Artisan economy bring local handcraft to global market
ARTICLES | Jul 17, 2024
The creative manufacturing and handmade (CMH) market totaled an estimated $1 trillion in 2023. Craftsmanship and the human touch raise value and revenue. The handicraft market is also an income-generating area for vulnerable groups in Africa, the Middle East, Asia, Latin America, and the Caribbean.
74% of handmade businesses are driven by women. People under 35 years of age make up 60% of the industry. 62% of the industry is in rural locations. Income from handicrafts gives women a greater voice in the family and an independent income. Selling artisan products in India, for example, has brought 10 million women back into the labor market in the past decade to generate up to $77 billion. They gain enough money to care for their health and their children's education. 75% of Indian women feel more respected when they can support their families by selling handicrafts.
The cultural heritage of local people makes products exciting and valuable. Inheriting and recreating traditional wisdom benefits local workers. The world of technology and machines replacing human labor means craft businesses must communicate their brand's identity and uniqueness. Consumers need to know why a handicraft requires human labor.
Digitalization and technology such as social media, e-commerce, omnichannel, and financial solutions will increasingly play a role in the craft industry in branding, market research, business development, and sales transactions. The interplay between technology and the charm of local wisdom remains an interesting and challenging topic for entrepreneurs. If the brand can prove its sustainability and eco-friendliness, it will reduce doubts about environmental impact and attract conscious consumers who are growing in number.
Implications for the future:
- Crafts-savvy communities that have become small and medium enterprises (MSMEs) and want to reach consumers in both storefronts and online shopping will carefully plan their business and supply chains to serve the demand, which varies by product type and local context.
- Start-up village entrepreneurship programs (SVEPs) and creative social enterprises could lead to a new frontier of transforming agricultural workers into artisans. However, policy and investment support are needed as well as an understanding of the cultural context of the workpiece and local labor.
- Business-to-business (B2B) online handicraft market will play a role in ensuring the quality of products from manufacturers to corporate customers. At the same time, it ensures a certain income for local artisans.
- Popular freelance artisans may need to upskill their digital marketing knowledge and entrepreneurial mindset to scale their work to meet growing consumer demand and add new challenges to the same jobs that require new creativity.
