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Starting up the ethnic way

From entering newer categories, to investing in design development, ethnic products startups are doing it all to sustain and scale

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Constant ideation is the need of the hour. Especially for start-ups that are under incessant pressure to sustain, scale and grow their business models in competitive marketplaces. The Indian handicrafts and ethnic products space witnessed a mushrooming of unique ventures in the recent few years that provided an e-channel between artisans, craftsmen and consumers. These e-commerce ventures are now designing diverse strategies to not just stay afloat, but help them grow and thrive in a landscape that compels innovation.

“Volatility is the name of the start-up game. And in a space such as ethnic products, though the potential exists, demand can oscillate depending on seasons and consumer moods. Countless companies have sprung up. So at a time when the market is skewed in favour of the consumer, start-ups have to go that extra mile to retain and acquire new customers,” said an e-commerce expert from a brokerage house.

Delhi-based Jaypore, which e-tails ethnic apparel, jewellery, home décor and accessories, has started investing in design development. Earlier this year, they received $5 million in funding from Aavishkaar. Co-founder Shilpa Sharma, who earlier worked with Fabindia, says they collaborate with designers who engage with craftsmen to create a distinctive and unique line of products.

“These are exclusively ours and fetch more weightage in the market. For example, there is enough and more representation for indigo block print. Now if a designer guides an artisan with different techniques that can provide say an abstract and contemporary touch, the end product could be vastly different,” said Sharma.

In fact, Jaypore has already started with textiles and apparel, and would shortly begin to provide design intervention in jewellery and accessories as well, she added.

Sharma feels that ethnic products at times need that contemporary twist to enhance their global appeal. Jaypore is looking at increasing the representation of arts and crafts on its platform. “We are currently trying to find ways and means of reviving languishing crafts such as telia rumals, kharad rugs, dongria shawls, tangalia (a traditional weave from South Gujarat). We are certain that there exist consumers who appreciate such traditional products and we want to tap that market.”

On the other hand, Craftsvilla, a leading e-tailer for primarily ethnic apparel, is now aggressively diversifying into more product categories such as ethnic food, jewellery and ayurvedic products. These newer categories, especially food and ayurvedic products could help in garnering a wider range of customers.

“Food is a segment that sees demand all year round. Same is the case with apparel, but not necessarily with ethnic apparel which has a more festive appeal. With rising health consciousness, wellness products also have all-season potential,” says the e-commerce expert.

According to Manoj Gupta, co-founder, Craftsvilla, ethnic apparel currently constitutes about 70% of the venture’s revenues. “Going ahead we see apparel bringing in 50% of our revenues and the balance coming in from the newer categories we are set to focus upon. We don’t want to be perceived as only an ethnic apparel destination, but a provider of a whole range of ethnic products,” said Gupta.

That’s been the strategy for SaleBhai Internet Pvt Ltd, an Ahmedabad-based ethnic e-tailer that markets products from mathri and bhakarwadi to Madhubani and Pattachitra art. “We have a diverse product range. We have noticed that the festive season usually sees a spike in the sale for handcrafted ethnic products,” said, Vishwa Vijay Singh, co-founder, SaleBhai.

An Assocham report states that India’s handicraft exports are expected to cross Rs 24, 000 crore by 2020-21. While a Technopak report pointed out that the Indian ethnic wear market is likely to be Rs 126, 210 crore by 2019.

SaleBhai, which earlier received $1.5 million funding, is looking to start selling abroad from November. “Since our idea is to cater to the Indian diaspora with products that they miss from their hometowns; geographies such as the US, Middle East and Europe, which have substantial Indian communities could be a good bet,” says Singh.

Craftsvilla’s Gupta wants 30-35% of their business to come from overseas in the near future. “Currently in any given month, we have 15-20% of organic traffic coming in from abroad. We are looking at doing some marketing to reach out to a wider audience overseas.”

Although the US is a key market for Jaypore, and with 25-30% of their business coming in from abroad, Sharma feels that they would want to focus more on India. “We get buyers from 60 countries. However, the domestic market is a sizeable opportunity. The cost of customer acquisition abroad is high and our aim right now is to grow the market in India.”

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