Market Access Manual for Artisans Rev2 - Caribbean Export ...

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1. INTRODUCTION “Artisanal products are those produced by artisans, either completely by hand, or with the help of hand tools or even mechanical means, as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. Using raw materials from sustainable resources the special nature of artisanal products derives from their distinctive features, which can be utilitarian, aesthetic, creative, culturally attached, decorative, functional, religiously and socially symbolic and significant” UNESCO/ITC Symposium on “Crafts and the International market: Trade and Customs Codification.” Manila 1997 1.1 PURPOSE OF THIS MANUAL This guide provides a step by step practical approach for present and future artisans interested in raising their export competitiveness and positioning their goods in US and UK markets. Based on the export opportunities presented by the CARIFORUM‐European Community (EC) Economic Partnership Agreement (EPA) the manual will also provide practical information on market access opportunities and limitations in the European Union (EU) with specific reference to United Kingdom (UK) market, how to penetrate these markets, and how to establish important points of contact. 1.2 HOW TO USE THIS MANUAL The manual can be read and re‐read in whole or in part. It is simple and practical in its linear progression; you may use and apply the information that best adapts to your specific business needs at any given time. It is envisioned that the concepts shared in this document will allow current and potential exporters to analyse the potential market for their goods, and the strategies needed for accessing and establishing a presence in the United States (US) and United Kingdom (UK) markets. 4 Page 4
2. OVERVIEW Over the years, the handicraft industry has become one of the most vital sources of income for developing countries which are rich in supply of natural fibers and raw materials that lend their resourcefulness to talented artisans. However, with increased globalization products are becoming more and more commoditised, with artisan producers facing increased competition from producers all over the world, particularly from China and other Asian countries. Moreover, the challenges of deteriorating economic conditions and frequently changing market trends to strongly influence consumer purchasing patterns which make it particularly difficult for handicraft exporters to successfully penetrate global markets particularly in the United States and Europe. On the other hand, it can be argued that with globalization, these markets also offer unique opportunities for local artisans as the demand for unique hand crafted, ethnic goods continues to rise. This can be attributed to more educated and socially responsible consumers who directly influence the value chain, and the growing number of products that are being demanded by a more lucrative segment of the handicraft market. Consumers are demanding goods which are unique, decorative, functional and less and less homogenized. It is therefore imperative that Caribbean handicraft producers begin to address a number of their shortcomings. There must be a greater willingness to tailor designs to match buyer requirements, provide timely production and delivery, and improve on quality and efficiency in view of increased price competition and consumer expectations. In addition, Caribbean artisans must take into consideration that in order to meet these expectations it may require further financial and physical investment on their part as they would most likely need to improve their working methods. 3. MARKET ACCESS CONDITIONS – NAVIGATING THE US AND UK MARKET The Caribbean handicraft sector possesses a distinct advantage over their major competitors such as India, China and Africa as the region is a well sought after tourist and leisure destination, especially to individuals based in the US and UK. Over the years the handicraft sector therefore became heavily reliant on this influx of tourists to the various islands in order to secure revenue for their handicraft work. However, with challenging economic times tourist destinations have seen a severe decrease in visits from their North American and European counterparts which means that local artisans have been forced to find innovative ways to reach potential customers. However, to successfully penetrate the US and UK markets artisans must first understand the conditions of these markets and more importantly the types of consumers in these markets. 3.1 PROFILE OF US & UK CONSUMERS US Consumer 5 Page 5
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