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8/7/2019 IMR Handicrafts
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Handicrafts Exports to USA
Saurav Mittal
MIB
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Executive Summary
� Handicraft, also known as craft work or simply
craft, is a type of work where useful and
decorative devices are made completely by
hand or using only simple tools. Usually the
term is applied to traditional means of making
goods.
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About Handicrafts Industry
� 14% of the industrial output and 30% of the
export market share is contributed directly by
the Indian Handicrafts industry. It is also the
largest industry when it comes to employment
� As per a recent survey the Handicrafts
industry is going to contribute 12 million new
jobs in India by 2011 itself.
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What Constitutes Handicrafts
� Wooden Handicrafts
� Cotton Handicrafts
� Silk Handicrafts� Readymade Handicrafts
� Jute and Coir
� Man made Handicrafts� Hand Crafted Handicrafts, Like Carpet
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Advantage India
� High availability of raw materials
� Highly skilled economical labour
� Largest producer of cotton yarn contributing 25%
towards worlds cotton� Availability of all kinds of fibers like silk, cotton, wool
and even high quality synthetic fibers
� Flexibility of the readymade garment industry in terms
of sizes, fabric variety, quantity, quality and cost� Huge Growth is expected
� EPCH-Export Promotion Council For Handicrafts
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EPCH
� Export Promotion Council for Handicrafts (EPCH) under the aegis of Development Commissioner (Handicrafts), Ministry of Textiles,Government of India is a non-profit organization, established underthe EXIM policy of Government of India in the year 1986-87.
� It has created necessary infrastructure as well as marketing andinformation facilities, which are availed both by the memberexporters and importers. The Council is engaged in promotion of handicrafts from India and project Indias image abroad as a reliablesupplier of high quality handicrafts.
� Councils continued pursuit of excellence and the objective of achieving the hallmark of quality assurance by extending excellentservices to all the members and stake holders has led the Council tobecome an ISO 9001 : 2000 certified organization.
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Why USA
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Type of Data
� All secondary data can be found from theinternet.
� The EPCH website has almost all the required
datas to gauge the trend of US Exportshttp://www.epch.in/ministry.htm
� There are research papers also available on UShandicrafts exports
http://www.epch.in/ministry.htm
Research Paper by Bun & Bradstreet for EPCH
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Secondary Research
� Secondary research can be performed by
company personnel as it consist mainly of
desk research, access of data bases of various
trade sites like Export promotion council of
handicrafts, UN comtrade, US stats, India
stats, etc. Secondary research involves cost as
for:� The access of databases
� Salary, remuneration of employees of firm
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Cost
� As in this case, mostly companies have access
to these databases and if not, cost for having
access to these databases is:
� Indian stats: INR 20000
� US stats: $200 (INR 9200)
�
Total: INR 30000� Time: 15 days
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Primary Research
� The Primary Research will have to be done in
three phasesThe Final importers perspective
The Sellers perspective
The USA consumers perspective
� To conduct the Primary Research the buyers,
sellers and the final consumers need to beinterviewed. The trends, tastes and
preferences need to be analysed.
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Interviews of people, trade bodies etc.
present in India who can provide insight
about trade related issues, problems.
Costs of interviews include:Preparation of Questionnaires
Travel charges
Employee salary
� Time: 1 week
� Daily allowances: INR 500 per day� Total: INR 3500
� Employees salary wont add any pressure on
company as they are already a part of firm.
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FOR IMPORTERS AND CONSUMERS
PERSPECTIVE� If employees are sent to USA(5 people)
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Other Expenses
Total for seven days
� 850*15 = $12750
Air Travel� 2500*5 = $12500
Total Charges for seven days
� $25250
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� Therefore it is better to outsource the primary
research to an Expert Research Agency as they
charge about $10000 for a research project.
They would also have the following advantages
� They know US market better than employees
of the firm
� They are more experienced in this field, so can
frame interviews in a better way
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Conclusion
� Handicrafts has a lot of potential and India has
a lot of advantage.