Overview

CraftyHands, a small business in Yogyakarta, Indonesia, specializes in handmade products such as crochet bags and wooden accessories. Their mission is to support local artisan communities while expanding their market presence. To achieve this, CraftyHands aims to partner with retail stores in Yogyakarta that focus on souvenirs, handicrafts, and art galleries. This study explores potential retail store partnerships and strategic approaches to maximize market penetration.

Problem Background

Despite its strong local identity and high-quality handmade products, CraftyHands faces challenges in reaching a wider audience. Many small businesses struggle with retail expansion due to limited industry connections, market visibility, and the right approach to retail partners. To overcome these obstacles, CraftyHands seeks to identify promising local retail stores and develop a strategy for establishing collaborations.

Research Method

1. Identifying Potential Retail Stores: A detailed analysis of 17 retail stores in Yogyakarta and surrounding areas was conducted. Stores were selected based on their focus on handicrafts, souvenirs, and artisan goods.
2. Data Collection: Information was gathered on each store’s location, website/social media presence, marketplace involvement, phone numbers, Google Maps links, Instagram followers, last posted date on Instagram, and any notable events.
3. Analysis Criteria: Stores were evaluated based on:

• Online presence and social media engagement
• Relevance to CraftyHands’ product line
• Previous collaborations with similar businesses
• Customer engagement and foot traffic

Research Outcome

Data Interpretation: The chart above visualize Kota Yogyakarta leads significantly with 6 shops having Instagram accounts, indicating a higher adoption of digital marketing. Sleman and Bantul each have 2 shops on Instagram, suggesting moderate social media engagement. Kulonprogo and Godean have only 1 shop each, indicating lower Instagram usage for marketing in these areas.

The bar chart provides insight into the number of handicraft shops in different regions of Yogyakarta that have an online marketplace presence. Kota Yogyakarta and Sleman lead with 2 shops each having an online marketplace presence, indicating these areas may have a stronger e-commerce adoption. Kota Yogyakarta is already an established demand and awareness of e-commerce. Bantul and Godean each have 1 shop, showing some level of digital sales activity but not as developed as Kota Yogyakarta or Sleman. Kulonprogo has no recorded shops with an online marketplace presence, suggesting a potential gap in e-commerce adoption among handicraft businesses there.

Conclusion

Given CraftyHands’ goal of expanding into local retail stores that focus on souvenirs, handicrafts, and art galleries, the Instagram adoption data provides valuable insights into potential markets.

1. Prioritize Kota Yogyakarta for Immediate Retail & Online Expansion

✅ Why? Highest Instagram adoption and strong online marketplace presence.
✅ Action Plan:

• Partner with existing Instagram-active retail stores to showcase CraftyHands products.
• Offer wholesale or consignment deals with local handicraft shops.
• Boost visibility through collaborations with Instagram influencers and local artisan communities.
• Strengthen CraftyHands’ online presence on marketplaces by co-listing with existing marketplace-active stores.

2. Strengthen E-Commerce in Sleman

✅ Why? Strong online marketplace presence but moderate Instagram adoption.
✅ Action Plan:

• Educate local retail partners on the power of Instagram for marketing.
• Run joint Instagram promotions with existing marketplace sellers.
• Leverage local e-commerce-ready stores to distribute CraftyHands products efficiently.

3. Increase Digital Marketing & Online Sales in Bantul & Godean

✅ Why? Some digital presence but room for growth in both Instagram & e-commerce.
✅ Action Plan:

• Offer drop shipping or fulfillment partnerships for stores hesitant to manage online sales.
• Encourage co-hosted pop-up events or local workshops to drive Instagram engagement and online purchases.

Final Recommendations for CraftyHands’ Expansion:

📌 Kota Yogyakarta → Top priority for retail & online expansion.
📌 Sleman → Leverage e-commerce strengths, improve Instagram engagement.
📌 Bantul & Godean → Support stores with digital marketing & online sales adoption.
📌 Kulonprogo → Educate & introduce online selling step by step.

Recommendations for Approaching Retail Stores

1. Personalized Outreach: Contact store owners via social media or email with a tailored proposal showcasing how CraftyHands products align with their store’s brand.
2. Product Samples & Demonstrations: Offer a trial period where stores can display CraftyHands products to gauge customer interest.
3. Collaborative Events: Partner with selected stores for small in-store events or Instagram live sessions to attract a shared audience.

By leveraging these insights and strategies, CraftyHands can successfully navigate the local retail landscape and establish meaningful partnerships that support their mission of promoting local artisans.