Perspectives · Craft industry

Craft villages doing collaborations: large orders, lost voice

When international brands come knocking, craft villages often choose to take the orders. But the long-term cost can sometimes be the entire identity.

Quick summary

The craft village can still collaborate with a large brand without losing its identity. The condition is to clearly establish heritage assets before negotiations, include co-branding terms in the contract, and maintain an independent sales channel alongside. Entering negotiations without a clear positioning will result in the partner defining the village's position instead.

A European fashion brand orders thousands of bamboo bags from a craft village in Chương Mỹ. On the final product, a small line on the back reads "Made in Vietnam." The name of the craft village does not appear. Buyers in Paris know they are holding a handcrafted Vietnamese bag. But they do not know who made it. They also do not know that this place has a four-hundred-year history, and they do not know that this distinctive weaving technique cannot be found anywhere else in Vietnam. The order is very large. But the entire meaningful value of the product has shifted to that brand.

Why traditional crafts are always the weaker side

When a large corporation approaches a craft village, the negotiation balance clearly tips. The corporation has lawyers, a professional sourcing department, and experience ordering from dozens of global craft suppliers. The craft village often lacks anyone specialized in contracts, has no precedents for comparison, and more importantly: they need that order.

This necessity is the most easily exploited point. The partner does not necessarily act maliciously, but every commercial transaction is inherently optimized for the buyer. If the craft village does not proactively set conditions, default conditions will apply, and those conditions almost never protect the identity of the producer.

38%The higher price that customers are willing to pay for a brand is perceived as "meaningful and different." Source: Kantar BrandZ, around 2020.

This figure raises a practical question. If the handcrafted products of the craft village are clearly identified and linked to the heritage story, who benefits from that value difference? Without a craft village brand, the answer is: it belongs to the distribution brand.

Heritage assets: what craft villages own without knowing

Each craft village has at least one asset that no factory can completely replicate. This is the distinctive technique formed over generations, local materials tied to specific ecological conditions, and the story of the people behind each product. The academic community on branding calls this "distinctive brand assets": elements that are both well-known and cannot be duplicated.

The issue is that these assets exist in reality but have not yet been systematized into commercial language. The craft village knows what they do, but they do not yet know how to articulate it in a way that the market understands and pays for. Without language, assets have no value.

A brand is not a logo. A brand is the feeling in the buyer's gut about a product, service, or organization.

Marty Neumeier, The Brand Gap

Applied to the craft village: if the end buyer holds a bamboo bag but does not feel anything special about the place of production, the brand value of the craft village remains zero, no matter how beautiful the product is. That perception must be designed. It does not occur naturally.

Three conditions for collaboration that do not lose identity

Collaboration is not bad. What is bad is entering a collaboration without a position. The three conditions below are the minimum framework for a craft village to collaborate without being diluted.

  • Establish heritage assets before negotiations. The craft village needs at least one set of documents clearly describing what the distinctive technique is, and what machines cannot replace. This document should also record the history of formation and the artisans who hold that technique. This is not a travel brochure. This is a record of value to be used in negotiations and future protection.
  • Establish co-branding terms in the contract. Specifically: the name of the craft village or the name of the craft brand must appear on the product in a visible position, not just in the partner's internal documents. The right to use images of the craft village in the partner's communications must have clear scope and duration.
  • Maintain an independent sales channel alongside. Comprehensive exclusive collaborations are a trap. When the large partner is the only channel, the craft village loses leverage in all subsequent negotiations. An independent channel, even if small, is proof that the craft village can exist and price itself independently.
Consistent identityBrands applied consistently across touchpoints correlate with higher revenue, according to a business survey by Lucidpress/Marq and Demand Metric (2016, 2019). This is self-reported survey data, not controlled experiments.

When large brands benefit and craft villages benefit as well

The ideal collaboration is when both sides clearly understand what they bring and what they want to receive. The large brand needs authenticity: a real craft story, real people, real processes. This is something that cannot be bought with a marketing budget; it can only be borrowed from a craft village with heritage.

The craft village needs a market and distribution system that they cannot build on their own in the short term. This is something major brands have in abundance.

When both parties view the situation fairly, the collaboration terms will accurately reflect the value exchanged. The large brand will proactively acknowledge the name of the craft village because that story increases the value of their product. The craft village will gain borrowed prestige and exposure that would take years to build independently.

+32 percentage pointsRevenue of companies in the design leadership group exceeds that of the remaining group over five years, according to a study of 300 companies. Source: McKinsey, The Business Value of Design, 2018.

Positioning before collaboration: not a luxury, but an essential condition for survival

Many craft villages believe that building their own brand is a future task, after securing enough orders. In reality, the opposite is true. Large orders come from major partners, and major partners come because they see clear value, not because of the lowest price.

Wally Olins, one of the most important brand theorists of the 20th century, describes a brand through four vectors: product, environment, communication, and behavior. For the craft village, the "behavior" vector is particularly important. The way artisans present their process, how the village welcomes guests, how they package and deliver products are all part of the brand, even without a logo. Building from these four vectors is the practical path, without waiting for enough money to create a brand identity.

Positioning does not need to be perfect before collaboration. It needs to be clear enough for the craft village to know what they are rejecting. That is the boundary between collaboration and being replaced.

Transparent note: This article does not cite data on the percentage of craft villages losing their brand after collaborations. The reason is that there is currently no reliable independent quantitative research for the Vietnamese market at the time of writing. Observations about the negotiation balance are based on classic branding principles and the studio's practical observations, not statistical data.

References

Marty Neumeier, The Brand Gap (New Riders, 2003). Wally Olins, On Brand (Thames & Hudson, 2003). Jennifer Craik, Fashion: The Key Concepts (Berg, 2009). UNESCO, Policy for Creative Economy (2013). Kantar BrandZ, meaningful brand report, around 2020. World Crafts Council, global craft market report. Vietnam Trade Promotion Agency, data on handicraft exports.

Frequently asked questions

Do small craft villages need to build their own brand before collaborating?

Necessary. If you do not have a clear positioning, partners will position you according to their goals. Building a brand first helps you know what cannot be compromised during negotiations, and what can be flexible.

What are the benefits of co-branding with large corporations for craft villages?

The clearest benefit is the exposure and borrowed prestige: the name of the craft village appearing alongside a large brand helps increase recognition in new markets. But this benefit only has long-term value if the name of the craft village is clearly acknowledged in the product, not hidden in small print on the back of the packaging.

What should craft villages negotiate when signing contracts with large commercial partners?

At least three points. One is the right to acknowledge the origin and the name of the craft village on the product. Two is the exclusivity limit on type and duration, so the craft village can still sell through its own channels. Three is the quality control clause according to craft standards, not just according to the partner's industrial standards.

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