DISSEMINATION WORKSHOP AGENDA FRIDAY, 12 DECEMBER 2014 RAFFLES - - PowerPoint PPT Presentation

Cambodia Export Diversification and Expansion Program (CEDEP I)

DISSEMINATION WORKSHOP AGENDA

FRIDAY, 12 DECEMBER 2014 RAFFLES HOTEL, PHNOM PENH, CAMBODIA

By: Leonila Luna – Trade Development Consultant

Agenda

09:00 Welcome address, update on the High Value Silk Project and National Silk Board H.H. Pheanuroth SISOWATH, Project Coordinator, International Trade Centre (ITC) 09:30 Summary of good practices, tips and lessons learned to develop sales, exports and product design

• Ms. Onie Luna, National Consultant - Silk, ITC

09:45 Coffee break 10:00 Company registration and Certificates of Origin: process, Cost, benefits, recommendations Ministry of Commerce 10:45 Registration at Ministry of Industry and Handicrafts: process, Cost, benefits, recommendations Ministry of Industry and Handicrafts

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11:15 Product transport and shipping

• Ms. Huykieu Khau, Managing Director, DHL Global Forwarding, DHL

Logistics (Cambodia) Ltd 12:00 Lunch 13:00 Sharing of experiences, good practices and lessons learned by producers and exporters on: – Export development through trade fair participation – Fashion show participation – Promotion actions to the tourism market and work with tour operators – Application of fair trade standards – Work with and support to weavers – Silk yarn sourcing 16:00 Conclusions and Closing Remarks

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Cambodia Export Diversification and Expansion Program (CEDEP I)

Summary of good practices, tips and lessons learned

DISSEMINATION WORKSHOP FRIDAY, 12 DECEMBER 2014, RAFFLES HOTEL, PHNOM PENH, CAMBODIA

By: Leonila Luna – Trade Development Consultant

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Content

• Develop your export development plan
• Sourcing quality silk yarn
• Expanding your network of producers & weavers
• Develop your brand identity and products
• Improve your production techniques
• Develop your export markets
• Improve your shops/showrooms
• Fair Trade
• Prepare for trade fair participation

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Part I

Develop your export development plan

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What does Export Diversification & Expansion means to you ?

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The right questions before preparing your export development plan:

• Who am I?: My current situation
• For Whom? For which market
• With what products?
• How? The key actions to achieve your objectives

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• An export plan is a guiding management tool to better
• verlook export opportunities and increase the probability for

your company to choose the best options, use resources effectively and achieve success in export markets

• Putting
• n

paper and structuring your mind and your

• bjectives

to better manage and monitor your actions according to your goals

• Defined based on a proper assessment of your company’s

strengths, needs, target markets

• Should be kept simple
• Use it / refer to it almost on a daily basis
• A “living document” which should be revised and refined

Example of export plan template available upon request

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Part II

Sourcing quality silk yarn

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Vietnam is a major supplier of silk yarn and raw materials:

• Geographical proximity
• Cost of raw materials is cheaper compared to buying from local markets in

Cambodia

• Logistically friendly and cheaper compared to China if transportation costs and

lead time are included

• Possibility to purchase in small order quantities compared to China

Example: Chinese suppliers require minimum orders of 400 kg of silk yarn each while Vietnamese suppliers require minimum orders of 20 kg

• Vietnamese suppliers can produce shipping documents for the traceability of the
• rigin of yarn

Visiting testing laboratories is an effective way to better understand technical terms and practices, quality requirements The quality yarn for the silk warp should have different tensions:

• Better tension is more efficient but expensive
• Silk yarn for warp should be different for weft as there is a tension required in

setting yarn warp See Project reports on silk yarn sourcing and study tour to Vietnam

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Part III

Expanding your network of producers & weavers

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• Increase your ability to meet demand requirements in

terms of quality and quantity by developing direct linkages with weavers

• Liaise with master weavers, visit weaver’s villages
• Better

understand Cambodian weaving tools and techniques, loom set-up, new colors, Cambodian Golden Silk, and the full production process, to adapt your orders and better explain and sell your products to clients, justify production lead-time, etc.

• Appreciate the value of silk fabrics and products and the

work required to produce quality fabrics and products, to provide fair wages to weavers

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Part IV

Develop your brand identity and products

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• Design a product collections is easier once you have a concept to focus on
• Make your own self-assessment: existing skills/expertise, best-selling

products

• Develop your brand book, prepare a collection development plan
• Your brand identity should be inspired by your company export plan
• Develop product collections in line with brand identity
• Get inspiration from fashion trends
• Produce marketing tools in line with your brand identity and target market:

from business cards to catalogs, leaflets, brand name , website etc.

• Visual Merchandising can help promote products and can easily attract

buyers

• Product photos of good quality are an important marketing tool
• Continuous product development to regularly have new products to offer
• The right product, at the right price for the right target market

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Part V

Improve your production techniques

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• Get up-to-date with production techniques that you can

develop on your own for Synthetic Dyeing , natural Dyeing, weaving (Ikat warp on Fly shuttle loom, ikat weft on fly shuttle loom and plain color weaving on fly shuttle loom), Color Fixing and Soft Wash

• Understand the process carefully to improve the quality of

your products and be more confident to deliver quality products according to buyers’ requirements

• More buyers are looking for soft silk

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Part VI

Develop your export markets

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• Well-designed silk scarves and jewelry are more competitive than

silk bags and purses which have less sales potential in Europe

• Simple silk scarves are not able to compete with cheaper similar

scarves from India and Vietnam

• Adapt the size of the scarves to offer better price
• Product prices should be thoroughly evaluated and flexibility is

required as buyers negotiate prices

• Fair-trade market segment holds a lot of potential for Cambodian

companies: Strengthen your fair-trade profile to sharpen your social profile

• Product requirements: lesser Price, AZO Free, product with a

story behind, fair trade information, formal shipments with CO (above Euro 6000)

• See project studies on import markets and trade fairs

European Market (Germany)

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• For large volumes, products are channeled through

distributors and buying agents

• Rigid suppliers compliance before you can work with chains of big department

stores

• Prices should be not too expensive as the market is floated by the products from

price-leading countries

• Develop long-term business relationship with buyers in order to be sustainable
• Private labeling for existing/established brands is another potential distribution

channel to develop, targeting the designers of these brands

• For direct retail stores/small shops’ orders:

product prices should include shipping costs

• Credit cards are the preferred mode of payment
• Fair trade buyers preferably require exclusive distribution of the product
• Product Requirements : Lead free products, colorfast testing and AZO
• Buyers are interested to receive product information and new suppliers at their
• ffices

See project studies on import markets and trade fairs

US Market

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• Higher-end market segment, less affected by direct competition and

product substitution. This however requires strict product quality management

• Create attractive new designs and packaging to differentiate your offer
• AZO Dye stuffs , Natural Dye, not synthetic
• When receiving an order, check in detail with the client, how he wants to

get the labeling. Usually, three types of labels are requested: the “Made in Cambodia” label; material composition, care instruction label

• Buyers require the testing of materials
• Mostly fair trade standards
• Story telling on how the product was made and by whom
• Products should carry quality and comfort
• Language barrier: buyers work through buying agents

See project studies on import markets and trade fairs

Japanese Market

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• Major crafts exporting countries to Korea are Japan and European

countries such as UK, France and Italy for their well-known highly developed fashion and home decoration markets

• Imports of private label Chinese and Vietnamese handicrafts with

acceptable quality and low price which the importers label as Korean brands

• Costume jewelry market has the biggest handicraft share and highest

potential in the Korean fashion accessories market

• Design trends of costume jewelry change frequently – every 2-3 months

– and there are no universally popular designs, trends are very temporary

• Demands on bags are low, demands on scarves are seasonal

See project studies on import markets and trade fairs

Korean Market

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• Products at competitively low prices in ‘classic’ designs with possibility

for repeated orders

• Retailers, department stores and niche companies: new styles and

colors required according to fashion trends and buyers’ requirements

• Retailers are price conscious, expect quick lead times
• Fair Trade niche market: high potential for Cambodian silk producers,

requires ethical production

• Shipping consolidated as a group if buying from one country source
• Product labels : made in Cambodia, material composition, care wash

label

• Packaging should be in plastic polybag for easy customs checks
• Fashion trends may change season to season but there are consumers

who prefer “classic” or “timeless” styles

• CO is normally not required, but customs declaration and statement of
• rigin are required

See project studies on import markets and trade fairs

Australian Market

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Part VII

Improve your shops/showrooms

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• Once your identity is defined, decorate your showroom based on

your identity.

• Simple Display, clear definition of who you are, what you do , your

strength and what differentiate you with others.

• Make a dramatic effect to catch attraction from passer’s by
• Colors should be coordinated and soothing in the eyes
• Less is more

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Part VIIl Fair Trade

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Follow the 10 principles of Fair Trade

• Create

and Develop

• pportunities

for economically disadvantaged Producers

• Transparency

and Accountability. Your

• rganization

should be transparent in its management and commercial relations. It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information supplied.

• Fair Trading Practices . Organization does not maximize profit at the

expense of the marginalized producers.

• Payment of a Fair Price. Prices should be agreeable to both producers

and buyers.

• Ensuring no Child Labor and Forced Labor
• Commitment

to Non Discrimination, Gender Equity and Women’s Economic Empowerment and Freedom of Association

• Ensuring Good Working Conditions
• Providing Capacity Building
• Promoting Fair Trade
• Respect for the environment.

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Part IX Prepare for trade fair participation

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• Invite buyers and inform them on your presence in the show you are

attending

• Check the type of buyer’s you will be meeting
• Prepare the types of products that will fit your target market
• Prepare your costing and pricing accordingly.
• Be ready with quotations with photos
• Prepare your catalog and other marketing materials, accordingly
• Prepare for the logistic requirements that maybe asked
• Be smart and alert.

Make sure you know your product and its process.

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For more information, tips, templates, etc.: Get access to the Project Drop Box

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