Handloom- The Pride of India

The history of Indian handloom is as ancient as India. Legend tells us our handspun fabrics traveled to the shores of the Cape of Good Hope and even the snow-capped landscapes of Russia. The trend continues to this day, where according to IBEF, India exported USD 10.94 billion worth of handloom textiles and other products in 2022-23.

The reality at home is slightly different. Domestic demand for everlasting handloom designs like Kanjeevaram, Bandhani, Jamdani, and Mekhela Chador is dormant. Indian handloom is overwhelmingly restricted to rural pockets and weavers' backyards. Present-day Government initiatives, celebrity endorsements, and social media are foregrounding traditional crafts and apparel in mainstream media to a great extent. Still, they remain within the boundaries of rural haats, seasonal fairs, and occasional trade exhibitions.

A swift revival of textile heritage depends on mass consumer reach, and what better way to go about it than eCommerce? On this National Handloom Day, let us welcome a digital renaissance of the handloom sector and find potential solutions to the logistical challenges holding back its E-commerce boom.

A Faithful Leap Towards Digitalization

Nearly 73 percent of independent weavers used to be at the mercy of traditional middlemen or masterweavers for marketing and sales. But, the growing popularity of eCommerce and associated technologies has given the handloom sector a new lease on life. Today 125 million individuals shop online. The rise of eco-conscious movements has further renewed appreciation for handloom products that are hand-dyed and woven.

Banking on the popularity of eCommerce, many handloom cooperatives and SHGs are migrating to online marketplaces with the help of novel initiatives like the Amazon Karigar project and ONDC. Gen Z and millennial social entrepreneurs are cooperating with artisans and master weavers, highlighting the sustainability, durability, and generational heritage of handloom textiles to an online consumer base.

E-commerce brands led by women weavers and founders like The Indian Craft House, Suta, Anavila, Eka, and Ekaya Banaras are inspiring consumer faith in handmade weaves by fusing traditional craftsmanship with contemporary designs. A common thread of these disparate brands is their focus on easing shipping and delivery for customers even in the midst of significant logistical challenges.

Logistical Duress of the Handloom Sector

Lack of rural connectivity

The handloom industry is a step behind in modernization due to poor rural connectivity. According to the Fourth All India Handloom Census 2019-20, 88.7 percent of all weaver and artisanal households reside in rural areas with only 26%  having all-weathered roads. This deters on-time inventory sourcing and the uninterrupted flow of finished goods.

High Costs of Shipping and Last Mile Deliveries

Shipping costs factoring in packaging, labeling, order manifestation, labor charges, toll tax, inventory distribution, and last-mile deliveries grossly impact the finances of D2C brands and handloom cooperatives. They rely on aggregators and middlemen leading to autonomy loss and inefficiencies around shipping transparency. Their lack of direct carrier integrations and paltry use of multiple-carrier shipping software prevents them from availing of competitive rates and better shipping services.

Inadequate Digital Literacy

As the Handloom Census points out, there is a major disparity in education and training among the handloom weavers. 23% of them have never attended school while a majority stop at the secondary level. The severe lack of skill development and technology dissemination proves a major hurdle in building online businesses and using automated logistics systems.

Inefficient Self-Shipping and Fulfillment Options:

Though eCommerce platforms have a high demand for traditional fabrics, they also come at the cost of high onboarding fees and commissions for preferential listings. When 93 percent of handloom workers earn less than ₹5000 to 10000 a month it becomes near impossible for them to open up more than one sales channel.

Self-shipping too is limited given the paucity of warehousing and transportation. The predominance of in-house fulfillment leaves them with little choice in logistics partners, which further hikes up costs.

Making Handloom a Self-Reliant Sector

The logistical challenges are deeply embedded in the very fiber of the rural economy. The solutions, therefore, require an integrated approach of rural upliftment, skill upgradation, and innovative technologies like Paytm’s soundbox that simplifies online transactions.

Luckily we are seeing an increased involvement of corporate social enterprises, NGOs, individuals, and government programs to support the digitization journey of weavers. The handloom business incubator Chitra Foundation is a case in point.

Another relevant example is the ONDC project that incentivizes artisans and producer companies to explore online selling without incurring exorbitant costs. Its community-led networking of multiple eCommerce platforms simplifies product discoverability, fair pricing, and direct sales and delinks artisans from exclusive logistics service providers.

It's undeniable that handloom weavers lack proper storage and inventory management facilities prompting them to restrict sales to retail outlets. However, online visibility can trigger new possibilities. Omnichannel logistics can be a game changer. Traditional retail outlets can keep inventory while digital storefronts reach wider audiences. 

The ‘Buy Online Pick Up In Store’ strategy can be implemented at the intercity level. This will reduce shipping expenses, particularly last-mile delivery, and give weavers more choices in fulfillment options. If more shipping companies take up the cause of rural connectivity, it’ll open up cost-effective shipping solutions like hyperlocal deliveries that’ll increase sales and help the industry grow.

E-commerce has cemented the gap between the consumers and the handloom craft. It has brought back our love for resplendent sarees, sarongs, and shawls to our wardrobes. The welfare of the handloom community and the supply of these timeless creations depend on sorting out logistical challenges at the earliest.