Indian handicraft sector: Sourcing to Europe

Abstract

The aim of this project was to perform a background study which can lead to a viable business strategy for setting upon an online Furniture shop in France with sourcing from India. We started by identifying strong anchors which can help create a brand for Indian Furniture and Handicraft in Europe. The Indian handicraft industry was analyzed from various aspects of specifics, history, characteristics, locations, export potential etc. We also studied the advantages and disadvantages of sourcing from India with special focus on various county specific aspects of India as a source for Handicraft items, including labor, transport and regulations. We found that India has a strong historical background with a rich cultural heritage. And India has retained strong influences of multi-cultural history in modern handicrafts as well as evolved new stylesvia synthesis with the modern times. This lineage can prove to be strong in terms of promoting Indian Handicrafts in the European market. Different cultures in India are settled in various pockets of the country and have managed to hold on to their identity in various ways including Handicrafts. Building a unique, irreplaceable brand of India is crucial in European market as India suffers in other parameters such as cost advantage and speed of response. India is not an open-trade market and has various layers of bureaucracy and export regulations which need to be taken care of. The cost advantage in terms of labor is partly evaporated by the weak infrastructure backbone of the country. There are many delays to the shipment and the freight rates are high. Lastly we have analyzed the complex market structure of European markets in terms of go to market strategy or distribution channel for handicrafts item. And identified some of the basic critical parameters, necessary to succeed in the European market, using an E channel for distribution after sourcing from India. In the end we have analyzed the advantages and challenges of doing business over internet.