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IndiaShop Project - India

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The Foundation of Occupational Development (FOOD) launched a project in an effort to find out if e-commerce could be used as a source of income for women cooperatives, local artisans, and non-profit organisations in rural areas in India. An online store for indigenous handicrafts was created; educated, unemployed youth were also trained to function as e-marketers to promote products online and obtain a sustainable source of income for themselves.
Communication Strategies
To initiate the project, FOOD identified 300 women cooperatives and community-based organisations producing indigenous products. Linkages with local artisans and manufacturing groups were made through FOOD's existing work in the surrounding communities of Tamil Nadu. (FOOD took into account the longstanding relationships artisans have with middle men in the manufacturing sector. Working within these relationships, organisers say, is important when artisans cannot be offered a guaranteed monthly income or a secure long-term contract.) They then collected information on these products, selecting 1,000 product samples and photographing them using a digital camera. In 2000, FOOD set up a pilot e-commerce site and oriented the featured artisans and organisations on e-commerce.

Educated, unemployed youth were also trained to function as e-marketers to promote the products for sale in IndiaShop and to make personal contact with customers. This activity reflected FOOD's strategic decision to provide educated local youth with employment appropriate to their skill base, enabling them to stay in the area rather then leaving for bigger cities. Two full-time e-marketers have permanent online access through facilities available at the FOOD office; many other part-time e-marketers work outside the organisation to promote the site using a telecentre or Internet café. They promote the site in chat rooms and newsgroups, provide further information on specific products to interested customers, and send out email newsletters giving details of new products. FOOD supported these e-marketers by providing each of them with his or her own homepage so that visits and purchases could be tracked more accurately.

After an order is received, a confirmation email is sent to the buyer, and the order is sent to the local artisan (often by hand, since many artisans do not have access to a telephone). Products are not held in stock, but, rather, are commissioned from artisans on receipt of order. FOOD helps the cash-flow of artisans by paying 50% of the order up-front.

As of this writing, the name of the online shop (along with the URL) has changed to InternetBazaar.
Development Issues
Women, Indigenous Art, Youth, Economic Development.
Key Points
Established in 1983, FOOD India is a non-profit organisation that conducts research on social development and implements welfare programmes in the fields of employment generation, poverty alleviation, cost-effective housing, education, health, water and sanitation, energy conservation, ICTs, NGO networking, e-commerce, and institutional and capacity building for women networks.

During the first year the site achieved up to 1,000 visitors a month, and generated a profit of 75,000 rupees ($1500) for the artisans. Most visitors (83%) were from the USA.
Partners

FOOD, Council for Advancement of People's Action and Rural Technology (CAPART) (Government of India). Initial project development funded by the International Development Research Centre (IDRC).