E-commerce options for Third World craft producers

Final technical report

DFID Knowledge and Research Project R7792

Dr S. J. Batchelor (Gamos Ltd)

Mike Webb (Big World)

March 2002

Crown House
231 Kings Road
Reading
RG1 4LS
UK

phone: 44 (0)118 926 7039
fax:     44 (0)118 935 1374

email:   Simon@gamos.demon.co.uk

ã Gamos Ltd, 2002.

This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of DFID.

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Table of Contents

1. EXECUTIVE SUMMARY

1.1 OVERVIEW

1.2 BARRIERS TO B2C E-COMMERCE

1.3 POVERTY FOCUS

1.4 B2B (BUSINESS TO BUSINESS OPPORTUNITIES)

1.5 FUTURE OPPORTUNITIES

2. INTRODUCTION

2.1 AIMS OF THE RESEARCH PROJECT

2.2 METHODOLOGY

3. COLLABORATORS

3.1 ASHA HANDICRAFTS (INDIA)

3.1.1 ICT and E-commerce experience

3.2 HEED HANDICRAFTS (BANGLADESH)

3.2.1 ICT and E-commerce experience

4. OVERVIEW OF HANDICRAFTS AND E-COMMERCE

4.1 OVERVIEW OF FAIR TRADE HANDICRAFTS

4.1.1 Strengths, weaknesses, opportunities and threats

4.2 INTRODUCTION AND OVERVIEW TO E-COMMERCE

4.2.1 Some people are enthusiastic

4.2.2 What is the reality?

4.3 E-COMMERCE AND SMES

4.3.1 Strengths, weaknesses, opportunities and threats

4.4 CONCLUSIONS

5. FIELD RESEARCH AND VISITS

5.1 WORKSHOPS IN INDIA AND BANGLADESH

5.2 CONCLUSIONS

5.3 INTERNET/EMAIL ACCESS AND COST OF COMMUNICATIONS

5.4 FIELD SURVEY (INDIA)

5.4.1 Conclusions

5.5 OVERVIEW OF E-COMMERCE CRAFT SITES

6. E-COMMERCE FOR CRAFTS PRODUCERS

6.1 BARRIERS TO B2C E-COMMERCE FOR CRAFT PRODUCERS

6.1.1 ‘You can see, but you cannot touch, feel and smell’

6.1.2 Digital photographs are not colour accurate

6.1.3 Consumers expect high service standards

6.1.4 Trusting the company/brand

6.1.5 Financial security

6.1.6 Personal data

6.1.7 Conclusions

6.2 DOING E-COMMERCE

6.2.1 Preparing for e-commerce

6.2.2 Key success factors for web sites

7. ALLEVIATING POVERTY THROUGH CRAFT PRODUCTION

7.1 KALACHAND PAL, 38, POTTER

7.2 SALEH KHATUNG, 40, SPINNER

7.3 KIRAN JAMSANDEKAR, 40, ARTISAN IN COPPER AND ENAMEL

7.4 ICT IMPACT ON HANDICRAFT LIVELIHOOD STRATEGIES

7.5 CONCLUSIONS

8. KEY RECOMMENDATIONS: E-COMMERCE OPTIONS

8.1 ON-LINE CATALOGUES

8.1.1 Telling stories

8.2 DESIGN

8.3 EMAIL

8.4 MULTIMEDIA

8.5 MARKET INFORMATION

8.5.1 The ‘e-commerce lens’

8.6 FUTURE OPPORTUNITIES

8.6.1 A Fair Trade Global Communication System

8.6.2 Digital Fair Trade

8.6.3 Ethical Tourism

8.7 CONCLUSIONS OF RESEARCH

9. APPENDICES

9.1 OVERVIEW OF SELECTED E-COMMERCE CRAFT SITES

9.1.1 Viatru (USA)

9.1.2 PEOPLink (USA)

9.1.3 OneNest (USA)

9.1.4 Novica (USA)

9.1.5 Eziba (USA)

9.1.6 10,000 Villages (USA)

9.1.7 Traidcraft Plc (UK)

9.1.8 Global Sources (Hong Kong)

9.1.9 Conclusions

9.2 FIELD RESEARCH: PRODUCER DATA COLLECTED BY ASHA HANDICRAFTS

9.2.1 Questionnaire

9.2.2 Data collected by ASHA Handicrafts

9.2.3 Summary table of data

9.2.4 Conclusions from survey of eight producers

9.3 INTERVIEWS (TRANSCRIPTS OF EXTRACTS)

9.3.1 Carol Wills, Director of IFAT (Int. Federation for Alternative Trade), UK

9.3.2 Derek Long, Director and Co-founder, Viatru, Seattle, USA

9.3.3 Surendra Shahi, Trading Partner Liaison, PEOPLink, USA

9.4 TABLES AND CHARTS

9.4.1 Export of handicrafts from India 1993/94 to 1999/00

9.4.2 McConnell International global e-readiness chart (August 2000)

9.5 SAMPLE MARKET INFORMATION FOR PRODUCERS (VIATRU)

9.6 IFAT BIENNIAL CONFERENCE, TANZANIA (JUNE 2001)

9.7 FAIR TRADE, ETHICAL TRADE AND E-COMMERCE

9.7.1 ICT and ethical trade

9.7.2 The micro view

9.8 SELECTED LITERATURE SURVEY ON ETHICAL TOURISM, E-COMMERCE AND COMMUNITY DEVELOPMENT

9.9 SOURCES AND ACCOMPANYING CD

9.9.1 Bibliography and links

9.9.2 Key organisations and people consulted

9.9.3 Accompanying cd-rom

9.9.4 Gamos Ltd and Big World

Appendix section 9.1.1 to 9.1.4