E-commerce model to export toquilla straw
fashion products to the European Union
Modelo de
e-commerce para la exportación de productos de moda a
base de paja toquilla hacia la Unión Europea
Modelo de comércio eletrónico para exportação de produtos de moda à
base de palha de toquilla para a União
Europeia
Michel Mogollón-Claudett
Tamara Sabando Reyna
Gustavo La Mota Terranova
Juan José Yagua Verduga
Abstract
This research addresses the socioeconomic
problems of small coastal communities in Ecuador, which often live in poverty
due to a lack of commercial and employment opportunities. These communities
often focus on tourism activities, particularly handicraft production, whose
sales depend exclusively on tourist visits, the acceptance of their products,
and their purchasing power. The authors argue that as long as these communities
continue to offer their products to consumers in a depressed economy like
Ecuador's, the results will remain unpromising. On the other hand, if these
products are offered in developed international markets with high purchasing
power and where eco-friendly handicrafts are highly valued, the results can be
very positive. To this objective, the paper proposes developing an e-commerce
model for the export of handicrafts from small coastal communities in Ecuador
to the European Union. The methodology used includes a systematic literature
review, visits to the coastal community of Libertador
Bolívar on the Santa Elena Peninsula, known for its high-quality toquilla straw handicrafts, as well as interviews with its
artisans, entrepreneurs and small business owners. The results, analysis, and
conclusions are presented in the final section of the document.
Keywords: sustainable
development of small communities, international e-commerce, toquilla
straw handicrafts.
Resumen
La presente investigación aborda la problemática socioeconómica de las pequeñas comunidades costeras del Ecuador, que suelen desenvolverse en condiciones de pobreza debido a la falta de oportunidades comerciales y laborales. Estas comunas suelen dedicarse a actividades turísticas, de entre las cuales destacan las de confección de artesanías, cuyas ventas dependen exclusivamente de las visitas de los turistas, la aceptación de sus productos y la capacidad de compra que tengan. Los autores plantean que mientras estas comunidades sigan ofertando sus productos a los consumidores una economía deprimida como la ecuatoriana, los resultados seguirán siendo poco prometedores. Por otro lado, si se ofertan estos productos en mercados internacionales desarrollados, con alto poder de compra, y donde las artesanías eco-amigables son altamente cotizadas, los resultados pueden ser muy positivos. Con este objetivo, se propone desarrollar un modelo de comercio electrónico para la exportación de artesanías desde las pequeñas comunidades costeras del Ecuador hacia la Unión Europea. La metodología empleada incluye una revisión sistemática de la literatura, vistas la comunidad costera Libertador Bolívar en la península de Santa Elena, que destaca por sus artesanías de paja toquilla de alta calidad, así como entrevistas a sus artesanos y microempresarios. Los resultados, análisis y conclusiones se presentan en la sección final del documento.
Palabras Clave: desarrollo sostenible de pequeñas comunidades, comercio electrónico internacional, artesanías de paja toquilla.
Resumo
Esta investigação aborda os problemas
socioeconómicos das pequenas comunidades costeiras do Equador, que muitas vezes
vivem na pobreza devido à falta de oportunidades comerciais e de emprego. Estas
comunidades concentram-se frequentemente em atividades turísticas,
particularmente na produção de artesanato, cujas vendas dependem exclusivamente
das visitas turísticas, da aceitação dos seus produtos e do poder de compra dos
turistas. Os autores argumentam que, enquanto estas comunidades continuarem a
oferecer os seus produtos aos consumidores numa economia em recessão como a do
Equador, os resultados continuarão a ser pouco promissores. Por outro lado, se
esses produtos forem oferecidos em mercados internacionais desenvolvidos, com
alto poder de compra e onde o artesanato ecológico é altamente valorizado, os
resultados podem ser muito positivos. Para esse objetivo, o artigo propõe o
desenvolvimento de um modelo de comércio eletrónico para a exportação de
artesanato de pequenas comunidades costeiras do Equador para a União Europeia.
A metodologia utilizada inclui uma revisão sistemática da literatura, visitas à
comunidade costeira de Libertador Bolívar, na Península de Santa Elena,
conhecida por seus artesanatos de palha toquilla de alta qualidade, bem como
entrevistas com seus artesãos, empresários e pequenos empresários. Os
resultados, análises e conclusões são apresentados na seção final do documento.
Palavras-clave: desenvolvimento sustentável de pequenas comunidades,
comércio eletrónico internacional, artesanato em palha toquilla.
INTRODUCTION
Toquilla straw
weaving is an ancestral Ecuadorian tradition that represents not only a source
of identity but also an economic opportunity for rural coastal communities that
have perfected this technique throughout centuries. A perfect example of that
is Libertador Bolívar in the province of Santa Elena.
Globally known for their craftsmanship, these artisans design and produce
high-quality fashion items like hats and handbags using Carludovica
palmata, a native plant species. In recent years,
international demand for sustainable, handmade, and ethically sourced products
has grown significantly, particularly in fashion-forward markets like the
European Union (CBI, 2024). This trend provides a compelling opportunity for Ecuadorian
artisans to access broader markets. For example, internationally, toquilla hats are mistakenly thought of as Panamanian
(“Panama hats”), but are really originally from Ecuador (Ministerio
de Turismo Ecuador, 2014).
At the same time, the rise of e-commerce as a
dominant force in global trade has transformed the way in which small producers
interact with international consumers (Thenoz et al.,
2024). Platforms like Shopify enable even micro-enterprises to sell their
products globally, bypassing traditional intermediaries (Panozzo,
2025). In that line of thought, for some small coast communities like Libertador Bolívar, e-commerce represents a channel with a
strong potential to increase incomes, preserve their cultural heritage, and
reduce socioeconomic inequality.
This research focuses on the export of toquilla straw fashion products—particularly hats and
handbags—crafted by artisans and small-to-medium enterprises (SMEs) in Libertador Bolívar, a coastal community in Ecuador. The
quality of these products surpasses international standards, and should aim for
global markets, with a primary focus on the European Union, where demand for
sustainable and ethically made fashion continues to grow year-round (Gasulla Tortajada et al., 2024).
This initiative seeks to improve the quality in the life of local artisans,
preserve their ancestral techniques, and connect rural producers to global
consumers. By leveraging digital tools and trends, particularly through a
structured e-commerce model built on platforms such as Shopify, this study aims
to create accessible and scalable pathways for artisans to participate in
cross-border trade in a way that is economically viable and culturally
respectful.
Regardless of the increase in demand for
sustainable artisan goods, many Ecuadorian producers, especially in little
communities like this one, face barriers to participate in the international
trade market. Limited digital skills, lack of access to trend forecasting, and
insufficient exposure to logistics in general, and even more in e-commerce, are
some of the factors that create this strong barrier that impedes these artisans
to grow their ventures. In Libertador Bolívar, these
limitations are compounded by high poverty rates, limited infrastructure and
high illiteracy in commercial and financial matters (Alcívar,
2022). However, with the right training and technological support, e-commerce
can serve as a bridge between traditional craftsmanship and the global market.
The relevance of this study lies in its
potential to successfully operationalize a replicable business model of digital
inclusion and sustainable development. By combining entrepreneurship, digital
tools, and traditional skills, this initiative could significantly improve the
socioeconomic wellbeing of low-income coastal communities. It also aligns with
broader trends in global commerce and development policy, where inclusive
innovation is increasingly seen as a driver of equitable growth (Xetor & Mensah, 2025).
Theoretical model
The problem with this latter activity is that
under the current business model, craft shops depend on tourist visits to
generate sales. This presupposes that local socioeconomic conditions favor
tourism, that the towns where their physical stores are located are visited,
that their products are sought after by visitors, and that these visitors have
real purchasing power. These premises are difficult to meet in a depressed
economy.
This research posits that in order to break
this vicious cycle and improve both, sales volumes and product prices, local
artisans should develop new business models that include online stores with
international reach, offering their products in developed economies with
higher-income consumers, where eco-friendly handicrafts are highly valued, as
shown in figure 1. The goal is to evolve from stage A to stage B.
Figure
1. Conceptual
model
a)
b)
General objective
To develop an e-commerce model for the export
of handicrafts from small coastal communities in Ecuador to the European Union.
Literature review
Entrepreneurship plays a fundamental role in
transforming these types of traditional industries by introducing a different,
innovative, approach and connecting local producers to international markets.
By doing so, it gives native producers a whole other scalability for their
products (Hu et al., 2024). In the context of this small coastal town, Libertador Bolívar, entrepreneurship involves artisan
individuals who convert ancestral techniques that weave raw materials into
commercially viable fashion products. These entrepreneurs are indirectly
cultural ambassadors and economic drivers for the whole commune, adapting their
products to global trends while maintaining the authenticity of their ancestral
craft. Research shows that supporting micro-entrepreneurship in the creative
sectors enhances economic resilience and empowers marginalized populations
(UNESCO, 2022).
Ecuador’s coast is one to showcase that
entrepreneurship is deeply tied to social capital and collective action.
Artisan-family-run businesses share resources among each other. These
grassroots economic structures are fertile ground for the introduction of
digital tools, as long as those tools are tailored to the context and include
adequate training and support systems.
Toquilla straw
products are intrinsically sustainable. Its raw material, Carludovica
palmata, is biodegradable and can be easily
cultivated by its producers, without the need of any aggressive chemicals or
fertilizers. Additionally, the production process relies primarily on manual labor,
minimizing the carbon footprint, making it environmentally-friendly. As global
fashion moves apart from unethical production, these characteristics make toquilla straw products highly attractive to European
consumers (UNESCO, 2012).
Cultural sustainability is equally important
for towns like Libertador Bolívar. The weaving
tradition in Libertador Bolívar is not only an
economic activity but also a practice that reinforces social cohesion and
transmits knowledge across generations. E-commerce, when implemented mindfully,
can contribute to the preservation of these practices by expanding demand
without compromising integrity (Zhang et al., 2024).
There is increasing demand within the European
Union for products that are handmade, sustainable, and traceable. According to
previous studies, consumers are more willing than ever to support products that
demonstrate ethical sourcing and sustainable materials (Agu
et al., 2024). Platforms like Etsy and niche fashion boutiques have proven that
artisan goods can thrive in a digital marketplace when they are aligned with
consumer values (Gambicorti, 2025).
On the supply side, communities like Libertador Bolívar can produce high-quality goods, but face
logistical and financial barriers to scaling their operations. The
implementation of a structured e-commerce model, including website development,
branding, packaging, and reliable international logistics, is essential to
bridge the supply-demand gap.
Transforming artisan production into a scalable
export-oriented model requires innovation (Chaldun et
al., 2024). This not only refers to the technological aspect, but integrally,
reorganizing production and distribution. For example, when targeting a
European-sustainably-driven customer, its fundamental to stay in touch with
their feedback and worldwide fashion trends.
Additionally, innovations in its delivery and
payments enable smoother cross-border transactions and make it friendlier for
an international customer. Importantly, this innovation must be inclusive. The
integration of digital platforms should not erase the artisanal nature of the
work, but rather enhance its visibility and accessibility (Guha
et al., 2024).
E-commerce platforms such as Shopify, Etsy, and
Ankorstore enable small producers to enter
international markets without large upfront investments. Shopify, in
particular, offers customizable storefronts, integrated logistics tools, and
analytics—all essential for small-scale exporters (Shopify, 2024). For
producers in Libertador Bolívar, Shopify could serve
as the backbone of a sustainable digital export operation.
However, cross-border e-commerce comes with
challenges: taxes, customs regulations, shipping costs, and returns can become
complicated without proper guidance. The European Union’s VAT policies, for
instance, require sellers to register through the Import One-Stop Shop (IOSS)
system if they sell directly to EU consumers (European Comission,
2025).
Also, digital illiteracy presents a possible
setback for a venture like this. While most artisans in Libertador
Bolívar do not have prior experience with digital marketing, online payments,
or international logistics, and this being a fundamental prerequisite to
achieve the goals aforementioned, it’s important for these artisans to be more
capable on this matter. Therefore, structured training programs—ideally
facilitated by local universities, NGOs, or government institutions—are key.
These programs should cover customer service, language skills, payment
facilities, in addition to platform-specific training. Training should also be
continuous, given that as platforms and trends evolve, artisans must remain
agile and informed to stay competitive in the EU market.
In the same line of thought, access to
financing is often a bottleneck for small producers, especially when trying to
scale their business. Startup financing is needed for packaging, branding,
setting up their digital identity, and certification processes (e.g., fair
trade, organic labels). In Ecuador, programs by the Ministry of Production,
Foreign Trade, Investments and Fisheries (MPCEIP) and financial inclusion
initiatives like microcredit loans could support the initial stages of digital
export ventures. In addition, EU programs like AL-INVEST Verde, which focus on
sustainable development partnerships between Latin America and the EU, can
offer technical and financial assistance for eligible businesses (Programme AL-INVEST Verde, 2025).
MATERIALS
AND METHODS
This paper employs a qualitative approach based
on a systematic literature review based upon start-ups, entrepreneurship,
e-business, e-commerce and sustainable development of communities in similar
scenarios to Libertador Bolivar. Also, some
interviews were conducted with artisans from the aforementioned community;
these methods were used to get in-depth insights into the practical challenges
and opportunities faced by local producers in accessing international markets
through e-commerce activities.
A systematic literature review (SLR) was
carried out to gather academic, institutional, and industry-based knowledge
related to the effect that e-commerce has on sustainable fashion and artisan
exports, and how are these related to each other. Sources were identified
through databases such as Scopus, Web of Sciences (WOS), Francis and Taylor and
Springer, with a focus on literature published between 2015 and 2024. Keywords
included “artisan exports”, “e-commerce Latin America”, “sustainable fashion
EU”, “sustainable development of small communities” and “digital trade
barriers.”
In addition to articles from the academia,
relevant regulatory documents and reports from international organizations such
as the International Trade Centre (ITC), European Commission, and UNCTAD were
reviewed for this paper. These sources offered insights into EU trade requirements,
consumer trends, and trade opportunities for small producers through digital
markets. The SLR helped establish the broader context of artisan digital trade
and provided a foundation for interpreting local-level findings from the
interviews.
To understand the specific realities of the toquilla straw production sector, interviews were conducted
with artisans and cooperative members from Libertador
Bolívar, a rural coastal community in Ecuador with a longstanding tradition of
weaving. The goal was to explore their point of view on digital trading and
e-commerce, production capabilities, and perceived barriers to access
international markets, particularly the EU.
The interviews were conducted in Spanish, in
person, and covered the following key themes:
1. Awareness and use of digital platforms for
selling products
2. Perceptions of demand for handmade goods
abroad
3. Skills and resources needed to participate
in international e-commerce
4. Obstacles such as internet access,
logistics, financing, and product adaptation
These interviews revealed a strong interest in
expanding to international markets, and a clear knowledge that they should do
so through digital platforms. However, artisans also highlighted that there
were major limitations, including the lack of digital training, limited
knowledge of international consumer preferences, a language barrier, and a skim
institutional support to access financial leverage and logistics handling.
Complementarily, the qualitative data gathered from these interviews forms the
empirical core of this study, helping to contextualize the broader literature
findings and to develop recommendations that are both practical and
theoretically relevant.
RESULTS
It's clear that
international markets, such as the European Union, have a growing appetite for
handmade, ethical, and eco-friendly fashion items. According to Frey et al.
(2023), over 50% of European consumers express a preference for products made
under sustainable and fair-trade conditions. Toquilla
straw products due to their natural materials, traditional techniques, and
cultural authenticity, align strongly with these consumer values. EU fashion
marketplaces such as Etsy, Wolf & Badger, and Ankorstore
are increasingly showcasing and promoting slow fashion brands, highlighting a
valuable entry point for producers in Ecuador.
Interviews with
artisans showed that they were close to illiterate with digital tools and
e-commerce platforms. These artisans rely on local sell points and
word-of-mouth for sales and have almost no exposure to online sales strategies.
While some have access to smartphones and social media (primarily Facebook and
WhatsApp), it's safe to say that none have experience with platforms like
Shopify, and even less understand cross-border logistics. Regardless of that,
particularly younger artisans, show strong interest in learning how to sell
online, but interviewees noted a difficulty to acquire these capabilities
because of a lack of training programs and reliable internet access as major
barriers.
Also, artisans
in Libertador Bolívar demonstrate exceptional skill
in traditional weaving, particularly in the production of toquilla
straw hats and handbags. Their lack of technological skills presents itself as
a counterpart to their exceptional hand labor. The craftsmanship is deeply
rooted in local culture and has been passed down through generations. Artisans
expressed pride in their work and a willingness to adapt designs and colors to
meet international preferences, as long as this does not compromise their
heritage. This openness to innovation represents a major opportunity for design
collaboration and product adaptation for European tastes.
The interviews
evidenced that in Ecuador there is a lack of pathways for people like these to
export their goods. While some of them have participated in local initiatives
or government-supported fairs, none have been involved in export projects. Most
are unfamiliar with export procedures, its requirements, or international
regulations. This reflects a broader gap identified in the literature:
small-scale producers often lack the technical and legal knowledge to comply
with EU regulations, such as VAT requirements, packaging laws, and
certification standards.
A consistent
issue mentioned is the urgent need for training and support. Artisans mentioned
the desire to learn about photography, product pricing, branding, customer
service, and online store management. The literature emphasizes that e-commerce
projects are more successful when accompanied by capacity building, local
mentorship, and multisector partnerships (UNCTAD, 2003). There is also
potential for partnerships between artisan groups, universities, NGOs, and
government programs to co-develop an e-commerce model tailored to the
community's specific needs and limitations.
Analysis and discussion
The artisans of
Libertador Bolívar demonstrate an entrepreneurial
spirit grounded in tradition and cultural heritage. While they possess the
artisanal expertise necessary for high-quality production, the lack of access
to formal business knowledge, export networks, and online tools has limited
their entrepreneurial potential. Literature suggests that entrepreneurship in
rural communities can be catalyzed through localized digital innovation, which
aligns with the community’s openness to learning and adapting.
In this line,
international markets, particularly the European, show a strong preference for
sustainable practices in their product consumption, which aligns well with the
natural qualities of toquilla straw and the way they
are produced. The community’s artisanal labor, and their environmentally
responsible harvesting and methods offer an edge in the ethical fashion space
that's growing every day. However, the interviews revealed that artisans are
not fully aware of this value proposition. Educating them about sustainability
certifications or EU ecolabels could significantly enhance their positioning.
Moreover,
innovation in this context is not limited to product development but includes
digital transformation and process innovation. While artisans currently lack
access to platforms like Shopify, their willingness to explore digital commerce
opens the door to collaborative solutions. For example, academic institutions
or NGOs could pilot workshops where artisans co-create an e-commerce storefront
using user-friendly tools and templates tailored to rural users with limited
digital literacy.
Consequently,
e-commerce has the potential to radically transform the panorama that these
artisans have. Platforms such as Shopify and Etsy are accessible entry points,
but they require sustained technical, visual, and customer service support, in
order to change the export trajectory for artisan products. Literature
emphasizes that success in artisan e-commerce depends not just on having a
digital store but on building a narrative, managing shipping, and maintaining
trust with foreign buyers. This further underscores the need for ecosystemic support for artisans entering international
e-commerce.
Hence, between
literature and interviews, it was evidenced that training is the most critical
element needed for success. The artisans in the Libertador
Bolivar coastal community require preparation and initial support in
e-commerce, packaging, pricing, and international market preferences and
policies. Without this needed training, even their products, which are the
best, will not convert into sales. It is important to point out that,
interviews revealed that younger members of the community could act as digital
liaisons to the older ones. If properly trained, in a team effort, it is
feasible to create a sustainable model for generational knowledge exchange that
can radically improve the quality of live of the
people in Libertador Bolivar community.
Lastly, the
lack of capital prevents investment in raw materials, design innovation, and
digital tools. While microfinance programs exist in Ecuador, they are often
inaccessible to informal artisans. Literature suggests that government
incentives, export support agencies, ONG’s initiatives and fair-trade
partnerships can play a key role in providing seed funding for e-commerce
ventures in artisan communities. Linking these programs with the specific needs
of Libertador Bolívar could create long-term
transformation.
The export of toquilla
straw fashion products from Libertador Bolívar,
Ecuador, to the European Union and international markets in general, represents
a strong opportunity to combine cultural preservation, economic development,
and sustainable trade through e-commerce. This study has demonstrated that
while global markets are increasingly open to artisanal and eco-conscious
products, communities like Libertador Bolívar face
significant barriers to accessing those markets such as digital illiteracy,
lack of financing, and the absence of structured export pathways.
Through a systematic literature review and
interviews with local artisans, the research identified a strong foundation in
craftsmanship, openness to learning, and enthusiasm for international
opportunities. However, this potential remains largely untapped due to
structural limitations. The artisans produce world-class products that are
aligned with European values: products which are handmade, ethical, and
environmentally sustainable. But they lack the tools and training to promote,
package, and deliver these products to distant consumers.
E-commerce platforms, such as Shopify,
represent a promising and scalable solution. If properly supported, these
platforms can eliminate traditional intermediaries, allow direct-to-consumer
sales, and help artisans retain more of the economic value of their work.
However, this transition cannot happen in isolation. It requires strategic
investment in training, collaboration with design and logistics experts, and
support from government and non-governmental entities to provide legal,
financial, and marketing guidance.
This study concludes that a localized
e-commerce model —rooted in community needs, enhanced by external support, and
aligned with global sustainability trends— can offer a transformative
development path for the artisans of Libertador
Bolívar. The key lies not just in adopting digital tools, but in building a
long-term ecosystem of support that connects tradition with innovation.
Future Research Avenues
Future research should explore the scalability
of this e-commerce model to other artisan communities across Ecuador, assessing
whether similar strategies can be applied to different product categories and
cultural contexts. Comparative studies between regions could help identify
shared challenges and strengths, enabling the development of a more inclusive,
national digital trade strategy for handmade goods. Additionally, long-term
impact assessments are needed to evaluate how digital exports affect income
generation, gender roles, and generational engagement in rural artisan
economies.
Another important area for future inquiry
involves the integration of emerging technologies —such as artificial
intelligence, AR/VR, and automated logistics— into small-scale production ecosystems.
Researchers should investigate how these tools can enhance market access and
efficiency without undermining artisans’ creative autonomy. Studies could also
examine how to simplify EU trade compliance and fair-trade certification
processes for micro-enterprises and how policy frameworks might better support
digital inclusion for marginalized producers through infrastructure, financing,
and capacity-building initiatives.
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