JOURNAL PUBLICATION

Local Handicrafts Marketplace

Albeno Lucban Bautista

College of Business Administration/Institute of NTSP and ETEEAP (INE), Polytechnic University of the Philippines,
Philippines
College of Business Administration/ Institute of NTSP and ETEEAP (INE), Polytechnic University of the Philippines,
Philippines

ABSTRACT

The handicrafts industry is crucial for preserving cultural heritage and creating economic opportunities for artisans.
However, many artisans encounter difficulties in marketing and selling their products due to competition from mass-
produced items, a lack of online presence, and limited access to larger markets. This study explores the possibility of
creating a local handicrafts marketplace that connects artisans with buyers through both an online and a physical
platform.

A mixed-methods approach was used, incorporating surveys and interviews to assess market demand, customer
preferences, and the challenges faced by artisans. Survey findings reveal a strong consumer interest in handmade
products, especially for their uniqueness and cultural value. Nevertheless, artisans often struggle with visibility, pricing
strategies, and inconsistent sales. The study proposes that a combined marketplace—featuring both an e-commerce site
and a physical store—could help overcome these obstacles and boost artisans’ business prospects.

Financial analysis indicates that such a marketplace can be economically sustainable with the right marketing and
operational support. Furthermore, training programs focused on digital marketing, branding, and pricing strategies are
suggested to empower artisans to compete effectively in the market. This study concludes that a well-structured
marketplace can foster sustainable livelihoods for artisans while celebrating Filipino craftsmanship and cultural
heritage.

I. INTRODUCTION

Handicrafts are an essential part of cultural heritage and play a vital role in supporting local economies. In the
Philippines, artisans create a diverse range of handmade products, including textiles, pottery, jewelry, and home
décor, reflecting the country’s rich artistic traditions. However, despite the cultural and economic significance of
handicrafts, many artisans struggle with visibility, marketing, and reaching a wider audience. Traditional selling
methods, such as local markets and bazaars, limit their ability to scale their businesses and compete with mass-
produced goods available online and in commercial stores.

The rise of e-commerce presents an opportunity to bridge this gap by providing artisans with a structured
marketplace where they can showcase and sell their products. A dedicated Local Handicrafts Marketplace could
serve as an online and physical platform, allowing artisans to connect with both local and international buyers. By
leveraging digital tools, social media marketing, and partnerships with cultural organizations, such a marketplace
can help artisans expand their reach, increase sales, and sustain their craft.

This study aims to assess the feasibility of establishing a Local Handicrafts Marketplace by evaluating market
demand, economic viability, and operational challenges. It also explores potential strategies to ensure its success,
including marketing approaches, financial sustainability, and artisan support programs.
 II. EXPERIMENTAL METHOD/S
This study employs a mix of qualitative and quantitative research methods to gather detailed information on market
feasibility. The approaches include:

 Surveys
Conducted with potential customers to evaluate their buying habits, interest in handmade products, and
support for local artisans.

 Interviews
In-depth discussions with local artisans to gain insights into their experiences, challenges, and business
requirements.

 Market Analysis
Analyzing the current competition, pricing strategies, and potential customer demographics for
handicrafts.

 Financial Feasibility Study

Estimating costs, potential revenue, and profit margins for setting up a local marketplace.

The collected data is analyzed to uncover key trends, customer preferences, and gaps in the current handicraft
industry. These findings will inform recommendations for establishing a successful marketplace.

III. RESULTS AND DISCUSSION

Market Demand and Consumer Preferences

The study found strong demand for locally made handicrafts, particularly from consumers who value cultural
heritage and sustainable products. Survey results indicate that 78% of respondents prefer handmade products over
mass-produced goods due to their uniqueness and authenticity. Additionally, 65% of respondents expressed
willingness to purchase Filipino handicrafts if they were easily accessible through an online marketplace.

Table 1. Consumer Preferences for Handicrafts

Consumer Preference Percentage (%)
Prefer Handmade over mass-produced 78%
Willing to buy handicrafts if available online 65%
Interested in sustainable and ethical goods 70%
Concerned about pricing of handmade products 45%

These findings suggest that the demand for Filipino handicrafts is growing, particularly among environmentally
conscious and culturally appreciative consumers.

Challenges Faced by Artisans

Interviews with local artisans revealed several key challenges in selling their products, including lack of digital marketing
knowledge, difficulties in logistics, and inconsistent demand. Artisans also struggle with material sourcing and pricing strategies,
which affect their profitability.

Table 2. Challenges Faced by Artisans

Challenges Percentage of Artisans Affected
Limited online presence 72%
Difficulty in logistics and shipping 65%
Inconsistent demand 58%
Lack of business and Pricing Knowledge 60%

To address these challenges, the proposed Local Handicrafts Marketplace would integrate digital marketing support, logistical
partnerships, and financial training programs to help artisans improve their business operations.

Financial Feasibility Analysis

The financial projections indicate that the Local Handicrafts Marketplace can generate sustainable revenue through a combination of
commissions, subscription fees, and advertising. The estimated initial investment is PHP 500,000–PHP 1,000,000, primarily for
platform development, marketing, and operational costs.

Projected revenue sources include:

Commission-based sales: 10–15% of each transaction

Subscription fees: PHP 500 per artisan per month

Advertising revenue: Sponsored product placements

Table 3. Financial Projections

Year Estimated Revenue (PHP) Estimated Profit (PHP) Break-even status

Year 1 2,000,000 800,000 No (expected in year 2)
Year 2 8,000,000 3,500,000 Yes

The break-even point is expected within 12–18 months, with profitability increasing as more artisans and consumers join the platform.

Summary of Findings

The study confirms that there is a viable market for Filipino handicrafts, but artisans need structured support to scale their businesses.
Key recommendations include:

1. Developing a user-friendly e-commerce platform with logistical partnerships.

2. Providing training programs on digital marketing, pricing strategies, and financial management.

3. Establishing collaborations with cultural organizations and government agencies to promote Filipino crafts.

4. Implementing targeted marketing campaigns to attract both local and international consumers.

IV. CONCLUSION
The study confirms the feasibility of a local handicrafts marketplace, highlighting its potential to preserve cultural
heritage while providing artisans with a stable income. By integrating a well-structured physical and digital
platform, artisans can overcome traditional barriers and increase their customer reach.

To ensure long-term success, the study recommends:

1. Providing artisans with digital marketing training.

2. Establishing partnerships with tourism sectors and local businesses.

3. Implementing effective branding and pricing strategies.

4. Exploring sustainable material sourcing options.

Future research could focus on the role of technology in transforming the handicraft industry and expanding global
market access for artisans.
V. REFERENCES

Philippine E-Commerce Market Overview – Department of Trade and Industry. (2023). Retrieved from
https://www.dti.gov.ph

Handicrafts Industry Analysis in the Philippines – Philippine Statistics Authority. (2023). Retrieved from
https://psa.gov.ph

E-Commerce Trends in Southeast Asia – Google & Temasek/Bain & Company Report. (2023).
Sustainability and Ethical Consumption Trends – Nielsen Global Survey. (2022).
Digital Payment Adoption in the Philippines – Bangko Sentral ng Pilipinas. (2023). Retrieved from
https://www.bsp.gov.ph

Etsy Seller Handbook – Etsy, Inc. (2023). Retrieved from https://www.etsy.com

Philippine E-Commerce Act and Data Privacy Act – National Privacy Commission. (2023). Retrieved from
https://www.privacy.gov.ph

ACKNOWLEDGMENTS
The completion of this feasibility study would not have been possible without the invaluable support and contributions of the
following:

 Local Artisans and Craft Cooperatives – For their insights into the challenges and opportunities within the handicrafts
industry in the Philippines.

 Department of Trade and Industry (DTI) – For providing relevant data on the e-commerce landscape and local business
regulations.

 Industry Experts and E-commerce Consultants – For their strategic guidance on platform development and market
penetration strategies.

 Family and Friends – For their constant support and encouragement throughout this study.

 Mentors and Advisors – Whose expertise and feedback have been crucial in refining the concepts and recommendations
presented in this study.

APPENDICES/SUPPLEMENTARY DATA
1. Appendix A: Survey Results – Detailed findings from market research surveys conducted with local
artisans and potential consumers.
2. Appendix B: Financial Projections – Comprehensive financial statements, including cash flow, profit and
loss, and break-even analysis.
3. Appendix C: SWOT Analysis Breakdown – In-depth examination of strengths, weaknesses, opportunities,
and threats, including mitigating strategies.
4. Appendix D: Technical Architecture – Overview of the proposed e-commerce platform’s system
architecture and technology stack.
5. Appendix E: Marketing Strategy Framework – Detailed marketing plan, including target audience
segmentation, branding strategy, and digital marketing channels.
6. Appendix F: Risk Management Matrix – Risk assessment and mitigation strategies, categorized by market,
 operational, technological, financial, regulatory, and competitive risks.
7. Appendix G: Legal and Compliance Requirements – Summary of relevant e-commerce regulations,
including the E-Commerce Act and Data Privacy Act compliance requirements.

AUTHOR/S NOTE

This feasibility study was prepared by Albeno Lucban Bautista, with the aim of exploring the potential for
establishing the Local Handicrafts Marketplace in the Philippines. The insights and analyses presented are based on
extensive research, data collection, and consultation with industry experts.

The authors acknowledge that the handicrafts industry is dynamic, and the trends, financial projections, and market
conditions may change over time. Therefore, this study serves as a foundational document that should be revisited
and updated as the project progresses.

We sincerely hope that this feasibility study not only guides the implementation of the Local Handicrafts
Marketplace but also contributes to the empowerment of Filipino artisans and the preservation of cultural heritage.