SWOT Analysis:Handicrafts Industry

Strengths:

• Large, diversified and potential market.
  
• There is large product variety and range is available because of diversified culture.
  
• It has strong, diversified and supportive retail infrastructure.
  
• Diversified product range that service different market.
  
• Cheap labor rates that result to competitive price.
  
• Need low capital investment.
  
• There is flexible production flexibility.
  
• Low barriers of new entry.
  

• Easy creation and development of production centers.
• There is no need for macro-investment.
• Industry provides potential sources of employment.
• Products are high value added, and handicrafts have various applications.
• It is the potential source of foreign revenue because of higher export.

• Lack of infrastructure and communication facilities.
• Unawareness about international requirements and market.
• Lack of co-ordination between government bodies and private players.
• Inadequate information of new technology.
• Inadequate information of current market trends.
• Less interest of young people in craft industry.
• Lack of skilled labor.
• Still confined to rural areas and small cities and untapped market.
• Lack of promotion of products.

Opportunities:

• Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc.
• Developing fashion industry requires handicrafts products.
• Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.
• Development of domestic and international tourism sector.
• e-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.