India's handicraft makers go online for new clients

India's handicraft workers have begun to move beyond traditional markets and government-backed shops to sell their wares, hoping that the increasing take-up of e-commerce can help boost sales. A number of artisans have started selling via the website nethaat.com, which was launched earlier this year with the aim of providing a new outlet for makers of items such as textiles, metal and wooden goods and jewellery. Rakesh Sonava, who co-founded the portal, whose name translates as "net marketplace", said he was inspired by his family's experience and their struggle to sell goods. "My uncle used to go from place to place selling hand-printed cushion covers and bed linen. He could sell what he carried with him but nothing more," the 42-year-old told AFP. "I wanted to set up a permanent platform for people like him to sell his goods." The handicraft industry is one of India's biggest employers and a mainstay for the rural economy. The All India Artisans and Craftworkers Welfare Association estimates that 13 million people work in the sector. Sales of Indian handicrafts amounted to 87.2 billion rupees ($1.9 billion) in 2009-10, according to the government-backed Export Promotion Council for Handicrafts. But while many shops have gone online to sell traditional goods in recent years, Nethaat is the first to allow craftsmen and women to sell directly to consumers via the Internet. Since January, Sonava and his partner Roshan Agarwal, 31, plus a network of representatives, have been helping artisans to create and manage their own stores, providing help in areas like packaging and customer service. Some, like 35-year-old paper-maker Fajuddin Saifi, from the northern city of Agra, even bought their first computer after hearing about the venture. Artisans can stock up to 25 items on the website for free, with 3.5 percent of sales revenues going to Nethaat. If they want to stock more products, they pay the company 400 rupees per month. Sonava and Agarwal have so far spent 900,000 rupees on the venture, with some 1,800 products for sale, ranging from textiles costing just 70 rupees to marble table-tops retailing for 15,000 rupees. They also offer a bargaining option on some products, where the buyer can negotiate with the seller before they agree on a price -- much like the haggling that is common in India's bustling street markets. Brij Ballabh Udaiwal, 46, has been in the hand-made textile business for 30 years and is the fifth generation in his family to enter this line of work. "We are good at what we do," said Udaiwal, from Jaipur, displaying a richly embroidered silk wall hanging. "But without a platform like this to sell our products directly to consumers, we wind up ceding all profits to middlemen. This way, we can at least hope to get a fair price and get some credit for our skill." Sonava and Agarwal refused to divulge any sales figures or the number of artisans involved, saying only that it was "early days" and they expected to achieve an annual turnover of 1.8 million rupees by May next year. India's use of computers and the Internet is low despite the country being a major player in global information technology and outsourcing. But the government plans to extend broadband Internet access across the country, including to the rural heartland, and industry observers expect the e-commerce market to grow by nearly 50 percent this year. The Internet and Mobile Association of India (IAMAI) says online retailing -- which currently accounts for just eight percent of India's e-commerce market -- is developing rapidly. "Online retailing is starting to take off and is set to become more and more popular in India," said IAMAI president Subho Ray. "E-commerce sites are able to offer better prices, attractive deals and more efficiency to consumers." Udaiwal and Saifi admitted that their initial online sales were disappointing and hoped for better returns within a year or two. "I am happy to be part of a business which supports artisans," Udaiwal said. "Although we haven't made much money through it so far, my hope is that in two years, 50 percent of our sales will take place online."