Success Drivers of Urban Haats Selling Craft Products

Abstract

Craft industry is as much the mainstay of the rural economy after agriculture. It provides occupation to a large section of population. However, it is characterised by fragmented individual artisans on one side and dispersed customers on the other. It also suffers from market separations. Urban haats were set up with the objective to present artisans and buyer on one platform and reduce these separations. In this study urban haats have been conceptualised as marketplaces that bring artisans and customers at one place to optimise their respective values. They also serve as a tool for disintermediation and a social distribution initiative and represent a retailing initiative in the inclusive entrepreneurship domain. This study focusses on identifying drivers of success of urban haats. Using a mixed method approach, data was collected from Haat officials and NGO members through personal interviews. The data from artisans and customers was collected through a survey using a structured response format. The study was conducted at 18 haats in 10 states. The study highlights the factors that drive satisfaction of artisans and customers and the role of administrators in making the marketplace a success. Customer consider diversity of the products, quality of the products, behaviour of the salesperson, price parity with other markets, buying experience, parking space and aesthetics of the stalls as major influencing factors for the recommendation of the haats to other customers. Most important attributes of the haats in driving artisan satisfaction were stall allotment system, haat location, advertisements, product promotion and monitoring. It is also found that while the infrastructure is necessary, it is not sufficient in enhancing the performance and sustainability of haats. Administration of these haats plays a defining mediating role. Based on these findings, an approach is proposed for success of urban haats.