CLUSTER DEVELOPMENT

FASHION INDUSTRY MARKET SURVEY

SUBMITTED BY:
Sania sidiqquiNeha sharma Saptarshi Bachi
Rashi 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 • Leather (footwear)
• Musical instrument • Wood (inlay)
• Cane & Bamboo • Leather (other articles)
• Pottery and clay objects • Wood (turning and lacquer ware)
• Carpet • Metal ware
• Rugs & durries • Zari
• Conch-Shell
• Metal images (classical)
• Stone (carving)
• Coir twisting
• Doll & Toys
• Metal images (folk)
• Stone (inlay)
• • Miscellaneous crafts Paintings
Filigree & Silverware
• Terracotta) • Ivory
• Folk Painting • Grass, leaf, read & fiber
• Theatre, Costumes & Puppet • Textile (Hand embroidery)
• Furniture • Horn & Bone
• Textile (handloom) • Textile (Hand printed)
• Wood (carving • Jewellery
SOURCE:export promotion council for handicraft
 Regions of Handicrafts in India
Artmetalware : 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 : Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

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

Marble & Soft : Agra, Madras, Baster, Jodhpur

Stone Crafts
Papier Mache : Kashmir, Jaipur
Crafts
Terracotta : Agra, Madras, Baster, Jodhpur
Zari & Zari Goods : Rajasthan, Madras, Baster
Imitation : Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)
Jewellery:
Artistic Leather : lndore, Kolhapur, Shanti Niketan (WB)
Goods
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 Sarees, Stole, Kurta, bedsheet, Suit Tatipara

(Tussar silk, Cotton Material
Silk, Muga , Korean )

KANTHA Sarees, Stole, Kurta, bedsheet, Suit Illam Bazaar, Singhi , Simulia,
Material , document folder Bhagwati Bazaar

LEATHER bags, boxes, wallets, purses, belt, key Dangapara, Rajpara

rings, Jewellery Boxes, Bean bags, Vallabhpur
document folder

BATIK Sarees, Stole, Kurta, bedsheet, Suit Rajpara Vallabhpur, Tatipara

Material , Document folder, wallets

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 structure

1) 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 Wholesalers
o Central Cottage
o 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
 BASUNDHARA
Location •It is located at non commercial area.
•There is beautiful garden and nursery surrounding the store
Target •Store has large area.
segment •The custom of Bengal is well preserved and reflected.
Store •The store is bigger in comparison to Alcha but its area (approximately 700sq.ft) is
environment 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 •It sources it product from Bolpur and near by villages
assortment •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
 AMAR KUTIR
Location The store is located at a non-commercial street of the town

Target The target customers of the store are mainly tourists and foreigners
segment
Store •The store is bigger in comparison to Alcha but its area (approximately 700sq.ft)
environment 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 Amarkutir society manufactures all the products and retails them through their
assortment 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
 ALCHA
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 The store is designed very aesthetically and the visual merchandising of the store is done very tactfully
environment 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 The number of SKUs at the store is less to avoid the cluttered look
assortment 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
Amar Kutir Basundhara Alcha
 Statistics of Artisans
obtained through Surveys
Crafts wise Distribution of Artisans
crafts%surveyed during observation
batik kantha macrame leather silk

9% 5%

6%

5%

75%
Education level of artisans
% of primary/secondary/illiterate artisans
primary educated secondary educated illeterate

23%

15% 62%
Gender wise distribution of work
% of male & female
male female

14%

86%
Percentage of Artisans having APL/BPL
Bpl Apl

25%

75%
Bank users and Non bank users of artisans

Bank Users
Non Bank Users Bank Users

30%

70%
Training of artisans
% of Training
basic skill enhancement non trained

32%
36%

32%
Satisfaction level of artisans
% of artisans satisfied/dis satisfied /highly satisfied
satisfied dis-satisfied highly satisfied
2%

30%

68%
 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

 Schemes by Ministry of Textile (Govt. of
India)
A. Baba Saheb Ambedkar G. Bima Yojana for
Hastshilp Vikas ­Yojana Handicraft Artisans
(AHVY)
H. Special Handicrafts
B. Design and Technical
Training Programme
Upgradation Scheme
(SHTP)
C. Marketing & Support
Services Schemes I. Workshed Scheme
D. Export Promotion Schemes J. Credit Guarantee Scheme
E. Training and extension K. Artisan Credit Card
scheme Scheme
F. Research & Development L. Facility Centre Scheme
Scheme

Source: Compendium of Schemes, Min of Textiles, Govt. of India, Sec- Handicrafts, Pg-45-57
 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 Beneficiary Credit limit Terms & Implementing

Scheme Conditions Agency

Artisan Credit Artisans Upto 2 Lakhs No security is Banks identified

Card required by the DC
A card is issued Handicraft

Margin Money SHGs, Upto 5 Lakhs Institution Concerned

Scheme Federations of should be Handicrafts
SHGs, Co- reputed Marketing &
operative Service
Societies and Extension
State Handicrafts Centres
Corporations

Credit Guarantee Artisans Upto 2 lakhs cover the credit Regional Director
Scheme extended to of the Office of
artisans under the DC(H)
Artisan Credit
Card issued by
the Banks
Source: Compendium
of Schemes, Ministry
 THE CURRENT BUSINESS
STRUCTURE AND THE
PROPOSED BUSINESS MODEL
 Rural Development Current Business
Ministry, SGSY
Structure

MiddleMan /
Bank Loan Mahajan

SHGs

Boutique

Designer

National
Fairs, Bazars,
Local Market Exhibitions
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 HUMTUM
Ministry, SGSY
BUSSINESS MODEL

MiddleMan /
Bank, Credit Card,
Mahajan
Micro-finance
SHGs

Boutique
Design
Studio
Workshed

National
Emporium Fairs, Bazars,
Exhibitions

Global Market
 Rural Development HUMTUM
Ministry, SGSY
BUSSINESS MODEL

MiddleMan /
Bank, Credit Card,
Mahajan
Micro-finance
SHGs

Boutique
Design
Studio
Workshed

National
Emporium Fairs, Bazars,
Exhibitions

Global Market
 Rural Development HUMTUM
Ministry, SGSY
BUSSINESS MODEL

MiddleMan /
Bank, Credit Card,
Mahajan
Micro-finance
SHGs

Boutique
Design
Studio
Workshed

National
Emporium Fairs, Bazars,
Exhibitions

Global Market
 Production
Centre &
Training

Design Information
Studio Centre

WorkShed

Procurement
Buyer & of Raw
Seller Centre materials
& Storage
 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