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Jun12
Bhutan cottage industry : A big failure in the international market
A recent study revealed that lack of understanding on how to sell products internationally, high cost, and poor quality are the major reasons behind the failure of the UNDP backed Bhutanese handloom project. Five years ago, UNDP started a pilot project to sell Bhutanese handloom products in the international market through internet. The main goal of the project was to revive the Bhutanese handloom sector and enable the workers to get better value for their products. UNDP gave $206,000 for the project. Unfortunately, it had to be shut down. A two year study, which tried to analyze the reasons behind its failure, found out that lack of knowledge on how to make products according to the international standard, high cost and poor quality were the main reasons.

Kuensel Online reports:

“Everyone says that our textiles are priced too high. But no one actually knows why it’s so,” said the culture and development coordinator with the United Nations development programme (UNDP), Joseph Lo.

The study did a production process and cost detail comparison between Bhutan and Laos, which also has a strong hand weaving culture. Individual weavers, a handicraft company and a weaving centre in Bhutan were asked to weave a Khaling silk piece. Weavers in Laos were asked to replicate the same.

The individual weavers could not get the size right, the weaving centre got the colour wrong and the handicraft company failed to get the quality right, whereas the pieces from Laos were close to the original requirement in terms of colour, size and quality.

“And all the pieces made in Laos are cheaper than the ones made in Bhutan,” said Joseph Lo.

Bhutanese weavers 

Another big determining factor was the weaving tools. The weavers of Laos use handlooms which are quicker and good for their health. On the contrary, Bhutanese weavers use backstrap looms. The study also recommended that Bhutan should try to buy silk products from Bangladesh, China, India, and Vietnam by establishing a supply chain. Instead of using detergents to clean the products, the weavers should use shampoo so the silk fiber does not lose its shine. The study also recommended that a dying center should be established and upgrading of yarn knowledge is very much necessary.  

Kezang Lhendup who employs 20 weavers said that it was very difficult to get same colored yarns and transportation costs had to be included. Moreover, the hour based payment system is not good for the weavers. They would earn less compared to what are they earning now under hour-based payment system. If the price of clothes were reduced, the weavers would incur losses.

Well, I think, at this stage, Bhutan should not think of selling its handloom products. It should devote few years to build better infrastructure, train its weavers and people, related to the industry, to gain better understanding of the international market. They should also determine which countries they could target for their products, their qualities and the demands of the buyers. Then it should go for marketing and selling. 

Related article:
Kuensel Online

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