This paper describes the concept of innovation strategies for traditional souvenir craft industries. There are many traditional souvenir craft industries in Indonesia, and they have to compete in today‘s global markets. The craftsmanship and uniqueness of traditional crafts must be developed to attract a larger market. This competition is not easy for craftspeople, neither financially nor culturally. The authors propose some innovation strategies to facilitate craftspeople in generating ideas based on their traditional value, to ensure their sustainability in global context. However, even though there are a number of studies about the craft industry and souvenirs, there is little research focused on the souvenir product development process, especially in the traditional craft industry. Considering that souvenirs are products for pleasure which require hedonic value more than utilitarian value, the offered innovation strategy refers to the strategy applied in existing industries that produce hedonic products. Innovation strategy in the fashion industry is selected as a reference, which is discussed by considering the context of the traditional souvenir craft industry. This investigation will support further research about knowledge sharing systems to enable collaborative learning within traditional craftspeople.
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