Woolen Handicraft Industry
Woolen Handicraft Industry
Woolen Handicraft Industry
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Abstract
Woolen handicraft is a traditional skill practiced in hill district of Uttarakhand and has
been vertically passed on for generations. The geography of hill districts viz. high altitude,
mountainous terrain, cold climate but excellent sunshine provides ideal conditions for rearing of
animals like sheep, Angora rabbits and Pashmina goats. This creates an environment, which
permits extraction of finest quality of wool.The major advantage of woolen handicraft sector is
its enormous employment potential despite low investment of capital; however, the industry is
not geared up to tap this opportunity.In Uttarakhand, weavers produce a lot of woolen craft per
year, yet the socio economic condition of the weavers continues to be poor. The woolen carpet
business needs to address various challenges at different stages i.e. improving availability of
requisite quality and quantity of raw material, wool processing, grading, design improvement,
strengthening of marketing arrangements and mobilizing institutional finance for growth of this
industry. All these stages involve a chain of intermediaries. The present paper is an attempt to
explore the existingsupply chain scenario of the woolen handicraft sector in hill districts of
Uttarakhand. Exploratory research design was used for the study and Chamoli and Pithoragarh
district of Uttarakhand were selected purposively as they had highest production among the
districts. Primary data was collected from traders, retailers and artisans involved in the trade
through interviews and structured questionnaire. The result of the study highlights various
constraints and the issues afflicting the supply chain.
Keywords: Artisans, marketing, supply chain
*
Teaching Personnel, CABM, GBPUAT, Pantnagar
**
Assoc. Prof., CABM, GBPUAT, Pantnagar
A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A.
International Journal of Management, IT and Engineering
http://www.ijmra.us
140
INTRODUCTION: Woolen handicraft is an inherited, traditional skill practiced in the
mountainous region of Uttarakhand. Uttarakhand government has identified major clusters in the
state where people have been engaged in weaving since ages. These clusters are Dunda in
Uttarkashi, Dharchula and Munsiyari in Pithoragarh, Manglore in Haridwar, Chinka in Chamoli
and Kalsi in Dehradun district (Prashant, 2008). In all these clusters artisans are engaged in
making carpets and other woolen crafts. The woolen handmade carpet industry of Uttarakhand
employs around 11000 weavers (Planning Commission, 2006). These weavers produce a lot of
woolen craft per year, yet the socio economic condition of the weavers continues to be poor.
In Uttarakhand, a separate body has been set up as Uttarakhand Handloom &
Handicraft Development Council (UHHDC). It is a registered council constituted by the
Government of Uttarakhand and acts as the apex body for the overall development and
promotion of handicrafts in the state. It aims at generating sustainable employment opportunities
by promoting specialized products for commercialization. It acts as a catalyst to encourage,
guide and organize the artisans and provide platforms to producers and buyers where they can
meet and engage in fruitful interactions.
Besides, wool banks have been set up by the Khadi and Village Industries Board (KVIB)
to provide all kinds of wool varieties required for the production of variety of products. KVIB
also encourages hand spinning by promoting use of efficient charkhas in homes.As a result,
buyers who are looking for actual handmade woolen products can find these in Uttarakhand.
District Industrial Centers (DICs) are also actively engaged in supporting weavers in
Uttarakhand. A number of wool-based firms registered between 2000-01 to 2010-11 in different
DICs are shown in table 1
Table 1:Number of registered wool based firm (producing carpet/rug) with DICs
District Industrial Number of Registered firm
Center (2000-01 to 2007-08) (2008-09 to 2010-11)
Chamoli 95 NIL
Pithoragarh 15 1
Uttarkashi 07 NIL
Source: Directorate of Industries, Govt. of Uttarakhand
Trade fair/Exhibition Saras Market Himadri Emporium Cooperative societies SHG operated outlet
End Customer
Artisans SHG
B)
Marketing and Sales: Due to the low education level and decentralization of woolen handicraft
weavers of Uttarakhand, they often lack direct access to markets and market information,
resulting in a mismatch between production and market demand. Therefore, following strategies
are recommended.
a) Expansion of market coverage: To bridge the gap between artisans and customers, both in
terms of distance as well as perception, coverage of market should be expanded beyond the
existing market i.e. nearby location. For that matter organizing fairs and exhibition in various
cities as well as setting up website to bring artisan and customers together on a common platform
can be a good initiative.
b) Selection of distribution channel: The artisans depend mostly upon direct marketing and
fairs and exhibitions for disposal of their finished products i.e. woolen handicrafts. Some artisans
sell directly to the consumers, whereas some sell through Nepali itinerant sellers, and local fairs
and exhibitions. Therefore the distribution channels should be expanded through sales emporia,
which directly contact the galaxy of consumers through its various outlets located at various
important towns in India. As far as Co-operative societies are concerned, there are limited
numbers of co-operative societies serving in the study area; therefore, to strengthen the
distribution more co-operatives should be formed for better distribution and profitability.
c) Relevant promotional strategies: The following promotional strategies are suggested for
better promotional support.
i) Effective advertising: Weavers and SHGs are not in a position to do individual advertising
because of their limited resources and heavy investment associated with it. Therefore, the apex
body UHHDC (Uttarakhand Handloom and Handicraft Development Corporation) should
undertake print as well as media advertisements for the better awareness among customers. For
that matter, the allotment of funds and expenditure for advertising should be increased by
UHHDC. The advertisement programs should be focused on heritage, cultural and sustainability
aspect. In the customer centric era, social media is a primary channel for customer engagement
and it also incurs a very low cost as compare to others. Therefore, social network advertising
should also be considered.
ii) Effective sales promotion: The industry is totally dependent on Government bodies for sales
promotions. The only tool they have is point of purchase (P-O-P) displays and demonstrations in
trade fairs and exhibitions. However, the results from these fairs/exhibitions are very poor due to
lack of awareness among people. Therefore, to strengthen the sales promotion following
strategies should be considered.
1. Time to time fair and exhibitions should be organized in various locations by different
government bodies, like KVIB (Khadi & Village Industrial Board), UHHDC etc.
2. Awareness among customers related to fairs and exhibitions should be created through
advertising campaign.
3. Proper display and demonstration support in fairs/exhibitions should be provided to weavers.
d) Branding of handicraft items: Developing a strong brand that differentiates handloom of
Uttarakhand in a competitive global market is very important. Therefore, a well-designed
strategy is needed which repeatedly reminds potential and current customers why they should
purchase carpets of Uttarakhand over others. Therefore, the use of a Geographical Indication as a
brand identity should be adopted, which act as a certification that the product possesses certain
qualities, is made according to traditional methods, or enjoys a certain reputation, due to its
geographical origin.
Human Resource Development through extension services: While analyzing the adaptation of
new designs and technology use, it was found that adaptation of technologies gets severely
handicapped because of knowledge related constraints‟ viz. lack of awareness of modern
designs, improved technological up gradation, etc. this is where the role of extension services
become very important.
The primary aim of the extension strategy should be revitalization of the traditional
techniques of carpet making as a source of income for the weavers and their families. The main
priorities should be on development of jobs for indigenous communities through training
programs, the creation and marketing of products with new designs applications, the undertaking
of cultural outreach programs through the development of collaborative exhibitions and
publications, and the care of natural resources for producing handmade carpets.
NGOs, co-operatives and other organizations working in the field of rural development
and sustainable development should be included for the successful distribution.
Technological Development: As witnessed by the profitability in the working of other sectors
by the application of Information and Communication Technology (ICT), similar initiatives
should be taken by the group of woolen handicraft producer to implement the ICT in the process
of export as well as domestic marketing.
With the help of ICT, marketer can produce as many designs which can be customized as
per the buyers‟ requirements, thereby getting an order without any initial investment, a method
presently adopted by the Chinese in the handicraft business. Also information related to the
sample like sample designs, revised sample designs, etc can be abruptly exchanged through the
technology.
Firms Infrastructure: The industry needs a state-of-the-art facility centers at block level where
weavers can have access to all the facilities such as processing of wool, training related to design
development through computer etc. Besides, Wool banks should be setup for better quality of
input availability all the time so that delays in processing can be minimized. Apart from this, for
requirement of upgraded loom and tools credit should be provided by financial institutions at a
lower rate of interest.
Procurement (Wool): The ever increasing cost of raw material is a major concern among the
artisans. At present, artisans outsource major portion of their wool requirement, which puts an
extra burden on them. Moreover, the raw material used by them is not available at a low cost.
Therefore, initiatives such as opening of wool bank should be taken by government so that wool
can be avail at a low cost.
Recommended supply chain model for woolen handicraft business in Uttarakhand:
i) Backward Linkages: This model starts with the formation of state-of-the-art facility center at
Block level (development unit of district) where unprocessed raw wool reared from local sheep
will be processed. These facility centers act like a mini wool bank in the blocks and weavers can
get low cost quality raw material easily from these centers. However, the local sheep rearing is
very limited now and excess demand of raw material will be fulfilled by main wool bank which
will be located at district level. These facility centers will also act like training and skill
development centers. These centers will be backed by trained staff from reputed institutions like
Indian institute of carpet technology (IICT), National institute of fashion technology (NIFT) and
other design development institutions. The work of these institution will be focused on
modernization of the craftwork according to the need of the ultimate consumer like
standardization i.e. value creation, process re-engineering for cost reduction and quality
production, assistance through computer aided design (CAD) and other technical assistance like
up gradation of age old tools.
ii) Forward Linkages: On the other end the final handcrafted produce will be marketed by the
state handloom & handicraft development council (UHHDC) and government of Uttarakhand.
UHHDC will assist weavers in promotional and distribution activities like trade fairs, exhibitions
etc, capacity building program that includes human capital development through extension
network support and R&D, certification of the produce like Rugmark, ISO etc, financial support
i.e. easy accessible credit facility, assistance in market development through tie up with some
retail chain for the better market linkage, effective promotion and distribution support and last
but not least modern buying facility i.e. E-commerce platform (Figure 4).
State-of-the-art facility center (Block level) (reared from sheep)
Raw-Wool
Weaving (Production)
Market Linkage
Wool Bank (Cluster approach) Through Fair & Exhibition
Through Saras market
Through Himadri Emporium
Government procurement (Wool) Through e-commerce
End
Customer
A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A.
International Journal of Management, IT and Engineering
http://www.ijmra.us
155
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