Igniting a global movement to eradicate poverty through market-based solutions

Company Background▪ Nonprofit, founded in 1946▪ Fair trade opportunities for artisans in 38 developing

countries▪ Handmade gifts, jewelry, home decor, art and

sculptures, textiles, serveware, and personal accessories

▪ 390 retail outlets in the U.S.

Harmony.

Made By Hand.®

VisionOne day all artisans in developing countries will earn a fair wage, be treated with dignity and respect and be able to live a life of quality

MissionTen Thousand Villages' mission is to create opportunities for artisans in developing countries to earn income by bringing their products and stories to our markets through long-term fair trading relationships

The Target Consumer

▪ Cultural Creatives

▪ Over 60% women

▪ Estimated 50M in USA

▪ Above average income (~$50k)

▪Care about where/how product was made

▪Want to feel good about purchaseDato-on, M. C., Joyce, M., & Manolis, C. (2006, November). Creating Effective Customer Relationships in Not-for-Profit Retailing: The Ten Thousand Villages Example. International Journal of Nonprofit Volunteering(11), 319-333.

Current Business Model

Artisan

1 Artisan sends product to Ten Thousand Villages’ Warehouse

2 Ten Thousand Villages sends Artisan up to 50% cash advance via Shared Interest

3 Ten Thousand Villages markets product on website for purchase

4 Customer selects item for purchase and submits payment online

Ten Thousand Villages Website

CustomerTen Thousand Villages Warehouse

Business ProblemTen Thousand Village’s expenses are outpacing its

revenues, threatening to diminish its ability to continue to connect global artisans with domestic

customers.

E-Commerce Benefits and TrendsBenefits

▪Cost effective and efficient▪Analytics▪Facilitates global commerce▪Ideal for niche products▪Convenience

Trends▪ E-commerce forecasted to grow to $342 billion for US market (20%

increase)1

1 Source: Mintel.com, 2014

U.S. E-commerce Shoppers

Source: www.infifthgear.com

Source: Forrester

U.S. E-commerce Sales

Source: www.Statista.com

CustomMade▪ Connects consumer directly to the artisan▪ Shows story behind each product▪Allows consumers to connect with artisans

and custom make their product▪ 50% up front; 50% upon completion▪Mobile app

Source: Forbes

E-commerce for Ten Thousand Villages

▪Develop an app▪Paypal▪Individual customization

–Personalized experience–Connect buyer and artisan directly

▪Decrease reliance on retail stores

What can you do?

Make your site mobile payment friendly and compatible with all phones and other new devices

Risks ▪Developing an app is costly▪Individual customization could potentially increase:

•Returns•Delivery time•Costs

▪Cannibalization of retail stores–Lose ambiance and tangible shopping experience–Additional mobile revenues may not cover costs for e-commerce expansion

Risk Mitigation

▪Pilot program for feasibility and scalability–Reverse flows–Usage rates

▪ Use of Software Development Kits for apps ▪ Analyze underperforming stores▪ Better integration between retail stores and

e-commerce

“One day all artisans in the developing countries will earn a

fair wage, be treated with dignity and respect and be able to live a

life of quality.”

References▪ http://www.ecommerceeducation.com/benefits-of-ecommerce.asp▪ http://www.supplychainquarterly.com/columns/scq201102monetarymatters/▪ http://www.forbes.com/sites/ciocentral/2013/03/13/the-future-of-e-commerce-f

or-small-businesses/▪ http://www.forbes.com/sites/davidvinjamuri/2014/07/01/indies-how-your-next-

door-neighbor-is-changing-commerce/▪ http://www.forbes.com/sites/tomiogeron/2013/02/25/custommade-brings-artisa

n-customized-products-to-mass-market/

Bull Pen (AKA Extra Slides)

U.S. E-commerce Sales

The Growth of E-Commerce▪ Smartphone owners grew 28.5% from 2011-2012; 86

million Americans shop online via smartphone (comScore)▪ By 2022, brick and mortar retail spaces will have evolved

(Forbes)▪ Independents are cutting out the middleman:

▪ Craftspeople and artisans ran over 1 million active shops

▪ Etsy sold $1.35 billion in merchandise▪ 34.6% of music market in 2013▪ Lending Club has issued $7.6 billion in loans (peer to

peer)

Global E-commerce Sales

U.S. E-commerce Sales

Source: www.Statista.com