Successful Operational Techniques Of Big Handmade Businesses.

A.SUCCESS STORY OF ASHA HANDICRAFTS:

In November 2017, in Mumbai, India, Lucas Caldeira, chief executive officer of Asha Handicrafts Association (Asha), reflected on the 10 years that had passed since the inception of Asha’s Karigar chain of stores. Asha was a fair  trade organisation that primarily marketed and sold handicrafts sourced from artisans across India. Over the years, Asha had excelled and become a leading player in the fair trade export market. It had also been successful in a pilot project that it had undertaken in the commercial export market.However, its domestic retail arm—the Karigar chain of stores—had not been able to replicate this success while operating in the competitive Indian market.

THE INDIAN HANDICRAFTS INDUSTRY

Historically, India was well known in the handicrafts industry, which was a highly labour-intensive occupation, concentrated mainly in rural areas. Artisans in the handicrafts industry could work either part-time or full-time, and it was one of the  biggest employment-generating sectors for India’s rural economy. The market consisted of both organised and unorganised  players. Organised market entities bought handicrafts from artisan  producer groups and then marketed or  exported them. Unorganised players usually involved artisan communities, concentrated in specific regions, that manufactured and sold their wares on their own.Handicrafts were broadly classified into two categories—articles of everyday use and decorative artwork.Artisans from across the country specialized in using different materials such as textiles, wood,  bone,ceramics, glass, and precious and semi-precious metals and stones to express their creativity. The industry provided employment to artisans belonging to the economically weaker sectors of society. The handicrafts industry was also important from an economic standpoint because it provided good potential for  employment, boasted a high ratio of value addition, and had significant potential for exporting products. 

ASHA: A RAY OF HOPE: In 1975, Asha Asha Handicrafts – Ideas Handcrafted was born as a not-for-profit organization with a vision of empowering artisans and preserving the ancient crafts of India. The Hindi word Asha Translates to “hope” in English. Starting out as a Christian missionary group with a mission to train, trade, and transform, Asha took up the arduous task  of bringing together the hitherto scattered artisans and mapping them to organized producer groups in traditional stronghold regions across India. However, the limited number of  artisans they had on board hampered Asha's Growth. This was because margins were minimal due to the low quantities being produced, which, in turn,was due to the limited distribution channels that narrowed the reach of products. As the years went  by, Asha realised the need for a robust business model that could help sustain this noble initiative in the long run.

ASHA’S TARGET MARKETS:

Pricing Strategy:

Retail Strategy :

Product Assortment

Store managers at Karigar were dedicated to catering to consumers with a wide range of product categories that overlapped with Asha’s exports to fair trade partners abroad but also included new designs. Asha’s  product categories included wood, jewellery, papier mâché products, textiles and scarves, suede and leather   bags and purses, garden ornaments and accessories, horn and bone accessories, gemstone-embedded  products, stone products, vegetable-dyed toys, and recycled rubber products, and the products in Karigari Stores more or less reflected that mix.Asha’s adherence to fair trade principles meant that they refrained from buying low-cost products made inChina as well as any products made using unfair labour practices. Further, as part of its organisational  policy, it did not sell idols or any articles pertaining to any religion

Store Management and Operational Practices:

Marketing Communications

Over the course of two decades, Asha had developed an innate understanding of the international customer,who had a sizable disposable income and a liberal outlook on life. These customers viewed their purchases of Asha’s products not only as investments in artistic finery  but also as their own way of contributing to society  by advocating fair trade products. However, the typical Indian consumer still viewed Asha’s products as luxury  purchases ; therefore, Asha decided to push marketing communications advocating the fair trade movement to see if doing so could bring about a change in consumer mindsets and increase customers’ willingness to pay.To further   promote Karigar, billboards and magazines were used to advertise the range of   products that Karigar had to offer. Stalls were booked at colleges and expatriate events, and a team was assigned to pitch the Karigar concept at college festivals to help increase awareness. However, despite the online presence of other organisations with similar value propositions, such as Fabindia,an Indian chain store retailing garments, furnishings, fabrics, and ethnic products handmade by craftspeople across rural India, Karigar  stores did not have a substantial online presence. These other organisations had recognized the power of social media and adopted online marketing strategies to create visibility for their brands and increase the perceived value of their products.

B.Case Study: West Elm - Elevating Sustainable and Ethical Home Furnishings

1. Introduction

Background:

West ElmWest Elm: Modern Furniture, Home Decor, Lighting & More, a subsidiary of Williams-Sonoma, Inc., is a well-established home furnishings and decor brand known for its modern aesthetic and commitment to sustainability. Founded in 2002, West Elm has become a prominent player in the retail industry, redefining the way consumers approach ethical and eco-friendly home goods.

2. Mission and Values

Mission:

"To provide our customers with well-designed, sustainably sourced, and ethically produced home furnishings that enhance their lives and reflect their values."

Core Values:

- Design Excellence

- Sustainability

- Ethical Sourcing

- Community Engagement

3. Sustainable Product Offerings

Eco-Conscious Materials:

West Elm prioritizes the use of sustainable and responsibly sourced materials in its products. From FSC-certified wood to organic cotton and recycled metals, the brand ensures that its materials align with environmental standards.

Local and Global Artisan Partnerships:

The brand collaborates with local and global artisans, supporting traditional craftsmanship and promoting fair labor practices. Limited edition, handcrafted items often highlight the unique skills of artisans worldwide.

4. Sustainable Practices

Forest Stewardship Council (FSC) Certification:

West Elm is committed to responsible forestry practices. Its FSC-certified wood products ensure that the materials come from responsibly managed forests, minimizing environmental impact.

Fair Trade Certification:

The brand actively seeks Fair Trade certification for certain products, ensuring that workers involved in the production process receive fair wages and work in safe conditions.

 5. Ethical Sourcing and Transparency

Transparent Supply Chain:

West Elm is transparent about its supply chain, providing customers with information about the sourcing and manufacturing processes of its products. This transparency builds trust and allows consumers to make informed purchasing decisions.

Responsible Manufacturing:

The brand works closely with suppliers to ensure ethical manufacturing practices, emphasizing worker rights, safety, and well-being. This commitment extends to both in-house production and third-party collaborations.

 6. Sustainable Packaging

Reducing Environmental Impact:

West Elm focuses on minimizing packaging waste by using recycled and recyclable materials. The brand's packaging is designed to be efficient and eco-friendly, aligning with its broader commitment to sustainability.

Innovations in Packaging:

West Elm explores innovative packaging solutions, such as reducing the use of plastic and incorporating biodegradable materials. These initiatives aim to address the environmental challenges associated with traditional packaging.

7. Community Engagement

Local Community Initiatives:

West Elm actively engages with local communities through various initiatives. This includes partnerships with local artists, hosting community events, and supporting neighborhood development projects.

Educational Programs:

The brand conducts educational programs and workshops to raise awareness about sustainability and ethical consumer choices. These efforts extend beyond selling products to promoting a lifestyle of conscious consumption.

8. Marketing and Branding

Storytelling and Brand Narrative:

West Elm employs a storytelling approach in its marketing, emphasizing the craftsmanship and stories behind its products. This narrative resonates with consumers seeking not only aesthetically pleasing items but also a connection to the makers and the environment.

Digital Presence:

The brand maintains a strong digital presence through its website and social media platforms. Online content includes sustainability guides, behind-the-scenes looks at production processes, and features on artisans and their communities.

 9. Challenges and Solutions

Challenges:

-Balancing Price and Sustainability: Offering sustainable products at an affordable price point.

-Scaling Sustainable Practices: Maintaining ethical and eco-friendly practices as the brand scales.

Solutions:

-Economies of Scale: Leveraging the brand's size to negotiate better deals with sustainable suppliers.

-Educational Campaigns: Educating consumers about the value of sustainable and ethical practices to justify price points.

 10. Impact and Success

Measurable Impact:

-Environmental Footprint Reduction:Through sustainable sourcing and manufacturing, West Elm has significantly reduced its environmental footprint.

-Community Upliftment: Artisan partnerships and local community engagement initiatives have positively impacted the lives of many.

Customer Loyalty:

West Elm has cultivated a loyal customer base that appreciates the brand's commitment to sustainability. Repeat business and positive reviews reflect the success of its ethical and eco-conscious approach.

11. Future Initiatives

Circular Economy Practices:

West Elm is exploring circular economy initiatives, such as take-back programs and recycling efforts, to further minimize waste and extend the lifespan of its products.

Innovation in Sustainable Materials:

Continued investment in research and development to discover and implement new sustainable materials and manufacturing techniques.

12. Conclusion

West Elm has successfully positioned itself as a leader in the sustainable home furnishings sector. Its commitment to ethical sourcing, transparent practices, and community engagement has not only garnered consumer trust but also set a benchmark for the industry. As West Elm continues to grow, its dedication to sustainability remains at the core of its brand identity, influencing both consumer choices and industry standards.

 C.Case Study: NOVICA - Connecting Artisans to a Global Marketplace:

1. Introduction

Background:

NOVICA.com founded in 1999, is an e-commerce platform that connects artisans from around the world with global consumers. The platform operates on a mission to empower artists, preserve cultural traditions, and provide consumers with unique, handcrafted products. NOVICA focuses on fostering fair trade practices and creating a sustainable marketplace for artisans to thrive.

2. Mission and Values

3. Global Artisan Network

Diverse Artisan Base:

NOVICA collaborates with artisans from over 55 countries, showcasing a diverse range of traditional crafts, from handwoven textiles to intricate jewelry and unique home decor items.

Empowering Local Communities:

The platform prioritizes artisans in underserved communities, providing them with a global platform to showcase their skills and generate sustainable income.

4. Fair Trade and Ethical Practices

Fair Compensation:

NOVICA ensures that artisans receive fair compensation for their work. The platform directly connects consumers with artisans, eliminating middlemen and ensuring that a significant portion of the purchase price goes directly to the creator.

Ethical Sourcing:

NOVICA emphasises ethical sourcing by working closely with artisans to understand their production methods. This commitment extends to using eco-friendly and locally sourced materials whenever possible.

5. Cultural Preservation

6. Technology and E-Commerce

Global Marketplace:

NOVICA's e-commerce platform serves as a global marketplace, enabling artisans from remote regions to reach customers worldwide. The platform is designed to be user-friendly, allowing artisans to easily upload their products and manage their online presence.

Payment and Logistics:

NOVICA handles payment processing and logistics, ensuring a seamless experience for both artisans and consumers. This alleviates the administrative burden on artisans, allowing them to focus on their craft.

7. Consumer Education and Awareness

Artisan Workshops and Tours:

NOVICA goes beyond being an e-commerce platform by organizing workshops and artisan tours. These initiatives not only educate consumers about the value of handmade products but also provide insights into the crafting process.

Educational Content:

The platform features educational content on its website, ranging from articles on traditional crafting techniques to documentaries highlighting the lives of artisans. This content aims to raise awareness about the importance of supporting fair trade and preserving cultural heritage.

8. Challenges and Solutions

Challenges:

- Logistics and Shipping:Ensuring timely and reliable delivery of products from remote locations.

- Artisan Empowerment:Balancing global market demands with the need to preserve traditional crafting methods.

Solutions:

-Global Logistics Partnerships:Collaborating with reliable logistics partners to streamline shipping processes.

-Community Engagement:Regularly communicating with artisans to understand their needs and concerns, ensuring a mutually beneficial partnership.

9. Impact and Success

Economic Impact:

NOVICA has facilitated over $100 million in artisan payments since its inception, providing a significant economic impact for artisans and their communities.

Cultural Impact:

The platform has played a pivotal role in preserving cultural traditions, with thousands of unique crafts finding a global audience.

10. Future Initiatives

Expansion and Inclusion:

NOVICA continues to expand its network of artisans, with a focus on including craftsmen and craftswomen from even more countries and cultural backgrounds.

Technological Innovation:

Investing in technology to enhance the platform's capabilities, making it even more accessible for artisans and convenient for consumers.

11. Conclusion

NOVICA stands as a testament to the transformative power of e-commerce when paired with a mission-driven approach. By connecting global consumers with artisans from diverse cultures, the platform has not only created economic opportunities but has also become a force for cultural preservation and appreciation. NOVICA's success lies in its commitment to fair trade practices, ethical sourcing, and the celebration of artisanal craftsmanship in a digital age.

D.THE SUCCESS STORY OF OKHAI:

About the Brand:

From the very earliest times of history, the Gujarat region of Okhamandal okhai.org has served as the home and source of various tribal cultures. Bright colours used in the handicrafts created by the indigenous women in this area break up the stark monotony of the area's desert terrain.The complex needlework patterns reflect the motifs of their ancient ritual. Their embroidery serve as a reminder of significant occasions, rites, and rituals as well as values.It was essential to give the rural women of Okhamandal a means of subsistence because there were no other significant opportunities for them to earn money. Okhai gets its name fromOkhamandal, a region in the Jamnagar district where Tata Chemicals established its operations in 1939 as a soda ash producer. The company's social development division, theTata Chemicals Society for Rural Development (TCSRD), officially launched the brand in2002. In 2008, the Okhai Centre for Empowerment, a trust with craftsmen as members, was registered. Over time, Okhai has developed to the point where it can now be a successful and long-lasting company. The lift-off has been powered in large part by contemporary marketing tools and procedures.Kirti Poonia, Owner of Okhai,started with 350 women in Gujarat and today this initiative currently supports around 2300 rural craftsmen, with a target of 5,000 in the following five years. The goal of Okhai is to empower women from underprivileged backgrounds by encouraging them to learn new skills, giving them the self-confidence and self-esteem they need to succeed through hard work and initiative, and empowering them to use their newly acquired knowledge and confidence in more social settings. These ladies had the opportunity to work and provide for their families because of Okhai.Established in 2008, the brand, sells men's and women's clothing as well as accessories and items for the home. It has been active online for the past six years. Mirror Work, patchwork,and embroidery are used in Okhai items to vividly represent the rural way of life, their ceremonies, and their legends.Today, Okhai sells handicrafts from all around India, showcasing the distinctive designs and aesthetics of each region's culture and history. With a devoted consumer base in India and overseas, the company has experienced continuous growth in its business throughout the years. The focus on artisan empowerment, along with the design emphasis on handlooms and eco-friendly materials, adds Okhai to the expanding list of sustainable Indian brands. It has developed over the years to the point where it can now be a profitable and sustainable business.

E-commerce: Since they flourished online, first it comes as no surprise that they have a rather prominentsocial media following.They have their own website through which they sell and apart from that they also sellthrough multi-e-retail platforms such as the above.

Challenges:Some of the challenges that Okhai faces are operational and managerial issues, performance,competitors, logistics, and data security. Since they’re a sister company of Tata, the receivessupport from Tata IQ, for tech support, operations, digital marketing, customer acquisition,and business expansion programs.

KEY PARTNERS

 Okhai sources its raw materials are sourced with the help of 0 middlemen, directly from other TATA clusters situated in Munnar, Lucknow, Varanasi and Kenya. Okhai is directly connecting artisans to urban customers by providing an e-commerce website. The company has accountants to handle the inflow and outflow of monetary transactions. Okhai gives artisans the freedom of designing and directly communicating with customers. Awareness Among artisans, and customers regarding sustainable practices. Okahi promotes its products through social media campaigns, retail stores, and various E-commerce platforms. Through Their website okhai.org they deliver across India and have recently initiated international shipping.

1. Key Activities:

   - Sustainable Apparel Design with Artisans & Weavers.

   - Manufacturing in Ahmedabad, Gujarat.

   - Collaboration with Distributors for Wide Audience Reach.

2. Social Media Presence:

   - Instagram as a Major Platform for Brand Awareness.

   - Utilises Social Media for Client Relationships and Loyalty.

3. Retail Presence:

   - 27 Anokhi Shops Across India.

   - Offers Hand-Crafted Apparel, Accessories, and Soft Furnishings.

4. International Reach:

   - Products Available Internationally through Website and Global Stores.

5. Target Audience:

   - Wide Range for Men, Women, and Kids (18-50 years).

   - Focus on Upper and Middle-Class Indian Consumers.

6. Key Resources:

   - 1100+ Associated Artisans.

   - In-House Designers for Creative and Distinctive Designs.

   - Digital Platform - www.anokhi.com.

   - Skilled Employees - A) Artists B) Marketers C) Accountants D) Workers.

7. Cost Structure:

   - Fabric Sourced Directly from Delhi (Rs.150-300).

   - Artisan Wages (Rs.5000-10,000) for Basic Needs.

   - 27 Stores in India Support the Framework.

   - Digital Marketing Team Manages Online Presence.

8. Revenue Generation:

   - Mainly through In-Store Sales.

   - Emphasis on Sustainability and Premium Pricing.

E.Case study on Nicobar:

Chapter 2: Sustainability Woven In Every Thread

- Responsible Sourcing: Nicobar is committed to responsibly sourcing materials for its products.

- Eco-conscious Production: Minimizing ecological footprint in production processes.

- Ethical Fashion: Nicobar stands as a commitment to fashion that doesn't compromise on ethics.

A Retail Experience Beyond Shopping

Serene Spaces: Nicobar stores redefine the retail experience with serene and thoughtfully designed spaces.

Mindful Design: Meticulous attention to detail reflects the brand's ethos of simplicity and mindfulness.

Holistic Experience: The retail spaces go beyond transactions, offering an immersive brand experience.

Community and Collaboration

 Artisan Collaborations: Collaborating with artisans and like-minded brands to create unique collections.

 Limited Editions: Limited edition collections tell stories of culture, art, and heritage.

 Community Building: Nicobar goes beyond being a brand, fostering a community of individuals with shared values.