Chapter21 Rural Marketing

8/4/2019 Chapter21 Rural Marketing

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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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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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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

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200

400

600

800

1000

1200

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1600

1800

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Germ

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Italy

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Saud

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U.S.

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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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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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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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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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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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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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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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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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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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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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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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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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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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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.



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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.



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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.



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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.



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Attached Offices

a. Office of the Development Commissioner for Handlooms

b. Office of the Development Commissioner for Handicrafts



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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.



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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



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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



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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


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.



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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.



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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.



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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.



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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.



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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



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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



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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.

C l i


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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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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.



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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.



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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.



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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.



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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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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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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.

Date post:	07-Apr-2018
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Chapter21 Rural Marketing

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