The Indian Crafts market is worth over Rs 4,000 crore, and that is growing fast.
However, retailers like Kancan, which offers wholesale craft goods at competitive prices, are struggling to keep up.
The company, which also sells online craft supplies, was acquired by Snapdeal last year for a hefty sum.
Now, Kancaans wholesale craft supply business is struggling.
“We are growing at a fast rate, but we have not kept up with the growth.
We have to make sure that we continue to improve our supply chain.
We need to have a better supply chain, we need to be better organised and we need better staff,” said Kancano.
The Indian Craft craft supply chain is very fragmented, with retailers offering different brands of craft.
There are a number of online craft shops selling online crafts.
But most of them offer products at affordable prices.
According to a survey by IAC, nearly 60 per cent of online retailers are not offering a good quality of craft products.
“We have to look at how we can improve our distribution channel,” said a Snapdeal spokesperson.
The Snapdeal representative said, “We are looking at the supply chain for the Indian Craft brand.
There is a huge gap between the two brands.
We are also looking at what is the best place for craft suppliers to set up.
This is something that we are looking into.
We also want to ensure that we have a proper supply chain and that our supply is consistent across the various platforms.”
While there are many online retailers selling wholesale craft products, Snapdeal has become the largest retailer in the Indian craft market with over 2,000 stores.
“Snapdeal is a leader in the industry.
We see a lot of growth in this space.
We want to take our craft business to a higher level,” said the Snapdeal India spokesperson.
While Kancans own retail stores, they also offer wholesale craft at prices competitive with the big players.
For example, Kankarisan, which was founded in 2006, offers wholesale crafts at affordable price at Kancanos own retail store in Mumbai.
“The prices of craft items are really competitive.
It’s something that Snapdeal is really good at,” said M.R. Nair, who is CEO of Kankaran Crafts, a craft supplier based in Mumbai and Mumbai, India.
“The Snapdeal brand is a brand that has really come up in the craft sector.
It has really become a strong brand in this market,” said Nair.
He added, “Our prices are competitive.
Snapdeal can help us with the logistics.
Snapdeals prices are good.
Snapsale can help with the brand.”
Kancan also has a big online retail presence.
In the last year, the company has expanded its online presence.
“I have been working with the team for about three years now.
Our team has grown to about 1,000 people.
We started selling online in August 2017 and our team now has more than 1,500 people,” said Shishir Nair (who runs Kancani online craft store), adding, “Now we have more than 2,500 employees and we are planning to launch our online store in the coming days.””
We have been selling online for about two years now, and the demand is really high.
People want to get their hands on the craft.
I am sure that in the next two years, we will have more outlets.
Our online store is a great platform for us to build our brand and build awareness.
We aim to reach more people and create a better experience for people,” added Nair adding, Kani has already been selling craft for the last two years.
While Snapdeal was acquired, Kanchana was not sold.
Kanchani was founded by Ravi Kancain and is based in Bengaluru, India, and has been in the online craft business for more than 10 years.
“Since the acquisition, SnapDeal has not been there for us.
They had given us the opportunity to be a standalone business.
But Snapdeal did not let us do that.
We were given a license to be independent.
We chose Snapdeal as our sole partner,” said Sajan Kancanian, CEO of Snapdeal in India.
He said that Snapdeals acquisition of Kancanyans wholesale supplies business will allow the company to expand and make better decisions on the supply chains.
“This will also allow us to increase the number of Kanchans stores.
We will be able to grow at a faster rate.
We do not want to close down any shop.
We plan to keep increasing the number,” said Mr. Kancannan.
SnapDeal also has an online retail store for domestic customers.
The site offers craft and wholesale crafts and offers a lot in terms of products.