Business Management | Resources

Obstacles Encountered By Handicraft Businesses In Executing Promotional Strategies For Their Products

Feb 01, 2024 | Sarika Singh

Hello B2b readers,today we will talk about the problems faced by the handicraft business community in promoting or basically advertising & making their products known in the market.All of us are well known with the craze that people nowadays have with owning something that is handmade or we can also say custom or limited.


 

The sense of having it made from hands,the tedious hours of intricate work behind the commodity,the story that lingers in every thread that is carefully gone over the loom has a very strong grasp on the people today.


Also thanks to the growing awareness of people regarding the serious hazards of fast fashion and the desperate need of sustainability today, people are drawn towards buying handloom.As they do not promote fast fashion & most of the times the processes involved in manufacturing these goods are far more less hazardous to the environment when compared to any fast fashion buisness. 


But these factors do not compensate that the artisans are underpaid and often remain unknown to the whole knowledge of producing more,producing efficiently,without defects the list is very long if we talk about where we lag in the handicraft industry and how to make this better because there is a lot to do in this sector as it is still developing.


Today we will especially talk about what major problems that us as a business face in promoting their products where we deal in handicrafts.The craft industry is a complex system, characterised by a variety of stages that contribute to its intricacy. These stages, commonly divided into distinct verticals, involve artisan organisation, procurement of raw materials, production, aggregation, and ultimately, reaching diverse markets. It is essential to acknowledge the unique nature of each crafting process, as this can result in slight variations in procedures. The organisation aspect of the craft industry often involves informal agreements between traders, master artisans, and lower-skilled artisans, resulting in diverse group dynamics. While this fragmentation presents both challenges and opportunities, it calls for the ability to be flexible and adaptable.


Let’s take a look at the verticals,"verticals" are the overarching groups that make up the crafts industry. These verticals encompass a range of stages and elements within the crafting process, and serve to organise and showcase the diverse dimensions of the industry. They offer a valuable framework for comprehending the complex and diverse nature of the crafts sector,however we should keep in mind that every craft and its processes differ from one another.


1.Organisation


In the world of artisans, collaboration is key. These skilled individuals often join forces through informal arrangements with merchants, expert craftsmen, and less experienced colleagues. On a more official level, there are formal artisan organisations such as Self Help Groups, Mutually Aided Co-operatives, Producer Companies, and Private Limited Companies. These structures provide a range of options for artisans to come together and work towards their common goals.


2.Procurement


The procurement and processing of raw materials used to be simple for artisans, thanks to the close relationships fostered with local suppliers. However, with the decline of traditional structures and the rise of organised industries, artisans face challenges in obtaining affordable and high-quality raw materials.


3.Production


Crafting takes place in households, with family members contributing to various aspects of the process.Even with organised structures, artisans often engage in community-based production, which is seasonal, aligning with agricultural activities.

Also in some regions only a specific community that has been making the commodities are only allowed to produce.


4.Aggregation and Intermediary Trade


Through aggregation, products from scattered units are brought together to achieve economies of scale. However, this process faces challenges, such as insufficient infrastructure and communication, which can hinder the aggregation process and cause bottlenecks in the supply chain.


5.Markets


Craft products are found in a variety of markets, from nearby retail stores to upscale venues, special events, and even international sales. Although local markets are still popular, modern markets are emerging due to an increased desire for cultural goods with individualised stories. However, these markets encounter challenges in their supply chain processes.


6.Demand


In today's globalised world, the market for crafts is fiercely competitive due to the wide array of products available. These handmade items are often categorised as traditional, leading to a lack of effort in rebranding and promoting their cultural significance to consumers. The struggle to adapt to modern preferences continues to be a hurdle for the industry.


CHALLENGES 


In the examination of challenges encountered by handicraft businesses in implementing promotional strategies for their products, as presented by Rose Ignas Makyao in her research paper where she discussed the same, several pervasive issues have been identified that resonate on an international scale. The involvement of numerous donor agencies and international non-governmental organisations (NGOs) in various phases of artisan craft development has brought to light a range of obstacles hindering the robust advancement of this sector.

Challenges at the Policy Level:

  • Lack of Coherent Policy and Clear Ministerial Responsibilities:

    • Global Perspective: Many developing countries acknowledge the substantial role artisan craft development can play in regional development. However, a deficiency in a specific policy framework and a clear delineation of ministerial responsibilities often hinder progress.


  • Lack of Clear Visions for Promotion and Preservation of Traditional Crafts:

    • Global Impact: The globalisation and free trade policies have led to a loss of identity for traditional crafts, with governments struggling to formulate clear development visions. The neglect of "living" traditional artisan crafts exacerbates the challenge, as there is often no distinct definition separating them from innovative handicrafts.


  • Lack of Recognition on Traditional Values as a Driving Force of Development:

    • International Significance: The intangible asset of traditional values in crafts often goes unrecognised by decision-makers in developing countries. The potential synergy between development efforts and the preservation of cultural heritage, including crafts, is frequently overlooked.

Challenges at Institution Level:

  • Lack of Decisive Government Intervention for Business Development Service Institution-building:

    • Global Relevance: Debates on the extent of government intervention in institution-building programs are pertinent internationally. Balancing economic rationality with the need for government-led programs is a challenge, especially for craft producers in remote areas.

  • Lack of Support Facilities Focusing on Human Resources Development of Craftsperson:

    • Universal Issue: Common technical problems shared by various artisan craft producers are often neglected, with limited integrated Research and Development (R&D) facilities catering to the diverse needs of craftsmen.

Challenges at Craft Producers Level:

  • Low Quality:

    • International Markets: Artisan crafts' quality often falls below acceptable levels for large-scale export, despite their attractiveness to tourists. Technical issues, such as cracking defects, are exacerbated when adapting production processes to foreign market conditions.


  • Lack of Cooperation Among Craft Producers:

    • Common Struggle: Exclusivity and individualism among craft producers, particularly traditional ones, hinder joint efforts in product quality improvement and marketing, presenting a shared challenge globally.


  • Low Managerial Capability:

    • Widespread Issue: Craft producers' historical focus on production rather than managerial tasks is a common obstacle, with limited access to Business Development Services (BDS) providers and a significant gap between identified managerial needs and the ability to pay for such services.


  • Lack of Awareness for Traditional Values and Future Potential:

    • Global Context: Craft producers worldwide often lack awareness of potential export markets that value the ethnic nature of their products. This ignorance results in simplified production processes and the use of devalued materials.


  • Lack of Challenging Mind:

    • Universal Challenge: Craft producers globally, especially those with traditional skills, often lack the challenge and creativity needed to adopt new ideas and methodologies, hindering the development of innovative handicrafts.


  • Lack of Clear Understanding on Design Improvement:

    • International Emphasis: Overemphasis on narrow interpretations of design improvement is a common issue among policymakers, craft producers, and designers worldwide. A broader understanding encompassing the living environment and indigenous culture is often missing.

In summary, the challenges facing handicraft businesses in implementing promotion strategies for their products, as highlighted by Rose Ignas Makyao, extend beyond regional boundaries, reflecting a shared struggle encountered by artisans and policymakers on an international scale.

WHAT WE AS A BUSINESS CAN DO?


The problems that we talked about above and are problems that are present on a global level & no matter how much we try, we as businesses alone could never solve it wholly,so the question arises that what we could do so we could boost the sales as intended and do our part in the problems that we are facing together.


We can start with pinpointing your ideal audience and carrying out extensive market analysis to gain insight into competitors and industry patterns. Establish a compelling brand identity and develop a distinctive selling point by leveraging social media, influencer partnerships, and targeted email campaigns to heighten brand recognition and engagement.


Personalise your marketing content by tailoring messaging, language, and cultural references to suit the unique preferences of different regions and countries. This showcases cultural awareness and appreciation, ultimately boosting your chances of triumph in international markets.


Utilise the power of social media to expand your reach, highlight your products, and cultivate meaningful connections with potential customers. By establishing a strong online presence worldwide and strategically utilising social media, you can overcome geographical hurdles. 


Participate in trade shows to effectively showcase your products, network with key players in the industry, and gain valuable insights into market trends. Making investments in standout booth designs and impactful marketing materials, engaging with attendees, and actively following up on leads are crucial steps to achieving success at trade shows.


Collaborating with nearby retailers within our target market not only broadens our reach, but also grants us valuable insights into local trends. It's crucial to seek out and establish strong connections with retailers who share our brand values, as they will serve as powerful advocates for showcasing and promoting our products. We understand the importance of emphasising the qualities of excellence, longevity, and environmental responsibility in our marketing approach. By highlighting these characteristics through our product descriptions, packaging, and social media presence, we will attract and appeal to customers who prioritise these values. Let's make sure to effectively communicate our unwavering dedication to these attributes throughout all aspects of our brand representation.


To create an exceptional customer experience, it is crucial to have a deep understanding of the local customs and preferences. This involves providing precise translations, establishing seamless communication channels, and delivering prompt responses. Additionally, hassle-free returns and exchanges should also be offered. Utilising social media is an excellent way to engage with customers, highlight the distinctive features of our products, and provide special offers such as promotions and discounts to foster customer loyalty and drive referrals. By implementing these initiatives, our handmade products will be effectively promoted in the global market, fostering business growth on an international scale.


Overall, the global handicraft industry is facing numerous hurdles in successfully executing their promotional plans. Given the complexity of the industry, which involves multiple stages from organisation to catering to diverse markets, it is crucial to be adaptable and flexible. Challenges exist at all levels, whether it be within policies, institutions, or craftspeople themselves, highlighting the collective struggles on a global level. The absence of unified policy frameworks, a clear vision for promoting traditional crafts, and proper acknowledgement of traditional values are all major hurdles at the policy level. At the institutional level, challenges include the need for government intervention in business development services and the lack of support for human resources.


Although facing obstacles, businesses can proactively navigate complexities through specific measures. Identifying target audiences, crafting a unique brand image, and utilising social media for a broad global reach are key tactics. Tailoring promotional materials, engaging in industry events, partnering with local vendors, and highlighting top-notch craftsmanship can bolster market visibility. Additionally, comprehending cultural norms, prioritizing customer satisfaction, and utilising social media for interactive communication all contribute to superior customer experiences. By prioritising these factors and implementing a cohesive approach, handicraft businesses can effectively promote their goods on an international scale.







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