the craft industry dec 2008

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1

BARBADOS INVESTMENT AND DEVELOPMENT

CORPORATION

PROFILE OF THE CRAFT SECTOR

(December 2008)

INTRODUCTION

The craft industry has evolved over the years, shifting from the traditional cottage

industry structure of artisans producing practical products for individual domestic

use and later souvenir items for the tourist market; to factory based operations

producing goods for both the export and local markets. Today, tourists still remain

the principal target market but the emphasis and focus of craft operators has

extended beyond that traditional segment to include prospective clients in the

domestic market and farther abroad. Local craft operators have however failed to

achieve the level of success in the export arena as they have enjoyed at home.

The following report examines the current status of the craft sector and looks at

future prospects and the way forward. Recommendations for further strengthening

and development of the sector also presented in the profile.

EXECUTIVE SUMMARY

The Crafts Industry is a creative sector producing traditional craft and functional

wares for the informal and formal retail market. Though there is considerable

potential that can be maximized the sector continues to struggle to realize that

potential and establish itself as a viable and vibrant economic activity for

prospective entrepreneurs.

Research has shown that the tourist segment remains a captive market and there

are possibilities for linkages with other sectors (hotel, fashion, furniture) however

many craft persons have been unable to realize significant benefits beyond limited


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production and retailing through craft fairs, and the Pelican Craft Centre. The

Pelican Craft Centre, which was intended to be the leading shopping venue for

crafts in Barbados, has itself been performing below expectations.

The dominant trends in the market internationally are in the area of recycling, and

eco products that are friendly to the environment. This type of eco focus opens the

door for new product niches. There is therefore a greater need for more intensive

research and development and technology investment to the local Craft sector as

well as an injection of more talented designers into the sector.

The constraints, most notably the lack of available financing, design skills, and

access to inexpensive raw materials remain barriers to growth and expansion.

Based on the analysis and sector review, it is proposed that the viability of a

common service facility be considered to provide critical support services to craft

operators. In addition it is recommended that a development strategy be devised

and implemented. A framework for this strategy has been included in this report for

further consideration and development. The proposed strategy must recognize that

in order to boost export growth through government intervention, there must be a

clear understanding of the potentials and inadequacies of the sector and strategies

implemented to provide alternative solutions.

STRUCTURE OF THE INDUSTRY

Definition of Crafts Products

Artisanal Products also referred to as craft products cover a wide range of items

that by definition are 1produced by artisans, either completely by hand or with the

1http://www.intracen.org/creativeindustries/


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help of hand-tools and even mechanical means, as long as the direct manual

contribution of the artisan remains the most substantial component of the finished

product.

Artisanal products can be classified under broad divisions. These divisions are

primarily based on the materials used, or a combination of the materials and the

technique. The six main categories are:

Basket/wicker/vegetable fibre-works;

Leather;

Metal;

Pottery;

Textiles;

Wood.

Other categories of products offered in the local market include recycling craft

(paper); handmade bath and body products (soaps, bath gels); wall decorations,

decorative glassware and shell-work; jewellery (coconut shell, conch shell, beads and

seeds, ceramic and copper metal wire).

For many years there has been limited standardization in the collection and

classification of data on craft. However following UNESCOs proposal to base the

classification process primarily on materials used, there has been a greater effort to

capture trade data on craft products based on the materials used and the technique

used (for instance weaving or basketry where the materials used may be either

vegetable or animal fibre).

Size of the Industry

The BIDC's Employment and Investment Survey of manufacturing companies

shows a total of 26 active artisans at December 2008. However it is accepted that


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this figure does not reflect the total number of craft persons operating on the island

since many artisans operate on a part-time basis. The BIDCs register of artisans

shows an estimate of 112 persons who sell their products commercially.

Table I

Major Industry Indicators

2004-20082004 2005 2006 2007 2008

No. of Employees 157 164 165 161 121

No. Males Employed 49 55 50 47 38

No. of Females Employed 108 109 115 114 83

No. of Enterprises 30 31 31 25 26

Domestic Exports BDS$M 0.5 0.4 0.8 0.4 0.5

Imports BDS$M 12.1 14.5 12.4 14.5 13.6

Source: Barbados Statistical Service/BIDC Quarterly Employment Survey

Whilst a number of local operators have been able to weave both training and

creativity into areas of enterprise that provide self employment, there are still many

who are yet to move from the margins to the mainstream where their efforts result

in job creation for other Barbadians and sustainable earnings through exports.

An estimation of the size of the market in terms of economic value is difficult given

the shortage of data on sales and the total number of crafts persons operating on

the island. In the domestic market imports of craft items top the $13.6 million mark

in 2008.

It is estimated however that as the principal market segment (tourists) continues to

grow in number, this total may also increase in the future.

Characteristics of the Market

The principal market for crafts is the tourist segment which is volatile and subject

to changes in the economic conditions in countries like the USA and UK. This

segment of the market is catered to largely through the Pelican Craft Centre (the


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islands premiere craft retail outlet), and retail shops at the airport and seaport.

Domestic crafts sales (sales to local consumers) are also made through crafts shows,

or community events.

Pelican Craft Centre provides both production and retail facilities to craft operators,

though quite a large number of craft producers still remain home based. And whilst

this may be a cost saving measure, it presents some constraints for producers

looking to expand their operation. Home based facilities often lack the added

appeal which comes from working in a readily accessible studio or production

facility; since it has been found that many consumers welcome the opportunity to

see the artisan at work .

NEW TRENDS IN THE CRAFTS SECTOR

The global market for crafts items is quite extensive since handicraft captures a

wide range of products including the broad categories of gifts and accessories, and

home accessories. Global statistics for handicraft trade is difficult to estimate,

however, the huge economic and social importance of the sector is evident from the

number of countries that have sought to harness the potential that exists in the

sector.

The American crafts market is one of the largest and most important markets for

craft in the world. The Art & Crafts industry in United States is reported to be

valued at US$13.8 billion.2 This market has a strong desire for the unique, the

interesting, and products with a history. The US market is however quite price-sensitive, and price per unit realised in this market tends to be lower than in other

countries. German consumers tend to be quality conscious, with emphasis on

natural, authentic and high value handicrafts.

2Craft Industry Overview, Global Handicraft Industry; Craft Central


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In Caribbean Exports Ten Strategies For Success Within The Caricom Single

Market & Economy (CSME) 2008 report, the following trends and drivers in the

industry were noted.

Major growth segments of the international gift and accessory markets include:

Cultural goods, spurred by growth in international tourism, increased

focus on interior decoration

Global Style products that combine ethnic elements with contemporary

designs;

Recycled products are more in demand

Colour is popular

Pampering and personal care items are in demand

So too are highend home accessories, particularly in Canada, Europe and

the United States.

Products which are simultaneously decorative and functional, particularly

in the category of home accessories and dcor and products for the garden

or outdoor living spaces.

The report also noted that in the international and local markets there was one

common interest among buyers and consumers and that was to find something

NEW! In addition, the market for gifts and decorative accessories is becoming

increasingly fashion-oriented. Growth in tourism has fueled an increased demand

for:

1. Cultural products

2. Decorative accessories for hotels and restaurants3. Designer goods

4. Indigenous art

5. Uncommon souvenirs


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Uniqueness & Niche Marketing: Customization is becoming more and more

important in this market. Some of the best selling items in craft markets abroad

are custom-made items with corporate identity, since these types of products give

business companies an opportunity to present their identity in a creative form,

while leveraging their in-house nation-building and corporate social investment

objectives. This is an interesting and exciting trend that has emerged during the

past yearthat of customizing ceramics, wire and beaded products with corporate

logos, and other interesting themes, developed with the assistance of the Centre for

Innovation.

Eco-chic: Eco-chic has evolved as the

mega-trend of the decade as more and

more consumers are demanding planet-

friendly products that are desirable,

beautiful and functional, like the

products shown on this page.

flower ball light, made from recycled plastic bottles,designed by a well known South African designer who uses

people's rubbish to make attractive furnishings

PERFORMANCE OF THE SECTOR

The limited data available on the sectors economic contribution does not allow for a

very definitive expression of the sectors performance over the years however it is

clear that whilst there has been a significant increase in the number of tourists

visiting the island these gains are not mirrored in an expansion of the craft sector.

Producers still cite disappointing sales and market erosion from imported goods as

major issues impacting the performance of the sector.
http://www.incapetown.com/subsites/pack3_4.aspxhttp://www.incapetown.com/subsites/pack3_4.aspx


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The sector is also affected by the inability of operators to successfully integrate

appropriate craft products, with their Barbadian uniqueness, into the growing

tourism sector. In addition many of them are unable to adequately promote their

craft as a branded product.

Statistics show that in 2008 approximately 568,873 long stay tourists and 646,147

cruise ship passengers visited Barbados, up from 2005 by a margin of 3% and 13%

respectively. Total expenditure has grown by 4% from $1,770.5M in 2005 to

$1,843.4M in 2006 underscoring the potential for craftspersons who can appeal to

this growing market.

A 2006 report on the Economic Impact of Cruise Tourism in the Caribbean found

that average spending per passenger on local crafts and souvenirs was

approximately US$13.32. Since most souvenirs are bought on departure this

pattern of spending may be extended to long stay visitors as well. The impact of this

spending in Barbados could therefore amount to some Bds$31,941,812 million in

annual tourist expenditure in the craft sector.

Whilst the spending habits and preferences of tourists has changed over the last

decade, the craft sectors response to these changes has not been in equal measure.

The product offering remains much the same as it was in 1998, though some new

players have entered the market.

Access to raw materials and the preparation of such materials is vital to the growth

and development of this industry. Whilst some effort has been made in the past to

identify the availability, procurement and methods of preparation of raw materials,

this has not been sustained and presently further work needs to be undertaken at

assessing and addressing the needs given the prospects for new designs and

products.


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As competition intensifies in terms of attracting a greater number of clientele both

at home and abroad, the need to introduce new designs and products will become

even greater in order to sustain growth in the sector.

Growth/Constraints

The number of craft persons fluctuates from year to year as several persons seek to

make the leap from hobbyist to entrepreneur in the hopes of hewing success out of

these efforts. For many of these artisans, growth is constrained by several factors,

including high production costs, lack of adequate financing, limited design skills for

innovation and product development; difficulty accessing appropriate and

inexpensive raw materials; lack of adequate shelf space in retail outlets,

inconsistent quality and intense competition from imported products. In addition to

these problems, the craft sector also has certain inherent weaknesses that continue

to hinder its progress. For example, the sector is confronted with:

1. Lack of understanding of the role of product designers and product

development and a reluctance by some crafts persons to embrace product

development therefore there is not enough creative talent in product designs.

2. Insufficiency of certain raw materials and a decline of some local sources.

3. Unrealised potential on a large scale.

4. Not enough recognition for crafts as an important area of economic activity.

5. Limited management skills.

6. Lack of adequate marketing of products.

7. Uncoordinated approach to marketing and inability to intercept

.opportunities.

8. Informal networks and scale of operations.

Research has shown that in cases where craft producers place a great emphasis on

tourist products these products invariably are seen by consumers as lacking in

identity. Another handicap of repetitive reproduction of traditional designs and


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products is that it stifles innovation and creativity and limits the range of new

products offered to very demanding consumers.

In addition to the existing constraints in the sector, increasing imports of hand-

crafted items could threaten the sector even further. A SWOT analysis reveals

further threats and opportunities that are facing the sector today.

Table II

STRENGTHS WEAKNESSES

Job creation potential

Access to support agencies like BIDC

Ready access to technical assistance and

business development services

Lobbying bodies for sector (Barbados

Craft Council)

Lack of strategic focus for the sector

Absence of agreed quality standards

Modest design skills base

Limited product range

Limited profile of sector

Limited supply and availability of

unique raw materials

Limited access to credit

OPPORTUNITIES THREATS

Access to training, marketing and

exhibitions provided through local

agencies, BIDC, BMA, Craft Council

A credible quality mark could enhance

consumer confidence in the sector

The potential for synergies with tourismcultural and other creative industries

The absence of a strategic focus for the

sector means it will remain fragmented

and unable to realize its full potential

Increasing competition from imported

craft that is cheaper or more innovative

and creative in design

Imports

Craft imports are conservatively estimated at $13.6 million. The categories of

pottery, imitation jewellery, and articles of leather are the areas showing the

highest import value. And whilst it must be noted that not all these products are

actually hand made crafts, these imports do show the level of usage of items in

these categories and the possible areas that crafts persons can explore for further

penetration of the domestic market. The main sources of imports are the USA,

Columbia, India and China.


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Table III

Imports and Export of Craft Product Categories

1998-2008

YEARS IMPORTS (BDS$) EXPORTS(BDS$)

1998 10,432,669 376,405

1999 11,118,333 360,334

2000 12,120,352 341,600

2001 12,183,978 380,841

2002 9,838,207 313,109

2003 11,180,395 436,021

2004 12,121,500 554,768

2005 14,471,759 401,172

2006 12,377,639 84,680

2007 14,547,790 392,430

2008 13,635,613 471,701

TableIV

Imports of Major Product Categories

2007 & 2008

Products 2007 2008

Ceramic Tableware 1,923,234 1,414,121

Tableware of Wood 262,184 318,364

Imitation Jewellery 1,081,350 1,089,323

Statuettes of Ceramic 543,039 674,876

Statuettes of Wood 254,239 265,837

Statuettes of Metal 408,565 296,486

Articles of Leather 1,349,306 1,210,582

Wickerwork/Basketwork 323,951 508,252

Collages/Decorative Plaques 248,241 397,208

Source: Barbados Statistical Services


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Exports

USA, Germany, UK, France, Italy, Netherlands, Japan, Switzerland and Canada

are the principal importers in the world, estimated to account for 80% or more of the

trade values in gifts and decoratives.

Barbados exports of handicrafts for 2008 totaled $0.5 million. Table collages and

similar decorations along with other statuettes and ornaments of base metal were

some of the principal exports. Major export markets include the USA, UK, St Lucia

and Grenada.

Table V

Exports of Major Product Categories

2007& 2008

Products 2007 2008

Ceramic Tableware 78,472 9,328

Tableware of Wood 0 184

Imitation Jewellery 2,198 18,430

Statuettes of Ceramic 38,673 44,625

Statuettes of Wood 926 5,131

Statuettes of Metal 24,427 20,277

Wickerwork/Basketwork 55,062 8,930

Collages/Decorative Plaques 139,711 137,147

Source: Barbados Statistical Services


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MAJOR EXPORT MARKETS

2008

Grenada

14%

USA

28%

UK

18%

Canada

4%

Netherland Antilles

3%

Caymans

9%

St. Lucia

15%

Jamaica

2%

St Kitts

4%

St Vincent

3%

Competition

Competition in the domestic market occurs not only among local producers but also

involves imported craft items and products offered to tourists in neighbouring

markets like St Lucia, Jamaica, etc. For local producers, being competitive in the

tourist segment is critically important. The constraints noted earlier however have

prevented some producers from maximizing the full potential of this market

segment. The Barbadian market is flooded with cheap imports due to a highly price

sensitive market and the inability of crafts producers to compete on price, quality

and service delivery.

A look at consumers purchasing behaviour both locally and abroad shows that

competition in the craft market is largely shaped by price and quality.

A 2005 study in the USA of tourists spending habits on crafts found that 61% of

purchases were in the low end category. It was found that these consumers spent

an average of US$20$30 on crafts items for themselves, friends or relatives;


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US$10$20 for other adults or children, and US$5$10 for token gifts for coworkers.

The respondents reported spending more only on lodging, fuel and meals.

It has been noted by some market analysts that whilst stocking a healthyassortment of inexpensively priced crafts can mean sales in the short term, there is

evidence to suggest that if a crafts business is to remain viable, it cannot live by

low-end items alone.

In a market like Barbados where there is strong competition from other tourist

destinations in the region, price will certainly be important but experts have

concluded that price isnt always the most important factor when it comes to selling

crafts. Whilst low prices may work initially in terms of getting customers through

the door, its generally accepted that quality and good service will go further to

cultivate repeat business and a loyal clientele.

This approach has reportedly yielded considerable returns to US producers in the

newly emerging home-dcor crafts market, where affluent consumers are buying

functional craft for their homes and workplaces3. An assessment of that market

showed that whilst an imported vase from a large retailer may sell among rank-and-

file consumers, the affluent, mid- to high-end consumer is looking for something

unique, regardless of price or how the economy is doing at the time. This is

important to know since many of the affluent consumers who shop in the US

market may also find their way into our domestic market as tourists on the hunt for

some unique craft items for their home or workplace. In this instance, quality may

be the determining factor for them and not price. It is therefore critical that local

crafst producers cater to both segments of the market - offering some products in the

low end category but also products that will appeal to the tourist or local consumer

who is seeking quality above price.

3http://www.craftsreport.com/may05/bizwise.html


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In addition to high quality, retailers also note that good service is an important key

to success since many consumers are loyal to crafts businesses that are attentive to

their needs, providing extras like gift wrapping.

GOVERNMENT POLICY

Much of the assistance provided to the local crafts sector in recent times was aimed

at:

Sensitizing small businesses to the importance of improved packaging.

Improving the finishes of crafts items, wooden products in particular.

Developing a number of new products and getting local craftspersons to

incorporate them into their lines, as a means of diversifying the local

products available.

Offering consultancy services. As an example, one company specialising in

ceramics, was given advice in the development of mosaic crafts.

Advice and exposure to knowledge management for the exportation of crafts.

Merchandising, marketing

What Other Countries are Doing

Several countries have made considerable progress in developing their handicraft

sectors largely by implementing strategic initiatives to harness talented craft

persons, improve their skills, and provide support for these businesses. In India, the

Philippines and Thailand, crafts are a significant source of foreign exchange

earnings despite modest investment.

Indias strategy for growing its craft industry is multifaceted, (see Appendix I).

The Indian Institute of Crafts and Design (IICD) provides hands-on experience

that seeks to equip students with a thorough understanding of materials,

technologies, skills and concepts along with exposure to the diversity of Indian

culture. Students are initiated into the entire ecosystem of Craft and are


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encouraged to understand complexities at the level of the village as well as the

industrial production centres. Craft design, technology, management and

entrepreneurship skills become the bedrock on which they build their careers.

IICD is also involved in research and documentation of the vast and complex

world of craft. These activities aid the evolution of intellectual capital at the

institute, the formation of knowledge banks, exploration of relevant issues and

innovation.

Training and Outreach Programs are conducted at the grass root level with

artisans, self-help groups and non-governmental organizations. These are multi-

disciplinary in approach and are designed to add value to agencies working in

craft development and promotion as well as to provide a platform for students to

directly interact with craft communities.

Ghana on the other hand has seen its handicraft exports4, which started from the

US$1,000 dollars levels in early 1990s mushroom into export earnings in excess of

US$11 million by 2002. This performance trend was the result of targeted sector

interventions that successfully addressed:

1. Sector policy and organisational frameworks and mechanisms.

2. Supply side constraints.

3. Production and marketing infrastructure.

4. Capacity building and skills training and value addition.

5. Financial resource mobilization for the sector.

6. Effective trade promotion and market development.

CHALLENGES

4Uganda Handicrafts Export Strategy, International Trade Centre, 2005


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One of the major challenges identified in the SWOT analysis is the absence of a

strategic focus for the Barbados crafts sector. This certainly has implications for the

continued growth and expansion of the sector. Out of this challenge therefore is an

opportunity to identify a strategic approach for developing the craft sector

holistically, addressing the major weaknesses and nurturing the potential that

exist within the sector.

OPPORTUNITIES

In addition to the strategic plan for the sector there is also an opportunity to

enhance the performance of existing producers by exploring the viability of a

common service facility to service the sector. This facility could be accommodated

through a cluster initiative which is examined in greater detail below. It is also

thought that there may be opportunities for utilizing underutilized raw materials

like khus-khus grass, banana fibre, sheep skin, coconut shell.

The current global recession has negatively affected many businesses and has in a

unique way opened the door for new and inventive things. This suggest that now

may be the opportune time to create a paradigm based on innovation and upgrading

rather than just continuing business as usual. This also creates an opportunity to

undertake more research and development and expand the present design capacity.

In addition, there are other opportunities for local producers and development

agencies like the BIDC to consider such as:

Craft operators:

Increasing market demand for authentic, exclusive and high-value Barbadian

handcrafted quality products.

Explore using recycled waste materials as a valuable cost-effective input.

Improve knowledge/market information; global view of current fashion,

interior design, product design to aid in product design.


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Balance uniqueness of indigenous value and cultural heritage with

commercial value of product.

BIDC

Establishing economic clustering through which small producers can

cooperate to achieve economies of scale.

Enhance creative skills in design and execution of design.

Increase focus on technical training and skills development and transfer by

lobbying Government support to introduce craft skills into the school

curriculum.

Introduce effective and affordable technological solutions to optimize

performance and create sustainability.

Strengthen the network of local partnerships to leverage marketing

opportunities.

Facilitate product development based on historical precedentensures

authenticity in design and fore fronting of cultural heritage.

Critical Success Factors

Secure industry support.

Secure adequate funding.

Introduce product development initiative.

Develop skills enhancement programme.

Secure cooperation and integrated support of craft producers and retailers.

Develop and facilitate a long-term R&D strategy.

Cluster Initiative

The intention of this type of project is to involve various professional capabilities in

the areas of design, technology, marketing and management along with external


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expertise; and synergise all these developmental activities to enhance the

performance of producers within that cluster arrangement.

The goal of the cluster arrangement should be principally to empower artisans by

making them active entrepreneurs/primary stakeholders so that they can upgrade

their skills, acquire adequate infrastructure support and create centres of excellence

through collective participation in the initiative and cooperation amongst

themselves.

Key Functions of Proposed Cluster Initiative

1. Understanding Crafts Craft a vision and new focus for the sector

Prepare strategic plan for the sector

2. Networking:

Encourage co-operation (co-opetition) between firms, bringing firms,

government, academia together,

Hub for distribution of information/ providing connections

3. Business Development: Incubation

Mentorship

Access to finance/ opportunities

Facilitating partnerships

Export facilitation Programmes

4. Innovation Support

Hosting of events/ presentations

Linking new ideas / identifying sources of innovation

Facilitating access to R&D grants for craft persons

Facilitating Intellectual Property Protection Success storiesChanging Mindset

5. Productivity Intervention

Demand led production

Quality and Productivity improvement systems

Skills upgrading


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6.Addressing bottlenecks/problems

Access to finance

Access to raw materials

Access to technology

Access to product design and upgrades

/skillsOUTLOOK

The creative industries has been tagged by Government as the vehicle for greater

economic diversity and sustainability in an economic environment that is

increasingly becoming unpredictable and volatile. Embracing industries that fall

outside the traditional boundaries is seen as a prerequisite for successfully riding

the current of uncertainty that hangs over the more established engines of growth

like manufacturing and tourism.

Greater emphasis must be placed on further penetrating the tourist and local

market niches and greater efforts made to increase exports of craft. The e-commerce

initiative should allow for increased visibility and availability of Barbadian

products in the export market.

It has been found that repetitions , lack of creativity and design knowledge, lack of

competence in new designs or product development, has constrained the potential

that exist in the sector and impacted on the quality of products offered to what is a

very discerning consumer base. To foster a stronger and more positive performance

of the sector, government through the BIDC should seek to undertake several

initiatives some of which should focus on :

1. Training (Undertake an ongoing and comprehensive review and analysis of

craft education in Barbados to compile an inventory of training available, skills

sets needed for industry participants, identification of gaps and training needs

of the industry. Also explore cooperative programmes between schools, colleges


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and craft persons, and provide ongoing professional development opportunities

for craftspersons to address deficiencies in the industry.

2. Product development/production methods Foster a research and

development approach to product development and improve availability of

indigenous raw materials. Explore methods of production which are

environmentally sensitive. Introduce more recycling, use of factory waste,

forestry waste, agricultural waste.

3. Encourage more specific training in the area of crafts product developers.

Secure 2 yr. programmes for 2 persons in crafts design development.

4. Design (focus on design as one of the major building blocks of the craft industry;

develop a visual design bank which would offer craftspersons design elements

integral to our culture, heritage and environment. This would provide useful

design expertise for craftspersons who lack this design skill. Efforts should

commence with craft items for which there is an unfilled market demand.)

5. Market/marketing (Determine characteristics of local craft products which can

contribute to a readily identifiable brand. Foster public, corporate and

governmental awareness of the craft industry by promoting our identity through

heritage, culture and the environment. Develop a 3 year national branding

campaign.)

6. Best practice workshops to improve the entrepreneurial skills of

artisans.

7. Communications (enhance information sharing through workshops/seminars

and increase visibility and awareness of the sector)

8. Business and Technology (improve appropriate business skills for

craftpersons; provide opportunities for craft persons to learn about appropriate

technology and adapt it to their particular needs.)

9. Retailers (Provide support for retailers. For example help retailers/producers to

develop customer service, merchandising and quality control and increase

opportunities for consumers including Barbadians to purchase locally produced

products).


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10.Support services Establish coordinated efforts with Ministry of Tourism, hotel

sector, National Cultural Foundation, Craft Council.

As efforts are made to minimize threats and remove the constraints to crafts

development, it is believed that prospects for the sector will become more positive

over time.

RECOMMENDATIONS FOR STRENGTHENING/DEVELOPING THE

CRAFT SECTOR

Implement cluster arrangement for selected Craft operators. Clusterdevelopment approach could be an ideal solution to promote the sector

in Barbados. Clusters will provide round-the-clock infrastructure and

common source facilities for developing handicrafts, besides being cost

effective.

Improve standards of creativity and innovation in the craft sector.

Promote creativity through small grants to craft producers to facilitate

innovation and experimentation with materials.

Raise the profile of the sector implement a full marketing and

branding campaign to raise awareness of the sector.

Explore the availability and utilization of additional raw materials.

Cultivate a tourist craft market at Pelican through targeted

promotional techniques.

Improve the quality and value of locally crafted products through ajoint arrangement with the BIDC Design centre and Islandcraft

Barbados; and explore the viability of establishing a design cluster to

service the sector.


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Improve/bolster the operation of key craft suppliers through technical

assistance. This in turn would impact positively on the sectors

performance.

Pursue joint promotional and entrepreneurial ventures, corporatealliances with other industries e.g fashion industry.

Work with the BTA to promote cultural and creative tourism.

Explore the benefits and viability of a National Product Development Centre or

Product Development Unit within the BIDC to:

Support global competitiveness of manufacturing industry through the

application of integrated rapid project development technologies andmethodologies.

IP protection and innovation exploitation.

Essential services provided in design support, materials engineering,

production tooling and prototyping, marketing

Promote cultural industry design nationally.

Preserve and activate heritage skills and indigenous knowledge for social and

economic gain.Provide innovation through creative product solutions.

In addition to the above, it is also suggested that craftspersons be encouraged to pay

particular attention to:

the significant portion of the market which is being satisfied by

imported products of a better quality and price.

increasing price consciousness amongst consumers.

Revenues which continue to be lost as a result of failure to produce

new products and designs that are aesthetically pleasing.


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In Barbados tourism is the major industry in terms of foreign exchange and a

lucrative market for local craft producers. It is believed that if the overall

performance of the craft sector is improved, these gains will be reflected in the

performance of local craft operators.


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APPENDIX

SECTOR DEVELOPMENT STRATEGY

CRAFTS

A Sector Development Strategy for Crafts is based on the understanding that craft

must be recognized as having status equal to other visual arts and foreign exchange

earning sectors and that the sector must be given special support across the

following areas:

1. Marketing and promotion2. Access to finance

3. Product development and design

4. Access to raw materials

5. Skills training and mentorship

6. Transport and distribution

The Overall Objective of the Sector Strategy

The development of the handicraft sector strategy is driven by the overall strategic

objective: To build the capacity of handicraft producers in order to meet

international standards and to expand the sectors foreign exchange earning

capacity This development strategy recognizes that rapid export growth depends

heavily on understanding the potentials and inadequacies of the sector and

effectively providing alternative solutions.

The Specific Objectives of the Strategy

1. To enhance the capacity of producers to increase the diversity, volumes and

improve the quality of crafts to respond to market opportunities and

customer needs.

2. To build partnerships and linkages between the crafts sector and other

support services/sectors, e.g.interior decorating, tourism, hotels.


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3. To promote trade facilitation with particular emphasis on export financing in

the sector.

4. To pursue aggressive market development programmes for targeted markets.

The objectives stated above could be facilitated through the following:

1. The development and launch of a cluster arrangement.

2. The development of strategic partnerships to facilitate, for example

dissemination of information, access to raw materials, transport and

distribution.

3. Tax incentives for the collection of exceptional craft items and loan/bequest to

national institutions.

4. Access to crafts training at primary and secondary school level.

5. A minimum local content of crafst in all public works building projects.


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APPENDIX I

LESSONS FROM SUCCESSFUL COUNTRIES

(Source: Uganda Handicrafts Export Strategy, International Trade Centre. 2005)

Ghanas Handicraft Development Programme

Ghanas handicraft exports, which started from the US$1000 dollars levels in early

1990s registered impressive performances from US$2m export earnings in 1995 to

US $15million in 2001 and US$11million in 2002. This performance trend was the

result of targeted sector interventions that successfully addressed: -

Sector policy and organisational frameworks and mechanisms.

Supply side constraints.

Production and marketing infrastructure.

Capacity building and skills training and value addition.

Financial resource mobilization for the sector.

Effective trade promotion and market development.

Lessons learnt from Ghana include but are not limited to: -

Promotion Council (GEPC), working in sync with Sector Associations, NGOs

and development partners.

The crucial role played by the National Association of Handicraft Exporters

(NAHE) -the National Sector Umbrella Association- as a strong and single

voice for sector, advocacy to Government and Development Partners.

Export Production Village (EPV) Schemes: These are strong vehicles for

addressing supply side constraints. The growth of product specialisation,

quality consciousness, critical export quantities and timely deliveries rely

entirely on these schemes in Ghana.


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The Desired Linkage between Financial Institutions and Export sector. In

Ghana, the Prudential Bank plays a focal and lead role in providing

production, pre- and post-shipment, short and medium term export finance to

the handicraft sector.

A dedicated Export Development and Investment Fund fed by a cess on

imports to finance export development in Ghana, is accessed by participating

banks and channelled to qualified applicants including Handicraft sector

operatives.

The Role of NGOs and Civil Society Organizations: NGOs and CSOs in

Ghana aggressively support the sector development Initiatives. AID-To-

Artisan Ghana (ATAG), an American NGO for example has constructed

workstations with warehousing and show room facilities for Artisan Groups,

mostly women in the basketry industry in Northern Ghana. ATAG also

provides a warehouse and showroom for product display in its headquarters

building at the Accra International Trade Fair Centre.

The Experiences of Indian Handicraft Sector

India is one country that demonstrates the strong role of the handicrafts sector in

social and economic development. Handicraft exports (excluding carpets) registered

US$1.4 billion and US$1.7 billion in 2001/2 and 2002/3 respectively, an increase of

21%. The country has integrated culture and artisanship in the educational

curriculum. There is a National Export Board for almost every export sector

including handicrafts. The majority of small-scale businesses in India are engaged

in handicrafts. The Government has instituted an entire ministry of Textiles and

Handicrafts to serve a sector comprised of some 200 million artisans. There is

strong emphasis on value addition, capacity building and skills development and

effective market development programmes at all levels.


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The Handicraft Export Promotion Council has continued to launch comprehensive

marketing projects to expose these crafts to global markets.

Indias handicraft export performance is attributed but not limited to: -

The existence of a full Ministry dedicated to textiles and handicrafts.

An Export Promotion Council for Handicrafts (EPCH). The Council is fully

funded under the Export Development Funds of the Ministry of Commerce.

Aggressive, comprehensive and effective marketing projects and programmes.

A wide range of capacity building programmes.

Production and marketing infrastructure.

Marketing of a national brand or image.

Cluster innovations for handicrafts are key in technology transfer, value

addition, support for micro credit and skills development.

These initiatives have made an impact on the India handicraft sector in improving

the quality of exports. The State-owned Export-Import Bank of India has played a

key role in the provision of Export Finance. The handicrafts sector has benefited

much from this bank.

The Government of India puts a lot of emphasis on its handicraft sector for its

proven capacity for enhancing entrepreneurship among the rural poor, empowering

rural women, generating income and reducing poverty.

the craft industry dec 2008

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