E-COMMERCE

“STATE EMPORIUM - DELHI”

SUBMITTED BY:
Amrita Mitra
Ayushi Jaiswal
BFT V

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Ecommerce
E-commerce is the buying and selling of goods and services, or the transmitting of funds or
data, over an electronic network, primarily the internet. These business transactions occur
either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-
to-business. The terms e-commerce and e-business are often used interchangeably.

The benefits of e-commerce include its around-the-clock availability, the speed of access,
the wide availability of goods and services for the consumer, easy accessibility, and
international reach.

It’s perceived downsides include sometimes-limited customer service, consumers not being
able to see or touch a product prior to purchase, and the necessitated wait time for product
shipping.

The rise of e-commerce forces IT personnel to move beyond infrastructure design and
maintenance and consider numerous customer-facing aspects such as consumer data
privacy and security.

Why Ecommerce?
In the short term: -

Access to a Global Market - the ability to reach new customers and create more intimate
relationships with all customers.

Dramatic Reduction in distribution costs - drastic cost reductions for distribution and
customer service.

In the long term:

The Internet may well change the structure of the competitive landscape. Internet
communications will transform the relationship between business and their customers. The
conversion from physical to digital will displace the source of business value.

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STATE EMPORIUM

A minute and a half from Connaught Place is Baba Kharak Singh Marg – a road whose
claim to fame is the number of state-emporia that line it. The ‘emporia’ are state
government-run boutiques – one for each state of India – selling the traditional offerings of
the state. Furnishings are common to all – but of course, there are specialties of the state.
Here each and every emporium has its own name, which signifies respective States with its
aura and impression. Here one can find some aesthetic appeal from mystifying and
mesmerizing collection ethnic products and art works. Each emporium also promotes
tourism on behalf its respective state states indirectly.

So we can get tie-and-dye fabrics at the Rajasthan emporium, sandalwood objects at the
Tamil Nadu emporium, kantha silk at the Wet Bengal emporium and so on at good prices
and good quality.

Handily in a row are these regional treasure-filled emporiums. They may have the air of
torpor that often afflicts governmental enterprises, but shopping here is like travelling
around India – top stops include Kashmir, for papier mâché and carpets; Rajasthan, for
miniature paintings and puppets; Uttar Pradesh, for marble inlay work; Karnataka, for
sandalwood sculptures; Tamil Nadu, for metal statues; and Odisha, for stone carvings.

Objective- It aims to help the artisans with their livelihood by providing them with a
platform to sell their products and keep the art of handicrafts alive and thriving. It also aims
to promote state tourism.

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Some states have its independent showroom & outlet.

The current business model is -

Artisans Government Employees Showroom Customers

1. Market analysis
The emporium is located in a prime location in Delhi. Most of the customers are foreigners
and Indian tourists. The government doesn’t market their products but the presence of these

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state owned handicrafts showrooms is aimed to increase the popularity of the respective
state.

 Giving it an online platform would promote the motive of these shops and
simultaneously increase the sales providing more employment opportunities for India
craftsmen.

The Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) is a

Multi-State Cooperative Societies Organisation which works under the Ministry of Textiles
is a Service provider, Facilitator, Coordinator and a Market Developer for tribal products
and on the behalf of tribals it sells their products under the brand name of ‘TRIBES
INDIA’. It has sold the products on consignment basis through 11 State Emporia’s. This has
helped with the upliftment of tribals and keeping the art of handicraft alive and thriving in
our country.

2. Marketing Mix
Target Market
 Price: The price is high as the target market is rich. Since handicrafts require a lot of
effort and time and are not produced on machine they are priced high. Also they are
not produced in bulk and so the price is high as the sale is low.
 Promotion
Product

The products are wide ranged even in terms of material. Silk & cotton sarees, Chikankari,
Zardozi, crepe silk, Tanjore arts, miniature paintings, jewellery, screw pine mats, Chanderi
Sarees, shawls, carpets, tea, brass, bamboo, cane, marble, wood, lac, glass, metal, terracotta
items, pottery, sandalwood crafts.

Place

The State Emporia Complex has a number of state handicrafts showroom at one place. It is
located only in Delhi. Other states have these showrooms in different states but are not
located in a single complex.

3. Current Government Initiatives

The Textiles Policy 2000 of the Govt. of India emphasized that continued and focused
attention will be given to handicrafts to enable the sector to increase both its contribution
to exports and productive employment. Initiatives include up gradation of skills, design

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and technical intervention, development of craft clusters with common service facilities,
improvement in infrastructure and market development.
The Shilp Guru Award recognizes the endeavor of the Master craftspersons in innovating
different styles and designs of the traditional craftsmanship, to continue with the highest
level of aesthetic character, quality and skill in the traditional Indian Handicrafts which
has been the pride of the country's heritage. The scheme gives financial assistance of Rs
7.50 lakhs to each Awardee to create masterpieces of each kind .

Kalashiksha scheme - The basis is to achieve an understanding of the collective memory

from which the master craftsperson draws his inspiration. It would then systemize this
understanding and knowledge into a programme that can be sustained institutionally and can
be extended in a more prescribed format.
The primary objective of the Handicraft museum is to preserve the collection of the
artefacts.
BabaSaheb Ambedkar Hastshilp Vikas Yojana: More popularly known as the cluster
scheme, it gives a package of benefits to the clusters of various crafts to mobilize and form
of Self Help groups for conducting training, design, workshops, exhibitions, common
facility centers

4. Competitors

Handicrafts in India: are basically a website of leading Indian handicrafts manufacturers,

suppliers and exporters. Situated in Jaipur, they operate throughout the world. They come
with a wide array of highly beautiful handicrafts in India made by highly skilled and
professional team of artisans.
Being an awarded Indian handicraft manufacturer it allows their customers to get a wide
range of handmade handicrafts with quality certification for the price they are paying.

Dilli-haat: provides the ambience of a traditional Rural Haat or village market, but one
suited for more contemporary needs. Here one sees a synthesis of crafts, food and cultural
activity. This Food and Craft Bazar is a treasure house of Indian culture, handicrafts and
ethnic cuisine.

Hands of India: It showcases the timeless creations made by artisans who are largely
unaware of the real worth of their products. It has created a market which is as easily
accessible to the artisans, as it is to the consumers. HoI is an online store showcasing high
quality and contemporary handicrafts from all over India. All these products are created
using natural items with minimal use of powered machinery, are eco-friendly and carry the
personal touch of a skilled hand.

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 5. SWOT analysis
Strengths-

1. Low Capital Investment.

2. Strong, diversified, retail infrastructure.
3. All the products are at one place.
4. Prevents exploitation of artisans.
5. Promotes tourism.
6. Less Competition and minimum entry of new members.
7. Flexible Production.
8. Ensures employment and well-being of artisans.
9. Potential source of foreign revenue because of higher export.

Weaknesses-

1. Lack of communication.
2. Unawareness of international market and opportunities.
3. Lack of co-ordination between government and artisans.
4. Inadequate information of new technology and market trends.
5. Lack of promotion.
6. Capacity to handle limited orders.

Opportunities-

1. Rising demand for handicrafts from developed industry.

2. Development of domestic and foreign tourism sector.
3. E-commerce and internet emerge as a promising channel to market and sell these
handicrafts.
4. Widespread novelty seeking.

Threats-

1. Competition in domestic market and online portals which sell handicrafts.

2. Balance between high demand and supply.
3. Better trade terms offered by competing countries.
4. Increased and better technological support and R&D facility in developed countries.

6. STEP Analysis-
Social Factors-

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  Make in India is prompting people to buy more Indian goods.
 Europe and USA are open to handicrafts.
 Government is providing employment to craftsmen.
Technological Factors-

 Increased technology support for hassle free billing and payment.

 Increased security.
 Use of software to facilitate record keeping.
Economic Factors-

 Change in exchange rates can affect the earnings.

 Recession can affect the sale of the products.
Political Factors-

 Government has public administration at their disposal and can easily source the
products.
 Changing government can affect the consistency of the service.

The NEED of an ecommerce platform for this business

 This is a government owned showroom and thus the promotion of the product is
minimum. The competition from developed countries will lower the sale of Indian
handicrafts and thus endanger the livelihood of the artisans.
 We live in a world where we are habitual of making decisions at the speed of a
mouse click. In order to increase the sales we need to go global and internet serves
the purpose.
 State Emporia Complex is a physical store which is at one place only. Having an
online shopping website will increase the number of customers. It will open a new
market on global platform. It will increase the sales while decreasing the investment
cost.
 Artisans can sell their products on website just by getting in touch with the
concerned authorities. Artisans need special attention due to their low economic
status and this underlines the importance of the need of livelihood generating
activities based on locally available resources so that gainful employment
opportunities could be created at the doorstep of these people.

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  The website will be exclusive and being owned by the Indian government will build
interest in the foreign buyers and remove any fear of being cheated. The reach to the
customer will be increased manifold and go global.
 Selling to foreign countries will increase foreign money in our country. Also it will
indirectly promote tourism by luring the visitors to the enchanting stories of the
Indian states.
 Creation of an online website will require more workforce for the technological as
well as managerial work. This will create more jobs and increase the employment
level.
 Preservation of our heritage by keeping alive these old traditions and handicrafts by
backing them.

E-Commerce Business Plan

Currently State Emporia doesn’t even have an official website. Government can sell
handicrafts online. Government can hire a software company to make the website. The
website can be indianhandicrafts.gov.in with the tagline ‘Taking India to the World’. The
government can get the website ISO certified which will end the risk of corruption and
increase the good faith.

1. Working:

 As per the proposed system to work, there can be a centralized agency set up in
Delhi, which can co-ordinate between the government and the website management.
 The state government can source the handicrafts from the artisans like it does
currently and display in their showroom and send the selected ones in the warehouse.
Since they have the records of their products they can give it to the centralized
agency.
 The centralized agency can keep the records from all the state government Emporia’s
and share it with the website management who can then upload on the website.
 The website management just has to maintain the website and ensure that it is secure
and user friendly. They can keep the centralized agency in loop so that the number of
products online can be known to them.

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  As soon as a customer buys an item and pays for it, the centralized agency can
dispatch the item and upload the dispatch details which can be then visible to the
customer.

2. Business model:
Since the government is the head of the website and the one with which the customer
is making transaction, the business model is Government to Citizen.

3. Webpage layout
The home page can be categorized state-wise and each of these sections should be
named as their showroom counterpart at State Emporia Complex. One can browse
through the different products. Each of the product’s description should include
material, weight, dimensions and a little about the making of it to give it an emotional
touch.

4. Registration
Buyers in India do not need to register but while checking out they need to enter their
e-mail id and verify their id by the mail sent by the website. Next time when they
shop they will just have to enter their e-mail id but no account will be created on the
site. In case they want to add an item to their shopping cart or wish list they need to
create an account..
Buyers outside India will have to register before purchasing an item. The customers
will be intimidated about their product details, delivery estimate through e-mail or
mobile as per their choice.

5. Delivery
Delivery charges will be applied as per the weight of the item. For India, weight up to
1 kilogram will be free of charge but if the cost is less than INR 500, delivery charges
will apply. If the cost is more than INR 500 and weight is more than 1 kg, delivery
charges will apply. In India government can use the Indian Post for the delivery of
goods.
For customers outside India will have to pay for the delivery charges and other taxes
that will be levied on the item while transporting.

6. Returns, refunds and exchanges

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 For customers outside India no returns or refunds will be entertained unless they
received the product in a broken or damaged condition and the item should be
returned within 1 week. The delivery charges for returning will be borne by the
government. The amount will be refunded within 2 weeks. Customer can exchange a
product for another same/high price product.
In India the customer can return an undamaged item within 2 weeks in the same
condition it received. But the cost of delivery will be borne by him/her and the
amount will be refunded within 2 weeks after receiving the return. In case the item is
broken same rules apply except that the cost of delivery will be borne by the
government.

7. Customer Support
The customer can e-mail, fax or email their grievances, suggestion or queries. They
can also call from Monday to Sunday between 9 a.m. and 5 p.m. IST. In case any
artisan wants to contact the management in order to sell their products they will have
another number. There can be a handicrafts helpline for anyone interested in buying
handicrafts which will not be limited to customers on the website.

8. Special Features
 In order to increase the exclusivity of the products an online bidding can be
organized.
 People can register for Newsletter so that they can receive updates about new
products for sale. Also they can weekly receive e-mails regarding tourism
destinations in India.
 There can be external links to state’s tourism sites.
 Government can have social pages like Facebook, Twitter and YouTube. They can
post videos regarding the making of the handicrafts.
 There can be forums, blogs. The blogs can post stories regarding Indian culture and
history.
 They can post the site’s advertisement on their sister sites like irctc.in or
indiarail.gov.in.
 The site can be integrated with Facebook for its selling operations.
 There can be a news feature which tells about the upcoming art exhibitions in the
country.

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CONCLUSION
E-commerce is continuously progressing and is becoming more and more important to
businesses as technology continues to advance and is something that should be taken
advantage of and implemented. From the inception of the Internet and e-commerce, the
possibilities have become endless for both businesses and consumers. Creating more
opportunities for profit and advancements for businesses, while creating more options for
consumers.
There are several factors and variables that need to be considered and decided upon when
starting an e-commerce business. If the correct methods and practices are followed, a
business will prosper in an e-commerce setting with much success and profitability.

REFERENCES
 http://www.cpdiary.com/attractions/state-emporium.html.
 http://www.delhitourism.gov.in/delhitourism/shopping/baba_kharak.jsp.
 http://tribesindia.com/index.php?option=com_content&view=article&id=90&Itemid=83&lang=en.
 An Analysis of Current Scenario and Contribution of Handicrafts in Indian Economy, Journal of
Economics and Sustainable Development, ISSN 2222-1700 (Paper).
 https://www.shopkhoj.com/delhi/state-emporiums-in-cp/

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