Kathmandu, July 1 -- Prasanna Kumar Shakya had always been fascinated with how small-scale handicraft businesses did so well for themselves. And how the demand for handicrafts-whether it be small leather keyrings or accessories-has always been there.

"I knew that if I would tap into the market, I'd do well and change how things worked. That's how I got hooked to the idea of manufacturing handmade products in Nepal," says Shakya. Teaming up with childhood friend Sajan Govinda Joshi two years ago, Shakya then established Kayo Creative Studio in May 2017.

The first thing the duo decided was that the studio would not follow the traditional business model of handicraft businesses exactly. The pair wanted to establish a luxury handicraft bran...