7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 1/47

Growing the craft business –  

options to consider

Lawrence Watson

IFAT Associate, and Lead Consultant

to the Asia Fair Trade Forum,

Shareholder - Citizen Dream

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 2/47

Growing the business

• Craft business is flat or declining – but not

the food business

Why ? 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 3/47

The Fair Trade Journey

Skills

Time

 Economic

 dependency

 Economic

 Independency

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 4/47

Skill development must translate into

 higher value added products

 Low

 Med 

 Hi

Value-added  higher price

 Development phases

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 5/47

 Low

 Med 

 Hi

 Different Customers,

 Markets – and 

 probably partners

That means:

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 6/47

Today

 Low

 Med 

 Hi

80%20%

0%

…….Charity 

 Purchase motivation

 Existing split

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 7/47

Tomorrow

 Low

 Med 

 Hi

…….Charity  ……Value……..

 Purchase motivation

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 8/47

 Different niches –  

 different partners

 Low

 Med 

 Hi

80%

 20%

 50%

30% ???

 20% ???

0%

 Potential future split

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 9/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 10/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

• Separate, mainstream niches to be developed to

move up the journey

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 11/47

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 12/47

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 13/47

The Doi Tung Development Project

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 14/47

Doi Tung 

Union of Myanmar 

93,515 Rai

(150 Sq. km) 

Mae Fah Luang 

Thailand

Laos

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 15/47

1988

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 16/47

Today

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 17/47

Doi Tung Coffee 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 18/47

Coffee Bean $ 2 Per Kilogram

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 19/47

Roasted Coffee $ 10 Per Kilogram 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 20/47

Arabica (Retail) $20 per Kilogram

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 21/47

Doi Tung Coffee Shop $ 100 per Kilograms

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 22/47

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 23/47

Price per Meter

$ 20

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 24/47

 

Placemat made from

Vetiver Grass $ 5 per piece

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 25/47

Products in Doi Tung Development

Handicraft Centre 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 26/47

Siam Discovery 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 27/47

The bottom line

• In 16 years the per capita income on the

 project has gone from $ 80 pa……. 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 28/47

The bottom line

• In 16 years the per capita income on the

project has gone from $ 80 pa……. 

• ….To $ 800 pa. 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 29/47

The bottom line

• In 16 years the per capita income on the

project has gone from $ 80 pa……. 

• ….To $ 800 pa. 

• Are we having a similar effect?

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 30/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

• Separate, mainstream niches to be developed to

move up the journey

• Develop the local markets – retail and wholesale

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 31/47

Craft:

• Craft sales are in a crisis – food is not.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 32/47

Craft:

• Craft sales are in a crisis – food is not.

• Craft mainly limited to the FTO/NGO

network (north and south) –  food is no

longer.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 33/47

Craft:

• Craft sales are in a crisis – food is not.

• Craft mainly limited to the FTO/NGOnetwork (north and south) – food is nolonger.

• Challenge # 1- can the movement (N and S)recognise the crisis – and react?

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 34/47

Old business model 

• The business model in craft (not food) is

essentially the same, now as “then”. 

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 35/47

The market

• We do not even know the size of the FT

craft market.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 36/47

The market

• We do not even know the size of the FT

market.

• ….but in Europe it is probably around € 100

million (retail value)

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 37/47

The market

• Conservatively – the mainstream gift

market in Europe is around € 6 billion

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 38/47

The market

• Conservatively – the mainstream gift

market in Europe is around $ 6 billion

• Exports from Vietnam alone are $ 400

million = RSP $ 2.4 billion

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 39/47

The market

• Conservatively – the mainstream gift

market in Europe is around $ 6 billion

• Exports from Vietnam alone are $ 400

million = RSP $ 2.4 billion

• India is $ 1.5 billion = RSP 9 billion

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 40/47

Some alternatives

• Northern FTO’s finance and set up a

separate “Craft Direct” wholesaler to

mainstream.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 41/47

Some alternatives

• Northern FTO’s set up a “Craft Direct”

wholsaler to mainstream.

• The “up-market” Fair Trade private gift

shops or mainstream wholsalers

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 42/47

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 43/47

Alternative Strategies

• .

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 44/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 45/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

• Develop the local markets – retail and wholesale

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 46/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

• Develop the local markets – retail and wholesale

• Private retail initiatives

7/30/2019 craf business presentation

http://slidepdf.com/reader/full/craf-business-presentation 47/47

Alternative Strategies

• World-Shops to retain their niche – with

improvements.

• Develop the local markets – retail and wholesale• Private retail initiatives

• Private or FTO-financed “Craft-Direct”

wholesaler - labeled products to mainstream