance in productdesign and development based on an understanding of the
demand of the market. Even when they know what has to be done
in most of the cases they do not have adequate means to do so.
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Government Policy for Handicraft Sector
Policy Instruments:
Central and state governments formulate different
policies for the promotion of artisans and handicraft
sector. But, states assist particular set of handicrafts
which represent a viable existing or potential exportresource and manifests the cultural prominence of
those handicrafts.
The Central government provides consultation, funds,
grants and loans to encourage the states to boost the
production and sale of their handicrafts.
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Government Policy for Handicraft Sector
There is no dearth of schemes to provide artisans with
working or fixed capital. Mayox points out that for
often than not, craft people are unaware of the
schemes and when they have the information there areproblem in accessing those schemes. If they have
heard of a particular scheme, they cannot cope with
the complex procedure to avail its benefits and if they
do manage to follow the procedure, bureaucratic
bottlenecks and delays more often than not
discourage the intending borrower.
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Government Policy for Handicraft Sector
Review of the government plans reveals that schemesup to the end of the Seventh Plan have not been ableto provide assistance to large sections of craftspeople,productionrelated inputs and the marketing of theirproducts is still out of the realm of artisans reach.
They largely depend on private tradesmen, ormiddlemen who act as intermediaries between
craftsperson and market: and reap all the profits.
The Government of India (Planning Commission, 1988)itself has pointed out the lack of coordination both atthe grassroots and at the national level, as they arelooked after by different departments/organisations.
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Government Policy for Handicraft Sector
In spite of schemes that exist for them, craftspeople
are unable to benefit, as there is lack of strong
institutions working in their favour. Transformation
in organisational structures and processes can helpin increasing craftsmens access to schemes and
services that are planned for them.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
Khadi and Village Industries Commission (KVIC): A statutorybody established by an Act of Parliament. It providesemployment opportunity to 82.77 lakh persons.
Central Handicraft Corporations / Bodies / Associations
The All India Handicrafts Board: The board studiestechnical, marketing, financial, organizational, artistic andother aspects of handicrafts and formulates plans on these
lines. It also advises and provides assistance to the stateGovernments for planning and executing schemes for thedevelopment of handicrafts.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
All India Handloom Board: It advises the Government
on various aspects of handloom development.
Central Silk Board: Central Silk Board supplements
efforts of states by providing necessary support for
R&D and extension and training through its
countrywide network of units. It organises production
and supply of quality silkworm seed, mulberry cuttings
etc. and undertakes directly and with State Sericulture
Departments, implementation of various projects.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
Jute Advisory Board: It advises Govt. on matters of Jute
(Licensing & Control) Order, 1961 including production
estimates of jute and mesta.
The Handicrafts and Handlooms Export Corporation of India
(HHEC) is a subsidiary of the State Trading Corporation of India,which designs strategies to develop new foreign markets and
expand traditional ones and to introduce new products suitable
to the needs of the consumers abroad. The Corporation
undertakes and executes wholesale orders, conducts retail sale
operations through retail shops abroad, and participates andsells in major exhibitions of the world. HHEC also helps private
exporters by affiliating them as business associates. It
undertakes publicity and promotional measures for the export
of handicrafts and handloom products.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
The North-Eastern Handicrafts & Handloom Development
Corporation, Shillong: Tries to develop and boost the sales of
handloom & handicrafts goods from northeastern region.
The Central Cottage Industries Corporation, (CCIE): It is aregistered society, which had taken over from Indian Cooperative
Union.
The All India Handloom Fabrics Marketing Cooperative SocietyLtd.: It is a society, sponsored and supported by All India
Handloom Board.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
Attached Offices
a. Office of the Development Commissioner for Handlooms
b. Office of the Development Commissioner for Handicrafts
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
All India Associations
There are all India organizations for Indias three most
popular handicrafts items: hand printed textiles, carpets
and zari. These associations serve as a platform for
consultations among manufacturers and exporters onone hand and the Handicrafts Board on the other. The
Board uses the following associations to disseminate
information useful to craftsmen:
a. All India Carpets Manufacturers Association, DistrictVaranasi, U.P.
b. All India Federation of Zari Industry, Surat, Gujarat.
c. All India Textile Handprinting Industries Federation, Mumbai.
Institutional Infrastructure Network for
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Institutional Infrastructure Network forDevelopment of Rural Artisans
Related Organisations National Handlooms & Handicrafts Museum (NHHM), New Delhi
State and Union Territories Corporations / Departments
Social- Voluntary OrganizationsCertain voluntary organizations are running RegionalHandicrafts Training Institutes for Women, under the All IndiaHandicrafts Board.
Handicrafts Teacher's Training College (The Arts and Crafts
Society), Mumbai. Regional Training Institute of Handicrafts (Bharat Sevak Samaj),
Dharwar.
Regional Handicrafts Training Institute for Women, (Andhra MahilaSabha) Hyderabad.
Regional Handicrafts Training Institute for Women, (Karma Kutir),
Calcutta.
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SWOT Analysis of Indian Handicrafts Industry
Strengths:
Indian handicraft are quite competitive on the price front because
relatively low wage labour is available in the craft sector in a good
number
Low capital investment and high ratio of value addition
Aesthetic and functional qualities of Indian handicrafts
Indian handicrafts have a traditional appeal
Indian handicrafts are unique and are based on age old cultures
Increasing emphasis on product development and design
upgradation
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Weaknesses: Inconsistency in quality
Inadequate market study
Inappropriate marketing strategy
Lack of adequate infrastructure and communication facilities todevelop/modify handicrafts as per market
Limited capacity; so Indian craftsman and organisations can
handle relatively smaller orders
Untimely delivery schedule; becomes a challenge in demandingexport markets
Unawareness of international standards by many players in the
market
SWOT Analysis of Indian Handicrafts Industry
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Opportunities:
Rising appreciation for Indian handicrafts in the developed
countries
Widespread novelty seeking buying behaviour
Large discretionary income at disposal of consumer in
developed countries
Growth in search made by retail chains in major importing
countries for suitable products and reliable suppliers.
Use of e-commerce in direct marketing
SWOT Analysis of Indian Handicrafts Industry
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Threats:
Better quality and reliability of products produced by
competitors from Europe, South Africa, South Asia, etc.
Better terms of trade by competing countries
Consistent quality and increasing focus on R&D by
competing countries
Better packaging of handicrafts exported from other
countries
Stricter international standards
SWOT Analysis of Indian Handicrafts Industry
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Market Research: Rural artisans need to conduct at
least informal market research to understand the
changes in the preference of customers with respect
to colour, shape and design.
Entrepreneurial Training: Provision of entrepreneurial
training for rural artisans can help them to bettermanage their micro-enterprises.
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Niche Marketing: Price competition has been intensified
by increasing quantity of Chinese and Asian products.
Non-institutional Credit (by NGOs etc): This can be of
vital help for purchasing raw materials or to expand
production systems and assist in breaking out of the
stranglehold of technological obsolescence and also to
ensure quality production.
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Establishment of Web Presence: Internet is veryeffective tool to establish an organisation without thehelp of intermediaries.
Support in Establishing Retail Outlets: Govt. can helpthe organised co-operatives of craftsmen to establishretail outlets in the cities where there can be gooddemand for rural craftwork.
Provision of Marketing Platforms by VoluntaryOrganisations: Voluntary organisations can provide aplatform for marketing of handicrafts, learning andexperience sharing amongst rural craftsentrepreneurs.
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Provision of Recognition and Consultancy: Somecraftsmen are highly talented in their field but require a
little handholding. Recognition by eminent personality
or organisations can help them to secure an export
order.
Provision of better tools: To improve quality and productivity of
the craftwork, govt. & other institutions can provide better tools
and equipments to craftsmen on subsidized rates as part of
special scheme for craftsmen those are below the poverty line.
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Displaying of Artisan Products at Indian International
Festivals: By putting on display some of the products of
micro-entrepreneurs on India international festivals like:
India Day Celebration in Washington, etc. across the globe,
can provide much needed promotion to the work of rural
craftsman.
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Export of Craft Work: If the craftsmen can organise themselves
in the SHG or co-operative societies then they can jointly try to
explore export markets. Before developing an export strategy
for the organisation, it must be:
Awareness of Export Regulations
Developing Product Literature
Awareness about different Distribution Channel for Exports
Appointing Wholesalers
Establishing link with Importers/distributors
Commission agents
Department Stores
Mail Order
Tele-shopping Companies
Livelihood Approach
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Disintermediation: To eliminate middlemen andestablish a direct contact between craftsman and
customer so that rural artisans extract more value for
their crafts and at the same time customer also has to
pay relatively less amount. Government can play akey facilitating role by laying down elaborate direct
marketing plans like:
Organising Self Help Group (SHG)
Organising of Exhibits by Government Bodies
Organising of Regional Craft based Fairs
Formation of Co-operative Societies of Craftsmen
Marketing Strategies for Development of
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Marketing Strategies for Development ofRural Artisan Sector
Establishment of Trusts: It might not be feasible that every
time few craftsmen come together and form a SHG or
Cooperative they will be successful. Most of times result can
be otherwise. The right way could be a two-stage process.
Stage-I: Till the time the craftsmen are ready to be on their ownsome trust or organisation can do the handholding. Trust can
supply raw material and later purchase everything produced
from raw material, on a piece rate basis for value-added
services provided by the artisans.
Stage-II: When the group understands business model to someextent and demonstrates capability and willingness to be on its
own. Then the trust can facilitate the formation of organised
group with a distinct organisational structure.
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Benefits of the Institutional Set-up
Regular training programme can be conducted to adjust tochanges in size, colours and designs and also to equip newmembers in the organisation. Workshops can be organised fordevelopment and up gradation of craft based skills.
The artisans can benefit from a yearly bonus, interest free loans,
compulsory savings and individual life insurance.
Initiative of uniting rural artisans can keep alive traditional craft.
The organisation can implement interventions in areas ofeducation, health, economic development, running schools,womens collectives.
Artisans can invest their income from craftwork in agriculture tobring improvement in income from cultivation.
B fit f th I tit ti l S t
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Benefits of the Institutional Set-up
The temporary migration of artisan families can stop. Earnings
from crafts can supplement household income to sustain theirlivelihood.
Contributes in mitigating the impact of sudden shocks at the
community level. During outbreak of calamities, organization can
extend support to families and work for development of the weakersection of the society, women and children.
Helps in creating a mass awareness of craft and steady income for
artisans.
It gives members social prestige and group identity.
It provides feeling of belongingness and ownership.
Prevents artisans from debt at exorbitant rate of interest
C l i
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Conclusion
Rural artisan products already have a good market not
only in the cities within India but across the globe. What
they need is little bit of handholding and genuine
support. This can be provided by government
organisations, voluntary organisations and the
corporate sector.
Rural craftsmen will have to organise themselves into
cooperatives and Self Help Groups to achieve theoptimum benefit of institutional, financial and marketing
support that various organisations intend to provide
them with.
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Conclusion
Holistic thinking and integrated approach in a multi-
level, multi-organisational approach can lead to
sustainable development of rural artisans and
handicraft sector.
Provision of adequate infrastructural, financial and
marketing support to rural artisans can usher in a newphase of sustainable development in the rural areas.
S P i t t P d
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Summary: Points to Ponder
India is one of the important suppliers of handicrafts to
the world market and this sector has been amongstIndias leading foreign exchange earners.
This sector is still not completely explored in light of
capability and potential that exists.
Development of rural artisan sector will lay a strong
foundation for the sustainable development of the ruraleconomy. This will save them from the exploitative
designs of traders and intermediaries, who make
maximum at the cost of craftsmen and customer.
S mmar Points to Ponder
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Summary: Points to Ponder
Artisans are the specialists, who produce goods andrender services, for and to others. They are heir to thetraditions and make it into a work of art. Most craftpeople have learned their skills from their parents andgrandparents as a continuity of tradition. But, it is
unfortunate that socio- economic condition of artisansis amongst the poorest.
Handicrafts are items made by hand, often with use of
simple tools, and are generally artistic and/or traditionalin nature. They include objects of utility and objects ofdecoration.
Summary: Points to Ponder
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Summary: Points to Ponder
The characteristics of Indian handicraft industry are asfollows: highly labour intensive, low capital investment,cottage industry, unorganised and decentralized: spread allover the country, part of work executed on part-time basis,uses existing skills and locally available materials, is in
synthesis with socio-cultural milieu and many communitiesdepend on traditional craft skills as a secondary source ofincome in tough times.
Handicrafts on the basis of the use are classified as: articlesof everyday use and decorative items. On the basis of mediaon which handicrafts are developed, they are classified as:textile handicrafts, woodwork, stone craft, glassware andceramic, clay, metal and jewellery.
Summary: Points to Ponder
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Summary: Points to Ponder
Some areas have come to be known for certain type ofhandicrafts. Industry clusters for that handicraft have
developed in that region. Some of them are being developed
as clusters for exports.
Three leading export markets for Indian handicrafts are USA,
UK and Germany; they constitute 31%, 11% and 11% of the
total handicrafts exported from India respectively.
Crafts sector has contributed to the economy at the macro
level: in terms of foreign exchange earnings and at micro
level: through employment.
Summary: Points to Ponder
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Summary: Points to Ponder
For every rupee of value added in handicraft sector, the
capital required is roughly one-third of what is needed in
large industry.
For generation of employment of one person in large-scale
sector it requires 6 to 10 times more investment than in
small-scale sector.
This sector maintains culture, heritage and tradition so vital
to cultural identity of a region.
Summary: Points to Ponder
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Summary: Points to Ponder
Challenges for the rural artisan sector: disappearing markets,
substitution by mass production goods, abject poverty, lack of
financial support, unorganised and diverse nature of craft activities,
lack of proper quality control, standardization and correct sizing,
lack of training and feedback on product design and product
development, lack of marketing avenues with least number ofintermediaries, fluctuating rates of raw material, inadequate
infrastructure, meager wages for craft people, irregularities in the
supply of work, lack of working capital and easier access to credit,
technological obsolescence, lack of marketing acumen, lack of
access to key markets and production problems.
Govt. support for handicraft sector has been through: policy
instruments, provision of financial and infrastructural support
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Summary: Points to Ponder
The institutional network of different organisation that exists to
support the development of Indian handicraft industry includes:Khadi and Village Industries Commission, All India Handicrafts
Board, All India Handloom Board, Central Silk Board, Jute Advisory
Board, Handicrafts and Handlooms Export Corporation of India,
North-Eastern Handicrafts & Handloom Development Corporation
Ltd., Shillong, Central Cottage Industries Corporation, Pvt. Ltd.(CCIE), All India Handloom Fabrics Marketing Cooperative Society,
Office of the Development Commissioner for Handlooms, Office of
the Development Commissioner for Handicrafts, National Handlooms
& Handicrafts Museum, New Delhi and State and Union Territories
Corporations / Departments etc.
There are all India organizations for popular handicrafts: All India
Carpets Manufacturers Association, All India Federation of Zari
Industry and All India Textile Handprinting Industries Federation.
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Summary: Points to Ponder
Number of social organizations including non-profit registered
societies and cooperatives have also been established to support thefield of handicrafts.
Marketing strategies for rural artisan sector: disintermediation
through: organising Self Help Group (SHG), organising of exhibitions
by government bodies, organising of regional craft based fairs,
formation of co-operative societies of craftsmen and establishment
of Trusts. Market research, entrepreneurial training, non-institutional
credit by NGOs, niche marketing, establishment of web presence,
support in establishing retail outlets, provision of marketingplatforms by voluntary organisations, provision of recognition and
consultancy, displaying of artisan products at Indian international
festivals and provision of better tools can also greatly benefit the
rural craftsmen in effectively marketing their products.
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Export of craftwork is possible if craftsmen can organise
themselves in SHG or co-operative societies. Then they can jointlyexplore export markets. For this they need to be: aware of export
regulations, develop product literature, be aware about
different distribution channel for Exports
The government policies need to consider livelihood approach,which puts the people at centre of development and takes an
informed view of the opportunities, constraints, objectives and
interactions that characterise the lives of the artisans instead of the
input oriented approach.
Rural artisan products have a good market in cities of India and
across the globe, what they need is little bit of handholding and
marketing support.