“Good Business Practices for Improved Market Competitiveness” Cambodia-Japan Cooperation Center (CJCC)

Phnom Penh, Cambodia

By Ngoun Sokkim

Exµr esdü DIhSaj Khmer Sedge Designs Co., ltd #53, St 350, BBK III, Chomkamon Phnom Penh, Cambodia, Tel: +855 92 708 375 Email: info@khmersedgedesigns.com; www.khmersedgedesigns.com

30th Jan 2015

Sedge Mat Business Practice

Our Background • Khmer Sedge Designs Co.Ltd is a jointed Venture

company between member of Cambodia Sedge Business Association (CSMA) and Devenco.Co.Ltd and German investor in year 2014

• Khmer Sedge Designs is a social enterprise operating in Ksach Kandal province, producing a variety of high-quality, all natural grass products, preserving the complex traditional method of sedge weaving.

• Social responsibility: empowering communities by providing employment and stable income opportunities to local communities

• Environmentally friendly production • Promotion of Khmer handicrafts: making high quality

sedge mat and products recognized internationally as Khmer cultural heritage.

• Quality excellence: challenging the highest quality standards

Our Value

Our team

Board of Directors Ms. Ngoun Sokkim

Mr. Christophe Forsinetti Mr. Torsten Munther

Sales & Marketing Peng Sokny

Retail

Export

Production Mr. Tang dy

Quality control

Community Management

Design/R&D Ms.Ngan Phait

Admin/Accountant Pin Sreyrath

Ms.Ngoun Sokkim General Manager

Advisor Ana Duarte

Our Product rank KSD‘s products: • Floor mats, • Tableware accessories including

placemats and coasters, • Home and office goods including

lamps, Cushions, note books, pencil cases, Bag and many more…

Our Product range

Social Business Practice

• KSD is working mainly with disadvantage and poor women in Kandal province. We offer them the training in product design, weaving technique and produce the finished products such as bags, place mat, etc.

• KSD is committed to practice fair trade principle which is care about fair wage, environmental , provide job opportunity to women.

Social Business Practice (Cont.)

• KSD provide job opportunity to 200 weavers and famers in the commune who are unable to work out commune because they have to stay home to take care children and their elderly.

• KSD is a part of Khmer Culture preservation for mat weaving and mat products.

Social Business Practice (Cont.)

• Our business engage with social and fair trade practice give us the advantages to sell higher price then normal products which is one of our main competitive advantage especially for the buyers in Japan, Australia and Germany.

Business Model

• International Market: Export the highest quality

products • Domestic Markets: Sell high and low quality products

Marketing and Sale

• Marketing Promotion : – Trade fair, website catalogue, flyer, News letter,

And support from the partner such as Hinrich foundation trade marketing promotion platform.

• Sales: – Local: our showroom, wholesales, souvenir store,

hotel and restaurant – Export: Germany, Australia, Singapore, Korea and

Japan.

Experience in export market

• To export to foreign markets: – Product must be standard quality – Design must be follow the trend – Comply with buyer requirement in product

development, product inspection, packaging, – Production Management and Production lead time

must be well managed. It is affected to shipment line, delivery time and also your payment.

– Consistent production supply. ( Export market is not one time shipment)

• Price Negotiating 1)EX -WORKS (Kandal Province) The Seller's only responsibility is to make the goods

available at the Seller's premises. The Buyer bears full costs and risks of moving the goods from there to destination.

2)FOB - FREE ON BOARD ( Sihanuk ville port ) The Seller delivers the goods on board the ship and

clears the goods for export.From that point, the Buyer bears all costs and risks of loss or damage.

3)CIF - COST INSURANCE AND FREIGHT (named port of destination/Hamburg, Germany)

The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.

• Term of payment: 50% Deposit and 50%(goods on board)

• Payment process: T/T and LC • Packing: Follow the instruction • Shipping Mode: Air or Sea • Deadline: Base on discussion

Our experienced in export

• Quality Check and Packing process.

Scanning Sport check

Example of shipment to Japan

• Packing must follow all instruction of buyers such as labeling and tag...

Attaching Label Ready for packing

Export document

• Certificate of registration from MoC • Patent • VAT • GSP(Generalized System of Preferences ) • Acycoda • Invoice • Packing list • Admin (paper work attached file, for ex customs

paperwork)

Our Success in previous year

• Through support from MoC and Asean Japan Center and to improve our product image, we bring our design for international contest.

• So far in year 2014, Our 2 items award as Good Design Award 2014, given by the Japanese Institute of Design Promotion and certified by GMARK. GMARK is a widely recognized certificate of quality and good design.

Challenge

• Local Market: increase more competitor (Price competitive)

• Export market: Need time to educate buyer about the product and difficult to access.

• Shortage Labor : due to most of the weavers are moving to the garment factory and do migrant.

• Production Process: Not well organiz

Thank you !

Sokkim Ngoun(Ms) Tel: +855 92 708 375 #53, St350. S.kat Beungkengkang 3, Chomkamoon, Phnom Penh email:info@khmersedgedesigns.com email: Sokkim_ngoun@yahoo.com www.khmersedgedesigns.com