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E-commerce Platform for Handloom & Handicraft Products of North Eastern Region

This techno-commercial feasibility study explores the challenges and opportunities of launching an e-commerce platform for marketing handloom and handicraft products of the North Eastern Region. The study identifies product potential, design input, marketing skill, and government intervention as key factors for success.

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E-commerce Platform for Handloom & Handicraft Products of North Eastern Region

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  1. Welcome Techno Commercial Feasibility Study on E-commerce Platform for marketing of Handloom and handicraft products of the North Eastern Region Prepared By : Ashim Kumar Das, Deputy General Manager NEDFi, Guwahati Guwahati, Assam 19th January, 2017

  2. CHALLENGES : HANDLOOM & HANDICRAFT SECTOR IN NER Quality Standards Market Trend & Demand Inventory- Volume 1 8 2 CHALLENGES Lack of Design Input in product development Product Variation 7 3 6 5 4 Lack of Marketing Skill Access to Accessories Supply Chain Management

  3. OPPORTUNITIES : HANDLOOM & HANDICRAFT SECTOR IN NER Natural Products Mobile Network Connectivity Ethnic Identity 1 2 8 OPPORTUNITY Digital Platform to reach target customers Vibrant Colours & Motifs 7 3 6 5 4 Eco friendly trend of the Market Traditional Skill Government Intervention

  4. Techno Commercial Feasibility Study on E-commerce Platform for marketing of Handloom and Handicraft products of the North Eastern Region • Objective:- The objective of the study is to identify the products of the handloom and handicraft sector of the North Eastern Region, which can be taken up for promotion through the e-marketing platform and prepare a strategy for implementation which can facilitate launching of the identified products within a time bound manner.

  5. Techno Commercial Feasibility Study on E-commerce Platform for marketing of Handloom and Handicraft products of the North Eastern Region • Study Methodology and Approach: • Literature Review:-Study of secondary information. • Meeting with State & Central Govt. agencies statewise. • Primary Survey:- Collection of information on identified products viz, specifications, weight, price , photographs, production capacity etc. & samples wherever possible. • Detailed analysis of the findings of the primary survey : Identification of products with suggestions for design intervention wherever necessary. • Stakeholders Meeting cum exhibition: State & Central Govt. agencies, Designers, E-Market representatives, Packaging & logistic service providers:- • Preparation of the study report including details of the findings and recommendation for the roadmap.

  6. e-commerce Ecosystem In India

  7. e-commerce Ecosystem In India

  8. e-commerce Ecosystem In India

  9. e-commerce Ecosystem In India

  10. e-commerce Ecosystem In India

  11. e-commerce Ecosystem FOR Craft Products E-commerce platforms categorized into two types as per DIPP norms :- • Inventory based e-commerce platforms:. • Marketplace based e-commerce platforms: Inventory based e-commerce platforms:- crafthouseindia.com, indiabazaar.net, itokri.com, indiacircus.com, yellowtrunk.com, greenthemap.com, auroville.com, craftmantra.com, unravelindia.com artexdirect.com, kraftinn.com, assamsilkshopping.com, fabricplus.co, thenortheaststore.com, giskaa.com. Marketplace based e-commerce platforms :- eBay.in, Craftsvilla.com, Shimply.com, Gocoop.com Marketplace based e-commerce platforms promoted by Govt. of India www.msmeshopping.com http://mahilaehaat-rmk.gov.in/en/

  12. handloom & handicraft productS of NER at e-com platform

  13. QUALITY CERTIFICATION

  14. QUALITY CERTIFICATION All India Artisans and Craft workers Welfare Association (AIACA) • Craftmark is initiative of AIACA initiated in 2006 to denote genuine Indian handicrafts. • The economic value of the handmade process to be certified should be at least 50% of the cost of the product. • Craftmark has set standards for over 80 unique Indian hand-crafted processes including Bodo Weave of Assam The ‘Craftmark Seal’ is a proof of the certification which the members will use in the form of tags on its certified products.

  15. QUALITY CERTIFICATION http://silkmarkindia.com/index.php/about-smoi • Objectives of Silk Mark • Protect the interests of the consumer. • Protect the interest of genuine traders and manufacturers of Silk • Generic Promotion of Natural Silk Silk Mark Organisation of India: Silk Mark Organisation Of India (SMOI) is a registered Society. Silk Mark is an initiative by Central Silk Board (CSB), Ministry of Textiles, Government of India.

  16. QUALITY CERTIFICATION Launched on June 28, 2006 Domestic Market Export Market

  17. QUALITY CERTIFICATION • India Handloom Brand : Launched on August 7, 2015 • Why India Handloom Brand ? To offer the customers:- • Premium quality handloom products. • Handloom products with Geographical Indications. • Handloom products with zero defect. • Use of safe non-carcinogenic dyes in handloom products with zero effect on the environment. • Verification of suppliers and quality testing of handloom products by the Government. • Easy process of verification of source by customers. • Authenticity :- • Products with brand India Handloom will have a label with "India Handloom" logo and registration number. • Customers can use the registration number to check authenticity of the label by using the search option under the link “Directory of Registered Users” on the main website www.indiahandloombrand.gov.in. • DC : Handloom , Ministry of Textile initiative

  18. QUALITY CERTIFICATION • Weavers Service Centre, M/O Textiles may guide on India Handloom brand. https://www.indiahandloombrand.gov.in/pages/ihb-product-s-specification

  19. End per inch & Pick per inch (EPI & PPI)

  20. PROMOTION THROUGH E-MARKETING NETWORK For Promotion of Handloom on e-marketing platform Office of Development Commissioner (Handloom), Ministry of Textiles, GoI, has engaged 8 e-commerce platforms under its India Handloom Brand initiative :- • 1. M/s Weave Smart Online Services, Hyderabad • 2. M/s. Craftsvilla Handicrafts Pvt. Ltd. • 3. M/s GoCoop Solution & Services Pvt. Ltd • 4. M/s Senorita Creations Pvt. Ltd. (Sareez.com) • 5. M/s Amazon Seller Services Private Ltd. • 6. M/s. Flipkart • 7. M/s High City Retail Pvt. Ltd. Delhi (shopatplaces.com) • 8. M/s Aarmart E-Commerce LLP

  21. Fair Trade Practice

  22. WFTO Membership is open to:  Fair Trade Organisations (FTO) All companies, partnerships, co-partnerships and other legal bodies – as determined by the legal provisions of the country of the member concerned – that are directly engaged in Fair Trade. They may be producers, northern or southern based trading FTOs for whom Fair Trade is the main activity. To qualify for FTO membership, income from sales (turnover) must account for 50% or more of the total income. Applications for FTO membership cannot be accepted from organisations with no prior sales history.  Fair Trade Networks (FTN)Legal entities whose primary function is to serve as national or international associations of Fair Trade producers and/or Fair Trade Organisations.  Fair Trade Support Organisations (FTSO)Fair Trade Organisations where trading is not the main activity (proportion of trade is less than 50% of total income). These organisations are engaged in Fair Trade indirectly, through activities that promote and support Fair Trade. These activities can include business counselling, finance, advocacy or networking.  Associate OrganisationsThis is a special category for national or international organisations that are interested in supporting and promoting Fair Trade, including donor organisations. Organisations that do not meet the two-year legal existence requirement also fit in this group.  Individual Associates Individual researchers, writers, consultants and specialists in their field that can support WFTO. WFTO expects its individual associates to be active Fair Trade supporters whose experience and expertise in their own particular field can be of practical benefit to WFTO's members. To apply, please submit a curriculum vitae.

  23. PRIMARY SURVEY : STEPS

  24. PRIMARY SURVEY : DIAGNOSTIC ANALYSIS : PARAMETERS & CATEGORISATION

  25. Survey & Documentation

  26. Survey & Documentation QUESTIONNAIRE : (CATEGORY: HANDICRAFT: Individual) : (Form No.: F:1)

  27. Survey & Documentation

  28. Survey & Documentation QUESTIONNAIRE (CATEGORY: HANDLOOM: Individual) (Form No.: F:2)

  29. Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No.: F:3)

  30. Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No.: F:3)

  31. Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No.: F:3)

  32. E-COMMMERCE PLATFORM : CONTENT WRITING

  33. E-COMMMERCE PLATFORM : PRODUCT PRICING TSC= Ca+Ch+Cs+Cas Where, TSC = Total Shipping Cost Ca = Cost of collection from artisan to Collection Centre Ch = Cost of collection from collection centre to Guwahati Hub Cs = Shipping cost from Guwahati Hub to customer Cas= Additional Cost associated such as quick delivery mode etc. FCP = Cpa+ TSC +Cpk Where, FCP =Final cost price of product Cpa = Cost of product at artisans level Tsc = Total shipping cost Cpk = Cost of packaging Sp = FCP + VAT% + CST %+Margin Where, Sp= Selling price of the product at e-commerce platform VAT%= Value Added Tax % which varies from state to state CST% = Central Sales Tax % Margin = to be earned by e-com agent/ aggregator (i.e. % margin on Cpa)

  34. E-COMMMERCE PLATFORM : PRICING & OFFER • Ration of CP to SP 130% to 295% :: e.g. HKD-35 : Ratio of SP to CP 295%. • But for a set of 3 mobile covers : CP: Rs. 150 ,Transportation & Packaging: Rs.100 & Margin: Rs. 38. Sale price will be Rs. 288 .Thus the price offered per unit will come down to Rs. 96 each. Ratio of SP to CP : 192% This can be advertised as “35% discount on a purchase of a set of 3 mobile phone covers”. Alternatively, it can be offered as “buy 2 get one free”, where effective discount will be 33% only. The set of 3 can be developed with slight variation in colour to make it more attractive to the customer. Such strategy helps in increasing sale volume by optimising associated costs.

  35. PLEASE SEND YOUR DULY FILLED UP FORM ALONG WITH ORIGINAL PHOTOGRAPH TO THE FOLLOWING MAIL ID- aquaweaves@nedfi.com with cc to prithviraj.neog@nedfi.com

  36. Look forward to your kind guidance & suggestion please . Thank You Ashim Kumar Das Deputy General Manager, NEDFi, Phone : 0361-222-22-00 (Ext.220) , 098540-28288 Mail : akdas@nedfi.com

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