BUYER- SELLER RELATIONSHIPELLER RELATIONSHIP

Challenge In Export Marketing for The Handicrafts And Handlooms Export Corporation (HHEC)

Arun, a civil services officer in Uttar Pradesh gets transferred to the position of General Manager Marketing, HHEC. The Financial Picture of HHEC was gloomy. Total revenue had come down from Rs 10,651.322 million in 2005-06 to Rs. 7,033.975 million in 2007-08, a fall of 34 percent. The export turnover had plunged from Rs. 586.270 million in 2005-06 to Rs. 260.058 million in 2007-08, a fall of almost 56 percent.

ABOUT HHEC
Indian Handicrafts Development Corporation Ltd, its predecessor was established in 1958. In 1962, it was incorporated as a private limited company as subsidiary of State Trading Corporation (STC) HHEC deals in export of handicraft and handlooms products. It creates demands for Indian Products in markets abroad and tries to fulfill those demands by showcasing the creativity of Indian artisans, weavers and craftsmen.

SWOT ANALYSIS

STRENGTHS

Contributes to Employment Generation and Export Earnings To Foreign Buyers it offers an opportunity to get associated with India High Employment Potential Low Capital Investment Highly Labor Intensive Highly Decentralized Earns Foreign Exchange

WEAKNESS
Quality Issues Problem faced in customs clearance Uniqueness Maintaining the Delivery Schedule Product Pricing Lack of Changes in Design and Technology No adequate working capital

OPPORTUNITIES
Large Potential in Domestic and International Markets Greater Investment and FDI opportunities available.

Missing on Big Shifts in Consumer Preferences and the aggressive moves of competitors Opportunity to play a role in supporting and strengthening the rural economy of our country

THREATS
Competition From Other Developing Countries especially China To make balance between Price and Quality Growing Competition From Power loom Sectors Diversions from Handlooms to other businesses Low Availability No Research Facilities

What initiatives would you recommend to HHEC to develop strong buyer relationship?

Setting up of customer lines in top buyer companies. Setting up of handloom knowledge banks in International Markets. Adopting heavy marketing and advertisement strategies. Market Research to understand the needs of buyers Maintaining delivery schedule Superior Quality at Reasonable Price.

EXTERNAL AND INTERNAL FACTORS THAT LED TO THE DOWNFALL OF HHEC IN 2008

INTERNAL FACTORS
With Vinod leaving the corporation, HHEC lost its some of its buyers in US and UK Due to certain quality issues and handling of the entire issue by the corporation, Kaluttis purchases from HHEC declined. Matteo said he was not satisfied with the products and there was no uniqueness in the products. Products were priced higher HHEC was not able to maintain to its delivery schedule

EXTERNAL FACTORS
Due to the Recession in USA, the buyer lost all the businesses and went bankrupt due to which HHEC lost business in Las Vegas Customs clearance problems faced by a buyer led to the closure of shops in Saudi Arabia

HHEC DEALS IN NON-BASIC NEEDS. WHAT RECOMMENDATIONS WOULD YOU GIVE TO HHEC TO MARKET ITS PRODUCTS IN INTERNATIONAL MARKETS?

The handicrafts sector uplifts and empowers the poverty stricken by creating employment opportunities and generating income. Any branding strategy needs to communicate these meaningful benefits to the end consumer. Handicrafts are environment- friendly products. Products that are planet- positive are among the fastest growing market segments today. The Indian handicraft sector, thus, needs to be showcased as an eco- friendly or green sector.

Handcrafted products can also be positioned to capture the premium, high end market. In contrast to the similarity and uniformity of mass- produced goods, crafts are goods that embody skill and creativity. These handicrafts can be positioned in the realm of luxury brands, emphasizing their high level of skill, aesthetic value by showcasing them as one- off exclusive pieces in art galleries