Study of E-Commerce business model to expand the Ecosystem of Craft

Introduction
India has a rich cultural heritage of handicrafts dating back thousands of years. The country
has a wide variety of handicrafts, each with its own style and technique, reflecting the
country's regional and cultural diversity. The handicraft industry in India is a major
contributor to the country's economy, employing millions of people across the country,
including a large number of artisans from marginalized communities. In recent years, the
Indian handicraft market has undergone a major transformation with the rise of the e-
commerce market. Online craft marketplaces have helped introduce Indian crafts to a global
audience and make them accessible to buyers around the world. This has boosted the
demand for Indian handicrafts in both domestic and foreign markets, spurring the growth of
the Indian handicraft industry.
The global handicrafts market size reached US$ 752.2 Billion in 2022. IMARC Group expects
the market to reach US$ 1,296.6 Billion by 2028, exhibiting a growth rate (CAGR) of 9.1%
from 2023-2028. The Indian handicrafts market was valued at US$ 3,968.0 Million in 2022.
The growing popularity of gifting handicraft items on various occasions, the increasing
number of e-commerce websites selling authentic handicraft items, and the rising purchase
of handmade products represent some of the key factors driving the market.
In this context, the role of the e-commerce marketplace in the growth of the handicraft
industry in India becomes important. E-commerce platforms provide artisans with a platform
to showcase their crafts to a global audience, thereby expanding their customer base and
increasing their revenue. In addition, e-commerce marketplaces also provide a convenient
shopping experience for customers to browse and purchase crafts from the comfort of their
own homes.

However, the growth of India's handicraft industry through the e-commerce market is not
without challenges. The sector faces intense competition from other countries in the global
market and Indian artisans often suffer from problems such as lack of access to technology,
inadequate infrastructure, and lack of awareness of international quality standards. increase.
It is therefore important to understand the potential of the e-commerce market to boost the
handicraft industry in India and the challenges that need to be addressed to enable
sustainable growth. This study explores the growth of the handicraft industry in India in the
context of e-commerce markets, identifies the challenges faced by artisans and handicraft
businesses, and provides recommendations for sustainable growth of the handicraft industry
in India.

Literature Review

The proposed research focuses on the marketing and branding strategies of key companies
and the development of co-creative e-commerce platforms for artisans and craftsmen and
the role of e-commerce in expanding the Indian craft industry ecosystem. India has a rich
cultural heritage of handicrafts and the handicraft industry plays an important role in the
country's economy.
The global handicrafts market size reached US$ 752.2 Billion in 2022. IMARC Group expects
the market to reach US$ 1,296.6 Billion by 2028, exhibiting a growth rate (CAGR) of 9.1%
from 2023-2028.

According to the India Brand Equity Foundation (IBEF), India's craft industry is expected to be
worth $3.968 billion in 2022, driven by growing demand and the rise of e-commerce
platforms (IBEF, 2021). E-commerce marketplaces have provided artisans with a global
platform to showcase their crafts and increased the demand for Indian handicrafts (IBEF,
2021). The emergence of e-commerce platforms has transformed the craft industry in India.
E-commerce platforms have enabled artisans to remove geographical barriers and sell their
products globally (B.K Jaiswal, 2018). Studies have shown that e-commerce platforms have a
positive impact on the income and livelihood of artisans (Mishra and Mohapatra, 2019).

Marketing and branding strategies in the craft industry: Marketing and branding play an
important role in the success of the craft industry. Craft businesses must effectively market
their products and build a strong brand image in order to attract customers.
We co-create an electronic ecosystem for artisans and artists: A co-creative e-commerce
ecosystem focuses on collaboration and cooperation between artisans, artists and
consumers. Research underlines the importance of user-generated content and community
building on co-creation platforms (Huang and Su, 2019). Creating collaboration and creating
a platform where artisans can display and sell their unique work can promote the growth
and success of creative people in the arts and crafts industry.

Research gap

While the existing literature acknowledges the growth potential of the handicraft industry in
India through the e-commerce marketplace, understanding the specific marketing and
branding strategies adopted by key players in the handicraft industry has a research gap.
Case studies analysing successful brands and their marketing practices provide valuable
insights for developing co-creative e-commerce marketplaces for craftsmen and artists.

Moreover, limited research has been conducted on the Indian handicraft industry ecosystem
and the interactions between various actors. Understanding the dynamics and relationships
within the ecosystem is critical to creating an environment that fosters collaboration and
supports creatives in e-commerce.

In addition, consumer segmentation in the handicraft industry should be studied to assess

the feasibility and viability of the e-commerce market based on demand patterns. Identifying
target markets and adjusting marketing strategies accordingly can contribute to the
sustainable growth of the handicraft industry.

Aim
This research aims to gain valuable insights into the co-creative e-commerce design space
for artisans and artists. It involves identifying significant players in the craft industry,
analyzing their marketing and branding strategies, and the ultimate goal is to facilitate the
growth and success of creative individuals, artists, and artisans by providing them with a
robust platform that fosters collaboration and enables them to showcase and sell their
unique creations.

Research Question
How can the e-commerce business model be effectively utilized to expand the ecosystem of
craft in India, considering the marketing and branding strategies of key players in the craft
industry and the development of a co-creative e-commerce ecosystem for creative
individuals, artists, and artisans?

Objectives

 Explore the stakeholders in craft industry and understand the ecosystem of craft to
analyze the interaction between them.
 Evaluate the feasibility and viability of craft, and ecommerce marketplace considering
demand, marketing and branding strategies, that leverage the consumer
segmentation in craft.
 Analyze the current landscape and develop new ideas marketing, branding and
supply chain strategies for a co-creative E-commerce marketplace.

Scope
The scope of this research will focus on the handicraft industry in India, including metal,
wood, textile crafts and design. It will help me to make a larger framework for my
entrepreneurial venture.
The study will analyze the ecosystem of crafts including stakeholders and explore the
feasibility and viability of Ecommerce marketplace for crafts with focus on consumer
segmentation.
The scope of this study to propose new ideas of marketing, branding, and supply chain
strategies for a co-creative Ecommerce marketplace for crafts.

Research Paradigm
The research paradigm of this research proposal can be described as a combination of
interpretivism and pragmatism. The focus of interpretivism is on understanding and
interpreting social phenomena such as craft industry ecosystems and the experiences of
artisans and artists, taking into account their subjective perspectives and social contexts.
Pragmatism, on the other hand, aims to emphasize the practical implications and findings of
research, address real-world problems, and generate actionable recommendations.

Epistemology:
The epistemological approach of this research is an interpretivist approach that seeks to
understand and interpret the complex dynamics and interactions within the handicraft
industry ecosystem of India. Recognizing the subjective nature of knowledge, it aims to
capture the perspectives and experiences of stakeholders such as artisans, artists,
consumers and industry professionals through qualitative research techniques.

Ontology:
The ontological stance of this research is also interpretivist, recognizing that reality is socially
constructed and that individual perceptions and interpretations shape our understanding of
the handicraft industry. It recognizes the complexity of the craft ecosystem where various
social, cultural, economic and environmental factors interact to influence the growth and
success of artisans and artists.

Methodology
This study will include a combination of case study approach, sample data collection, data
analysis, and literature evaluation to explore the ecosystem of the Ecommerce sector, and
Socio-economic issues with craft and Artisans will be conducted for the literature review.
The gathering and analysis of Quantitative and Qualitative data on craft production,
environmental effect, and consumer preferences for crafts will be part of the data analysis—
case studies on brands that have successfully created that ecosystem and major
stakeholders who commercialized the crafts. To acquire qualitative data on the obstacles and
potential in the development and marketing of crafts, interviews will be conducted with
industry experts, corporate representatives, and customers.

Delimitations
 The research will have a limited focus on the Indian crafts and may not applicable on
other regions or countries.
 This research will not include the technical aspects like web - coding, fin-tech. It may
face the limitations in terms of data availability with regards to informal sector of
craft.
 The proposed ideas and strategies may or may not be applicable on all kind of crafts
and artisans, it requires customization based on individual needs and circumstances.

Limitations

 Time frame: The time frame of 60 days for conducting the research may limit the
depth and breadth of the study. In-depth analysis and comprehensive data collection
may be constrained within this time constraint.

 Subjectivity in interviews: The interviews conducted with industry experts, corporate

representatives, and customers may introduce subjective biases and opinions that
could affect the overall reliability and objectivity of the research findings.

References

https://www.imarcgroup.com/handicrafts-market
https://www.ibef.org/exports/handicrafts-industry-india
http://www.handicrafts.nic.in/Page.aspx?MID=BOII5FUynjpl5RZJJ8nW1g==
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1919216
https://www.ibef.org/exports/handicrafts-industry-india
https://www.theseus.fi/bitstream/handle/10024/159502/Thesis.pdf?
sequence=2&isAllowed=y
https://www.researchgate.net/publication/325285588_E-
COMMERCE_AND_RURAL_HANDICRAFT_ARTISANS