Handicraft business in the UK

Handicraft business in the UKINTRODUCTIONThe objective of this report is to study and prep atomic number 18 the business propose for a commerce business in UK. This business intend deals with the feasibility analysis, idea generation, and industry analysis at both the local and spheric level to understand the commercialise and business factors.The securities industry analysis is excessively d angiotensin-converting enzyme, primarily through the secondary st guiles to capture the potential require of handicrafts in the UK foodstuff and the trends which the customer be looking for in this industry. After analyzing the motive, the good analysis was done for the business.For the success of any business, it is necessary that the idea or the basis of the plan should be strong. But it is bidwise imperative that the plan should micturate into account a true interpret of financials to receive a strong foundation on which the business base be reinforced upon. Therefore i n the report, a detailed preparation of cash attend analysis, profitability analysis and the anticipate expenditure in the business has been taken care of. The report has taken into consideration the risk factor likewise which the business involves to consider before commencing on the work.Handicraft is a business which needs non single financial cap unless besides human capital and it is necessary that dexterous confinement is on hand(predicate) in plenty. The attrition consecrate is low in this industry provided they are provided with adequate support and wages. In the report I harbour tried and true to touch upon that issue as sanitary. Also the manner in which the produces would be sold and enkindled in the foodstuff would be taken care of. We would not be opening our own stores for straight and would be transporting on to other retailers. However the idea of opening the stores is not discarded as whole for now and would be seen as an option at a later sta ge in the life of the business. Heavy spending is aforethought(ip) to promote the products in the initial phase of the business and discordant media vehicles would be tried upon to promote the products well in the mart. The business as of now focusing primarily on the UK market and later on in the later stage, the business female genitals be expanded further.Handicraft exertionThe handicraft industry is one of the most productive sectors in the economy. The crusade being that this sector not save uses the raw materials but in like manner give employment opportunities to a number of lot. Thus not only financial capital and raw material is employed but in any case a lot of human capital is withal apply in this business (Garrison, 2008).According to United Nations Educational, Scientific and Cultural Organization (UNESCO) transnational Symposium on Crafts and the International Market Trade and customs codification, Manila, Philippines, October 1997.Handicrafts can be define d as products which are produced either completely by hand or with the help of tools. Mechanical tools may be used as long as the direct manual contribution of the craftsman remains the most substantial component of the finished product. Handicrafts are make from the raw materials and can be produced in unlimited numbers. Such products can be utilitarian, aesthetic, cultural, artistic and may realize a social, religious and typic significance (Robertson, 2002).Industry psychoanalysisUK has been a country with a wealthy and diverse culture. Lot of migrant people also resides in various parts of the country. It is because of this that handicraft industry has played an important role in this country. The industry provides economic advantage to a greater extent than because of the demand from various strata of the population (Mathias, 2001).Handicrafts fork over always attracted people much because of their cultural importance and it crosses barriers too. The customers in any ma rket look for handicrafts from not only the local market but also from the other countries (Barlow, 1991). Therefore both the cultural and financial determines are attached to this industry. This industry by its mass and merchandise scale lies in the middle class as not much finance and manufacturing facilities are needed in this business. The industry is decentralized and is sweat intensive. Not some players fight in this market and only dispirited players officiate in this area. The sector employs a lot of people and olibanum acts as a medium of employment for lot of people. The sector has seen an subjoin in growth much due to the fact that people have been more open to the culture of other countries and are accepting it more often. The era of globalization has helped in the revival of this industry not only in the UK market but also in other markets too (Andrews, 2009).Classification of Handicrafts IndustryHandicraft products can be distinguished into the hobbyMetal ware woodwind instrument wareHand printed textilesEmbroidered and crocheted goodsShawlsCarpetsEmbroidered goodsBamboo productsZari goodsEarthenware and jute productsMiscellaneous handicrafts dress up Analysis of Handicraft IndustryStrengthsMarket is diversified and has huge potentialPresence of large product variety because of various culturesLow capital investitureFlexibility in production of goods as per market demandLow barriers to the entry of new playersProducts sold are noble measure out ones and have diversified usageWeaknessLack of coordination between governing body bodies and companiesInadequate information on the up-to-the-minute market trendsLack of skilled labourOpportunitiesDevelopment of domestic tourism sector which helps in boosting sales. utilization of internet and other technologies in boosting the market potentialRising demand because of people becoming more open to culturesThreatsLack of branding opportunities in this sectorThreats from the developing countries like India and China in terms of resources moving in PropositionWe would be dealing in the limited confine of handicraft industry as many products come under its purview. Our play along would table service the needs of the customers in only the woody handicrafts market. The reason for choosing this is that in UK market these products are used almost in every home. Products like nonfunctional chairs, desks, beds, sofas which are made by hand are seen as high esteem products in the market as customers look for something different. Particularly for the UK customer, they need products which not only serve their functional purpose but also add something extra. It is with this that we plan to enter in this industry with this specific set of products.Wooden handicrafts refer to a wide range of wooden items carrying utilitarian and artistic value that are made by hand o with the use of simple tools. They are made by unmatched workmanship, have fine designs and have subtle elegance. T he products require low capital investment to manufacture. The wooden handicraft sector provides a high ratio of value addition and has emerged as one of the major sources of foreign exchange in the country too. (Sumption, 2010)Market AnalysisMajority of the current players in the market deal in almost all the product categories in the wooden handicraft industry. (Macleod, 2006)Retailing is not done by them and they deal in mostly the production part. They have retailing contracts with other partners which help them sell the productsMonthly production units are majorly in the range of thousands of units for all the products uniteWooden and glass handicrafts are majorly in demand in the UK market. (John, 2006)Inventories are usually kept low as these products are sold and produced in lower units in the market.Almost all the players in the market lock the labor at a contractual basis rather than on a permanent basis.Many of the players take the route of exhibition to promote their pr oducts to the customers. (Mathias, 2001)These products are high margin products as they are mainly value based ones. indeed high margin and medium volume is loosely the trend in the industryCompetitionThe following players currently operate in the market and sell wooden handicrafts in the market.World guile and Crafts Ltd.Java ArtElements Ltd.Demand Analysis and ForecastingDuring our study we also analysed the demand pattern for the various products in the wooden handicraft market and it came to around 50000 units per month on approximation. There is a demand show gap in the market as according to our supply the current players in the market are able to provide close to 30000 units only. Hence we consider a huge potential to be catch up in the market.(Boseley,2009)The market is growing closely at an annual rate of 15%. Hence it is decided that the capacity would be initially 60% for the origin year and then it exit grow accordingly.Marketing giveAs mentioned before, our busine ss involves only manufacturing the products. Therefore we would use a communicate of retailers called partners to sell our products in the market. These would be mainly big retailers like WalMart, Tesco etc.Strategic Marketing PlanWooden handicraft particularly the article of furniture part is an unbranded commodity and hence manufacturers generally do not have to spend too much on the promotional part. It is break-dance for them to increase the margin given to the retailers so that they push the company product more in front of the customers.However in order to discover our offering and to capture the customer base, it is necessary to have a basal strategic marketing plan. The following would be the strategies used by usSteady supply with timely delivery to fulfill the demand in the market thereby providing products with high qualityProducts would be given stress on the design front. Designs would be based on several themesOrders would also be taken online from the customers apart from being available in the retailThe company plans to both manufactures the products locally in the UK market as well as import some of it from the Indian market. Indians play a decisive role in UK both in terms of trade and demographics and frankincense there is a market to serve the Indian community.The other reasons to source the products from India areThe demand for Indian wooden handicrafts is evergreen. It is both difficult for the labour in UK to produce these handicrafts as the design in Indian art work is quite intricate. Hence it is decided that some portion of our products would be sourced directly from the Indian producers, mainly based in states like Rajasthan and Madhya Pradesh.Indian being a developing country, both the labour and raw materials are quite cheap as compared to other developed countries. Hence it makes grit to outsource some of the production work.Indian artisans are well know around the world. British make a major portion of the people visiting India every year and hence they come in abut with Indian art and culture too. Thus getting products from market like India helps in understanding the customer taste and keep the product portfolio up to date.Some of the Indian players which have been shortlisted and considered for sourcing of the products are as followsKhan humanities IndiaMadnik InternationalGoyal IndiaIndus TradeHandmade CraftsAntiquity HandicraftsAll the products in the portfolio would be sourced from these six major exporters in India. These players have been selected aft(prenominal) thorough seek of their business and their financials. They enjoy good reputation in the Indian market and also export to other players in different countries. It is decided to have business with six players as it will help us shift our risk and help us maintain a steady full point of products from India. These players are from different parts of the country and thus the products served by them would have different designs as In dia being a vast country has many sub cultures which attract many people worldwide.Technical AnalysisWood carving is a time consuming process as craftsmen take time to make every piece. The process may take a week to months depending upon the level of intricacy in the design. The process use a lot of different tools also like saw, lathes, drills, chain saws etc.Machinery referThe following machinery would be used by the workers in the businesschemical substance treatment plantSeasoning plantSurface planner submarine sandwichDrillerGaze machineSanding machineStructure and Civil Work advertise RequirementsHandicraft is a labour intensive product and thus a lot depends on the kind of labour employed.Financial Analysis introductory Assumptions underlying the financial projectionsThe construction period will last one yearThe company would work 365 eld a yearThe expected capacity utilization will be 60% in first year, 65% in second year and the increment based on past performance.The te rm bring would be re-paid in 14 compare half-yearly installments. The interest rate on the outstanding term loan would be 12%The bank finance for working capital will cost interest rate 12%The depreciation rates for company law purpose would beBuilding 3.34%Plant and Machinery 8%Misc unconquerable assets 5%The suppliers for raw material would provide credit for 15 daysThe salvage value is assumed to be 5% of fixed assets. sales ForecastSales Forecast (units) class20102011 2012Units95001200015000ConclusionThe business plan has been vigilant keeping in mind all the factors and taking financials to the best of the contribute picture. It is therefore expected that the actual outcome would represent the true picture of this outlined plan.Finally, my personal interest in this field will break to establish my own business. These will result in successful and sustainable business.ReferencesAndrews, J.(2009).Handel allinglese, Playbill,. Accessed from http//www.playbillarts.com/feature s/article/4236.html (Last Accessed 5th inch 2010)Barlow, I.( (1991) Metropolitan Government. Accessed from http// www.new.wales.co.uk (Last Accessed 5th March 2010)Boseley, S (2009). The question Whats behind the baby boom? The Guardian. Accessed from http//www.guardian.co.uk/lifeandstyle/2008/jul/14/familyandrelationships.women (Last Accessed 5th March 2010)Garrison, Webb B. (2008).Why You Say It. Accessed from http//www.readbooksonline.net (Last Accessed 5th March 2010)MacLeod, Donald (2006). Britain second in world seek rankings. The Guardian. Accessed from http//www.guardian.co.uk/education/2006/mar/21/highereducation.uk4 (Last Accessed 5th March 2010)Mathias.P (2001). The First industrial Nation the Economic History of Britain. Accessed from http//www.johnbirchall-economist.com (Last Accessed 5th March 2010)Mathias.P (2001).The First industrial Nation the Economic History of Britain. Published by Routledge, ed.2, pp. 56-58Mensah. J (2006). British culture on a high rise.Rober tson, Kirsty (2006), How to Knit an Academic Paper. queen University, 30 March 2006Sumption, M.(2010). The UKs new Europeans Progress and challenges five years after accession. Equality and Human Rights Commission. Accessed from http//www.equalityhumanrights.com (Last Accessed 5th March 2010)BibliographyBhagat, Usha, Life to a last art, The Hindu Folio, 21 March, 1999, pp. 45-56Rajkumar, Nonika, Life to a Dying Art of embellishment The Chmba Rumal, House Calls, Vol 2, No. 1, March-April 2000, pp 12-21.Philippson, Peter, British Gestalt Journal, Vol.1 No.1, July 1990Chamberlain, A. H., Opportunities and limitations of paper and cardboard in school, manual(a) Training Magazine, January, 04, p 34Cremins, J. C, Design in the primary grades, Year Book, Council of Supervisors of the Manual Arts, 2006, pp 74-76.Daniels, J. F., Library handicraft at Greeley, Manual Training Magazine, Jan., 2001.Dodd, A. E., handicraft training for the normal student, Proceedings Eastern Manual Training A ssociation, Ed. 2, pp 93-101Bailey, H. T., Analysis of modern printing, The Printing Art, May, June, 2007, pp -84-89.