selling to main stream - wfto
TRANSCRIPT
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Selling to Main stream Combating Poverty
Empowering women
Creative Handicrafts
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Sharing of experience rather than expertise
• What made us look at the main stream • Back in year 2002 • Sales dwindling… organization at the verge
of closure • Orders from the fair traders for only a
couple of thousands of Euros • Products not very attractive • Overall a gloomy picture
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The question:
! Why can’t we follow the market model? ! Why do we need a niche market ? If fair
trade remains a niche market then it is not sustainable.
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How normal business work?
! Investment ! Risk taking
! Production ! Marketing ! Product is ready
before being marketed
! Capacity Building
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The challenges..
! Open competition of the products. Your product is put against your competitors. (example: Carrefour)
! You are given a target price. It does not mean you are given a low price. It is the market price.
! The challenge create that competitive edge either with your design, or with the price or with capacity. Stories alone cannot give this competitive edge.
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What we started with
! Realized that most of the products that the organization was proud off were not saleable any more.
! Needed to enter into partnership with designers in Spain and France. They were all from main stream (not from fair trade) and professionals.
! The designers brought not only designer products but also knowledge of main stream
!
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The Challenge with the designs
! Organization did not have the capacity to produce the new design:
! Technical capacity (machines) ! Skills in the producers ! Knowledge to handle the technicality of
fashion.
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Building capacity ! This means investing into production
capacity ! Capacity to produce large quantity in a
short period of time. ! Infrastructure ! Machines ! Know how ! Skill upgradation
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Change of infrastructure
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Creating product line
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Choice of product line
! Entering into main stream = scalability of the production
! Repeatability of the product: The problem with handicrafts. It should be all the same.
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The myth: The producers are looking for buyers
! The fact is that buyers are looking for reliable producers.
! Reliability means: quality and on time delivery.
! Important: We live on repeat orders. Cannot afford to screw up your first order from mainstream… they never come back to you. (eg. Somewhere)
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Movement from stories to products
! In fair trade, we have been selling stories and not products
! In main stream: it is products and not stories that sell.
! Products have to stand by itself and the stories remains an added value.
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Sales record of Creative Handicrafts
26,2
34,1
41,2
62,90 64,50
70,71
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
2006-07 2007-08 2008-09 2009-10 2010 - 11 2011-12
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CH was awarded the Prestigious award Premio Principe de Viana De La Solidaridad
Thank you!!
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Awarded outstanding Fair Trade Organization in Asia by WFTO-
Asia