Indian artisan market ( Handlooms and Handicraft): Case Studies

Indian Startups catering to the artisan market (Handlooms and Handicraft): Case Studies of successful startups.

Why Target This Segment

• Founders of these startups realised the need to make the crafts commercially viable to really help the artisans.
• These startups launched their companies to empower the artisans and revive their dying art.
• These startups sell products across a wide range of categories including clothes, jewellery, paintings, home décor, stationery and gift items.

Empowering Artisans

Crafts are primarily sourced and supply chains have been established from Gujarat, Madhya Pradesh, Kashmir, Orissa and Rajasthan. The crafts are made by artisans from these states.

• Engaged in co-creation, trying to forge industry-artisan partnerships.
• Their teams make frequent field visits to connect with artisan settlements.
• They have empaneled thousands of artisans and NGOs from various artisan clusters across the country
• These companies provide artisans with elementary training like coding, pricing, packaging, local shipping and basic banking.

Funding

Founders of these startups used their own-money to fund their project initially. Later, it was funded by NDBI (National Design Business Incubator).

These enterprises find backing of the government as it reaches out to the rural people.

E-Commerce Model

These products use the e-commerce model. The products are sold via their websites.

The .com domain name is the easiest to recall and a popular top level domain (TLD) name.

These websites have built a craft research database of close to a couple of hundred handicrafts and a library of thousands of photographs from several states across India.

How to order products through the website?

Just select the products that you want to buy from their website. Pay by net-banking, debit / credit card; you also have the option to Cash on Delivery.

Orders are fulfilled within a week for deliveries within India and could take a few weeks for deliveries to foreign countries.

Internet and Social Media Marketing

These companies uses several internet marketing techniques to drive traffic to the website. The website is marketed through search engines, and using social media.

The website also has lot of informational articles that drives organic traffic to the website.

They have social accounts on FB, Instagram and Pinterest.

Challenges Faced

As these companies grow bigger, it will bring its own share of challenges around managing teams, sellers, buyers and other stakeholders.

These companies will also require more funding to fuel their expansion.

It is important to create entry barriers so that a large number of sellers do not end up selling the same product on different platforms.

Founders optimistic about growth

India has around 760 million farmers who engage in handicrafts at full-time and part-time levels during the off season, if they are leveraged appropriately, there will be ‘enormous economic rejuvenation’.

India holds less than 2% of the annual $400 billion worth world handicraft market. If these 200 million are made self-reliant it will also release pressure on other Government bodies themselves, like those of health & sanitation, urban development and education.

Positive Business Environment in India

India today also has the right ecosystem for such kinds of businesses.

IT and Internet infrastructure is very good.

Internet makes it easier for people in rural India to showcase their products to a wide audience.

Several startups in India are leveraging the strengths of the internet.

Top Start-Ups in the handicrafts Industry

Gaatha.com started as a research project documenting handicrafts from different states. The website focuses on the art, the products and the artisans. There is a blog that tells stories about the various handcraft items.

Other startups such as iTokri, Craftsvilla and Nethaat that operate in a similar space, selling traditional artefacts and products.

Ecommerce giants like AMAZON and FLIPKART today provide a platform for artisans to sell their wares under the ‘handicrafts’ category.

However, the startups are closer to the artisan community, they have the trust of the artisans, and has an advantage over the ecommerce giants.

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