The history of Indian handloom dates back to ancient times, with handspun fabrics reaching distant shores like the Cape of Good Hope and even Russia. According to IBEF, India exported US$ 10.94 billion worth of handloom textiles and other products in 2022-23, reflecting the enduring global appeal of these traditional fabrics.
However, the domestic scene presents a different picture. The demand for classic handloom designs such as Kanjeevaram, Bandhani, Jamdani, and Mekhela Chador is currently subdued. Indian handloom remains predominantly confined to rural areas and weavers’ backyards. Although government initiatives, celebrity endorsements, and social media are bringing traditional crafts into the mainstream, these efforts are often limited to rural haats, seasonal fairs, and occasional trade exhibitions.
A swift revival of textile heritage depends on reaching a broader consumer base, and eCommerce presents a promising solution. On this National Handloom Day, let’s embrace a digital renaissance for the handloom sector and explore potential solutions to the logistical challenges impeding its eCommerce growth.
A Faithful Leap Towards Digitalization
Historically, nearly 73% of independent weavers relied on traditional middlemen or masterweavers for marketing and sales. However, the rise of eCommerce and associated technologies has revitalised the handloom sector. With 125 million people shopping online today, and a growing eco-conscious movement favouring hand-dyed and woven products, there is renewed appreciation for handloom textiles.
Many handloom cooperatives and self-help groups (SHGs) are now migrating to online marketplaces, supported by initiatives such as the Amazon Karigar project and ONDC. Gen Z and millennial social entrepreneurs are collaborating with artisans and master weavers to showcase the sustainability, durability, and heritage of handloom textiles to an online audience.
eCommerce brands led by women weavers and founders, such as The Indian Craft House, Suta, Anavila, Eka, and Ekaya Banaras, are inspiring consumer confidence in handmade weaves by blending traditional craftsmanship with contemporary designs. A common theme among these brands is their focus on overcoming shipping and delivery challenges despite significant logistical issues.
Logistical Duress of the Handloom Sector
> Lack of Rural Connectivity
The handloom industry struggles with modernization due to poor rural connectivity. According to the Fourth All India Handloom Census 2019-20, 88.7% of weaver and artisanal households are in rural areas, with only 26% having all-weather roads. This hampers timely inventory sourcing and the uninterrupted flow of finished goods.
> High Costs of Shipping and Last-Mile Deliveries
Shipping costs, including packaging, labeling, labor charges, toll tax, and inventory distribution, significantly impact the finances of D2C brands and handloom cooperatives. Reliance on aggregators and middlemen leads to inefficiencies and a lack of shipping transparency. Limited use of multiple-carrier shipping software prevents access to competitive rates and better services.
> Inadequate Digital Literacy
The Handloom Census reveals a major disparity in education and training among handloom weavers. With 23% having never attended school and many stopping at the secondary level, the lack of skill development and technology dissemination poses a significant barrier to building online businesses and using automated logistics systems.
> Inefficient Self-Shipping and Fulfillment Options
While eCommerce platforms demand traditional fabrics, high onboarding fees and commissions for preferential listings pose challenges. With 93% of handloom workers earning less than Rs 5000 to 10000 a month, opening multiple sales channels is nearly impossible. Limited warehousing and transportation options further restrict self-shipping and fulfillment, increasing costs.
Making Handloom a Self-Reliant Sector
Addressing these logistical challenges requires an integrated approach, including rural upliftment, skill enhancement, and innovative technologies such as Paytm’s soundbox for simplifying online transactions. Increased involvement from corporate social enterprises, NGOs, and government programs is supporting the digitization journey of weavers. The handloom business incubator Chitra Foundation exemplifies this support.
The ONDC project also incentivizes artisans and producer companies to explore online selling without high costs. Its community-led networking of multiple eCommerce platforms simplifies product discoverability, fair pricing, and direct sales, reducing dependency on exclusive logistics service providers.
Although handloom weavers face issues with storage and inventory management, online visibility offers new possibilities. Omnichannel logistics can be transformative, allowing traditional retail outlets to manage inventory while digital storefronts reach wider audiences. Implementing a ‘Buy Online Pick Up In Store’ strategy at the intercity level could reduce shipping expenses and provide weavers with more fulfillment options. Enhanced rural connectivity and hyperlocal deliveries could further boost sales and industry growth.
eCommerce has bridged the gap between consumers and the handloom craft, rekindling interest in traditional fabrics like sarees, sarongs, and shawls. Ensuring the welfare of the handloom community and maintaining the supply of these timeless creations depend on addressing logistical challenges promptly.
