Page 1
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
Page 2
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 ?
Page 3
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
Page 4
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
Page 5
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:
Page 6
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
Page 7
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 7/47
Tomorrow
Low
Med
Hi
…….Charity ……Value……..
Purchase motivation
Page 8
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
Page 9
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.
Page 10
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
Page 11
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 11/47
Page 12
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 12/47
Page 13
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 13/47
The Doi Tung Development Project
Page 14
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
Page 15
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 15/47
1988
Page 16
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 16/47
Today
Page 17
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 17/47
Doi Tung Coffee
Page 18
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 18/47
Coffee Bean $ 2 Per Kilogram
Page 19
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 19/47
Roasted Coffee $ 10 Per Kilogram
Page 20
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 20/47
Arabica (Retail) $20 per Kilogram
Page 21
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 21/47
Doi Tung Coffee Shop $ 100 per Kilograms
Page 22
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 22/47
Page 23
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 23/47
Price per Meter
$ 20
Page 24
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 24/47
Placemat made from
Vetiver Grass $ 5 per piece
Page 25
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 25/47
Products in Doi Tung Development
Handicraft Centre
Page 26
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 26/47
Siam Discovery
Page 27
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…….
Page 28
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.
Page 29
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?
Page 30
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
Page 31
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.
Page 32
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.
Page 33
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?
Page 34
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”.
Page 35
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.
Page 36
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)
Page 37
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
Page 38
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
Page 39
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
Page 40
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.
Page 41
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
Page 42
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 42/47
Page 43
7/30/2019 craf business presentation
http://slidepdf.com/reader/full/craf-business-presentation 43/47
Alternative Strategies
• .
Page 44
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.
Page 45
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
Page 46
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
Page 47
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