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HANDICRAFT BUSINESS INDUSTRIES: CHALLENGES AND STRATEGIES BY: ADV. SWATI WALANDE
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HANDICRAFT
BUSINESS INDUSTRIES: CHALLENGES AND STRATEGIES
AUTHORED
BY: ADV. SWATI WALANDE
Abstract
India's rich cultural diversity and
heritage offer enormous resource for developing craft products. A significant component
of every nation's rich cultural legacy is the handicraft sector. The handcraft industry is extremely
important to the economy due to its increased value, minimum capital investment
conditions, strong import eventuality, Profitable foreign exchange openings
live. With hundreds of channels and thousands of hours of programming available
every day, small businesses now have further openings to state their commercials
on TV. To achieve a successful relationship, both the advertiser and the outlet
must fulfil their scores to each other, just as with any advertising contract. The Indian handicraft industry is very
important to the country's economy since it represents India's cultural
heritage. After the agriculture sector, it employs the greatest number of
people. In addition to supporting thousands of artisans, this industry offers
opportunities for millions of people living in rural area and across India to
realize their full potential on the social and cultural fronts. However, the
majority of handcraft business owners never advertise their products overseas
and instead sell locally through agents. This has been linked to a lack of
sufficient financial resources to support marketing initiatives as well as
marketing expertise. The main barriers to handcraft import are precious
packaging and shipping charges, constantly shifting tariffs importer- assessed
instrument and quality norms, fake goods, a lack of patent laws, and a lack of
invention and creativity among crafters in meeting request specifications and demanding
contracts. Any form of industrialization in the arts and crafts must be
acknowledged by the consumer market through the exchange of goods in order to
create a handicraft that combines innovative design with ethnic and artistic
value. The purpose of this paper is to to study the goods of globalization of
handcraft assiduity & its interpreters, the obstacles that this sector
faces, and the programs and enterprise enforced by the Indian government to support
this sector.
Key Words- artisans, commercials,
globalization, industry, innovation, handicraft.
INTRODUCTION
India is a nation rich in
ethnic traditions and cultural heritage, and it is also the centre for
handicraft goods. India's handicraft industry is a decentralized, unorganized,
and extremely labour intensive sector. Due to its high
value addition ratio, minimal investment in capital needs, and significant
opportunity to generate transfer and foreign exchange profits, the handicraft
sector is very significant to the economy.
India's economy and society have undergone tremendous transformation in
the last several decades. With the aid of technology advancements and trade
and investment regulations, national economies have become more and more
integrated into the global economy during the globalization era. This has an
impact on people's jobs, means of subsistence, and incomes. All areas of the economy were impacted in 1991 when India opened its
doors to multinational corporations, including the handicraft industry[1]. While
Indian handicraft exports and employment reached a noteworthy peak,
globalization has made it more difficult for artisans to make a living in the
handicraft sector due to rising global competition, shifting consumer
preferences, and cultural tastes. In the globalized and
liberalized market economy, many artisan products are in danger of going
extinct. The majority of artisans are not reached by the majority of
governmental and non-governmental interventions, or they are ineffective.
Instead of improving in the context of globalization, the marginal status of
artisans in India's handicraft sector grew worse.
This
study will help society's members deal with the difficulties associated with
promoting handicrafts. Handicraft companies will learn specifically about
tactics designed to promote their industry, obstacles that stand in the way of
handicraft marketing their goods, and effective solutions for overcoming these
obstacles.
This
paper aims to investigate the effects of globalization on the handicraft
industry and its practitioners, obstacles that impact this sector, and
government initiatives and policies that support the handicraft industry and
its practitioners in India. This study specifically focuses on strategy, the effectiveness of the strategy, and the challenges in
implementing the promotion strategy.
The
Handicraft Industry In India
Many different art forms are a part of India's rich cultural heritage.
There are several centuries of history behind the handicraft industry. In the
past, the skill and craftsmanship of the artisans were well-known throughout
the world. Since the beginning of time, India has exported handcrafted items.
The handicraft industry, which uses traditional skills of artisans in a wide
range of arts, such as metal, wood, fabric weaving and publishing, is a major
representation of the nation's rich cultural legacy. Crafts created from stone
and limestone, goods made from leather, jewellery, etc. This ability is
inherited because it is passed down through families as a tradition from
generation to generation. The strategies that follow will encourage the
handicraft clusters to continue growing and the artisans to continue making a
living[2].
·
Training
requirements vary by stage
·
The
construction of infrastructure development.
·
Encourage
the use of enough labour.
·
Insufficient
monetary rewards
Challenges
in handicraft marketing
1. illiteracy and ignorance of
artisan borrower:
Illiteracy is prevalent among artisans. For female artisans, the issue is
extremely serious. Therefore, they don't receive the intended benefit and carry
out their trade in an unplanned manner.
Handicraft artists are unable to understand the various plans and
policies that have been adopted by various organizations and institutions for
the purpose of financing and promoting them because of their illiteracy and
ignorance.
Some of the reasons for this ignorance are the lack of publicity and
expansion in rural areas. Additionally, the artisans believe that they don't
receive as much assistance and collaboration from banking institutions because
they are small borrowers by nature[3].
2. Lack of brand image:
Consumers are primarily guided by the brand images of the products they
purchase; however, since the handicraft industry is unorganized and millions of
artisans work independently to produce these goods, handicraft products lack a
specific brand name.
There is no consistency with regards to the product brands. As a result,
it has difficulties with various competitors' market perception[4].
3. Products Quality:
The largest unorganized industry is handicrafts, and its practitioners
have moved from rural to urban areas.
Due to a lack of resources, a decline in the number of skilled workers,
and varying environmental conditions, the working conditions of the artisans
were discovered to be different. As a result, it is very challenging to
safeguard the outstanding craftsmanship associated with the goods, and there is
a shortage of assessment tools and a lack of a defined procedure for
determining the products quality[5].
4. Foreign exchanges:
One of the biggest obstacles to the export of handicraft goods is foreign
exchange, as the exporter only makes a tiny profit when the value of the rupee
declines on the global market[6].
5. Problem of raw materials:
Another major problem faced by handicraft artisans is the problem related
to availability of raw materials.
It is difficult for the artisans to gather the necessary quantity of raw
materials because of things like deforestation and restrictions imposed from
time to time by government.
Let's talk about a few instances. The lack of bamboo in the surrounding
areas presents significant challenges for those who make bamboo baskets.
Because of soil erosion and deforestation, potters are deprived of soil, fuel,
and other necessities. When it comes to beadmaking, artisans are unable to buy
the entire quantity at once because of financial constraints.
In order to overcome these obstacles, the tradespeople who create bamboo
goods, appliques, Mithila paintings, and other items must borrow raw materials
from local traders, commission agents, and moneylenders. The repayment plan is
set up to be made in terms of the completed goods that the artisans produce,
with the loan made in terms of raw materials. It is evident that the artisans
do not fully benefit from this process[7].
6. Less use of power:
Another issue that the artisans deal with is a lack of power. They must
replace their conventional tools and machinery with power-driven appliances.
For artisans who use handlooms, it is more important. It is evident that during
the peak season, when demand is highest, artisans must work around the clock to
fulfil their share of the demand. The majority of them fall short of the
challenge because of insufficient electricity supply.
7. Lack of coordination:
The execution of social development welfare policies pertaining to
artisans is not being coordinated among various agencies, which will impede
their growth and result in a loss of manpower and the economy.[8]
8. Lack of implementation of
rural development programmes:
The main institutional issue is the insufficient administrative framework
needed to carry out the rural development projects in an efficient manner. The
majority of investments are made directly to handicraft artisans without any
additional supporting structures being established.
The banks believe that once loans are advanced, their work is essentially
done. However, the loan supply is insufficient. It ought to be connected to
additional resources made available to the artisan units. If not, funds
intended for the benefit of the artisans were disclosed to more fortunate
borrowers in the area. This increases the pressure on the programs or schemes
intended for the artisans to be successful. Institutional financing agencies
that provide credit do not receive cross-cutting relationships or coordination
in the process of making decisions or overseeing operations.
As a result, programs are failing and corrective measures are not being
implemented. The fact that there are so many institutional organizations,
agencies, and boards operating in the field makes the problems worse. These
institutions do not coordinate or work together.
9. A HIGHLY UNORGANIZED SECTOR WITH LOW WAGE:
Due to their inability to cover even their most basic expenses, artisans
are largely responsible for their dire financial circumstances. Most of the
craftsmen still lead impoverished lives. They lack the funds to purchase modern
tools and equipment, as well as premium raw materials.
In addition, there is a shortage of hierarchical structure in this sector
of the economy. A significant portion of the artisans employed in this industry
would rather work alone. Out of all artisans, 42% worked from home, and only 9%
received formal employment benefits[9].
legal perspective: laws and regulations
1. Intellectual property law:
Intellectual
property law has given Indian crafts the essential legal protection against
infringement.
·
Trademarks:
Trademarks are used to identify and differentiate the products or
services of a specific company or business. Among other things,
trademarks can be made up of unique words, letters, numbers, illustrations,
photos, forms, colours, or advertising slogans. They are used to identify the
source of products or services in order to set them apart from comparable or
identical goods made by rival companies. Authentic handicrafts can
gain more consumer recognition and commercial value by registering and using a
trademark. Upon registration, the owner of the trademark has the sole authority
to stop third parties from using their mark on the same or confusingly similar
products or services. Additionally, trademark
law protects against others registering deceptive marks. For instance, when an
individual applies to a trademark that fraudulently suggests that the item
being sold has an indigenous history in order to persuade people to buy it, the
registrar is required to reject the application[10].
·
Copyright Act,1958:
According to the
Copyright Act, sound recordings, cinematographic films, and original literary,
dramatic, musical, or creative works all have copyright protection. Still, no right of ownership exists in a cinematographic picture if a
significant portion of the movie violates the copyright of another work, nor
does copyright exist in a sound recording if copyright in a literary, dramatic
in nature, or musical production is violated during the sound recording
process. Software that is written
for computers is protected as "literary work." These are the rights
granted by the Copyright Act.
Ø Recreating what was created using any format—print, audio, or visual.
Ø Utilize the piece for a play or musical performance that is open to the
public.
Ø Create duplicates or footage of the work of art using mediums like audio
cassettes and DVDs.
·
Protection Under
Geographical Indications of Goods Act, 1999
As per this legislation,
arts are defined as articles created by hand, frequently utilizing basic
instruments, and typically possessing artistic and/or traditional qualities.
Both functional and decorative items are among them. The TRIPS Convention states that national laws were intended to protect
traditional handicrafts through geographical indications. A mechanism for GI
registration is provided by the Geographical Indications of Goods (Registration
and Protection) Act, 1999, which also clarifies the meaning of registered proprietor
and authorized user, both of whom have the authority to file a lawsuit for
infringement. As of 2006, the GI
Registry had nearly thirty GIs registered, including traditional handicrafts
like the Andhra Pradesh Kondapalli toys. The government is crucial to this
registration effort because it has the ability to register traditional
handicrafts on its own, thereby becoming the prima facie holder of the
handicrafts. Since most craftsmen who make these items are unaware of the value
of what they have created, this protects not only the traditional handicrafts
but also the right of craftsmen to realize the value of their labour[12].
·
Design Act,2000:
The Designs Act's Section
2(c) defines the design right, which grants the sole authority to apply a
design to any article in any class for which the design is registered. The primary legislation protecting traditional handicrafts' external
appearance is the Design Act, but it only safeguards the object's design not
its actual content. For instance, the Designs Act of 2000 only protects the
miniature design not the entire rice model when miniatures are drawn on a
single grain of rice, as is the case with rice crafting in Rajasthan. It is important to carefully read both sections 2(c) of the Copyright Act,
1957 and section 2(d) of the Designs Act, 2000 in order to distinguish between
the design on the object and the object itself. It is important to remember
that the Designs Act only protects non-functional elements of designs; as a
result, a design that is primarily functional is ineligible for a design right[13].
Challenges
of globalisation for artisan and handicraft industry
The internationalization affects employment opportunities, ways of living
expenses, and incomes through changing the financial framework, costs,
consumption possibilities, and patterns. The introduction of new technology and
heightened international competition have presented the handicraft industry
with numerous challenges.
Their products cannot compete with machine-made goods, and they are
forced to leave their traditional skilled occupations in search of alternative
means of subsistence. They also face miserable socioeconomic conditions.
Their crafts and products are no longer required. Manufactured in factories,
uniform, and low-cost goods have substituted many items that were previously
created by artisans. Globalization and mechanization have led to a progressive
large-scale machine production of goods that were formerly created by artisans.
The economic standing of the artisans is being impacted by the introduction of
modern technology products like metallic utensils, plastics, and ceramics,
which are gradually replacing the usefulness of native craft items in both
rural and urban areas. As a result, and this is still the case, craftsmen are
losing both their popularity in society as well as their traditional farmer's
markets.
The global market presents tough competition for the handicraft
sector, which affects the artisans who make handicrafts. There is competition
in terms of price, timeliness, design, pattern, and quality. Another trend
affecting the craft industry is the desire for low-cost, high-quality
machine-made goods. For example, Chinese manufacturers of crafts produce
competitive, lower-cost machine-made goods that outsell high-quality goods,
making it difficult for some craft producers to remain in business. Craft
manufacturers lack the funding, equipment, and facilities needed to operate
their businesses, such as factories or workshops.
Because machine-made goods have flooded the market, handmade product
sales have consequently drastically decreased. In the increasingly globalized
and liberalized market, traditional crafts must remain beautiful, affordable,
and maintain quality to remain competitive. Regretfully, the customers are
under the impact of free imports of low-cost manufactured goods and the decline
in the use of handmade goods[14].
Policies
and programmes for handicraft industry and artisan
The goal of the Indian government, state governments, and different
non-governmental organizations (NGOs) has been to protect the variety of crafts
that are exclusive to their countries. To ensure that a large number of
artisans benefit from all developmental schemes, extra attention is being paid.
The twelfth five-year schedule aims at creating a highly profitable global
marketplace for the handicraft industry, provide artisans with reliable means
of subsistence, and encourage inclusive growth and balanced socioeconomic
development. The Department headed by the Commissioner for Development of Arts
and crafts has implemented the following plans to advance and grow the
handicraft sector under its twelfth five-year plan.
1.
National handicraft development
program (NHDP):
Several schemes under the Baba Saheb Ambedkar Hast Shilp Vikas Yojana
(AHVY) have been launched by this program. This plan's primary goal is the
sustainable growth of handicrafts through the involvement of artisans,
including women, which will empower them.
The primary components of this plan are:
·
Mobilizing
artisans and conducting assessments of baseline
·
Programs
for sells advertising & promotional assistance
·
Plan
for Create & Technological Upgrades
·
Plans
for developing staff members
·
Plan
for advancement and research
2. PLAN FOR Megabytes
GROUPS ARTISTIC CREATION DESIGN:
The Mega Cluster approach aims to support cluster production and
infrastructure that has remained disorganized and is unable to keep up with
technological advancements and modernization.
Additionally, these clusters support the social advancement of artisan
communities and offer skill training. Additionally, it links craftspeople with
potential customers and support networks such as microcredit agencies and
non-governmental organizations.
Through teaching and training artists and their advancement
participants regarding quality assurance, responsible company procedures,
current market conditions, and "standards of excellence" in
manufacturing and promotion, it also increases the interest and appreciation of
craftsmanship among consumers in general. Across several Indian states, there
presently 2864 collections in operation[15].
3.
The Comprehensive Well-Being Program
for Handicrafts Artists:
The Unorganized Workers Social Security Act (UWSSA), 2008's Schedule II
served as the foundation for this social security program. This scheme, which
consists of two sub schemes, aims to address the health and insurance needs of
artisans.
suggestions
and conclusion
With India's opening to international businesses during the period of
market liberalization and economic reform, the global village has come to pass.
Nowadays, everything in the world is connected. Specifically, this change has
created a number of challenges for handicraft artisans and does not improve
their situation.
As a result, artisans were forced to look for other sources of income,
endure terrible socioeconomic conditions, and be excluded from their
traditional skilled occupations.
It may be suggested that the required actions need to be taken in
order to properly survey the current artisan units. Some non-formal education
that is closely tied to their trade should be provided to the artisans.
Programs for essential training increase their effectiveness. For effective
marketing, large-scale exhibitions and workshops that double as sales should be
planned.
One of the areas that needs the most attention is the supply of
information and direction. In fact, a variety of policies and initiatives
directly impact handicraft makers. The handicraft artisans fail to take the
advantage of these programmes due to their ignorance. So proper information
should be given to them.
bibliography
websites
journals
Ø American
international journal of research in humanities, arts and social sciences
Ø international
res jour Mangat Socio Human
Ø International
Journal of Sciences: Basic and Applied Research (IJSBAR)
books
Ø Managing
quality in Indian handicraft. AUTHOR NAME: Ajay K. Garg.
Ø Impact of
the handicraft industry on the environment. AUTHOR NAME: Mutinda jane.
Ø The
handmade marketplace: How to sell your crafts locally, globally and on-line. AUTHOR NAME
- KARI CHAPIN
[1]Indian handicraft industry and globalization an
analysis of issues and challenges, available at https://www.researchgate.net/publication/331990370,last seen on 02/01/2024.
[2] Oza Megha S., study of handicraft
industry strategies and its implications in marketing, volume 6,14
february,2019,available at http://ijrar.com/upload_issue/ijrar_issue_20543847,last seen on 03/01/2024.
[3] Issara
solutions, 4 pages, international res jour Mangat Socio Human, PROBLEMS_OF_HANDICRAFTS_ARTISANS,
2020,available at https://www.academia.edu/44468872,last seen on
03/01/2024.
[4] Dilip_ Kumar_ and_ P.V._ Rajeev,_
Asian_ journal_ of_ Managerial_ Science_,_ present_ scenario _of_ Indian_
handicraft_ products_,_Vol.2, 26 march, 2013, available at
https://www.trp.org.in/, last seen on 04/01/2024.
[5] Ibid.
[6] Ibid.
[7] Supra3.
[8] Monika Dey, International Journal of Sciences: Basic and Applied Research
(IJSBAR),Managerial challenges of handicraft industry: An Indian perspective,6
pages, 2018, available at https://www.academia.edu/35745373,last seen on
04/01/2024.
[9] A report by DASRA ‘Crafting A
livelihood: building sustainability for Indian artisans’ 2013,last seen on
04/01/2024.
[10] Available at_ https://www.wipo.int/edocs/pubdocs/en/wipo-pub-rn2023-5-5-en-intellectual-property-and-traditional-handicrafts.pdf, last seen on 24/1/2024.
[11] Available at_ https://bnblegal.com/article/copyright-law-implication-protection-traditional-handicrafts-india/,last seen on 24/1/2024.
[12] Ibid.
[13] Supra11
[14] Ishfaq _ Majeed_,_ American_
international_ journal_ of_ Research _in_ humanities_,_ arts_ & _social_
sciences, Indian _Handicraft _Industry & Globalisation: An_ Analysis _Of
_Issue _and _Challenges, available online at
http://iasir.net/AIJRHASSpapers/AIJRHASS19-127.
pdf, last seen on
05/01/2024.
[15] Ibid
[16] Supra14
[17] Ibid
Article Information
HANDICRAFT BUSINESS INDUSTRIES: CHALLENGES AND STRATEGIES BY: ADV. SWATI WALANDE
Authors: ADV. SWATI WALANDE
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/04/04
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
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