City's centuries-old chikankari craft is facing stiff competition from machine-made cheaper Chinese chikan, threatening livelihood of about five lakh workers involved in this unorganised industry, according to industry body Assocham.
The local industry is also suffering due to dearth of skilled manpower and the machine-made Chinese chikan is up to 30 per cent cheaper and consumes less production time, it said.
"Lack of awareness together with dearth of skilled manpower is affecting the growth of chikankari as only five per cent of total production is exported while the rest is sold in the domestic market," a sector specific analysis report of Chikankari craft reveals.
"Machine-made Chinese chikan is thriving as it can be produced faster as against the handcrafted embroidery where timely delivery of end product is a significant concern as most workers stay in villages around Lucknow. Also, Chines chikan is up to 30 per cent cheap," the report said.
Less than even five per cent of chikan manufacturers in the city are into direct exports, it added.
As the Chikankari industry is highly fragmented and has been facing significant challenges owing to insufficient market information on export trends, opportunities and prices, scarcity of raw materials, lack of adequate finance and growing competition from mill and factory made products, the industry body said.
Building brand image, conducting road shows and craft festivals in target countries and also point of sale publicity through attractive display and banners could help the industry, it said adding that besides them marketing tools like innovative and appealing packaging need to be extensively used.
Government facilitation for creation of niche markets for chikan products, opening showrooms and warehouses in select countries according to their current market size, import values and others are certain key suggestions to improve exports of chikankari craft from India.
"The government in partnership with private sector needs to encourage integrated enterprise development by providing supporting services such as local centres for skill training, product adaptation, vocational training and entrepreneurship development," Assocham said.
The government should offer small, disadvantaged artisans and craft producers an access to global markets with complete support right from product development and manufacturing to export marketing, it added.
