International Marketing
PROJECT ON: Trade Promotion of Indian Handicrafts and Handlooms
PRESENTED BY: ANUJA EDGAONKAR: - A-12 AKANKSHA GOWANDE: - A-13 SANJAY YADAV: - A-60
Market Entry Strategy
Handicraft Trade Promotion
Swastika Inspired by Tradition
Introduction
India is one of the important suppliers of handicrafts to the world market. The Indian handicrafts industry is highly labour intensive cottage based industry and decentralized, being spread all over the country in rural and urban areas. Numerous artisans are engaged in crafts work on part-time basis. The industry provides employment to over six million artisans (including those in carpet trade), which include a large number of women and people belonging to the weaker sections of the society. In addition to the high potential for employment, the sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country. The export earnings from Indian handicrafts industry for the period 1998-99 amounted to US$ 1.2 billion. Although exports of handicrafts appear to be sizeable, Indias share in world imports is miniscule. It is a sector that is still not completely explored from the point of view of hidden potential areas. India, a country with 26 states and 18 languages and more than 1500 dialects offers an enormous range of handicrafts from each of the states. Major centers in Uttar Pradesh are Moradabad also known as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles, Ferozabad for Glass. The North Western state of Rajasthan has to offer the famous Jaipuri quilts, Bagru and Sanganer printed textiles and wooden and wrought iron furniture from Jodhpur. The coastal state of Gujarat comes with embroidered articles from Kutch. Narsapur in Andhra Pradesh is famous for its Lace and Lace goods. But this is only a small part of the total product range. India offers much more. Handicrafts are classified into two categories: 1. Articles of everyday use 2. Decorative items The craftsmen use different media to express their originality. The diversity of the handicrafts is expressed on textiles, metals precious and semi-precious, wood, precious and semi-precious stones, ceramic and glass. Textile based handicrafts: Hand printed textiles including block and screen printing, batik, kalamkari (hand printing by pen) and bandhani (tie and die) are used in products ranging from bed-covers to sheets, dress material to upholstery and tapestry. The famous embroidered articles of silk and cotton, often embellished with mirrors, shells, beads, and metallic pieces are also found in India. Embroidery is done too on leather, felt and velvet etc. This segment of the industry accounts for almost half a million strong employment in addition to a large number of designers, block makers, weavers and packers involved in the trade.
Clay, Metal and Jewellery: Brass, copper, bronze, bell metal are used for a variety of wares and in a variety of finishes. Scintillating ornaments are available in a wide range of patterns, styles and compositions. Made from precious metals, base metals, precious and semi-precious stones; these ornaments have traditional as well as modern styles. Woodwork: Wooden articles in India range from the ornately carved to the absolutely simple. One can find toys, furniture, decorative articles, etc. bearing the art and individuality of the craftsman. India is known particularly for its lacquered wood articles. Stone Craft: The intricately carved stoneware made of marble, alabaster or soapstone, etc., inlaid with semiprecious stones carry on the heritage of Indian stone crafts. Glass and Ceramic: Glass and ceramic products are a fast upcoming segment in the handicrafts from India. The age-old production process of mouth-blowing the glass instills a nostalgic feeling. The varied shapes of ceramic and glass in a number of colours, would appeal to Western aesthetics while retaining the Indian touch. Craft concentration Areas: A wide range of handicrafts are produced all over Indian artmetalware / EPNS ware, wood carvings and other wooden artwares, imitation jewellery, handprinted textiles, shawls as artwares, embroidered goods, lace and lace goods, toys, dolls, crafts made of leather, lacquerware, marble crafts etc. Although it is difficult to limit a specific place for the particular craft, the following places are listed for their particular crafts. Artmetalware : Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras, Mandap, Beedar, Kerala & Jagadhari, Jaselmer Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB) Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer
Wooden Artwares
Handprinted Textiles & Scarves
Embroidered goods
Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar Agra, Madras, Baster, Jodhpur
Marble & Soft Stone Crafts Papier Mache Crafts Terracotta Zari & Zari Goods Imitation Jewellery:
: : : :
Kashmir, Jaipur Agra, Madras, Baster, Jodhpur Rajasthan, Madras, Baster Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal) lndore, Kolhapur, Shanti Niketan (WB)
Artistic Leather Goods
Selected crafts pockets for achieving export goal: Although each crafts pockets has its particular problems, a few selected craft pockets are identified based on their past performance for immediate remedial attention to stimulate a quantum in exports of handicrafts in the coming years. Moradabad(UP) Saharanpur (UP) Jodhpur (Raj.) Narsapur (A.P.) : : : : For Artmetalwares and imitation jewellery For Wooden handicrafts & Wrought iron handicrafts For Wooden, Wrought Iron and Sea Shell handicrafts For Lace and Lace goods
Since India has diversified handicrafts available, we will be trading these handicrafts and handlooms to International countries.
Reason for Launch
1. India is one of the important suppliers of handicrafts and handlooms to the world market. So trading them will not be a problem. 2. Re-birth of Sick units. As SSI and other handicraft industry at declining stage trading of handcrafts will give them a boost. 3. Promoting SSI & Village industries. 4. Employment opportunities for village population: Numerous artisans are engaged in crafts work on part-time basis The industry provides employment to over six million artisans (including those in carpet trade), which include a large number of women and people belonging to the weaker sections of the society. 5. The sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country. 6. Promoting Indian Art & culture at a Global Level.. 7. Diversifying into new markets 8. Increase product life cycle. 9. Acquire Foreign Exchange. 10. Promote Destinations for tourism (indirectly).
Export Promotion Council for Handicrafts (EPCH)
Non-profit organization under the aegis of Development Commissioner (Handicrafts), Ministry of Textiles, Government of India Established under the EXIM policy of Government of India in the year 1986-87. The Council is engaged in development and promotion of handicrafts from India and project Indias image abroad as a reliable supplier of high quality handicrafts.
EPCH Activities
Visa recommendation letter from Council and from the show organizer. Participating in specialized International Trade Fairs of handicrafts & gifts Providing information and assistance to members Technology up-gradation, Quality and design improvement, standards and specifications, product development, innovation etc.
Membership Registration
Membership form :Rs. 100/- in cash/demand draft drawn in favour of Export Promotion Council for Handicrafts payable at New Delhi. The Amount of membership (April March) fees are as follows: Entrance fee in the year of enrolment Rs. 1000/-
Annual Membership fee - Rs. 2500/ Total (during the year of Enrollment) - Rs 3500/- + Service Tax (10.3%) Every year Membership Fee is due on 1st April and payment is to be made by 30th June. Membership renewal fee is Rs. 2500/- + Service Tax (10.3%) every year. a) Membership b) Registration as a 'Merchant Exporter' c) Registration as a 'Manufacturer Exporter Fees of membership is to be paid, even if you are interested for other two categories in addition to membership.
Documentation
A self attested copy of Import Export Code (IEC) also needs to be enclosed with the application form.
If a company is a manufacturer exporter it must furnish letter from District Industries Centre (DIC) or the authority with which the factory registered or the copy of Small Scale Industries (SSI) certificate attested by the DIC on current date.
Services offered to Members Direct Marketing
1. Invitation for participation in IHGF (Subject to fulfilling of the criteria of at least one year of membership of the Council) 2. Invitation of participation in Overseas Trade Fairs 3. Invitation of participation in Buyer Seller Meets 4. Invitation of participation in Folk Craft: Festivals of India organized overseas 5. Invitation for participation in Product Specific Fairs organized by the Council 6. Publicity and Promotion Printing of Promotional Catalogues 7. Creation of Electronic Product Catalogues 8. Printing of product specific information booklets 9. Market intelligence Provide trade inquires/transit leads on a regular basis 10. Provide latest handicrafts trade statistics 11. Monthly Newsletter Monthly Newsletter titled "CRAFTCIL" is published and disseminate among the members of the Council. 12. Representation: Liaison with Government Department, Industry Association, Chamber of Commerce and other similar institutions. 13. Assist members in settlement of trade disputes with the buyers 14. Seminars/Open House Meets: Organize awareness seminars, open house meets, workshops, on various trade related issues 15. Invitation to reputed designers/trend forecasting agencies to interact with handicrafts members exporters
16. Trade Policies:Circulars pertaining to the policy changes with respect to the sector are disseminated regularly to the members. 17. Issue of Duty Free Import Certificate (DFIC) for embellishment/ consumables to the members
MARKETING DEVELOPMENT ASSISTANCE
Marketing Development Assistance is to assist exporters for export promotion activities by participation in EPC led international Trade Fairs/Exhibitions/ trade
delegations/BSMs abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. It is not applicable for domestic exhibitions.
Export of Handicrafts
Target Market
Why Mauritius???
Political Stability : most politically stable countries in the African region multiparty democracy modeled on the British parliamentary system. Its various ethnic and religious components live in harmony, united in a common endeavor to enhance the nations economic growth and prosperity.
Strong Economy : With an average GDP growth of 5.7% over the past five years, it is looked up to as a model in Africa. State-of-the-art physical infrastructure, comfortable foreign exchange reserves, highly educated and productive workforce with a literacy rate of some 86%
Developed Infrastructure Mauritius is today endowed with a developed and well-maintained road network, a modern international airport, a well-equipped sea port, state-of-the-art telecommunications, serviced land and new generation business parks. Famous tourist destinations -> Get Audience from all over the world
Preferential Market Access : preferential access granted to our products on overseas markets Various trade agreements and conventions signed with other countries like Europe, USA and Africa and Asia.
Pleasant Living Environment Mauritius is a blend of peoples of Indian, and Chinese, African and European Known for their hospitability and warmth The great majority is multilingual, being proficient in both English and French while mastering a third language such as Hindi
Attractive Incentives The Government pursues a liberal foreign investment policy incentives for the development of all sectors of the economy Incentives offered can be in the form of reduced corporate tax, exemption of customs on equipment, preferential loan rates and reduced tariffs for electricity and water.
Sourcing of raw material
Acquiring of finished goods from SSI Kashmir : Rajasthan: Carpets and wooden handicrafts, furniture Lakh and leather products
Maharashtra: Wooden toys and Warli paintings Leather and other home decor
Assam, Manipur: Handicrafts Eco friendly initiative: Best out of Waste!!! Handicrafts made from recycled papers Toys and other home dcor made from Old furniture, Wood dust
Natural and eco friendly colors Handicrafts made from coconut shell Logistics: Delhi central hub for organizing products from different states. Direct connectivity to all states International airport EPCH head office at Delhi
SWOT Analysis
STRENGTH: Economies of scale: Bulk purchase from Indian SSIs. Subsidy from Indian government Promotion of Indias rich art and culture Global exposure to Indian Handicraft industry Buyers and Sellers meet There is large product variety and range available because of diversified culture. Products are high value added, and have various applications. Online Presence WEAKNESS: Exhibition is expensive Heavy Advertisements before actual events; costly Difficult to attract scattered target audience ROI is not guaranteed Opportunity Development of cordial relationship with different countries Promotion of Handicraft, SSI, khadi industry world wide
New market for Indian goods Promotion of less known Indian destinations Increase in foreign currency and employment opportunity created in India. Threats Better quality products produced by competitors from Europe, South Africa, South Asia, etc. Better terms of trade by competing countries Consistent quality and increasing focus on R&D by competing countries Better packaging Stricter international standards
PEST Analysis
Political Mauritius is a parliamentary democracy governed under the constitution of 1968, as amended in 1992. Stable government the regulating authority with regard to offshore matters is the Financial Services Commission (FSC). Economical Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. Social Mauritius accounts a 63% of Indian majority of which 80% follow Hinduism. Roughly every other fifth person is Muslim and both groups are descended from India and china
English is the official language of the island Technological Deep penetration in Telecom Infrastructure as compared to other African countries Fiber-optic bandwidth Easy Internet Access all over country
Documentation
1. TRANSPORT DOCUMENTS: BILL OF LADING( MARINE/AIRWAY/ROADWAY BILL) A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination.
2. PROFORMA INVOICE Simply, a 'Proforma Invoice' is a Confirmed Purchase Order where buyer and Supplier agree on the Product Detail and cost to be shipped to buyer.
3. COMMERCIAL INVOICE It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
4. PACKING LIST AND WEIGHT LIST Customs uses the packing list as a check-list to verify the outgoing cargo (in exporting) and the incoming cargo (in importing). The importer uses the packing list to inventory the incoming consignment.
5. INDEMNITY LETTER o A letter guaranteeing that contractual provisions will be met. o A letter requesting replacements for lost shares from a company's treasury.
6. CERTIFICATE OF ANALYSIS A Certificate of Analysis is a document issued by Quality Assurance that confirms that a regulated product meets its product specification. 7. CONSULAR INVOICE A document certifying a shipment of goods and shows information such as the consignor, consignee and value of the shipment. A consular invoice can be obtained through a consular representative of the country you're shipping to. The consular invoice is required to facilitate customs and collection of taxes. 8. CERTIFICATE OF ORIGIN It is a printed form, completed by the exporter or its agent and certified by an issuing body, attesting that the goods in a particular export shipment have been wholly produced, manufactured or processed in a particular country. The origin does not refer to the country where the goods were shipped from but to the country where they were made. 9. INSURANCE CERTIFICATE A document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals.
Conclusion
To supply Handicrafts Internationally quality raw material is needed. Many multinational institutions like the World Bank, the ADB, and the UNESCO etc view to the support for handicrafts sector and cultural industries as an investment in the development rather than as expenditure. Handicrafts have ample opportunities for employment generation and countrys exports. Therefore, it has occupied a significant place in the economy and society of India. With the onset of globalization there is increasing demand for Indian hand made products in both national and international markets. But careful intervention is needed to prevent hijacking of profits, intrusion of middle men, to promote marketing and to maintain originality/identity of the products therefore ensuring high growth in this sector. This will help the artists enlarging their choices in life and expanding human capabilities, something which could lead to human development
