Beruflich Dokumente
Kultur Dokumente
GO GLOBAL
Presented by:-
Dhananjay Kumar
Jaipuria institute of management, Noida
Index
4. Strategy adopted
5. Ansoff Model
6. Value chain model
7. Conclusive observation
Introduction of Handicraft industry:
India is a country of rich culture, history and traditions. India is one of the major producer and
supplier of Handicrafts products in the world. Before the industrial development, this art and
industry was a potential economic advantage for the country
During recent years, the importance of handicrafts has been surged due to their cultural and
financial values. The small scale industries - including handicrafts can play a major role in the
development of the economy of both developed and the developing countries equally. The Indian
handicrafts industry is highly labor intensive, cottage based and decentralized industry. Most of the
manufacturing units are located in rural and small towns. Handicraft industry is a major source of
income for rural communities employing over six million artisans including a large number of
women and people belonging to the weaker sections of the society.
Because of low capital investment people can start their business on small scale. Through this
flexibility the demand and supply can be managed.
Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the
major revenue generator over the years. There has been consistent growth of 15% over few years
and the industry has evolved as one of the major contributor for export and foreign revenue
generation.
There is huge demand for the Indian Handicraft products in both national and international market.
To match the demand and supply with quality, there is need to have greater technological support
and innovativeness with the uniqueness in industry.
Company profile:
Introduction:
Sanskriti Handicrafts, incepted in the year 1990, has been leading the rich Sanskriti Handicraft and
artifacts cultural heritage. We are a noteworthy manufacturer of fashion Accessories and Costume
Jewelry like Bone Jewelry and Horn jewelry. We have been successful in carving a niche for
ourselves in the India of handicraft domestic market. We ensure and have the capacity to provide
our esteemed customers with an exquisite blend of art with traditional designs. Our long years of
experience and expertise in our arena give us the benefit of being one of the premium leaders in the
fashion industries.. We have sufficient and well-equipped infrastructure facilities which enable us
to cater to our clients with fine range of products and services within the committed time frames.
Vision: To make the global presence
Mission: To be a leading exporter and supplier of finest quality products through competitive
price, quality selection and transparent dedication, honesty and integrity to buyer
Product Range:
Price
Domestic customer :- vary from Rs 200 to 50,000
Foreign customer :- vary from $ 10 to $ 10000
Distribution channel:
PRODUCERS
Export Marketing
Agent organization
CONSUMER
While exporting, we are choosing the right trading partner. As the trade structure of the handicrafts
and wooden gifts market in the EU is very complex. Therefore it is a must for us to export to the
EU to find out the best trading partner according to their specific profile, product range and goals.
Some main distribution channels exporter may consider are -
• Agents
• Importers-wholesalers
• Buying Groups
• Retailers
• Export marketing organization
Handicraft jewellery has found a place in this growing global market and is very much in demand
across the world because of its quality and design.
Handicraft jewellery is nowadays is considered to be a fashion statement in developed country
because of its unique design and the countries are as follows with their respective demand.
USA- 31%
UK – 11%
Germany- 11%
France – 5%
Japan – 4 %
Italy – 4%
• Political factor-
Countries like USA and UK are fully developed nations and have a democratic political
environment which means that there aren’t any pressures on trading countries as the trading
policies are very favorable and encouraging for the Indian handicraft jewellery traders to export
their goods to USA and UK.
Similarly, In 2000, the U.S. consumer market for fine and costume jewelry rose 5 percent over
1999 levels to $39.8 billion; today, the United States is the Largest market for jewelry in the world.
It is followed by the EU, with total sales in 2003 estimated at $25 billion, an increase of 8 percent
between 1999 and 2003. According to retailers, although Ceramics and glass have historically been
their number one selling category; it is now jewelry and other fashion accessories such as belts and
handbags.
European Union (EU) under whom Germany does trading is very encouraging about trading
policies with SAARC as under whom India comes which makes less restrictive policies of trading
for India to trade with a country like Germany.
• Cultural factors-
Handicraft jewellery being hand-made and unique has a lot of hard work put in it which makes it
costly and a trouble to afford.
In countries like France, fashion is like water to people, which means precious to them in day to
day life. Thus, in France demand is not huge as there are already many fashion jewellery categories
already in their domestic market and same goes for Italy.
But, USA and UK don’t have any fashion industry of their own and rely on other exporting
countries for fashion ornaments like Indian made handicraft jewellery and this is reason that the
demand is huge.
Not only this, but citizens of USA and UK are fond of being unique and they see that handicraft
jewellery is hand made and different from other type of jewellery. Culture of these countries sees
uniqueness and different things is positive light.
• Economical factors-
USA, UK, and Germany being developed countries are economically stable and have a good
economic infrastructure which derives that poverty percentage is low and purchasing power of
people in these countries is high.
For eg: USA is known for maximum number of millionaires and billionaires in this world.
Due to the high purchasing power, people are able to purchase costly handicraft jewellery as per
their requirements.
This clearly means “More the money, more the buying power of consumers”
These countries have stable economies, so people are not reluctant about spending their income on
lavish and luxurious ornaments.
• Social factors-
In the above stated countries, people are very conscious about their clothing and whether their
jewellery is matching their clothing or not and whether it is different from what others are wearing
or not, be it any kind social gathering.
This type of fashion conscious consumers who are large in number have raised the demand of
handicraft jewellery and increased its market.
Strength-
Weaknesses-
1. Inconsistent quality
2. Inadequate market study and marketing strategy
3. Lack of adequate infrastructure and communication facilities
4. Capacity to handle limited orders
5. Untimely delivery schedule
Opportunities –
Threats-
1. Decline in India’s share due to better quality products produced by competitors from Europe,
South Africa, South Asia, etc. Better terms of trade by competing countries
2. Better packaging
3. Stricter international stand.
BUYERS :-
Since product is fashion accessories therefore bargaining power is moderate.
INDUSTRY COMPETITORS :-
Other handicraft firm like Indian Handicraft ,Krivi Internationals are the industry competitor since
they are in same jewellery business
SUPPLIERS :-
Bargaining power of supplier are high since they are supply high quality of glass beads, natural
bone and horn.
SUBSTITUTES :-
Diamond ,pearl,gold brass platinum jewellery could be substitute for handicraft jewellary in the
market but there are many other handicrafts products and various other accessories which are
trying to grab the customers attention.
Low High
Global Integration
We are adopting International strategy as our product is standardized and we are less sensitive to
customer preference and adhere core value and Indian culture. As we are promoting Indian ART
and Culture so our global integration will be less and confine to Indian Territory for the
manufacturing. We will export our product following the international strategy.
Reasons behind to “GO GLOBAL” – Although our Indian home market is not saturated but the
demand of handicraft jewelry in foreign countries are encouraging . Tourism and e-commerce are
playing an important role to make aware of foreign customer demand. We are going global at lower
scale initially.
Ansoff Model
Consumer
International
Retail outlet
Importer
Importer’s Agent
Fumigation
Domestic Buyer
(Transportation,
warehousing, Design and
quality inspection