Home Crafts Artisans Voice Case Study Museums Organisations Bibliography Glossary Shopping

Marketing Inputs by Aid To Artisans

II. PRODUCT DEVELOPMENT STRATEGIES & EXPORT PRODUCT LINES

New product development is essential to a successful craft export business. On going product innovation offers your business several benefits.

  • New products help you to maintain the interest of your current customers and help you to penetrate new markets. Product development is a tool for increasing sales of your best selling items by expanding your product offerings.

  • New design can increase your profit margins by adding a higher perceived value to your products.

  • Design innovation keeps your identity fresh.

  • Most importantly, the market demands continual product development – buyers are always looking for something “new”.

The variables of a successful product line

Function: Products designed for a specific function have higher perceived value than purely decorative items.

Size: Offering a variety of sizes (small, medium, and large) makes your products easier to merchandise and may compel you buyer to order more than one item. Sizes must conform to the standards of the target market.

Color: Offer a palette of colors. Use a color theme to tie different products together in a product line. Trendy colors will catch a buyer's attention, while traditional colors will generally generate more consistent sales.

Price points: Offer a variety of price points that are competitive with target markets. Balance price against perceived value.

Shapes/pattern/texture/design/motifs: Experiment with these to distinguish your product line and shape a unique identity and image for your company.

Quality: Focus on good quality raw materials, consistent quality in workmanship and a high quality “hand made” finish.

Note: A product line may have between 3 and 20 related products.

The steps to successful product development

Step 1. Conduct market research
Conduct market research to understand the trends in lifestyles, pricing, sizing, and consumer buying habits of your target market. Visit trade shows, consult trade journals, survey lifestyle magazines, and read mail order catalogues. (See references for market research below).

Step 2. Select a product concept
Analyze the strengths and weaknesses of your current product lines along with your sales history. Decide whether to adapt an existing product or create an entirely new product.

Step 3. Identify the target market and customer
Identify where your product will sell within the standard categories of your target market. (See references of standard US product categories below).

Identify the positioning of your product in terms of price/design/volume:

  1. High end: low-volume, design-driven market, high-price market niche

  2. Middle market: larger volumes, price-conscience with design and quality appreciation market niche

  3. Low-end: high-volume, price-driven market niche.

Step 4. Look for inspiration in non-market resources Visit museums, take stroll in nature, look at contemporary local culture and design, think of the traditions behind the products for inspirations. Uniqueness may be design, process, or history.

Step 5. Develop a prototype Create a sketch of the new product or make a sample. Draw opinions from your buyers regarding price, design, quality, packaging, labeling and any specific regulatory considerations. Draw opinions from your producers regarding the availability of raw materials, quality issues, production capacity, potential production problems, and approximate lead times.

“References for market research”

Trade Publications:
Publications targeted to the business involved in each of these sectors. Great source of information about trends in the market, significant companies, trade shows, market statistics.

Gift Market:

Furniture/Accent Furniture/Lighting/Rug Market:

Fashion Market:

American Crafts Market:

Home Textiles Market:

Tabletop:

U.S. Lifestyle magazines
Publications targeted to the end customer in each of these target markets. Great source of information about general lifestyles, buying habits, trendy products, new retailers. Lots of visuals.

Home furnishings magazines:

General Lifestyle (combines fashion, home furnishings, and entertainment trends)

Fashion magazines

MAIL-ORDER CATALOGUES & ONLINE RETAILERS
Great source of information about competitive retail prices, standard sizes, color and design information about what is already in the marketplace. These suggested online stores cover a full range of products from home furnishings, garden & outdoor living, children’s furniture & toys, fashion, bedding.

References for US product categories:

  • Gift

  • Tabletop

  • Decorative Accessories

  • Home Office & Stationery

  • Home Textiles

  • Seasonal

  • Personal Accessories (fashion)

  • Toys, Games & Dolls

  • Pet Products

  • Accent Furniture

  • Kid’s Bedding & Accessories

  • Jewelry

  • Bedding

  • Bath & Scents

  • Floral & Garden

  • Wall Art

  • Lightings

  • Rugs & Floor Coverings

  • Gourmet & Kitchen

  • Eco/Organic

Also Read

This section has eight parts. Each part can be viewed individually or as a continuum – depending on the organisations requirements.

Expectations of Export Markets - Are You Ready?
Production Capacity & Quality Control
Costing & Pricing for Export
Export Distribution Channels
Export Marketing Plan
Financial Planning
US Trade Shows

This information has been provided by Aid To Artisans (ATA), a US nonprofit organization, based on their experience of over three decades, in creating economic opportunities around the world through artisan enterprise development.

This project has been made possible by a grant from American Express Foundation, New York.





Bookmark and Share
Sign up
to join the
Craft Revival Trust mailing list

 

CD ON SALE
Tribal Crafts, Folk Arts and Textiles of India
Available on this CD is information on the crafts, textiles, and arts of tribal India and information on museums that host tribal collections

 more...

BOOK ON SALE
India's Artisans
A Status Report

Historical evolution and current status of artisans of –

-

Handloom textile weaving

-

Leather

-

Metal

more...

CD ON SALE
Directory of Crafts & Textiles of India available on CD
Listing of 677 Crafts & Textiles with contact details of over 46,000 Artisans

more...

OUR SHOP

-

Books

-

CD

-

Gifts

-

Bags

-

Games

-

Paper

visit our shop...