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7/31/2019 The Craft Industry Dec 2008
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1
BARBADOS INVESTMENT AND DEVELOPMENT
CORPORATION
PROFILE OF THE CRAFT SECTOR
(December 2008)
INTRODUCTION
The craft industry has evolved over the years, shifting from the traditional cottage
industry structure of artisans producing practical products for individual domestic
use and later souvenir items for the tourist market; to factory based operations
producing goods for both the export and local markets. Today, tourists still remain
the principal target market but the emphasis and focus of craft operators has
extended beyond that traditional segment to include prospective clients in the
domestic market and farther abroad. Local craft operators have however failed to
achieve the level of success in the export arena as they have enjoyed at home.
The following report examines the current status of the craft sector and looks at
future prospects and the way forward. Recommendations for further strengthening
and development of the sector also presented in the profile.
EXECUTIVE SUMMARY
The Crafts Industry is a creative sector producing traditional craft and functional
wares for the informal and formal retail market. Though there is considerable
potential that can be maximized the sector continues to struggle to realize that
potential and establish itself as a viable and vibrant economic activity for
prospective entrepreneurs.
Research has shown that the tourist segment remains a captive market and there
are possibilities for linkages with other sectors (hotel, fashion, furniture) however
many craft persons have been unable to realize significant benefits beyond limited
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production and retailing through craft fairs, and the Pelican Craft Centre. The
Pelican Craft Centre, which was intended to be the leading shopping venue for
crafts in Barbados, has itself been performing below expectations.
The dominant trends in the market internationally are in the area of recycling, and
eco products that are friendly to the environment. This type of eco focus opens the
door for new product niches. There is therefore a greater need for more intensive
research and development and technology investment to the local Craft sector as
well as an injection of more talented designers into the sector.
The constraints, most notably the lack of available financing, design skills, and
access to inexpensive raw materials remain barriers to growth and expansion.
Based on the analysis and sector review, it is proposed that the viability of a
common service facility be considered to provide critical support services to craft
operators. In addition it is recommended that a development strategy be devised
and implemented. A framework for this strategy has been included in this report for
further consideration and development. The proposed strategy must recognize that
in order to boost export growth through government intervention, there must be a
clear understanding of the potentials and inadequacies of the sector and strategies
implemented to provide alternative solutions.
STRUCTURE OF THE INDUSTRY
Definition of Crafts Products
Artisanal Products also referred to as craft products cover a wide range of items
that by definition are 1produced by artisans, either completely by hand or with the
1http://www.intracen.org/creativeindustries/
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help of hand-tools and even mechanical means, as long as the direct manual
contribution of the artisan remains the most substantial component of the finished
product.
Artisanal products can be classified under broad divisions. These divisions are
primarily based on the materials used, or a combination of the materials and the
technique. The six main categories are:
Basket/wicker/vegetable fibre-works;
Leather;
Metal;
Pottery;
Textiles;
Wood.
Other categories of products offered in the local market include recycling craft
(paper); handmade bath and body products (soaps, bath gels); wall decorations,
decorative glassware and shell-work; jewellery (coconut shell, conch shell, beads and
seeds, ceramic and copper metal wire).
For many years there has been limited standardization in the collection and
classification of data on craft. However following UNESCOs proposal to base the
classification process primarily on materials used, there has been a greater effort to
capture trade data on craft products based on the materials used and the technique
used (for instance weaving or basketry where the materials used may be either
vegetable or animal fibre).
Size of the Industry
The BIDC's Employment and Investment Survey of manufacturing companies
shows a total of 26 active artisans at December 2008. However it is accepted that
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this figure does not reflect the total number of craft persons operating on the island
since many artisans operate on a part-time basis. The BIDCs register of artisans
shows an estimate of 112 persons who sell their products commercially.
Table I
Major Industry Indicators
2004-20082004 2005 2006 2007 2008
No. of Employees 157 164 165 161 121
No. Males Employed 49 55 50 47 38
No. of Females Employed 108 109 115 114 83
No. of Enterprises 30 31 31 25 26
Domestic Exports BDS$M 0.5 0.4 0.8 0.4 0.5
Imports BDS$M 12.1 14.5 12.4 14.5 13.6
Source: Barbados Statistical Service/BIDC Quarterly Employment Survey
Whilst a number of local operators have been able to weave both training and
creativity into areas of enterprise that provide self employment, there are still many
who are yet to move from the margins to the mainstream where their efforts result
in job creation for other Barbadians and sustainable earnings through exports.
An estimation of the size of the market in terms of economic value is difficult given
the shortage of data on sales and the total number of crafts persons operating on
the island. In the domestic market imports of craft items top the $13.6 million mark
in 2008.
It is estimated however that as the principal market segment (tourists) continues to
grow in number, this total may also increase in the future.
Characteristics of the Market
The principal market for crafts is the tourist segment which is volatile and subject
to changes in the economic conditions in countries like the USA and UK. This
segment of the market is catered to largely through the Pelican Craft Centre (the
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islands premiere craft retail outlet), and retail shops at the airport and seaport.
Domestic crafts sales (sales to local consumers) are also made through crafts shows,
or community events.
Pelican Craft Centre provides both production and retail facilities to craft operators,
though quite a large number of craft producers still remain home based. And whilst
this may be a cost saving measure, it presents some constraints for producers
looking to expand their operation. Home based facilities often lack the added
appeal which comes from working in a readily accessible studio or production
facility; since it has been found that many consumers welcome the opportunity to
see the artisan at work .
NEW TRENDS IN THE CRAFTS SECTOR
The global market for crafts items is quite extensive since handicraft captures a
wide range of products including the broad categories of gifts and accessories, and
home accessories. Global statistics for handicraft trade is difficult to estimate,
however, the huge economic and social importance of the sector is evident from the
number of countries that have sought to harness the potential that exists in the
sector.
The American crafts market is one of the largest and most important markets for
craft in the world. The Art & Crafts industry in United States is reported to be
valued at US$13.8 billion.2 This market has a strong desire for the unique, the
interesting, and products with a history. The US market is however quite price-sensitive, and price per unit realised in this market tends to be lower than in other
countries. German consumers tend to be quality conscious, with emphasis on
natural, authentic and high value handicrafts.
2Craft Industry Overview, Global Handicraft Industry; Craft Central
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In Caribbean Exports Ten Strategies For Success Within The Caricom Single
Market & Economy (CSME) 2008 report, the following trends and drivers in the
industry were noted.
Major growth segments of the international gift and accessory markets include:
Cultural goods, spurred by growth in international tourism, increased
focus on interior decoration
Global Style products that combine ethnic elements with contemporary
designs;
Recycled products are more in demand
Colour is popular
Pampering and personal care items are in demand
So too are highend home accessories, particularly in Canada, Europe and
the United States.
Products which are simultaneously decorative and functional, particularly
in the category of home accessories and dcor and products for the garden
or outdoor living spaces.
The report also noted that in the international and local markets there was one
common interest among buyers and consumers and that was to find something
NEW! In addition, the market for gifts and decorative accessories is becoming
increasingly fashion-oriented. Growth in tourism has fueled an increased demand
for:
1. Cultural products
2. Decorative accessories for hotels and restaurants3. Designer goods
4. Indigenous art
5. Uncommon souvenirs
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Uniqueness & Niche Marketing: Customization is becoming more and more
important in this market. Some of the best selling items in craft markets abroad
are custom-made items with corporate identity, since these types of products give
business companies an opportunity to present their identity in a creative form,
while leveraging their in-house nation-building and corporate social investment
objectives. This is an interesting and exciting trend that has emerged during the
past yearthat of customizing ceramics, wire and beaded products with corporate
logos, and other interesting themes, developed with the assistance of the Centre for
Innovation.
Eco-chic: Eco-chic has evolved as the
mega-trend of the decade as more and
more consumers are demanding planet-
friendly products that are desirable,
beautiful and functional, like the
products shown on this page.
flower ball light, made from recycled plastic bottles,designed by a well known South African designer who uses
people's rubbish to make attractive furnishings
PERFORMANCE OF THE SECTOR
The limited data available on the sectors economic contribution does not allow for a
very definitive expression of the sectors performance over the years however it is
clear that whilst there has been a significant increase in the number of tourists
visiting the island these gains are not mirrored in an expansion of the craft sector.
Producers still cite disappointing sales and market erosion from imported goods as
major issues impacting the performance of the sector.
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The sector is also affected by the inability of operators to successfully integrate
appropriate craft products, with their Barbadian uniqueness, into the growing
tourism sector. In addition many of them are unable to adequately promote their
craft as a branded product.
Statistics show that in 2008 approximately 568,873 long stay tourists and 646,147
cruise ship passengers visited Barbados, up from 2005 by a margin of 3% and 13%
respectively. Total expenditure has grown by 4% from $1,770.5M in 2005 to
$1,843.4M in 2006 underscoring the potential for craftspersons who can appeal to
this growing market.
A 2006 report on the Economic Impact of Cruise Tourism in the Caribbean found
that average spending per passenger on local crafts and souvenirs was
approximately US$13.32. Since most souvenirs are bought on departure this
pattern of spending may be extended to long stay visitors as well. The impact of this
spending in Barbados could therefore amount to some Bds$31,941,812 million in
annual tourist expenditure in the craft sector.
Whilst the spending habits and preferences of tourists has changed over the last
decade, the craft sectors response to these changes has not been in equal measure.
The product offering remains much the same as it was in 1998, though some new
players have entered the market.
Access to raw materials and the preparation of such materials is vital to the growth
and development of this industry. Whilst some effort has been made in the past to
identify the availability, procurement and methods of preparation of raw materials,
this has not been sustained and presently further work needs to be undertaken at
assessing and addressing the needs given the prospects for new designs and
products.
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As competition intensifies in terms of attracting a greater number of clientele both
at home and abroad, the need to introduce new designs and products will become
even greater in order to sustain growth in the sector.
Growth/Constraints
The number of craft persons fluctuates from year to year as several persons seek to
make the leap from hobbyist to entrepreneur in the hopes of hewing success out of
these efforts. For many of these artisans, growth is constrained by several factors,
including high production costs, lack of adequate financing, limited design skills for
innovation and product development; difficulty accessing appropriate and
inexpensive raw materials; lack of adequate shelf space in retail outlets,
inconsistent quality and intense competition from imported products. In addition to
these problems, the craft sector also has certain inherent weaknesses that continue
to hinder its progress. For example, the sector is confronted with:
1. Lack of understanding of the role of product designers and product
development and a reluctance by some crafts persons to embrace product
development therefore there is not enough creative talent in product designs.
2. Insufficiency of certain raw materials and a decline of some local sources.
3. Unrealised potential on a large scale.
4. Not enough recognition for crafts as an important area of economic activity.
5. Limited management skills.
6. Lack of adequate marketing of products.
7. Uncoordinated approach to marketing and inability to intercept
.opportunities.
8. Informal networks and scale of operations.
Research has shown that in cases where craft producers place a great emphasis on
tourist products these products invariably are seen by consumers as lacking in
identity. Another handicap of repetitive reproduction of traditional designs and
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products is that it stifles innovation and creativity and limits the range of new
products offered to very demanding consumers.
In addition to the existing constraints in the sector, increasing imports of hand-
crafted items could threaten the sector even further. A SWOT analysis reveals
further threats and opportunities that are facing the sector today.
Table II
STRENGTHS WEAKNESSES
Job creation potential
Access to support agencies like BIDC
Ready access to technical assistance and
business development services
Lobbying bodies for sector (Barbados
Craft Council)
Lack of strategic focus for the sector
Absence of agreed quality standards
Modest design skills base
Limited product range
Limited profile of sector
Limited supply and availability of
unique raw materials
Limited access to credit
OPPORTUNITIES THREATS
Access to training, marketing and
exhibitions provided through local
agencies, BIDC, BMA, Craft Council
A credible quality mark could enhance
consumer confidence in the sector
The potential for synergies with tourismcultural and other creative industries
The absence of a strategic focus for the
sector means it will remain fragmented
and unable to realize its full potential
Increasing competition from imported
craft that is cheaper or more innovative
and creative in design
Imports
Craft imports are conservatively estimated at $13.6 million. The categories of
pottery, imitation jewellery, and articles of leather are the areas showing the
highest import value. And whilst it must be noted that not all these products are
actually hand made crafts, these imports do show the level of usage of items in
these categories and the possible areas that crafts persons can explore for further
penetration of the domestic market. The main sources of imports are the USA,
Columbia, India and China.
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Table III
Imports and Export of Craft Product Categories
1998-2008
YEARS IMPORTS (BDS$) EXPORTS(BDS$)
1998 10,432,669 376,405
1999 11,118,333 360,334
2000 12,120,352 341,600
2001 12,183,978 380,841
2002 9,838,207 313,109
2003 11,180,395 436,021
2004 12,121,500 554,768
2005 14,471,759 401,172
2006 12,377,639 84,680
2007 14,547,790 392,430
2008 13,635,613 471,701
TableIV
Imports of Major Product Categories
2007 & 2008
Products 2007 2008
Ceramic Tableware 1,923,234 1,414,121
Tableware of Wood 262,184 318,364
Imitation Jewellery 1,081,350 1,089,323
Statuettes of Ceramic 543,039 674,876
Statuettes of Wood 254,239 265,837
Statuettes of Metal 408,565 296,486
Articles of Leather 1,349,306 1,210,582
Wickerwork/Basketwork 323,951 508,252
Collages/Decorative Plaques 248,241 397,208
Source: Barbados Statistical Services
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Exports
USA, Germany, UK, France, Italy, Netherlands, Japan, Switzerland and Canada
are the principal importers in the world, estimated to account for 80% or more of the
trade values in gifts and decoratives.
Barbados exports of handicrafts for 2008 totaled $0.5 million. Table collages and
similar decorations along with other statuettes and ornaments of base metal were
some of the principal exports. Major export markets include the USA, UK, St Lucia
and Grenada.
Table V
Exports of Major Product Categories
2007& 2008
Products 2007 2008
Ceramic Tableware 78,472 9,328
Tableware of Wood 0 184
Imitation Jewellery 2,198 18,430
Statuettes of Ceramic 38,673 44,625
Statuettes of Wood 926 5,131
Statuettes of Metal 24,427 20,277
Wickerwork/Basketwork 55,062 8,930
Collages/Decorative Plaques 139,711 137,147
Source: Barbados Statistical Services
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MAJOR EXPORT MARKETS
2008
Grenada
14%
USA
28%
UK
18%
Canada
4%
Netherland Antilles
3%
Caymans
9%
St. Lucia
15%
Jamaica
2%
St Kitts
4%
St Vincent
3%
Competition
Competition in the domestic market occurs not only among local producers but also
involves imported craft items and products offered to tourists in neighbouring
markets like St Lucia, Jamaica, etc. For local producers, being competitive in the
tourist segment is critically important. The constraints noted earlier however have
prevented some producers from maximizing the full potential of this market
segment. The Barbadian market is flooded with cheap imports due to a highly price
sensitive market and the inability of crafts producers to compete on price, quality
and service delivery.
A look at consumers purchasing behaviour both locally and abroad shows that
competition in the craft market is largely shaped by price and quality.
A 2005 study in the USA of tourists spending habits on crafts found that 61% of
purchases were in the low end category. It was found that these consumers spent
an average of US$20$30 on crafts items for themselves, friends or relatives;
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US$10$20 for other adults or children, and US$5$10 for token gifts for coworkers.
The respondents reported spending more only on lodging, fuel and meals.
It has been noted by some market analysts that whilst stocking a healthyassortment of inexpensively priced crafts can mean sales in the short term, there is
evidence to suggest that if a crafts business is to remain viable, it cannot live by
low-end items alone.
In a market like Barbados where there is strong competition from other tourist
destinations in the region, price will certainly be important but experts have
concluded that price isnt always the most important factor when it comes to selling
crafts. Whilst low prices may work initially in terms of getting customers through
the door, its generally accepted that quality and good service will go further to
cultivate repeat business and a loyal clientele.
This approach has reportedly yielded considerable returns to US producers in the
newly emerging home-dcor crafts market, where affluent consumers are buying
functional craft for their homes and workplaces3. An assessment of that market
showed that whilst an imported vase from a large retailer may sell among rank-and-
file consumers, the affluent, mid- to high-end consumer is looking for something
unique, regardless of price or how the economy is doing at the time. This is
important to know since many of the affluent consumers who shop in the US
market may also find their way into our domestic market as tourists on the hunt for
some unique craft items for their home or workplace. In this instance, quality may
be the determining factor for them and not price. It is therefore critical that local
crafst producers cater to both segments of the market - offering some products in the
low end category but also products that will appeal to the tourist or local consumer
who is seeking quality above price.
3http://www.craftsreport.com/may05/bizwise.html
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In addition to high quality, retailers also note that good service is an important key
to success since many consumers are loyal to crafts businesses that are attentive to
their needs, providing extras like gift wrapping.
GOVERNMENT POLICY
Much of the assistance provided to the local crafts sector in recent times was aimed
at:
Sensitizing small businesses to the importance of improved packaging.
Improving the finishes of crafts items, wooden products in particular.
Developing a number of new products and getting local craftspersons to
incorporate them into their lines, as a means of diversifying the local
products available.
Offering consultancy services. As an example, one company specialising in
ceramics, was given advice in the development of mosaic crafts.
Advice and exposure to knowledge management for the exportation of crafts.
Merchandising, marketing
What Other Countries are Doing
Several countries have made considerable progress in developing their handicraft
sectors largely by implementing strategic initiatives to harness talented craft
persons, improve their skills, and provide support for these businesses. In India, the
Philippines and Thailand, crafts are a significant source of foreign exchange
earnings despite modest investment.
Indias strategy for growing its craft industry is multifaceted, (see Appendix I).
The Indian Institute of Crafts and Design (IICD) provides hands-on experience
that seeks to equip students with a thorough understanding of materials,
technologies, skills and concepts along with exposure to the diversity of Indian
culture. Students are initiated into the entire ecosystem of Craft and are
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encouraged to understand complexities at the level of the village as well as the
industrial production centres. Craft design, technology, management and
entrepreneurship skills become the bedrock on which they build their careers.
IICD is also involved in research and documentation of the vast and complex
world of craft. These activities aid the evolution of intellectual capital at the
institute, the formation of knowledge banks, exploration of relevant issues and
innovation.
Training and Outreach Programs are conducted at the grass root level with
artisans, self-help groups and non-governmental organizations. These are multi-
disciplinary in approach and are designed to add value to agencies working in
craft development and promotion as well as to provide a platform for students to
directly interact with craft communities.
Ghana on the other hand has seen its handicraft exports4, which started from the
US$1,000 dollars levels in early 1990s mushroom into export earnings in excess of
US$11 million by 2002. This performance trend was the result of targeted sector
interventions that successfully addressed:
1. Sector policy and organisational frameworks and mechanisms.
2. Supply side constraints.
3. Production and marketing infrastructure.
4. Capacity building and skills training and value addition.
5. Financial resource mobilization for the sector.
6. Effective trade promotion and market development.
CHALLENGES
4Uganda Handicrafts Export Strategy, International Trade Centre, 2005
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One of the major challenges identified in the SWOT analysis is the absence of a
strategic focus for the Barbados crafts sector. This certainly has implications for the
continued growth and expansion of the sector. Out of this challenge therefore is an
opportunity to identify a strategic approach for developing the craft sector
holistically, addressing the major weaknesses and nurturing the potential that
exist within the sector.
OPPORTUNITIES
In addition to the strategic plan for the sector there is also an opportunity to
enhance the performance of existing producers by exploring the viability of a
common service facility to service the sector. This facility could be accommodated
through a cluster initiative which is examined in greater detail below. It is also
thought that there may be opportunities for utilizing underutilized raw materials
like khus-khus grass, banana fibre, sheep skin, coconut shell.
The current global recession has negatively affected many businesses and has in a
unique way opened the door for new and inventive things. This suggest that now
may be the opportune time to create a paradigm based on innovation and upgrading
rather than just continuing business as usual. This also creates an opportunity to
undertake more research and development and expand the present design capacity.
In addition, there are other opportunities for local producers and development
agencies like the BIDC to consider such as:
Craft operators:
Increasing market demand for authentic, exclusive and high-value Barbadian
handcrafted quality products.
Explore using recycled waste materials as a valuable cost-effective input.
Improve knowledge/market information; global view of current fashion,
interior design, product design to aid in product design.
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Balance uniqueness of indigenous value and cultural heritage with
commercial value of product.
BIDC
Establishing economic clustering through which small producers can
cooperate to achieve economies of scale.
Enhance creative skills in design and execution of design.
Increase focus on technical training and skills development and transfer by
lobbying Government support to introduce craft skills into the school
curriculum.
Introduce effective and affordable technological solutions to optimize
performance and create sustainability.
Strengthen the network of local partnerships to leverage marketing
opportunities.
Facilitate product development based on historical precedentensures
authenticity in design and fore fronting of cultural heritage.
Critical Success Factors
Secure industry support.
Secure adequate funding.
Introduce product development initiative.
Develop skills enhancement programme.
Secure cooperation and integrated support of craft producers and retailers.
Develop and facilitate a long-term R&D strategy.
Cluster Initiative
The intention of this type of project is to involve various professional capabilities in
the areas of design, technology, marketing and management along with external
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expertise; and synergise all these developmental activities to enhance the
performance of producers within that cluster arrangement.
The goal of the cluster arrangement should be principally to empower artisans by
making them active entrepreneurs/primary stakeholders so that they can upgrade
their skills, acquire adequate infrastructure support and create centres of excellence
through collective participation in the initiative and cooperation amongst
themselves.
Key Functions of Proposed Cluster Initiative
1. Understanding Crafts Craft a vision and new focus for the sector
Prepare strategic plan for the sector
2. Networking:
Encourage co-operation (co-opetition) between firms, bringing firms,
government, academia together,
Hub for distribution of information/ providing connections
3. Business Development: Incubation
Mentorship
Access to finance/ opportunities
Facilitating partnerships
Export facilitation Programmes
4. Innovation Support
Hosting of events/ presentations
Linking new ideas / identifying sources of innovation
Facilitating access to R&D grants for craft persons
Facilitating Intellectual Property Protection Success storiesChanging Mindset
5. Productivity Intervention
Demand led production
Quality and Productivity improvement systems
Skills upgrading
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6.Addressing bottlenecks/problems
Access to finance
Access to raw materials
Access to technology
Access to product design and upgrades
/skillsOUTLOOK
The creative industries has been tagged by Government as the vehicle for greater
economic diversity and sustainability in an economic environment that is
increasingly becoming unpredictable and volatile. Embracing industries that fall
outside the traditional boundaries is seen as a prerequisite for successfully riding
the current of uncertainty that hangs over the more established engines of growth
like manufacturing and tourism.
Greater emphasis must be placed on further penetrating the tourist and local
market niches and greater efforts made to increase exports of craft. The e-commerce
initiative should allow for increased visibility and availability of Barbadian
products in the export market.
It has been found that repetitions , lack of creativity and design knowledge, lack of
competence in new designs or product development, has constrained the potential
that exist in the sector and impacted on the quality of products offered to what is a
very discerning consumer base. To foster a stronger and more positive performance
of the sector, government through the BIDC should seek to undertake several
initiatives some of which should focus on :
1. Training (Undertake an ongoing and comprehensive review and analysis of
craft education in Barbados to compile an inventory of training available, skills
sets needed for industry participants, identification of gaps and training needs
of the industry. Also explore cooperative programmes between schools, colleges
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and craft persons, and provide ongoing professional development opportunities
for craftspersons to address deficiencies in the industry.
2. Product development/production methods Foster a research and
development approach to product development and improve availability of
indigenous raw materials. Explore methods of production which are
environmentally sensitive. Introduce more recycling, use of factory waste,
forestry waste, agricultural waste.
3. Encourage more specific training in the area of crafts product developers.
Secure 2 yr. programmes for 2 persons in crafts design development.
4. Design (focus on design as one of the major building blocks of the craft industry;
develop a visual design bank which would offer craftspersons design elements
integral to our culture, heritage and environment. This would provide useful
design expertise for craftspersons who lack this design skill. Efforts should
commence with craft items for which there is an unfilled market demand.)
5. Market/marketing (Determine characteristics of local craft products which can
contribute to a readily identifiable brand. Foster public, corporate and
governmental awareness of the craft industry by promoting our identity through
heritage, culture and the environment. Develop a 3 year national branding
campaign.)
6. Best practice workshops to improve the entrepreneurial skills of
artisans.
7. Communications (enhance information sharing through workshops/seminars
and increase visibility and awareness of the sector)
8. Business and Technology (improve appropriate business skills for
craftpersons; provide opportunities for craft persons to learn about appropriate
technology and adapt it to their particular needs.)
9. Retailers (Provide support for retailers. For example help retailers/producers to
develop customer service, merchandising and quality control and increase
opportunities for consumers including Barbadians to purchase locally produced
products).
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10.Support services Establish coordinated efforts with Ministry of Tourism, hotel
sector, National Cultural Foundation, Craft Council.
As efforts are made to minimize threats and remove the constraints to crafts
development, it is believed that prospects for the sector will become more positive
over time.
RECOMMENDATIONS FOR STRENGTHENING/DEVELOPING THE
CRAFT SECTOR
Implement cluster arrangement for selected Craft operators. Clusterdevelopment approach could be an ideal solution to promote the sector
in Barbados. Clusters will provide round-the-clock infrastructure and
common source facilities for developing handicrafts, besides being cost
effective.
Improve standards of creativity and innovation in the craft sector.
Promote creativity through small grants to craft producers to facilitate
innovation and experimentation with materials.
Raise the profile of the sector implement a full marketing and
branding campaign to raise awareness of the sector.
Explore the availability and utilization of additional raw materials.
Cultivate a tourist craft market at Pelican through targeted
promotional techniques.
Improve the quality and value of locally crafted products through ajoint arrangement with the BIDC Design centre and Islandcraft
Barbados; and explore the viability of establishing a design cluster to
service the sector.
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Improve/bolster the operation of key craft suppliers through technical
assistance. This in turn would impact positively on the sectors
performance.
Pursue joint promotional and entrepreneurial ventures, corporatealliances with other industries e.g fashion industry.
Work with the BTA to promote cultural and creative tourism.
Explore the benefits and viability of a National Product Development Centre or
Product Development Unit within the BIDC to:
Support global competitiveness of manufacturing industry through the
application of integrated rapid project development technologies andmethodologies.
IP protection and innovation exploitation.
Essential services provided in design support, materials engineering,
production tooling and prototyping, marketing
Promote cultural industry design nationally.
Preserve and activate heritage skills and indigenous knowledge for social and
economic gain.Provide innovation through creative product solutions.
In addition to the above, it is also suggested that craftspersons be encouraged to pay
particular attention to:
the significant portion of the market which is being satisfied by
imported products of a better quality and price.
increasing price consciousness amongst consumers.
Revenues which continue to be lost as a result of failure to produce
new products and designs that are aesthetically pleasing.
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In Barbados tourism is the major industry in terms of foreign exchange and a
lucrative market for local craft producers. It is believed that if the overall
performance of the craft sector is improved, these gains will be reflected in the
performance of local craft operators.
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APPENDIX
SECTOR DEVELOPMENT STRATEGY
CRAFTS
A Sector Development Strategy for Crafts is based on the understanding that craft
must be recognized as having status equal to other visual arts and foreign exchange
earning sectors and that the sector must be given special support across the
following areas:
1. Marketing and promotion2. Access to finance
3. Product development and design
4. Access to raw materials
5. Skills training and mentorship
6. Transport and distribution
The Overall Objective of the Sector Strategy
The development of the handicraft sector strategy is driven by the overall strategic
objective: To build the capacity of handicraft producers in order to meet
international standards and to expand the sectors foreign exchange earning
capacity This development strategy recognizes that rapid export growth depends
heavily on understanding the potentials and inadequacies of the sector and
effectively providing alternative solutions.
The Specific Objectives of the Strategy
1. To enhance the capacity of producers to increase the diversity, volumes and
improve the quality of crafts to respond to market opportunities and
customer needs.
2. To build partnerships and linkages between the crafts sector and other
support services/sectors, e.g.interior decorating, tourism, hotels.
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3. To promote trade facilitation with particular emphasis on export financing in
the sector.
4. To pursue aggressive market development programmes for targeted markets.
The objectives stated above could be facilitated through the following:
1. The development and launch of a cluster arrangement.
2. The development of strategic partnerships to facilitate, for example
dissemination of information, access to raw materials, transport and
distribution.
3. Tax incentives for the collection of exceptional craft items and loan/bequest to
national institutions.
4. Access to crafts training at primary and secondary school level.
5. A minimum local content of crafst in all public works building projects.
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APPENDIX I
LESSONS FROM SUCCESSFUL COUNTRIES
(Source: Uganda Handicrafts Export Strategy, International Trade Centre. 2005)
Ghanas Handicraft Development Programme
Ghanas handicraft exports, which started from the US$1000 dollars levels in early
1990s registered impressive performances from US$2m export earnings in 1995 to
US $15million in 2001 and US$11million in 2002. This performance trend was the
result of targeted sector interventions that successfully addressed: -
Sector policy and organisational frameworks and mechanisms.
Supply side constraints.
Production and marketing infrastructure.
Capacity building and skills training and value addition.
Financial resource mobilization for the sector.
Effective trade promotion and market development.
Lessons learnt from Ghana include but are not limited to: -
Promotion Council (GEPC), working in sync with Sector Associations, NGOs
and development partners.
The crucial role played by the National Association of Handicraft Exporters
(NAHE) -the National Sector Umbrella Association- as a strong and single
voice for sector, advocacy to Government and Development Partners.
Export Production Village (EPV) Schemes: These are strong vehicles for
addressing supply side constraints. The growth of product specialisation,
quality consciousness, critical export quantities and timely deliveries rely
entirely on these schemes in Ghana.
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The Desired Linkage between Financial Institutions and Export sector. In
Ghana, the Prudential Bank plays a focal and lead role in providing
production, pre- and post-shipment, short and medium term export finance to
the handicraft sector.
A dedicated Export Development and Investment Fund fed by a cess on
imports to finance export development in Ghana, is accessed by participating
banks and channelled to qualified applicants including Handicraft sector
operatives.
The Role of NGOs and Civil Society Organizations: NGOs and CSOs in
Ghana aggressively support the sector development Initiatives. AID-To-
Artisan Ghana (ATAG), an American NGO for example has constructed
workstations with warehousing and show room facilities for Artisan Groups,
mostly women in the basketry industry in Northern Ghana. ATAG also
provides a warehouse and showroom for product display in its headquarters
building at the Accra International Trade Fair Centre.
The Experiences of Indian Handicraft Sector
India is one country that demonstrates the strong role of the handicrafts sector in
social and economic development. Handicraft exports (excluding carpets) registered
US$1.4 billion and US$1.7 billion in 2001/2 and 2002/3 respectively, an increase of
21%. The country has integrated culture and artisanship in the educational
curriculum. There is a National Export Board for almost every export sector
including handicrafts. The majority of small-scale businesses in India are engaged
in handicrafts. The Government has instituted an entire ministry of Textiles and
Handicrafts to serve a sector comprised of some 200 million artisans. There is
strong emphasis on value addition, capacity building and skills development and
effective market development programmes at all levels.
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The Handicraft Export Promotion Council has continued to launch comprehensive
marketing projects to expose these crafts to global markets.
Indias handicraft export performance is attributed but not limited to: -
The existence of a full Ministry dedicated to textiles and handicrafts.
An Export Promotion Council for Handicrafts (EPCH). The Council is fully
funded under the Export Development Funds of the Ministry of Commerce.
Aggressive, comprehensive and effective marketing projects and programmes.
A wide range of capacity building programmes.
Production and marketing infrastructure.
Marketing of a national brand or image.
Cluster innovations for handicrafts are key in technology transfer, value
addition, support for micro credit and skills development.
These initiatives have made an impact on the India handicraft sector in improving
the quality of exports. The State-owned Export-Import Bank of India has played a
key role in the provision of Export Finance. The handicrafts sector has benefited
much from this bank.
The Government of India puts a lot of emphasis on its handicraft sector for its
proven capacity for enhancing entrepreneurship among the rural poor, empowering
rural women, generating income and reducing poverty.