Welcome Techno Commercial Feasibility Study on Ecommerce Platform
Welcome Techno Commercial Feasibility Study on E-commerce Platform for marketing of Handloom and handicraft products of the North Eastern Region 19 th January, 2017 Guwahati, Assam Prepared By : Ashim Kumar Das, Deputy General Manager NEDFi, Guwahati
CHALLENGES : HANDLOOM & HANDICRAFT SECTOR IN NER Quality Standards Market Trend & Demand Inventory- Volume Lack of Design Input in product development 7 3 CHALLENGES 6 Lack of Marketing Skill 2 8 1 Product Variation 4 5 Access to Accessories Supply Chain Management 2
OPPORTUNITIES : HANDLOOM & HANDICRAFT SECTOR IN NER Natural Products Mobile Network Connectivity Ethnic Identity Digital Platform to reach target customers 7 3 OPPORTUNITY 6 Eco friendly trend of the Market 2 8 1 5 Vibrant Colours & Motifs 4 Traditional Skill Government Intervention 3
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.
Techno Commercial Feasibility Study on E-commerce Platform for marketing of Handloom and Handicraft products of the North Eastern Region • Study Methodology and Approach: 1. Literature Review: -Study of secondary information. 2. Meeting with State & Central Govt. agencies statewise. 3. Primary Survey: - Collection of information on identified products viz, specifications, weight, price , photographs, production capacity etc. & samples wherever possible. 4. Detailed analysis of the findings of the primary survey : Identification of products with suggestions for design intervention wherever necessary. 5. Stakeholders Meeting cum exhibition: State & Central Govt. agencies, Designers, EMarket representatives, Packaging & logistic service providers: 6. Preparation of the study report including details of the findings and recommendation for the roadmap.
E-COMMERCE ECOSYSTEM IN INDIA
E-COMMERCE ECOSYSTEM IN INDIA
E-COMMERCE ECOSYSTEM IN INDIA
E-COMMERCE ECOSYSTEM IN INDIA
E-COMMERCE ECOSYSTEM IN INDIA
E-COMMERCE ECOSYSTEM FOR CRAFT PRODUCTS E-commerce platforms categorized into two types as per DIPP norms : Ø Inventory based e-commerce platforms: . Ø 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 : - e. Bay. 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/
HANDLOOM & HANDICRAFT PRODUCTS OF NER AT E-COM PLATFORM
QUALITY CERTIFICATION
QUALITY CERTIFICATION All India Artisans and Craft workers Welfare Association (AIACA) Ø Craftmark is initiative of AIACA initiated in 2006 to denote genuine Indian handicrafts. Ø The economic value of the handmade process to be certified should be at least 50% of the cost of the product. Ø 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.
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 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.
QUALITY CERTIFICATION Launched on June 28, 2006 Category One time Regn. Fee Regd. Till (Rs. ) 31. 07. 2016 (nos. ) All India Individual Weaver 25 12127 500 336 Co-op society 2000 4376 Apex Handloom Society 5000 64 Retailer / Trader 5000 85 Manufacturer Exporter 10000 76 Merchant Exporter 10000 35 500 293 Master Weaver Others TOTAL Domestic Market 17392 Price of Labels : 20 Paisa , 35 Paisa, 60 Paisa & Rs. 2. 50 depending on variety Export Market
QUALITY CERTIFICATION India Handloom Brand : Launched on August 7, 2015 Why India Handloom Brand ? To offer the customers: Ø Premium quality handloom products. Ø Handloom products with Geographical Indications. Ø Handloom products with zero defect. Ø Use of safe non-carcinogenic dyes in handloom products with zero effect on the environment. Ø Verification of suppliers and quality testing of handloom products by the Government. Ø Easy process of verification of source by customers. Authenticity : Ø Products with brand India Handloom will have a label with "India Handloom" logo and registration number. Ø 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
QUALITY CERTIFICATION Some of the Specifications in India Handloom Brand which are relevant to Assam Sl. Category of No. Product Sub-Category of product Count of Warp 1 Silk Saree Assam Silk 2 Silk Dress Material Stole/ scarf/ Dupatta Muga Fabric 20/22 - 22/24 D (2 ply) silk Reeled Muga Silk 80 -100 s cotton 3 4 5 Mekhela Chadar Cotton stole Count of Weft 20/22 - 22/24 D (3 ply) silk Reeled Muga Silk 80 -100 s cotton Size End Per inch Pick per inch Length Width 104 -108 84 -88 6 yds 47 inch 72 70 -72 Yardage 45 inch 72 70 -72 36 inch 72 70 -72 56 -80 2. 50 meter 2. 80 meter 72 -78 inch Weavers Service Centre, M/O Textiles may guide on India Handloom brand. https: //www. indiahandloombrand. gov. in/pages/ihb-product-s-specification 40 inch 28 -30 inch
End per inch & Pick per inch (EPI & PPI)
PROMOTION THROUGH E-MARKETING NETWORK For Promotion of Handloom on e-marketing platform Office of Development Commissioner (Handloom), Ministry of Textiles, Go. I, 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 Go. Coop 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
Fair Trade Practice
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 Organisations This 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 expects 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.
PRIMARY SURVEY : STEPS Document • Products • Producers Standards • Quality Marks: Create awareness Identify • Aggregators • Supply Chain Management Market • E-Commerce Platform
PRIMARY SURVEY : DIAGNOSTIC ANALYSIS : PARAMETERS & CATEGORISATION Parameters for product selection Universal appealing Product quality Production capacity Price competitiveness Supply chain management Packaging, transportation, shelf life etc. Category Ethnic Wear Type of Products Sarees, Shawls, Lehengas, Cholis, Kurtas, Traditional Wraparounds, Mekhela Chador, Dhoti. Accessories Jewelry, Stoles, Mufflers, Scarves, Sling Bags, Clutches, Wallets, Potlis, Tote Bags, Travel Kits. Home Bed Linens, Cushion Covers, Pillow Covers Table Linens, Carpets & Furnishing Rugs, Curtains, Throws, Quilts, Dohars. Home Décor & Decorative items, Trays, Boxes, Utility Bags, Picture Frames, Mirrors, Utility Vases, Jars & Canisters, Wall Accents, Table Tops, Pottery &Lamp Shades
Survey & Documentation
Survey & Documentation QUESTIONNAIRE : (CATEGORY: HANDICRAFT: Individual) : (Form No. : F: 1
Survey & Documentation
Survey & Documentation QUESTIONNAIRE (CATEGORY: HANDLOOM: Individual) F: 2) (Form No. :
Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No. : F: 3)
Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No. : F: 3)
Survey & Documentation QUESTIONNAIRE (CATEGORY: AGGREGATOR) (Form No. : F: 3)
E-COMMMERCE PLATFORM : CONTENT WRITING
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)
E-COMMMERCE PLATFORM : PRICING & OFFER Product Code Product Name Cost of Product Shipping Cost Packaging Cost Final Cost Margin Selling Price Ratio SP to CP % CHR-2 Ladies Clutch 200 75 15 290 50 340 170. 00 CHR-51 CHR-52 DMJ-10 File Cover Gents Wallet Toss Gamocha Sital Pati Mobile Cover 200 55 2400 70 70 70 15 15 35 285 140 2505 50 13. 75 600 335 154 3105 167. 50 279. 55 129. 38 50 70 15 135 12. 50 147. 5 295. 00 HKD-35 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.
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
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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