Abstract
The demand and market for indigenous art, craft and handloom products in India have witnessed a massive decline in recent years. The growing popularity of machine-made products through online retail and a lack of monitoring for product quality led to genericide in the arts and crafts sector, which is detrimental to the indigenous and traditional handicraft businesses. India’s sub-optimal performance in competitiveness factors such as basic infrastructure, intellectual property rights, education and broadband adoption not only bring down revenues for indigenous artists and crafts people but also lower consumer demand due to a lack of trust in the product as well. Drawing on constructivist grounded theory, this paper identifies challenges facing indigenous art and craft sellers and proposes measures to ensure the sustainability of this sector. The paper also finds that Genericide is not only having an adverse economic impact on the sector but also affecting the brand image of Indian Indigenous Arts and Crafts. Geographical Indication is proposed as a possible way to create a differentiation between indigenous products and generic products to counter Genericide and check the growing hyper-competition. A system for quality management is suggested to ensure Geographical Indication products stand out and win consumer trust.
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Introduction
India has been known globally for its arts and crafts, even when the artisans and crafts people work in anonymity and without any recognition for their work (Dash & Mishra, 2021). The country’s rich history, multitude of traditions and varying geography have resulted in a huge variety of craft forms and artisanal skills. Despite hosting the second-highest number of employees in India, the sector has lagged in exports, with India contributing only 2 percent to global handicraft exports, which pales in comparison to China’s 30 percent (EY, 2012; Kennedy, 2020). The COVID-19 pandemic has resulted in millions of jobs being lost and countless people being pushed into poverty. 10.9 million people lost their jobs in 2020 in India alone (Saraswathy, 2021), while around 10 million lost their jobs in the second wave in 2021 (Business Today, 2021). Millions of workers also suffered pay cuts, while numerous underpaid workers from urban cities returned to their villages, far from their places of employment (Khan & Sultan, 2020). Despite this, India managed to maintain its position in the World Competitiveness Ranking by Switzerland-based Institute for Management Development (IMD), for the third year in a row (Mishra, 2021). India ranked 43rd out of the 64 countries assessed in the annual ranking; the index measures the economic well-being of the citizens of the countries analyzed and the extent to which the respective governments promote it through policy-making and implementation.
The arts and crafts sector has been in distress since long before the pandemic started (India Today, 2016). For over a decade, the sector has been plagued by declining demand, hyper-competition, scarcity of market opportunities and middleman's abuse. Dasra, a charitable organisation, indicated that the number of artisans in India has been drastically declining over the previous decade. This is despite India ranking competitively in the Talent (38) and Capital (4) niches in the competitiveness index (IMD, 2021).
Apart from the low demand, there has also been a lack of funds, technological penetration, market intelligence, as well as artisan groups’ weak institutional framework. This is clearly visible in the low rankings in the Technological Framework segment (62), which references low scores for broadband adoption. In comparison, India ranks first in Investments in Telecommunications, which points to an adoption issue and not a coverage issue, and hence the low ranking (55) in Adaptive Attitudes (IMD, 2021). All these factors add up to a landscape that proves to be severely prohibitive for traditional arts and crafts business owners, who simply cannot compete with the marketing budgets of even modest brands with better profit margins.
The sector's modest wins have been due to self-sustaining business structures, with craftspeople frequently farming their own raw materials. This is often the only way to remain competitive in a market dominated by mobile-first and generic arts and crafts businesses. That is not to say that there has been no support from the Government of India and other players in the ecosystem. However, the entire ecosystem is not optimally designed and the country as a whole lacks in digital competitiveness and future readiness. This has resulted in a failure to pivot to a digital retail model that could have helped the artisans to sustain their businesses.
This study aims to answer questions such as “How are we going to deal with the declining demand for arts and crafts, especially indigenous products?”, “How will we tackle the competition arising from Genericide and better finished products coming out of factories at breakneck speed and dirt cheap prices?” and “What particular areas of competitiveness need to be improved to provide an enabling ecosystem for the sector to be sustainable?”.
Literature Review
Arts and crafts are vital in representing and promoting one’s history, culture, and traditions. They are an excellent means of preserving traditional skills and talents that define the history of any country or region. In India, the arts and crafts industry is decentralized and employs millions of people from different parts of the country. The traditional art and indigenous products are mostly manufactured in rural areas through labor-intensive processes, while the retail of the products is more prominent in urban areas (Dash & Mishra, 2021).
Through informal knowledge, indigenous arts and crafts play a critical role in promoting a region's history and traditions (Das & Das, 2019). In India, the arts and crafts industry has been on the decline for several years now (Chamikutty, 2013). The main reasons leading to the decline have been identified as thin margins, inability to compete in the market, exploitation by middlemen, lack of infrastructure, and improper implementation of government schemes and policies (Shah & Patel, 2017). The challenges for indigenous artisans could be even more acute.
Local artisans continue to play a vital part in the rural economy's development. But because of limited opportunities and exposure, a significant number of the artisans migrate to urban areas to ply their trade (Papola, 1984). The challenges faced by the migrating artisans have not been studied at length. Figure 1 represents the most obvious reasons for the decline of the arts and crafts industry and the problems faced by Indian artisans as per the current literature available. It is seen that most artisans can cut out the middlemen by selling directly to their customers which leads to migration to urban areas where the living costs and shop rents can be a deterrent. As a lot of artisans tend to earmark their products for export without quality certifications, ascertaining export quality becomes an impossible task, which can also lead to smaller margins (Dash & Mishra, 2021).
In the past, most marketing efforts for arts and crafts, especially indigenous products, have been done by state governments in a bid to improve tourism in their respective states and by the central government in a bid to improve exports (Bharati, 2005). Yet, with growing costs and inflation, it has been difficult for household industries to earn enough income to sustain the people involved in the trade (Setty, 1963). There has also been a lack of transformation revolution, such as the Green Revolution toward the end of the nineteenth century (Kennedy, 2020).
The disparity in intake of resources between urban and rural populations in India is glaring. The urban population now receives formal design education, which is passed on generation-to-generation in the rural setting (Das & Das, 2019). The problem of education is exacerbated in non-urban areas due to the lack of access. Despite leading investments in telecommunications, India ranks poorly in the Competitive Index when it comes to Technological Framework, Future Readiness and Training and Education (IMD, 2021).
Furthermore, in the arts and crafts sectors, there is little to no emphasis on image and reputation (Fillis, 2003). In the past, artisans were able to create positive images by utilizing their creative reputation, however, the new markets are unrelenting and need modern brand and marketing methods to be successful. Lack of information regarding the artistic traditions and the products can lead to loss of indigenous identity. Consumers often equate handicrafts with machine-made products, which leads to a loss of cultural and sentimental value, thereby failing to preserve and capitalize on the true potential of art (Nair, 2012).
With 3000 craft forms, the industry could have been the face of important government schemes like the ‘Make in India’ campaign, however, the low-profile industry has not received the necessary attention to fulfill its potential (Kennedy, 2020). Additionally, the efforts made by the government have not been enough to support or sustain the sector (Shah & Patel, 2017). Lack of affirmative action affects the competitiveness of indigenous art, which is rapidly disappearing from urban markets to be replaced by cheaper, better quality and better finished replicas (Dausch, 2022).
Methods
Constructionist Grounded Theory (CGT) was used in this study as it reshapes the interaction between the researcher and the participants (Mills et al., 2006). Data from both primary and secondary sources was gathered and examined. For primary data, in-depth, semi-structured interviews with 25 art and craft sellers were carried out. The participants were selected at random at various art and craft markets and exhibitions in Delhi. Only sellers who were selling indigenous products were considered. All of the vendors were also involved in the creation of their goods. A survey of relevant literature, including journal papers, books, and news stories, was used to acquire secondary data.
The sellers were approached and after ascertaining if they met the selection criteria, interviews were set up on short notice. In-depth interviews were conducted with artisans and craftspeople from various regions of India known for their indigenous art, handicrafts, and raw material. The interviews were recorded, transcribed and analyzed. The transcriptions and translations were cross-checked by two experts to ensure the consistency and accuracy of the obtained data. Open, axial and selective coding of the data was done to identify themes. The thematic outcomes were used to construct a grounded model. To ascertain the reliability of the data, inter-rater reliability was done and two peer reviewers were asked to rate the code. A near-perfect score was obtained.
Results
All the respondents believed that genericide was prevalent in the arts and crafts industry and was impacting the business of the people involved in the craft. Based on the responses, the impact can be categorized into economic impact and effect on brand image.
Demand for Indigenous Art & Craft
Figure 2 depicts the responses of artists and craftspeople to whether the demand for their products has increased or decreased. 90% of the respondents believed that there was still a decent demand for indigenous art and craft products in India. All the respondents stated that international buyers were always more interested in their products than Indian buyers.
64% of the respondents claimed that the demand for indigenous products had been declining over the years and the pandemic and the resultant lockdown aggravated this trend. It was noticed that the artists with an increase: decline ratio of 1:1.5 found the demand to be better than artisans and craftspeople 1:2.
An award-winning Madhubhani artist suggested that her buyers were becoming increasingly interested in her work because of the originality she brought to it. “One of the things about Madhubani art is that it cannot be replicated easily. Those who know this art can easily tell an original piece from a fake one. I am pleasantly surprised by how well some of the tourist buyers know about Madhubani art,” she claimed. Contrastingly, one of the respondents who specialized in camel bone art believed that this art form was losing appeal due to various reasons and that his family had been using this art form for ages to create products that could be sold to make a living. He didn’t see himself working in the field any longer and would not further impart the skills in the generations to come.
Sustainability of Indigenous Art & Craft in India
60% of the respondents believed that the art and craft sector in India would be able to sustain itself, despite the difficulties faced by the artisans and craftsmen. While 20% of the respondents believed that their work was losing popularity, 20% believed that although their work was still popular with the buyers, they were not making enough sales to sustain their business or support their families. The latter believed that with support and reforms across various levels, it could be a sustainable business in the future. Figure 3 shows the distribution of the respondents who believed the sale of indigenous art and craft to be a sustainable business versus those who did not think it to be sustainable, and those who believed it was not sustainable but has the potential to do so with assistance.
Possible Reasons for the Loss of Demand
90% of the participants believed genericide or duplication of products was having a negative to severe impact on the sales and revenue generation in the handicraft and handloom sector. While artists were more secure about their products, the artisans and the craftsmen were not.
70% of the respondents believed that power looms and industry-manufactured replicas could upstage their business, while 30% believed that their art was not easy to replicate and thus they would be able to make a living from it. However, all the respondents believed that machine-made products sold at cheap prices were affecting their margins and making the market unnecessarily competitive.
60% of the respondents highlighted the lack of trust in the authenticity of the products as a potential issue faced by arts and crafts sellers. Figure 4 depicts a word cloud of the issues faced by them in selling their products. Other issues highlighted by the respondents included ‘lack of profits’, ‘hyper-competition’ and ‘unsustainability of the businesses’.
Possible Solutions to the Identified Problems
75% of the 25 respondents believed that some kind of a system, indication or certification for their indigenous products could improve the trust factor, as well as help compete against mass-produced replicas and copies. 5% believed that although GI might help, it would not be good for the proliferation of the art. Loss of trust in indigenous products meant that the buyers were not willing to pay a premium for hand-made products and would rather buy similar-looking machine-made products for a lesser price.
One of the interviewed participants, who specialized in producing Chanderi handloom products, believed that while Chanderi is native to Madhya Pradesh and is a result of meticulous work, the buyers had a tough time believing in its authenticity and paying a premium price for it. Speaking to his concerns, he said: “Chanderi is a traditional knitting technique that involves creating the entire unit using a single thread. It takes years of training and several days to complete. If we do not even make a few thousand rupees for one piece, how will we be able to sustain us and our families?” When asked about a possible solution for this problem, he stated that if his products could be identified as genuine Chanderi products, he could possibly charge a little more money for them.
Similarly, a craftsman specializing in Jodhpuri design, said, “If my products have a seal or a mark identifying it as a real Jodhpuri product, I can make more sales. Currently, replicas are mass-produced in factories, which can be sold at a much cheaper price, forcing us to lower our prices, which means that our trade is not profitable, despite having the quality to show for it”. A camel bone artist also highlighted the need for better education about the products and traditional art. “My family has been in this business for many generations now and the knowledge is passed from one generation to another. We have been sustaining ourselves with this trade as we have had stable sales but in the last five to six years, we have been struggling to make ends meet. Plastic and silicone products sold in the name of camel bone art are really hurting our business and we are slowly shutting it down for good,” he said.
100% of the respondents believed that policy reforms and government support are required to keep the trade going in India. Apart from a certification system at a central level, the participants asked for more government support through exhibitions, training programs, monetary support in times of need and promotion of the sector. Figure 5 depicts the various initiatives and reforms expected by the art and crafts sellers and business owners to deal with the increasing challenges in selling their products and sustaining the trade.
Data Analysis
The data were broken down into smaller chunks and statements that were tabulated in MS Excel. Four defining statements were taken from each participant and open-coded with labels that seemed appropriate. Labeling was done as loosely as possible to avoid any bias. Table A1 represents the open coding analysis of the selected statements (see Table A1 as given in supplementary Appendix file).
Once the statements (data) were appropriately coded, patterns & similarities were identified, mapped and tabulated. Similar or somewhat-similar labels were clubbed together in columns. Each column was further categorized using one defining theme/category for all the open-code labels in that column. Table 1 represents the various labels from open coding tabulated under different themes of categories.
For the final step of the coding process, the axial themes were further categorized into broad categories that could be discussed thematically. For better understanding of the broader themes, the discussion was done in light of the issues plaguing the industry and possible solutions to those issues/challenges. The challenges were further divided into existing challenges and emerging challenges that will need to be tackled. Figure 6 depicts the selective coding process of the axial themes from Table 1.
Graphical view of selective coding of axial data (based on Table 1)
Discussion
A number of themes emerged from the analysis of the data, which can be summarized in four sections: existing challenges, emerging challenges, potential solutions and desirable outcomes.
Existing Challenges
There has been a gradual decline in the demand for arts and crafts products in India. The availability of cheaper alternatives has meant that crafts have lost their appeal for many as they are seen as antithetical to modern tastes (Chamikutty, 2013). This was also identified as the major challenge faced by art and craft sellers in India. The lack of demand, especially during the pandemic, had a spiraling effect on the trade, which meant lower production as well as lower interest in learning about and participating in the creation of indigenous arts and crafts. This is in contradiction to Jean-Baptiste Say’s Law of Market which presumes that production was the source of demand (Béraud & Numa, 2018). In fact, this finding propagates inverse Say’s law, which proposes that a lack of demand causes a lack of production (CBPP, 2014).
The growing lack of demand has pushed many artisans and craftsmen to despair as the profits they make from sales are barely enough to buy their meals. As the pandemic impacted sales, their livelihoods were also impacted. India’s poor Digital Competitiveness, especially in the areas of ‘Adaptive Attitudes’, ‘Wireless Broadband’, ‘Internet Retailing’, ‘Smartphone Possession’ and ‘IT Integration’ almost made it impossible for such workers to go digital and keep their businesses running. Several artisans and craftsmen took up jobs with guaranteed pay and it would be difficult to get them back to their original trades unless significant, visible changes are made in the sector.
Another challenge that has plagued the artisans and craftsmen in India is the lack of marketing and business skills. The arts and crafts sector has heavily relied on traditional retail through brick and mortar stores, and temporary stalls at fairs and exhibitions. The lack of omni-channel retail and the inability to pivot to online mediums has hampered sales during the pandemic and caused many small businesses to shut down, and led a considerable number of artisans and craftspeople to choose a more certain source of income.
Emerging Challenges
The biggest problem facing the arts and crafts sector today is genericide and the problem is getting progressively worse by the day. This is in line with India’s competitiveness record in ‘Intellectual Property Rights’, for which it is ranked 44th out of 64 assessed countries (IMD., 2021). For the arts and crafts market, it has resulted in a hyper-competitive market with cheap knock-offs, replicas and similar looking products sold in the market at cheap(er) prices. The use of power looms and other modern machinery has propelled a market of generic products sold as indigenous products, which not only creates a trust deficit with the buyers but also forces the indigenous product sellers to sell at cheaper prices to be able to compete. As producing handicrafts and handlooms is a lengthy process, each product can take several days to be prepared and so profit margins have to be enough to sustain the artisans and the sellers. The trust deficit has also been affecting sales from physical shops as customers start doubting the quality and ingenuity of the products. Online markets have aggravated the problem with customers often disappointed with their purchases and dissatisfied with the quality of products.
Implications
This study questions the premise of growth of artists and artisans in a challenging marketspace marked by several issues and obstacles. A Grounded Theory approach helped identify new themes that were not previously known or focused on. These themes can provide foundations for further research, both qualitative and quantitative.
Proposed Solutions
Geographical Indications
To deal with the emerging problem of genericide, a system that could provide an identity of their own to original indigenous products would be useful. When it comes to products that are indigenous to a region, Geographical Indication has become a cornerstone of intellectual property protection in the recent past (Saqib & Sultan, 2013). Geographical Indications are used to identify goods as originating from a specific region or geography. The credibility of the product is attributable to where it comes from. Internationally, a number of countries have operated with a Geographical Indication system. South Korea, for example, has had a GI system in place since 1999 (Suh & MacPherson, 2007).
Not only does GI marking give the products a brand identity, it also gives the sellers an edge in the market. This can be crucial in improving sales and competing with generic products of lesser value.
GI can also help establish a brand image. Saqib and Sultan (2013) believed that in absence of an established brand identity, GI can give a small business the identity it requires to be able to compete and succeed. A study analyzing the regional impacts of GI using the case study of ‘Boseong’ green tea found that GI enhanced the image of the product, and led to increased demand and production (Suh & MacPherson, 2007).
Information Campaigns
Periodic promotions of indigenous arts and crafts, in addition to information campaigns explaining the significance of such products, can help increase the demand for these products. The interviews indicated that the casual Indian buyer lacks the basic understanding of Indian art and craft that may be specific to a region. For example, the average buyer does not know why Madhubhani art is considered intricate or the significance of Chanderi or Naga art, and this lack of awareness leads to a lack of appreciation. The various craft exhibitions and marketplaces such as The National Crafts Museum & Hastkala Academy bring together indigenous artisans to give them a platform. However, lack of marketing results in a limited crowd and thus limited sales.
Quality Assurance
The challenge of lack of export quality can be fixed by a certification of minimum acceptable quality. Guidelines for what constitutes minimum quality can be drawn up and made available across the country. A quality checker can be appointed at the local level and would be in charge of the certification. This will not only ensure the quality of the products, but it will also gradually foster trust in indigenous arts and crafts. Genericide and poor quality handicrafts have hurt public perception of indigenous products, so quality checking can be an instrumental step toward correcting the same. However, this has to be done in tandem with other policy reforms.
Impart Training
The lack of innovation and skills is a critical problem and needs to be addressed at the earliest. While the beauty of the indigenous art and crafts is in its organic, hand-made production, the use of technology will not only enhance production speed but will also improve the finishing of the products. Machines can be used to automate and speed up various processes involved during production, which can improve output, and thus boost margins on the products. Design courses are becoming popular in the urban setting but also need to be popularized in rural areas to impart education about the entire production and distribution process.
Policy Reforms
Policy reforms, across the sector, will be needed to make the trade sustainable. From economic support during times of need, such as the recent years of the pandemic, will ensure that artisans can keep earning a minimum amount that can help them sustain their families. Additionally, a sustained effort, akin to the Green Revolution that helped farmers across the country and helped develop the sector, is needed for the arts and crafts sector as well. Indigenous art and craft could be the face of a national government initiative like ‘Make in India’ and this would help spotlight the sector and bring it the attention it needs.
Cushion Losses
The loss of income can also be mitigated with insurance plans. A subsidized, minimum-guarantee insurance scheme for artisans is needed to secure the livelihoods of people involved in the trade so they may cushion any losses. A central insurance scheme like the ‘Pradhan Mantri Fasal Bima Yojana’ for the crafts sector is needed. Such an initiative would be a welcome step toward ensuring the sustainability of the sector.
Expected Results
The proposed solutions are expected to address the various challenges faced by the artisans in India. The solutions, with the right implementation, would lead to:
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Improved demand: Establishing a brand identity for indigenous products, in addition to improved quality and the right promotions, can lead to an increased demand for such products. GI can impart exclusivity to products, thereby making them more desirable, especially to the urban consumers.
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2.
Improved sales: Improved demand and marketing, in addition to improved production through the incorporation of technology, can lead to improved sales for the artisans. With various government schemes and platforms, artisans can easily reach out to their customers and make sales.
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Improved margins: By lowering the cost of the products through the incorporation of technology, and improved pricing because of branding and quality initiatives, the margins can be improved substantially. This will not only make the trade profitable but also generate enough revenue for growth and expansion.
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4.
Improved trust: GI and quality certifications will lead to improved trust in consumers. By ascertaining that a product is native to a certain region or area, and guaranteeing a quality product, the sellers can inspire confidence in the consumers.
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Financial security: The right implementation of supportive policies at a national level can impart a sense of security to the artisans. With facilities such as interest-free credit and insurance, the artisans can be allowed to invest in technology and raw material, while working with a cushion that can absorb their losses in terms of any untoward instances and calamities like the COVID-19 pandemic.
A Grounded Theory Model of Making Indigenous art and Craft Business in India Sustainable
The themes indicate that there are existing and emerging challenges faced by the indigenous artisans in India. These problems have possible solutions that can lead to outcomes that can make the trade sustainable in India. Figure 7 depicts the grounded model derived from the various themes that emerged from the study.
Conclusion
The arts and crafts sector in India is as inconstant as it is important. Despite being the second biggest sector for employment in India, there has been a lack of innovation, advancement, policy intervention and investment in the sector. The challenges faced by the artisans and craftspeople looking to sell indigenous products are varied and have been holding the sector back for decades now. As genericide threatens to put an irreparable dent in the continuation of the sector, causing hyper-competition that does not favor indigenous artists and craftspeople, major reforms are required at multiple levels to make the sector more sustainable. These issues also highlight a bigger problem: India’s lack of digital competitiveness. The lack of access and education in remote and non-urban areas has effectively meant that people engaged in the arts and crafts sector have to over-rely on physical markets for sale and sustenance. The lack of focus on protection of intellectual rights aggravates the situation as artists are unable to protect their art and charge a price that works for them.
GI seems to be the logical choice for existing and emerging challenges that threaten the people working in the sector—a system that can identify indigenous products can help in differentiating them from generic and mass-produced products. This can help in creating a brand image for such products, which will be valuable in improving sales and improving margins. In the long run, as a nation, India needs to improve its digital competitiveness, especially future readiness to ensure that unforeseen circumstances like the pandemic do not derail a significant percentage of the population.
There is a need for multi-layer intervention that involves reforms at the policy level and upskilling of workers in the sector to help them thrive in a competitive market. The problem has been compounded by a lack of information campaigns regarding indigenous art forms. Inherently tied to tourism, such art forms are popular with international travelers but have been constantly losing their appeal in the domestic markets. Information and promotional campaigns, as have been used for promoting tourism in various states, are the need of the hour to start the revival of the arts and crafts sector in India. While the sector has been intrinsically integrated into the history and culture of the country, lack of focus on the challenges and issues can easily lead to their dilution as artisans and craftspeople look for more sustainable options.
A Grounded Theory model of sustainability is proposed which identifies existing and emerging challenges in arts and crafts in India and pinpoints the necessary changes that are needed to achieve sustainability. As this study focused on indigenous products, broader research into all forms of arts and crafts is recommended for a wider frame of reference for academic and policy examination.
Key Questions Reflecting Applicability in Real Life
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What is the extent of impact that genericide and duplication have on actual sales and profit margins of the retailers?
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How convenience trump quality is when it comes to buying products online?
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How customers prepared to buy a premium price for products with GI labels & quality checks?
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How the arts and crafts sector in India been neglected on the policy front when compared to other economic sectors?
Data Availability Statement
All data generated or analyzed during this study are included in this published article (and its supplementary information files).
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Acknowledgements
The author would like to thank Mr Nabil Sayed and Mr Javed Sultan for data collection and tabulation, Ms Zarine Farhat for data visualisation, Dr Nupur Singhal for comments on an earlier draft, and Dr Kirankumar S. Momaya, editorial team of the JGBC and the two anonymous reviewers for their productive suggestions
Funding
The authors have no relevant financial or non-financial interests to disclose. The author has no affiliations with or involvement in any organization or entity with any financial interest or non-financial interest in the subject matter or materials discussed in this manuscript.
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Khan, F.B. Can the Arts and Crafts Sector in India be Sustainable: A Grounded Theory Approach to Map** Challenges and Proposing Solutions. JGBC 17 (Suppl 1), 46–55 (2022). https://doi.org/10.1007/s42943-022-00065-9
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DOI: https://doi.org/10.1007/s42943-022-00065-9