From Support Policy to Economic Governance in the Handicrafts Sector
Mohammad Reza Khalji, the Deputy of Handicrafts of the General Directorate of Cultural Heritage, Tourism and Handicrafts of Hamedan province, wrote in a note: the need to change the paradigm of handicrafts management in Hamedan province; From the production department to the market management and the value chain of Hamedan handicrafts, in order to pass the corrosive cycle of cross-sectional support, it needs a fundamental change in the policy philosophy, management mission and economic intervention model. Today's issue is not simply increasing facilities, holding exhibitions or supporting production workshops; The problem is redefining the role of government management in building a competitive economic ecosystem in which production, market, capital, design, technology, brand and export are placed in a purposeful link.
The main issue; Support does not replace the economy. Iran's handicrafts and, accordingly, Hamadan province, have been governed for years within the framework of policies, an important part of their executive capacity has been focused on issuing licenses, training, granting facilities, insurance, holding exhibitions and supporting producers. These measures, in their place, are necessary to preserve local skills, the continuity of artists' activities and the protection of cultural heritage; But their continuation alone does not guarantee the economic stability of this area. The fact is that the survival of an economic activity is not guaranteed simply by the continuity of production; Rather, it depends on the existence of effective demand, stable access to the market, competitive power, capital circulation and the possibility of earning profits commensurate with costs. A workshop that produces a product but does not have a specific market, an artist whose work is of high quality but does not have access to a distribution network, and a producer who depends on expensive raw materials but does not have pricing power, even with receiving facilities, may be trapped in a cycle of low-yield production, uncertain sales, and frequent need for support. Therefore, a distinction should be made between "supporting the activity" and "economic empowerment of the activity". Support is effective when it leads to the reduction of a real barrier, increased productivity, market development, improved quality, or the formation of a competitive advantage. Otherwise, there is a risk that public resources will be spent on maintaining the status quo instead of building sustainable capacity. The strategic change needed is: the government should change from being a sole supporter of workshops to a leader in the economic development of handicraft fields and value chains.
Moving in the path of economic policy of this development is not just a management proposal or a theoretical opinion; It is also aligned with the orientation of the upstream documents. Article 82 of the 7th five-year progress plan law has taken into account the 8% annual growth of the economy of handicrafts, handwoven carpets and related industries and the increase in the export value of this sector within the framework of the program's quantitative goals. Also, paragraph "d" of article 83 of the same law foresees the development of a comprehensive document for the management of the chain of production, distribution, supply and export of handicrafts with the aim of completing the value chain and improving the conditions of production and supply. On the other hand, the national handcraft development document of the country, approved by the Supreme Council of the Cultural Revolution in 1403, emphasizes the development of competitive handcrafts, attracting capital, improving the value chain, strengthening companies and trademarks, and facilitating exports. The strategic meaning of these documents is clear: handicraft policy cannot be limited to maintaining production and supporting the artist; Rather, it should provide the basis for the stable presence of products in the market, strengthening economic enterprises and increasing the share of this field in value creation. Therefore, at the level of Hamedan province, it is necessary to reorganize the implementation plans, allocation of resources, performance evaluation system and prioritization of interventions with this direction. Of course, economic governance does not mean abandoning cultural, social and identity support. Forgotten arts, vulnerable artists and disciplines that do not have sufficient commercial advantage for cultural or geographical reasons still need appropriate support policies. The difference is that the support should be targeted, relevant to the problem and have clear evaluation criteria.
Four fundamental changes in Hamadan handicrafts policy
First Change: From Relationship Economy to Market Economy In the relationship economy, the producer's success depends to a large extent on administrative connections, case-by-case access to facilities, attendance at exhibitions, and limited sponsorship opportunities. In the market economy, the main criterion is the ability to respond to customer needs, quality, competitive price, appropriate design, consumer trust and effective access to the sales network. In this regard, Hamedan handicrafts should facilitate the formation of the market instead of being a mere distributor of support opportunities; A market where the producer can know his customer, predict the demand, manage the cost and take advantage of various sales channels. This change requires the development of communication between artists and stores, commercial companies, tourism operators, online sales platforms, product designers, hotels, accommodation centers and major buyers. Markets and exhibitions should also be transformed from temporary and supply-oriented events into tools for testing the market, knowing customer tastes, measuring prices, identifying best-selling products, and establishing business relationships. In this model, the success of an exhibition is not only measured by the number of booths or the number of visitors; But the amount of actual sales, the number of business contacts formed, subsequent orders and the continuity of the relationship between the producer and the buyer are also important.
The second change: from the production workshop to the value chain, the production workshop is the main unit of product creation; But the handicraft economy does not end in the workshop. Among the supply of raw materials, design, production, finishing, packaging, pricing, marketing, distribution, sales and export, there are links that the weakness of each can reduce the efficiency of the whole activity. For example, a pottery manufacturer may be highly skilled in product manufacturing, but may be limited in sourcing raw materials, market-fit design, secure packaging, digital marketing, or access to a major buyer. In such a situation, simply supporting the production phase does not solve the main business problem. The solution is to identify and strengthen the value chain of each field; That is, it should be determined at which stage the value is created, in which sector the costs increase, which circles lack capable actors, and which intervention can have the greatest economic effect. In this framework, the General Administration should move from scattered intervention in individual units to the development of specialized clusters, cooperation networks, driving companies and links between small producers and large markets. The goal is not to eliminate small workshops or to force artists to become large enterprises; Rather, it should be possible for small workshops to participate in supply, production, distribution and sales networks so that the benefits of scale, cost sharing and access to the market can be achieved for them as well.
The third change: from production-oriented to customer-oriented in the production-oriented model, the starting point for deciding is the question of what product the artist can produce. In the customer-centered model, the preliminary question changes: what does the customer need, what does he value, what price will he pay, and how can the craft product become his preferred choice? This change does not mean sacrificing the originality of art to the taste of the market; Rather, it means the connection between the artistic identity and the real needs of the customer. Identifying customer groups, segmenting markets, analyzing purchasing behavior, paying attention to product use, contemporary design, variety of dimensions and prices, appropriate packaging, and narration about the authenticity of the work are among the tools to realize this approach. In Hamedan handicrafts, a distinction should be made between tourist customers, domestic consumers, institutional buyers, specialized stores, collectors and export buyers; Because each group has different expectations, purchasing power, selection method and criteria. Effective policymaking occurs when market information is fed back to the shop floor and manufacturing decisions are modified based on customer feedback.
The fourth change: from product-oriented to brand and market, the product is ready to be offered at the end of the production process; But the brand is the result of continuity of quality, distinct identity, customer trust, shopping experience and the ability to maintain a relationship with the market. In a competitive market, simply having a traditional skill or producing an original product does not necessarily lead to sustainable sales. The product must be known, its difference from similar products can be understood, and the customer must have a clear reason for choosing it.
Therefore, Hamadan handicrafts need a policy beyond the introduction of fields: the policy of developing credible brands, coherent visual identity, professional packaging, authentic storytelling, digital marketing and creating sustainable sales channels. A brand in this sense is not just a name or trademark; It is a set of measurable commitments about quality, authenticity, delivery, service and customer experience. Also, the development of the domestic and export markets should be seen from the beginning in the design of products and production plans. Presence in national and international markets should not be limited to sending the artist to a foreign exhibition; Rather, it should be accompanied by the identification of buyers, analysis of destination regulations, required standards, shipping costs, packaging, settlement methods, production capacity, and the possibility of repeat orders.
Hamadan; Capacities that should be turned into economic advantage
Hamadan province has a significant diversity in handicraft fields; But the diversity of fields alone does not create an economic advantage. The advantage is formed when the cultural and skill capacity is transformed into a competitive product, an accessible market and a sustainable income. Laljin pottery and ceramics; From a production hub to a market brand Laljin, as the world city of pottery, has the capacity to be promoted from a production and supply center to a hub for design, product innovation, market development and specialized trade in pottery and ceramics. In this way, completing the supply chain of raw materials, developing safe and high-quality glazes, improving the efficiency of furnaces, recycling waste, designing products that are suitable for target markets, resistant packaging, and creating a domestic and export sales network should be followed as a continuous series. It is necessary to distinguish between traditional production, household practical products, decorative products, institutional orders and products suitable for tourists; Because each group needs a different design, pricing and sales channel. The strategic goal should be to transform Laljin's cultural reputation into brand strength and sustainable market share. inlay and furniture; From individual skills to a competitive network, Malair, with its well-known inlay and furniture capacity, is able to develop an extensive value chain that extends from wood supply and preparation to design, manufacturing, finishing, sales and after-sales services. In this field, sustainable access to suitable raw materials, wood cost management, basic drying, quality control, design according to customer needs, smart use of technology and development of sales network are important.
carpet weaving and textures; From maintaining skills to a sustainable local economy in carpet weaving and other textiles, the preservation of indigenous knowledge and the continuation of artisan skills must be linked to the development of economic opportunities. Identification of local motifs and identities, documentation of production knowledge, access to suitable raw materials, design according to today's applications, quality control, fair pricing and establishing a direct relationship with the market are the necessities of this path. In this area, the participation of rural artists and local production networks can contribute to the geographical distribution of economic benefits; Provided that the production is developed based on the order and real demand of the market and the accumulation of products that do not have a specific buyer is avoided. The goal is to transform indigenous skill into a sustainable economic asset without undermining its cultural authenticity.
changing the craft mission; From program manager to the architect of the economic ecosystem of transformation in craft policy
Without a change in the executive mission, the decision-making structure and the performance evaluation system of the General Administration will not be successful. If the performance of the device is still mainly measured by the number of training courses, the number of exhibitions, the number of licenses and the amount of facilities paid, it is natural that the programs will also be directed towards increasing these outputs; Even if their impact on sales, revenue and survival of businesses is not clear. Therefore, it is suggested to redefine the economic mission of the General Administration in four levels.
Market recognition and analysis: creating an economic information bank of disciplines, identifying customers and target markets, monitoring the price of raw materials, analyzing production costs and identifying sales barriers.
Developing the value chain: identifying missing links, strengthening production and distribution networks, facilitating collaboration between artists and businesses, and supporting the formation of pusher businesses.
Market and brand development: establishing relationships with major buyers, strengthening digital sales, developing specialized markets, organizing supply in tourist destinations and pursuing export opportunities.
Regulation and economic evaluation: Facilitating processes within the limits of legal authority, interagency coordination, clarifying resource allocation and evaluating the actual effect of policies on business income and sustainability. This change does not mean turning the General Administration into a commercial enterprise or directly undertaking economic activities; Rather, it means that the custodian system, instead of being replaced by the market, reduces the obstacles to the formation of the market and provides the conditions for the effective activity of the private sector and the artistic community.
Redefining facilities, education and exhibitions in the framework of new economic policies
In the new model, supporting tools are not removed; Rather, their function changes. The facility should be connected to the removal of the economic bottleneck. Before allocating resources, it should be determined which is the main obstacle of activity, working capital, equipment purchase, supply of raw materials, capacity development, product design or marketing. Also, repayment ability, market demand and possible effects of investment should be examined. This approach avoids allocating resources to activities that do not have a sufficient market. Training should expand from mere skill to business capability. Along with production training, the skills of product design, cost calculation, customer knowledge, marketing, packaging, digital sales and financial management should be developed according to the needs of each discipline. The exhibition should become a business development tool. The design of exhibitions should be done based on target customers, sales capacity, introduction of new products, establishment of business relationships and follow-up of orders; Not just the number of participants and booths. Supporting the artist should lead to strengthening his economic power. This goal can be pursued through fair access to the market, increasing the producer's share of the final value of the product, reducing exchange costs and strengthening the negotiation power in the supply and sales chain. In this framework, the social support of vulnerable artists and the protection of fields that are subject to oblivion should also be continued in the form of specific policies that are appropriate to their cultural and social mission.
Implementation road map suitable for Hamedan ecosystem
From the policy to the measurable result for the operationalization of this change, this deputy must design the economic development program of handicrafts of the province in three stages. The first stage; Recognition and design, at the beginning, in this stage, the economic status of priority fields, production capacity, cost of raw materials, supply network, existing markets, sales problems and investment needs are examined. A basic map of the value chain and a list of main obstacles should be developed for each field.
the second stage; Implementation of targeted interventions in this stage, for priority fields, independent implementation plan to define and develop the sales network, connect producers to buyers, modify the supply model, strengthen the brand, improve the design and remove bottlenecks of raw materials, according to the findings of the first stage.
the third stage; Evaluation and development, after evaluating the results, successful development interventions and resources are allocated to programs that have clearer economic effects. At this stage, export development, investor attraction, expansion of inter-provincial cooperation and strengthening of specialized market management companies are also pursued. In all phases, it is necessary to define performance indicators in advance. The most important indicators are: the real growth of sales and income of producers; Increasing the share of sales outside the province and the share of exports; increase the number of repeat buyers and business contracts; reduction of finished cost and production waste; increasing capital efficiency and existing capacities; improving the producer's share of the final value of the product; Increasing the sustainability of businesses and sustainable employment; Increasing the participation of the private sector in investment and market development. The baseline, calculation method and measurement period of each index must be clear so that the results can be evaluated reliably. Also, in measuring exports, a difference should be made between officially registered exports, extra-provincial sales and indirect sales to foreign customers.
Economy, the condition for the stability of the identity of Hamedan handicrafts for its future, does not require a choice between culture and economy; Rather, it should redefine the relationship between the two. Cultural identity, native skill and artistic originality are the fundamental assets of this field; But turning this capital into stable income, productive employment and competitive power requires economic policy, market making and value chain management. Supportive policy, at best, can reduce some of the costs and barriers to activity; But economic governance should create conditions where the artist can sell his product, develop his business, attract capital and remain in the market without permanent dependence on temporary support. Therefore, the change needed in Hamedan province's handicrafts is not just changing a few programs or shifting credits; The change is in the logic of decision-making: from counting activities to measuring results, from supporting production to market development, from intervention in individual units to management of value chains, and from handicraft administration to its economic governance. The future of Hamedan handicrafts depends on Laljin not being only a place for producing pottery, Malair not being known only for its capacity to produce inlays and furniture, leather and precious stones not remaining mere skill fields, and rugs and woven fabrics not being defined only in the context of preserving cultural heritage. Rather, each of them become a part of an economic ecosystem connected to the market. The ultimate measure of craft policy success is not the number of supports we provide; Rather, it is the amount of capacity that we create for sustainable income generation of artists, competitiveness of products, market development and creation of economic value from the cultural identity of the province. This is the necessary transition from support policy to economic governance; An arrangement that can transform Hamadan handicrafts from a set of scattered production activities into a coordinated network of skill, innovation, capital, market and brand.