Sociology

Arts and craft industry  an overview
The globalization of economies and opening of international markets have created new opportunities and market scope for industries across the world. The past few decades have witnessed overwhelming changes in the way organizations have shaped their business strategies and adapted to new modes of technology and collaboration tools for gaining market competitive advantage. The dot com revolution has made significant impact on human lifestyle and dramatically changed the approach to spending leisure hours, meeting business meets, devising marketing strategies, and shopping for necessities. Industries have re-engineered new ways to connect to their consumers and promote their goods and services. The arts and crafts industry too has evolved over the past few decades to encompass widespread changes in the way the industry operates.

The arts and craft industry are creative sectors that have contributed to economic and social growth over the centuries. However, this industry has received very little focus in the past few decades and hence remains an under-utilized sector contributing little to economic growth and development. The sector is characterized by low financial investment, low profits and low earnings that provide little motivation for people to venture commercially into this field. Most of the artists and artisans involved in this industry sector have set up their establishments more as centre for pursuing individual interests than financial gains. The arts and crafts industry faces severe challenges in the form inadequate financial resources, low commercial viability in comparison to other industries and lack of interest and motivation in the younger generation to take up arts and crafts as a profession. The paper provides an in-depth analysis of the arts and crafts industry in the United States and the changes that have shaken the industry structure in the past few years. The paper highlights the transformations in the industry through various perspectives  historical, political, economic and social  that have shaped the industry future and trends. Based on these insights the discussion provides a synoptic view on future industry trends and prospects.

The arts and crafts industry structure
The arts and crafts industry encompasses a wide range of activities that forms a medium of individual expressions in the form of visual, aural or sensory communication.  These include paintings, sculpture, weaving, handicrafts, and pottery among others. Art for centuries has been the expression of individual culture and values reflected by the immediate community. The following definitions of the arts and crafts have been provided for improved understanding of the industry sector discussed in the paper -

Artisanal products, also referred to as craft products cover a wide range of items that by definition are produced by artisans, either completely by hand or with the help of hand-tools and even mechanical means, as long as the direct manual contribution of the artisan remains the most substantial component of the finished product

The above definitions relates to individual interests and talents that motivate people to enter this industry. This is a major point of difference between arts industry and other conventional commercial industry sectors. The goods delivered by artists are perceived in various ways by different consumers and hence the meaning and value of the piece of art is wholly dependant on individual perceptions. The perceived value of the art of work in the consumers mind creates the demand for the individual pieces of art. There are many artists who prefer to ignore the industry or any commercial terms attached to their piece of work. Such artists prefer to pursue it as a hobby and are either engaged in other commercial activities for sustenance or have varied interests that provide them with alternative sources of income. Artists, in general, conduct exhibitions of their artworks in studios and galleries that become the channel for distribution and promotion of their talents. These artists form a vital player of the art industry. The crafts industry is also a creative sector producing traditional craft and utility items for the organized and in-organized retail market segment.

The arts and crafts industry is a vast field including various sectors such as fine arts, handicrafts, pottery, dance and drama, theatre, music and other entertainment sectors that include motion pictures and events. The industry includes both profits organization and non-profits organizations in the field of arts and craft. The non-profits art and crafts contribute actively to the business community. In North America there are millions of people engaged in the arts and crafts industry pursuing their interests both as hobby and commercial purpose. The range of activities involve painting, needlework, knitting, drawing, costume jewelry, folk art, illustrations and designs. 

Demand of any object or goods are fulfilled by economic markets and the growth and development of the arts and industry is a testimony to this fact. The arts and crafts industry constitutes both formal and informal retail markets that contribute to the sales and revenues in the sector. Consumers in the arts and crafts sector come from distinctive backgrounds with specialized interests and needs. The industry has a well organized structure where the key players are the employers, producers, consumers, members of chambers of commerce, marketing agents, and promoters. The demand for arts and crafts goods has encouraged the rise of art dealers, promoters, wholesalers, manufacturers, and resellers to earn profits from this market opportunity.

The above illustration provides a comprehensive view of the arts and crafts industry structure. The traditional distribution channel includes exporters, importers, wholesalers, retailers and consumers. The growing use of Internet as a medium to promote and sell artists works have eliminated the middle levels and enabled a direct connection between the artists and the consumers. The subsequent paragraphs provide an insight into various perspectives that led to the present structuring of the arts and crafts industry.

Historical perspective on the media industry
The history of the arts and crafts industry in US dates back to pre-historic times when individuals have resorted to paintings and hand made goods to express their creative talents. Ancient civilizations traded in hand made goods of utility, toys and other crafts items. Artists too expressed their talents through paintings on various medium available. However, the commercialization of arts began with the advances in civilization and works of famous painters demanded high prices to decorate the walls of stately homes and public places. Collectors of paintings, museum curators, studio owners and art galleries provided the artists with a medium for sales and exhibition of their works.

The development of arts and crafts as an industry started during the late Victorian era in England that was a well developed economy during those times. The sector witnessed a spurt of growth on account of increasing demand and appreciation for hands craftsmanship and various art forms used to depict the culture and society. The first sign of art and craft industry movement in America was in the year 1895 with the establishment of the first arts society  The Chalk and Chisel Club in Minneapolis. The club launched its first arts publication House Beautiful that featured a lot of updates on the works of the artist Frank Lloyd Wright. This was followed by the setup of the Arts and Crafts Society in Rochester, New York and Chicago in the year 1897. The first arts and crafts exhibition was held in Boston in the year 1897 and the event was a grand success receiving a lot of press coverage and the formation of more art guilds across the country.

The growth of this industry was driven by the growing number of institutions and vocational education training centers providing courses in arts and crafts. Training courses in the field of art and craft was introduced in the US in the year 1876 that gradually integrated itself with the school curriculum to provide specialized educational training on the subject matter. A significant development in the arts and crafts industry in the twentieth century was the growing involvement of women in making various forms of handicrafts items and paintings for commercial purpose. This was an ideal avenue for gifted homemakers to indulge in their pastimes and earn some money from it. Even during the economic depression, the home workshops provided some work for the families. 

The success and mass appeal for arts and crafts items created a new perspective on engaging in such form of interests. Individuals who viewed this area as a hobby and pastime became actively interested in pursuing their interests for economic gains and recognition. A number of art and crafts companies emerged to showcase such talents and encourage artists and craftsmen to this booming field of business. Gustav Stickley and Co. created its own mark in the history of the arts and crafts movement with their simple geometric designs that were appreciated by everyone. The arts and crafts sector hence made its way into the designing of furniture, homes, artifacts, dcor items and in various other fields of designing. Individuals spent fortunes on purchasing small items of handicrafts, hand made pottery, art works, designer furniture and other display objects to adorn the corners and walls of their houses. The demand for such items was on the increase and this was a big boost to the arts and crafts industry.

The arts and crafts industry experienced an increased boost with increasing disposable earnings of the Americans. The gradual changes in the lifestyle of the people created an increasing demand for arts and artifacts. Between 1890 and 1930, the number of privately owned homes more than tripled, and mass distribution of automobiles in the 1920s encouraged the growth of new housing developments beyond the confines of the streetcar and rail lines. The growing number of private homes increased the demand for arts and handicraft items. Consumers were willing to spend more on interesting pieces of art to decorate their homes and offices. The modern era in the industry development was more influenced by the increasing innovation in the way artists and craftsmen used their tools and designs to sell to the ultimate consumer.

The initial historical movement in the field related to a simple buying and selling of items through direct interaction between the artist and the consumers. Small shops, studios, garage sales, or exhibitions dominated the industry sales. Growing demand and recognition of this sector as a viable economic industry resulted in emergence of art galleries, specialized handicrafts shops and curios that provided the consumers with a host of items to select from. These shops and establishments acted as the middlemen between the artists and the consumers withholding a percentage of sales for their commission or any other terms and conditions reached between the two parties. Exhibitions and fairs were highly effective in drawing artists and consumers at one place and people landed up in getting good bargains. A significant aspect of selling through exhibitions, galleries and studios was the element of recognition that it lent to the artists with media coverage that acted as a major promotion campaign.
The consumer demand for arts and artifacts continued to grow with the progress of time and the industry witnessed significant changes in the form of more structured approach of sales and logistics that exist today. The use of Internet in selling and promoting art and crafts work has become a norm for todays artists and craftsmen. Consumers of arts and craft items have a wide range of options available from online sources and can also avail online shopping facilities. The artists and craftsmen do not need to rely on profit-sharing middlemen to sell their products  a website provides the appropriate and cost effective means of reaching to their target consumers directly. Hence the industry structure of the arts and crafts sector has evolved slowly over decades to its present form that adopts a click and mortar business approach and offers a host of exciting approaches to market the products on a global platform.

Economic trends in the industry
The arts and crafts industry have however gained prominence in the US economy in the past few decades witnessing a steady growth in the number of consumers willing to spend in purchasing arts and craft goods. The arts and crafts sector generates revenues of US 166.2 billion annually and the industry supports the livelihood of nearly 5.7 million of the US population. The amount of revenue generated for the local, state and federal government is nearly 30 billion annually but in comparison the government bodies allocate not even 4 billion on the development of this sector. Hence of returns on investment in this sector is exceptionally high.

Most of the countries across the globe are looking for development in areas that provide them with increased competitive advantage in the global markets. Creativity industries like arts and craft are the key to enabling a competitive market environment. As the arts flourish, so will creativity and innovation  the fuel that drives our global economy. A growth and development in this industry sector will result in increased innovation and creativity within the economy that drives economic growth and development.

The arts industry provides employment and a source of livelihood to increasing number of artists and craftsmen and the statistical figures illustrate the way the industry has been flourishing in the past few decades. The industry is a major driver of economic growth that supports millions of jobs, generates substantial revenues for the government, and promotes the tourism sector.

A common theory of community growth is that an area must export goods and services if it is to prosper economically. The export of arts and crafts items have been remarkable over the past few decades owing to increasing demand for traditional crafts items in the foreign markets. The global arts and crafts market network revolves round a few major cities of the world  New York, London, Paris, Berlin, Geneva, Milan, Tokyo, and Hong Kong. The United States leads the global arts and crafts market accounting for nearly 50 percent of the global sales.  The items exported in this industry segment form a vital part of the lifestyle products in the global markets.

The global arts and crafts market is expanding with nearly 31 percent in growth in exports segment during the period 2000-2005. The growing levels of prosperity within the economies provide a lucrative market for such products and this is one of the primary drivers of economic growth within the sector. Handicrafts items and art works from all over the globe assume increased significance for the end consumers who are looking towards the value and cultural diversity represented by each piece of work. These items become a treasured collection for display. Countries all over the globe have been boosting the arts and crafts industry in the more recent times owing to the increased market demand and its contribution to economic growth and development. Not only has this sector become extremely competitive but it has also created a lot of enthusiasm among people from various sects of life to display their talents and earn livelihood through their favorite pastime.

The consumer segment in this industry primarily constitutes an affluent group of people and connoisseurs of art works. The prices of art and crafts work have been on the rise owing to the growing demand for high quality work among the consumers. The art market has extensive younger consumer bases who are interested in purchasing various forms of arts and crafts goods not only for decoration purpose but also for enhancing their collection of different art works and forms.
Segmenting the target consumers in this industry is not an easy task since interests are widely varied and dependent on the needs and budgets of the individual consumer. A person looking for art or crafts work may be interested in buying only for decorating a wall in his home or office, or purchasing out of genuine interest in art form or simply for the purpose of gifting to someone. Hence not all consumers will have an understanding or knowledge of the piece of work he is investing in. This reflects a broad spectrum of consumer markets and adapting to individual consumer tastes and trends do not apply. It is only the artists and craftsmen who are seeking recognition for their work through exhibitions, galleries and studios that have a focused clientele who appreciate their kind or style of work. The artists and craftsmen are hence segmented on their work styles, materials used and techniques adopted to portray their expressions.

The increasing economic interest and development in the art and crafts industry has to a large extent supported and influenced the structure of the art and crafts market. A key characteristic of the structure of this market is its function as both independent and internetworked logistics channels providing the artists and craftsmen with a wide range of options for selling their products. The primary elements in the art and crafts industry constitutes of artists, dealers and galleries, collectors, auction houses, art consultant and advisors, art investment services and funds, museums, art media, art and crafts fairs, international artists forums, online arts and crafts market services. The artists and craftsmen have over the period of time and responding to market demands have tried various channels of marketing to sell their work. Such methods have included door to door sales, exclusive boutiques, artists cooperatives, shops and establishments, exhibitions, fairs, catalogs, trade shows, studios and innovative channels such as home parties and mail orders. These sales channels have extended the scope of reaching diverse customer base and promoting individual pieces of work.

Political influence on the industry
The arts and crafts industry has enormous potential to generate high revenues and create a sustained source of income for millions of individuals across the globe. The rise of the industry in the US highlights the extensive scope open to the artists and craftsmen across the globe. However, the optimal utilization of this market opportunity depends on the extent of political support and assistance lent by the countries. Any industry needs the support of the political institutions for achieving a growth pattern. An enabling political system coupled with a supportive legal framework has a positive impact on the industry growth and development prospects. The countries can benefit from increased scope of employment generated by the industry, alternative sources of income and livelihood for the masses, increased revenues from sales, tax revenues, and increased market appeal for tourists.

The arts and crafts industry as discussed in the previous section forms a major form of employment for the economy and contributes extensively to the export economy. It provides employment to a wide segment of population who has limited resources and limited options for employment. Artisan production has thrived because handcrafted products offer distinct advantages minimal start-up capital, flexible work hours, the ability to work at home, and freedom to manage ones own business. The arts and crafts industry depends to large extent on the local resources available, rich cultural traditions, and indigenous designs and products. Political institutions and governments have been highly supportive of the industry in the US owing to its significant contribution to the economic growth and development.
The US states and governments have been highly supportive of the growth of creative sector through the provision of adequate infrastructure and policies that have assisted in the growth of the industry segment. These initiatives include development courses for people interested in the arts and crafts sector, entrepreneurial training, marketing programs public-private collaborations that encourage growth and seek increased investment in the creative industry sector. The initiatives taken by the state of Michigan illustrates how government support has extended the scope of earnings and revenues in this industry. The State has launched a comprehensive incentive program such as tax credits to promote increased creative projects in the area. Similarly Kentucky has initiated a Crafts Marketing program to help artists and craftsmen sell their work inside and outside the local markets. There are other states that have developed several initiatives to increase collaboration between the artists, designers, and product engineers to increase the scope of application of talents and creativity in the industrial sectors. The University of California recently set up the Santa Cruz Design and Innovation Center to provide an avenue for cultivating innovative and creative talents that drive business ideas, new product development and creative solutions for the industries.

The political institutions hence provide the necessary framework for promoting industrial growth and development. The market structures and industry operations are shaped by the policies and initiatives launched by the governments to boost productivity, sales and revenues. The sales and distribution channels are largely influenced by the support of government policies and the existence of adequate infrastructural facilities. The government interest in boosting any industry sector depends on the extent or potential of the industry to provide employment opportunities, influence improved standards of living, and enhance the scope of future applications through the promotion of creative and innovative talents that has a direct impact on the productivity of the other industries as well. Arts and crafts industry provides an ideal economic growth model and hence the focus of the government has been on boosting the industry.

Social impacts on the industry
In my own philanthropy and business endeavors, I have seen the critical role that the arts play in stimulating creativity and in developing vital communities. As this study indicates, the arts have a crucial impact on our economy and are an important catalyst for learning, discovery, and achievement in our country. One of the key impacts of the arts industry on the social environment is the beautification of the public places and the strengthening of the social fabric.

The creative focus of this industry is evident in the way it inspires individuals to participate in revenue building activities through appropriate use of their talents. One of the distinctive facets of the arts and crafts industry is its contribution to the promotion of culture and community cohesion. Cultural activities have an increased significance in promoting social activities and encouraging social cohesion. This has a positive impact in improving confidence level and self esteem of individuals within the community besides providing a platform for interpersonal skills and teamwork. 

The industry provides extensive scope of promoting community development by enabling individuals to pursue their interests and talents that provide them with a source of livelihood. These forms of activities and interests can be pursued from the comforts of homes and hence the artists can take care of both personal and professional interests at the same time. It also promotes a sense of enterprise and development among community to grow and prosper thus enriching the lives of the artists and craftsmen. The budding young professionals have extended scope to utilize their creative talents through the wide range of opportunities and scope of growth offered by the industry.

There are some cultural associations and institutions that have initiated numerous efforts to promote the arts industry and make it a profit making sector that contributes to individual lifestyle changes and economic growth and development of the region.

The social factors influencing the growth and development of the arts and industry are not so obvious at the first glance but a deeper study of the impacts of the social trends and customs in the context reveals a close integration between the two elements. Social trends are influenced by economic scope and opportunities presented by the markets and this in turn influences individual choices to become a part of the industry growth. The development of the arts and crafts industry is deeply ingrained in the cultural roots of the regions and the promotion of the traditional forms of arts and crafts have helped create a market demand for such items. Specialization and training are essential ingredients to make a successful career in this industry. Vocation educational training and skills passed down from generations form an important link to reviving some of the old art and crafts practice and creating new forms of art. There is extended scope for individuals in the social framework to earn a decent living through this industry.

The evolving market structures in the arts and crafts industry have been guided by the social interests that have prompted many individuals to engage in this industry. The artists and craftsmen have come together in many regions to form cooperatives that pursue similar objectives and interests to promote their work. Similarly the use of art galleries, studios and exhibitions or fairs for promoting the work of artisans have been closely linked to social initiatives that sought new channels to promote their talents and interests.

Recent trends in the industry
The arts and crafts industry in all countries suffers a setback in the scope of growth and development and contribution to economic progress. Famous painters and artists have made a name for them-selves in this industry sector and have also earned enormous profits from their works. However, small time painters and artists find it difficult to survive on a meager income provided by the sale of few paintings and works of art. The earnings of these artists are not even sufficient to take care of household expenses. Hence sole reliance on this medium for meeting daily expenses and a healthy lifestyle is out of question. So, most of the artists and craftsmen view this area as a past-time or hobby to be pursued on weekends or holidays. Moreover, regular jobs in companies leave the artists very less time to pursue their creative interests and these are a few factors why the arts industry has not met with much growth over the past few decades.

A key development in this industry is the growing shift towards customization and niche marketing. This involves designing and production of items tailor made to customer needs and demands. There are growing number of customers who want to purchase arts and crafts work that are made to order in line with their requirements. This includes customizing of ceramics, designs, handicraft items, and other collectibles to merge with the client environment and tastes. The emerging trend has created new developments in the industry and artists are finding new avenues to sell their work.

The Internet has enabled the emergence of a new sales medium that facilitates direct connection between the buyer and the seller. In todays world it is imperative for any business to go for e-marketing which showcases their company and their products or services to the world by the click of a button. The websites have become the new interface for the artists and craftsmen to the world. This has no doubt extended the market reach and the scope of a global clientele that can work wonders for their business.
Internet applications and ecommerce introduced in the mid 1990s made a deep impact on the business environment and operations. The new technology platform served as the base for developing and initiating new strategies in areas of marketing, revenue generation, and communicating with existing and potential consumers.  Increased connectivity and customer service approach has re-defined the way businesses are operating today. Marketing strategies have evolved in context of the changes taking place in the business environment. These are some of the new trends that have vastly influenced the industry structure in arts and crafts sector.

Future industry prospects
A vital aspect of the art and crafts industry is its support and integration with various economic sectors of the economy. Research studies have developed a vital link that provides benefits from collaboration between artists and traditional industries. The industry segment is useful in promoting new product designs in mobile phones, furniture, automobiles, fashion accessories, leather ware, and other industry segments. The creativity approach promoted by the arts and crafts industry can be effectively utilized to promote market shares of other industry goods and commodities. Organizations in the present market conditions rely to a great extent on innovative and creative approaches that provide the businesses with increased competitive advantage. The international marketplace is flooded with numerous goods and commodities that make it difficult for buyers to distinguish between products. Product design and creativity in packaging of goods can appeal to the aesthetic senses of consumers, thus improving market demand and performance. To realize this competitive edge, some states are encouraging collaborations among artists, designers, and product engineers in a variety of manufacturing and high tech industries.

Arts and crafts sector requires extensive research and planning in order to improve the efficiency of its industry structure and existing distribution channels. Such research studies must focus on the viability of intensive specialized training on specific areas to promote creativity and extend the scope of application of these areas on improving product development process and influence innovation in related industry sectors. As discussed in the previous paragraph, arts and crafts industry has extended scope to promote other industry performance and launch new market trends there should be increased focus on providing the prospective artists and craftsmen with a creative learning environment. Besides, an increased collaborative approach to link artists, retailers, wholesalers, exporters, and consumers can result in improved profits and extended scope of increasing the quality of goods offered.

Conclusion
Creativity helps in the process of creating new products or services that are better or new. Creativity refers to the production of novel ideas that provide a new meaning to the existing processes or issues. A creative idea must have uniqueness in the nature of solution or ideas presented and must have value to the context in which it is being utilized. In the business context creativity reflects innovation at workplace triggered by organizational culture and practice that is aimed towards increased productivity and enhanced performance levels. The arts and crafts industry as analyzed in the course of discussion highlights the significance of creativity and innovation in promoting industry growth and development. The evolution of the industry structure in US has been shaped through historical times and created new avenues of sales and growth over the years in response to economic and social demands. The political systems have extended the necessary support to sustain the growth of this industry. The recent trends reflect new ideas and technology that have influenced the operations of the industry and brought new perspectives to future scope of growth and development.