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There exists an emerging genre of luxury that speaks to consumers’ desire for products that put a holistic view of sustainability at the forefront. Today, there are consumers who seek products that are not only unique and of high quality but also come with a story of the artisan and the community from which it originates. We argue that a new genre of luxury is formed as traditional craftsmen are exposed to the global marketplace and have the opportunity to interact with consumers who seek high-end or bespoke products. For this to be truly sustainable, artisans must develop commensurate capabilities. Thus, the new genre requires ‘co-design’. We use the case of the International Folk Art Market (IFAM) in Santa Fe, New Mexico, United States, as an example of creating a new luxury craft market, and the example of an innovative education programme for traditional artisans in India to show how artisans from remote parts of the world can increase their capacity to avail such new markets in a way that sustains them economically and culturally.