CLUSTER DEVELOPMENTFASHION INDUSTRY MARKET SURVEY

SUBMITTED BY:Sania sidiqqui Neha sharma Saptarshi BachiRashi Tharad Prapati Singh Om

prakash

FLOW OF PRESENTATION

• An overview of HANDICRAFTS IN INDIA• Clusters In India • Handicraft industry and west Bengal• A study on Birbhum (cluster in west Bengal)

INCLUDING CURRENT MARKET AT BOLPUR• Statistics OF ARTISANS & observations OF THE

CURRENT SITUATION obtained through primary research

• Major roadblocks faced by the artisans• Proposed business model

HANDICRAFTS IN INDIA• Handicrafts constitute an important segment of the unorganized

sector of Indian economy.

• India is one of the important suppliers of handicrafts to the world market.

• The industry provides employment to over 23 million artisans.

• Importance of the sector:– It has a high potential for employment– low capital investment– high ratio of value addition– high potential for export and foreign exchange earnings

SOURCE:www.handicraft.nic.in

Types of Handicrafts in India• Bidri • Musical instrument• Cane & Bamboo• Pottery and clay objects• Carpet • Rugs & durries• Conch-Shell • Stone (carving)• Doll & Toys• Stone (inlay)• Filigree & Silverware• Terracotta)• Folk Painting• Theatre, Costumes & Puppet• Furniture • Textile (handloom)• Wood (carving

• Leather (footwear)• Wood (inlay)• Leather (other articles)• Wood (turning and lacquer ware) • Metal ware• Zari • Metal images (classical)• Coir twisting• Metal images (folk)• Miscellaneous crafts Paintings• Ivory • Grass, leaf, read & fiber• Textile (Hand embroidery)• Horn & Bone• Textile (Hand printed)• Jewellery

SOURCE:export promotion council for handicraft

Regions of Handicrafts in IndiaArtmetalware : Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur,

Madras, Mandap, Beedar, Kerala & Jagadhari, Jaselmer

Wooden Artwares : Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB)

Handprinted Textiles & Scarves

: Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Embroidered goods

: Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar

Marble & Soft Stone Crafts

: Agra, Madras, Baster, Jodhpur

Papier Mache Crafts

: Kashmir, Jaipur

Terracotta : Agra, Madras, Baster, JodhpurZari & Zari Goods : Rajasthan, Madras, BasterImitation Jewellery:

: Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)

Artistic Leather Goods

: lndore, Kolhapur, Shanti Niketan (WB)

MAJOR CLUSTERS IN INDIA No. of cluster in India- 500 No. of SHG’s- 17.35 lakhs

SOURCE:www.texmin.nic.in

EXPORTS OF HANDICRAFTS FROM INDIA

Source: EXPORT PROMOTION COUNCIL FOR HANDICRAFTS http://www.epch.in/moreDetails.htm

HANDICRAFT INDUSTRY IN WEST BENGAL

• Bengal is known all over the world for its expertise in art and craft.

• The exquisite texture of Baluchari Sarees, Silk and Tussar Textile from Murshidabad, Birbhum, Bankura, Hoogly and Nadia districts have become the choice of the century.

• Most of these handicraft produce are cottage industry in West Bengal and has been backbone of the rural economy of the State.

SOURCE: www.nift/sgsy.com.

• Birbhum district geographical area is around 4550 sq. km. with total population of 30,12,546 (2001 Census).

• It is one of the prominent religious centre in the state.

• The district has registered a growth of 20.98% of SSI units over the last decade.

• One of the main problems of the SSI units in this district is that the marketing channels are not developed.

• Handicrafts and cottage industries of the region have been extremely popular.

SOURCE:www.epch.in

Birbhum (Cluster in West Bengal)

SOURCE: www.epch.in

• Bolpur is the major industrial centre of Birbhum, where the handicrafts and cottage industries have been extremely popular since the days of the British Raj.

• It is popularly known as “Shantiniketan”.

• Local women and children have always been engaged in handicrafts.

SOURCE:www.epch.in

CRAFTS STUDIED

KANTHA ; BATIK ; SILK ; WEAVING ; LEATHER ; MACRAMÉ

CRAFT STUDIED PRODUCTS PLACE VISITED

SILK WEAVING(Tussar silk, Cotton Silk, Muga , Korean )

Sarees, Stole, Kurta, bedsheet, Suit Material

Tatipara

KANTHA Sarees, Stole, Kurta, bedsheet, Suit Material , document folder

Illam Bazaar, Singhi , Simulia, Bhagwati Bazaar

LEATHER bags, boxes, wallets, purses, belt, key rings, Jewellery Boxes, Bean bags, document folder

Dangapara, Rajpara Vallabhpur

BATIK Sarees, Stole, Kurta, bedsheet, Suit Material , Document folder, wallets

Rajpara Vallabhpur, Tatipara

MACRAMÉ Home décor items, bags Ram Nagar

PROMOTION OF THESE CRAFTS

Promotion by participating in government organized exhibitions like Saras Mela etc.

Promotion done by indigenous retail outlets like Amar Kutir, Basundhara, Alcha, Bhovan Danga etc.

Word of mouth publicity by the consumers who visit the store and purchase the product.

CRAFT DISTRIBUTION

KANTHA Not very structured, final product through intermediaries, product visibility and product accessibility through Local Market

SILK WEAVING Artisans directly procure raw materials like cocoons, colors, needles etc., which are then processed within the village to make yarns for weaving.

They also visit Bolpur to purchase other basic needs. Final product reaches the consumer through intermediaries.

BATIK Two tiered structure1) Artisans directly involved in selling the product to local

retailers. 2) Also final product (batik items) reaches the final consumers

through intermediaries who give orders to the artisans on behalf of outstation retailers. Product visibility and product accessibility through Local Market

CRAFT DISTRIBUTION

LEATHER Raw Material is sourced directly from the tannery in Chennai and the medium used for transportation is truck or train also other raw materials are bought from Kolkata.Finished product is exported through Foreign Trade (FT) Organization & Sold in India to -o Wholesalerso Central Cottageo Different handicraft retail outlets like Manjusha (which has around

80% foreign customers)o Different art shows and exhibitions like the Indian Trade Fair (ITF),

Delhi.

PRESENT RETAIL STRUCTURE AT BOLPUR

• The exquisite crafts of the region are sold through different retail outlets.

• These retail outlets can be distinguished as –– organized and – unorganized formats

• The unorganized formats include small shops and hawkers who sell the craft on a very small scale.

• These people manufacture the products themselves and sell their own products through their shops.

• They have their shops at Bhuvandanga-the main market of the town.

• These retailers keep less variety of the products and at cheap rates.

• This unorganized market plays a significant role as most of the

retailers here are below poverty line and these shops are the only source of income for them.

• The organized formats include retail stores like Alcha, Basundhra and Amarkutir.

• The major thrust for the promotion and development of the craft is given by these stores.

Bhuvandanga – a store at the main market

BASUNDHARALocation •It is located at non commercial area.

•There is beautiful garden and nursery surrounding the storeTarget segment

•Store has large area.•The custom of Bengal is well preserved and reflected.

Store environment

•The store is bigger in comparison to Alcha but its area (approximately 700sq.ft) is smaller than that of Basundhara •The custom of Bengal is well preserved and reflected.•The merchandise is displayed mainly on the walls and in the small display windows

Merchandise assortment

•It sources it product from Bolpur and near by villages•It has many product categories like sarees, bags, leather bags , leather footwear. etc

Price •The products here are medium priced•Merchandise at the Basundhara is lesser priced in comparison to Alcha

Service •Seven to ten sales persons are there on the floor to assist the customers•These people make sure that the customer who is mainly a foreigner or a tourist understands the craft and its intricacies •No extra service like alteration is provided to the customers

Promotion Basundhara is dependent on word of mouth promotion and on hoardings which help in attracting foreigners and tourists

Location The store is located at a non-commercial street of the town

Target segment

The target customers of the store are mainly tourists and foreigners

Store environment

•The store is bigger in comparison to Alcha but its area (approximately 700sq.ft) is smaller than that of Vasundhra •No props are used to display merchandise •The merchandise is displayed mainly on the walls and in the small display windows

Merchandise assortment

Amarkutir society manufactures all the products and retails them through their own outlets It includes sarees, kurtas, leather accessories etc

Price The products here are medium priced

Service It has 4-5 people to assist customers on the floor It does not provide any extra services like alteration.

Promotion Dependent mainly on word of mouth promotion

AMAR KUTIR

Location The store is located at a non commercial area of the town surrounded by greenery

Target segment The target customers of the store are mainly tourists and foreigners so the store environment is created in a way to attract them

Store environment

The store is designed very aesthetically and the visual merchandising of the store is done very tactfully The walls are made up of the mud highlighting the rural look There is neither a cash counter nor any display window but still the store VM is done in a way that attracts customers Use of lights and props is made very interestingly giving store a rich look.

Merchandise assortment

The number of SKUs at the store is less to avoid the cluttered look Design of the product is the USP of the store.The merchandise categories include bags, kurtas, sarees, leather accessories, light jewellery, organic food, organic cosmetics, upholstery etc

Price The merchandise at the Alcha is high priced catering to the needs of mainly tourists and premium class people who pay for the design and quality The psychological pricing strategy has been followed here which implies higher the price better the quality

Service •As the store is located away from main town, understanding customers needs the store has also extended in to a library and a small restaurant for their refreshment About 40% of the merchandise manufactured in their unit goes for export

Promotion Alcha is dependent mainly on word of mouth promotion and to some extent on hoardings which help in attracting foreigners and tourists

ALCHA

Amar Kutir Basundhara Alcha

Statistics of Artisansobtained through Surveys

Crafts wise Distribution of Artisans

5%

75%

5%

6%

9%

crafts%surveyed during observation

batik kantha macrame leather silk

Education level of artisans

62%15%

23%

% of primary/secondary/illiterate artisans

primary educated secondary educated illeterate

Gender wise distribution of work

14%

86%

% of male & female

male female

Percentage of Artisans having APL/BPL

75%

25%

Bpl Apl

Bank users and Non bank users of artisans

70%

30%

Bank Users

Non Bank Users Bank Users

Training of artisans

36%

32%

32%

% of Training

basic skill enhancement non trained

Satisfaction level of artisans

68%

30%

2%

% of artisans satisfied/dis satisfied /highly satisfied

satisfied dis-satisfied highly satisfied

Observations

• 75% artisans do Kantha work, while the other crafts are very less made.

• Most of the artisans (62%)are primary educated.• 86% of the work is occupied by female• 70% of the artisans are non bank users.• 75% of the artisans are BPL .• Only 68% of the artisans are satisfied and 2 % are

highly satisfied.• Basic training were given to most of the artisans.

MAJOR ROADBLOCKS FACED BY THE ARTISANS

• Work done mostly on contract basis.• Lack of market awareness, prevailing prices etc.• Fail to go out of state for procurement & marketing purposes

due to language problem.• Artisans are hesitant & unwilling to take risk & move out.• Lack of finance.• Loan used not for the craft as other means of earning are

easily available.• Lack of orders throughout the year.• No united decision regarding price setting among the artisans.• Poor exposure to new technologies.

• Cannot find a guarantor or mortgage for the loan.• Small market size.• Artisans are not paid fairly as middleman takes away the major

share of the artisans.• Margin higher in credit sales but money gets blocked in credit

dealings.• Loans through middlemen raises cost.• Lack of repayment of loan makes difficult to get a new loan.

• Training not enough.

• Lack of trained people. Only basic training is given to these artisans , no advanced training.

• Lack of new designs

• Insufficient capital to work on their own.

• Dependency on resellers for sale of product – no retailing.

• Incentive for training is money, not knowledge.• Lack of concern for quality.

BUSINESS MODEL

Rural Economy Upliftment & Social Mobilisation

of Rural People through Promoting the Handicraft

through Schemes introduced by the Govt.

which act as Major Employment Generation

A. Baba Saheb Ambedkar Hastshilp Vikas Yojana (AHVY)

B. Design and Technical Upgradation Scheme

C. Marketing & Support Services Schemes

D. Export Promotion SchemesE. Training and extension

schemeF. Research & Development

Scheme

G. Bima Yojana for Handicraft Artisans

H. Special Handicrafts Training Programme (SHTP)

I. Workshed SchemeJ. Credit Guarantee

SchemeK. Artisan Credit Card

SchemeL. Facility Centre Scheme

Source: Compendium of Schemes, Min of Textiles, Govt. of India, Sec- Handicrafts, Pg-45-57

Schemes by Ministry of Textile (Govt. of India)

SCHEMES BY MINISTRY OF RURAL DEVELOPMENT

• SGSY – the largest Self-Employment Programme for Rural Poor”

Source:- www.rural.nic.in/sgsy.htm

Schemes of the Office of the Development Commissioner (Handicrafts), Government of India for the development of

handicraft

• Exhibition Scheme for Handicrafts• Marketing Programmes through Marketing and

Service Extension Centers • Training through other Organisations• 4.Crafts Development Centres • 5. National Award. • Scheme for grant of financial assistance to Master

Craftsmen in indigent circumstances. • . Design & Technical Development • Other Programmes

Source: Directorate of Cottage and Small Scale Industries, Govt of West Bengal

Schemes of Government of West Bengal for development of handicrafts

• Financial assistance programme under BSAI Act. • Additional Employment Programme • Prime Minister’s Rojgar Yojana (PMRY) • Promotional Training Programme• Design & Service Centre • Award of Prizes, Celebration of Handicrafts week, Publication of Brochures • Grant of Rebate on Sales of Handicrafts • Establishment of Sales Depot, holding of Exhibitions etc. • Payment of Pension to Handicrafts Artisans • Grant-in-Aid • Assistance programme for Handicrafts Co-operative Societies • Assistance to West Bengal Handicrafts Development Corporation & West

Bengal State Handicrafts Co-operative Society Ltd. Source: Directorate of Cottage and Small Scale Industries, Govt of West Bengal

Bank related help given to the artisans/self help group

Name of the Scheme

Beneficiary Credit limit Terms & Conditions

Implementing Agency

Artisan Credit Card

Artisans Upto 2 Lakhs No security is requiredA card is issued

Banks identified by the DC Handicraft

Margin Money Scheme

SHGs, Federations of SHGs, Co-operative Societies and State Handicrafts Corporations

Upto 5 Lakhs Institution should be reputed

Concerned Handicrafts Marketing & Service Extension Centres

Credit Guarantee Scheme

Artisans Upto 2 lakhs cover the credit extended to artisans under Artisan Credit Card issued by the Banks

Regional Director of the Office of the DC(H)

Source: Compendium of Schemes, Ministry of textiles

THE CURRENT BUSINESS STRUCTURE AND THE

PROPOSED BUSINESS MODEL

Rural Development Ministry, SGSY

Bank Loan

Designer

National Fairs, Bazars, Exhibitions

MiddleMan / Mahajan

SHGs

Boutique

Current Business Structure

Local Market

What is important is not the exact form of the process in a system but the existence of

some process that is managed by groups

Our model depends on the schemes introduced by

Ministry of Textiles, Rural Development Ministry &

Govt. of West Bengal.

Rural Development Ministry, SGSY

Bank, Credit Card, Micro-finance

Design Studio

Emporium

National Fairs, Bazars, Exhibitions

MiddleMan / Mahajan

Workshed

Global Market

SHGs

Boutique

HUMTUM BUSSINESS MODEL

Rural Development Ministry, SGSY

Bank, Credit Card, Micro-finance

Design Studio

Emporium

National Fairs, Bazars, Exhibitions

MiddleMan / Mahajan

Workshed

Global Market

SHGs

Boutique

HUMTUM BUSSINESS MODEL

Rural Development Ministry, SGSY

Bank, Credit Card, Micro-finance

Design Studio

Emporium

National Fairs, Bazars, Exhibitions

MiddleMan / Mahajan

Workshed

Global Market

SHGs

Boutique

HUMTUM BUSSINESS MODEL

WorkShed

Production Centre & Training

Information Centre

Procurement of Raw materials

& Storage

Buyer & Seller Centre

Design Studio

The Work Shed Model Benefits

• These work sheds will act as a place for product innovation because it will stay continuously in touch with design studio (such as NIFT, various NGO’s & other handicraft marketing agencies)

• It will continuously take feedback from emporiums and the exhibitions which will further help in the product development

• Act as a warehouse for manufacturing, labeling and also branding the product.

• In future an effort will be made to develop work shed as Work Shed cum design studio

• It will help in attracting big export orders

Benefits of Emporium

• These emporiums provide direct market entry to the artisan’s products

• Easy access of these products to the consumers through these emporiums

• These emporiums will be set up in the prime locations in the country

• These emporiums will help in building the brand

The main benefits of this Business Model

• It will help in creating a permanent employment for these artisans as well as help in gaining their faith so that they are willing to switch from their conventional means of work.

• It will provide continuous skill up gradation and help these crafts to reach an advanced level

• Also through this business model it will be possible to source quality handicraft products.

• This will help in building a brand and differentiate it from other products by providing value.

Branding Importance

• Brands provide multiple sensory stimuli to enhance customer recognition.

• Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become Brand Loyal.

• It makes product positioning efforts more effective. Customers conjure up mental images or feelings of the benefits they receive from using that brand or associate benefits with a particular brand.

Branding Importance

• Firms that establish a successful brand can extend the brand by adding new products under the same “family” brand.

• Strong brands can lead to financial advantages through the concept of Brand Equity in which the brand itself becomes valuable.

• It helps to motivate artisan to perform better as they associate themselves with the brand

CraftMark Importance

The Craftmark initiative is an effort by the All India Artisans and Craftworkers Welfare Association (AIACA)

• Help denote genuine Indian handicrafts• Develop sector-wide minimum standards and norms for

labelling a product as a handicrafts product• Increase consumer awareness of distinct handicraft

traditions.Source : www.craftmark.org

THANK YOU