From Small Business Saturday to farmers markets and holiday craft shows, ‘tis the season for holiday shopping. While 83% of Americans plan to support local businesses, many are struggling to find true handmade and custom goods made by artisans.
Artisan businesses create products such as clothing, jewelry, paintings, and other handcrafted custom pieces. While costs and marketing are major difficulties for these small businesses, a new survey is exploring how craft-based business owners plan to navigate these challenges, and the hurdles consumers, who want to support these artists, are facing when it comes to consumer literacy and AI.
Costs, Competition Among Top Struggles for Craft Businesses
Handmaking pieces isn’t easy, and it takes time and money. Nearly half (48%) of current owners say their biggest struggle when it comes to their business is the rising cost of materials to make their products. That may be why a difficulty for 35% is finding a price point that sells yet allows them to make a profit.
For others, a major challenge is creating a big enough online presence that brings in sales. Nearly 2 in 5 (39%) say one of their biggest struggles is competing against vendors that sell mass-produced goods or do dropshipping. Dropshipping is the practice of selling products from a third-party supplier.
31% of Artisan Businesses Face Intellectual Property Theft
One unique difficulty craft business owners face is theft. Nearly 1 in 3 (31%) have had their original artwork or designs stolen, and of those, 57% have found their work on a major commercial website. Most found their stolen work on Amazon, Etsy, Target, Shopify, and Redbubble.
While over half (59%) went on to report the person or store who committed intellectual property theft, 31% said the person did not get in trouble for it. Nearly 1 in 10 (9%) former artisan business owners say intellectual property theft was so bad they shut down their business.
Despite Theft Concerns, 3 in 4 Plan to Scale Up Craft Business in 2024
Despite these concerns, artisan businesses are resilient and optimistic about where they’re heading in 2025 with 97% expecting their business to make it through 2025, and 3 in 4 planning to scale their business. Most are planning to grow their business by putting more time into it or increasing their marketing and advertising.
Over half (53%) are also planning to expand their product lines in 2025, and 41% want to increase their production capacity. No matter how much they scale, 89% of craft businesses say it’s important to keep their products handcrafted.
Operating a small business isn’t an easy feat, especially with the fierce competition from other retailers. But it’s important. Handmade products offer a unique beauty and originality that can’t be found anywhere else. Though people sometimes struggle to find the best ways to support these businesses, data shows consumers want to buy these products and truly value the uniqueness and craftsmanship that they provide.
60% of Consumers Supporting Small Business Saturday 2024
Over 4 in 5 Americans are planning to buy from artisanal businesses during the holidays, and 60% are planning to shop at an artisanal business for Small Business Saturday. However, some consumers may struggle to get anything handcrafted into their carts. A survey of more than 1,000 American consumers finds 21% can’t tell the difference between artisan and mass-produced goods.
This may be because many shoppers struggle with consumer literacy and can’t recognize authentic homemade products. Consumer literacy reflects the ability to make educated decisions when buying a product or service, such as understanding different product types.
Another difficulty for consumers? AI. 3 in 5, or 60%, believe AI is killing original artwork. Survey statistics show over 1 in 3 (34%) can’t tell the difference between AI and original artwork. While 1 in 10 have bought a product that has an AI design, 43% would consider doing so.
71% Value Craftsmanship, But 46% Feel Too Poor for Art
The difficulty distinguishing handmade vs. mass-produced products may be why survey respondents feel art culture is changing in America. When asked what they value in art, most people valued originality and uniqueness followed by craftsmanship, artistic style, and beauty. However, 36% do not think Americans value original art in this day and age.
For others, they feel art is out of their budget. Nearly half (46%) feel too poor to buy original artwork. Keep in mind artwork doesn’t have to be millions of dollars. You can support local artists and artisans without having to spend a lot of money. Consider shopping locally in-person or online when looking for gifts for others (or yourself!) this holiday season.
Methodology
In September 2024, we surveyed 384 current and former artisanal craft business owners. 55% currently own their business and 45% previously owned one in the past. Respondents ranged in age from 18 to 75 with an average age of 39. 56% were female, 42% were male, and 2% were non-binary.
In September 2024, we surveyed 1,010 Americans about their shopping habits. 45% were male, 52% female, 2% non-binary, and 1% would rather not say. Respondents ranged in age from 18 to 78 with an average age of 40.
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