1. Project #3: Trend Analysis: Artisan/Craft Phenomenon
Jacqueline Doherty CM711 Consumer Insight & Account Planning
November 6, 2014

3. Artisanal food, goods, beer, and crafts have increasingly become a prominent trend over the past couple of years. The artisanal marketplace is now so broad that this whitepaper will focus solely on the craft goods category as this is the key market for handcraft producers. The craft goods artisanal category is defined as useful or decorative devices made completely by hand of using only simple tools.

4. Consumers are drawn to brands who conduct ethical business practices and avoid mass production
Consumers are in search of uniqueness, particularly in the craft and home décor category
There is a demand for objects with a backstory
The internet opens doors for broadened buying and selling of artisan products
Consumers have a strong dignity on the sourcing of the products they purchase, and have visibility and opposition to unfair working conditions, unethical business practice, and mass manufactured products. Supplementing this distrust and distaste for brands whose products are produced either with unsustainable materials or under poor working conditions, consumers are searching for uniqueness in the goods that they purchase. Particularly in the craft and home décor category, customers seek objects that have meaning behind them, tell a story, and provide a differentiated product experience from the ones their friends and neighbors have. Research has shown that usage of the “word ‘handmade’ evokes feelings of warmth, comfort, and craftsmanship” (“You Made It Yourself: Now What? 29 Places to Sell Your Handmade Creations”, TJ McCue) and artisan products are able to provide those emotional attributes consumers are looking for.
In the past, artisanal products were either accumulated as souvenirs or were sold to those with disposable income through a traditional export/import process. Today, artisan products are more widely and easily available due to technology and the internet which allows artisans to sell or connect directly to consumers. It is fair to say that the e-commerce boom has been the growth steroid of artisan craft demand and supply.
While Pinterest, Etsy, and Novica are the clear leaders in the online artisan good buying and selling market, there is no shortage of sites which have a clear mission to lower costs of handmade products for consumers while increasing profits for artists all over the world.

5. Artisan product demand will increase year over year
Introducing handmade products provides a competitive advantage and leaves a positive impression on consumers
IKEA and West Elm have successfully implemented artisan lines
Research from the US Agency of International Development study, “Aid to Artisans: Building a Profitable Craft Businesses,” predicts the trend continuing to increase year over year, stating that “consumers and retailers are increasingly demanding handmade, ethically sourced products that are differentiated from mass-production.” Evidence shows that introducing handmade products provides a brand with a competitive advantage and leaves a positive impression on consumers.
IKEA and West Elm are two large home décor suppliers who have already successfully implemented artisan lines within their overarching brands in order to support artists and build positive sentiment towards their business practices.
It is recommended that brands put thought to introducing artisan or handmade products to support a growing community, trend, and demand. While this shift is a large undertaking for any company, artisan products can be introduced slowly over time.

6. Spread the word Target artisan e-commerce outlet communities
Provide detail on why you’re supporting the artisan community, RTBs, and arts backstory
 Consumer facing communication of the introduction of handmade craft goods will be an important component of rollout. Advertising should be targeted at the Etsy, Novica, artisan-enthusiast community. Messages about why the brand is supporting the artisan community, benefits of product uniqueness, cultural objects, and the story behind the product as well as the artist will be crucial to the success of the advertising as it will resonate emotionally and appeal to consumers. Choice of product and support of creativity and artistry will also be winning messages.

7. Wrap Up
Issue: Artisan product demand has increased due to consumer interest in a deeper connection to goods and demand for ethical business practices
Opportunity: Ability to easily buy and sell handmade products through the internet
Solution: Brands should support artisan culture, selling handmade products
Advertising: Support messages focused on the story of the product and the artist who created it

8. Sources