Pricing Paradox in the Indian Handicrafts.
The Indian market of handicrafts is glorified with tradition, but the artisans who make them usually get 10%-15% of the ultimate retail value. What comes to mind in such a saturated price-sensitive environment is this: how can a brand be able to raise the price 2-3 times commodity prices and still compensate artisans higher not lower?
CraftsAQ is a powerful solution, with high-quality positioning based on genuineness and not philanthropy.
Lead with Craft, Not Charity
The counterintuitive fact that needs to be learned is that you should not be socially impactful first. CraftsAQ identifies itself as a modern craft brand first. Finish, material quality and design become the priority. The social narrative is presented in silence- packaging, product tags, and profiles of artisans. People purchase the item because it is pretty, retain it because it is a good story.
This will not entrap the charity purchase trap. Once sympathy is sold by brands, pricing power is destroyed. CraftsAQ rather compares to leading commercial brands where the customer shifts the reference point of charity to quality.
Borrowed Credibility Done Right.
Working closely with Mon Ami Foundation, the collaboration signifies verified craftsmanship training, equitable pay, and responsible sourcing. More details on the projects is available https://www.monamifoundation.com/projects
High-end Pricing which allows Fair Wages.
Ethical economics is made possible through premium positioning. CraftsAQ is paying 30-40% of the retail price to the artisans, whereas the industry average is 10%-15%.
A Rs 1000/- product would translate to about Rs 400/- of the artisan. In this case, premium pricing is not exploitation- it will be the process that will ensure fairness is sustainable.
The Core Lesson
Premium in handicrafts does not mean being expensive, it means being valuable. The respect of craft, maker, and story make the customers spend their money, artisans receive decent payments, and impact becomes a permanent change and not a show.
This Blog is contributed by Ashwin Jain, a student of IIM Raipur
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