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

2 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

3 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

4 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

5 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

6 Part I Develop your export development plan

7 What does Export Diversification & Expansion means to you ?

8 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

9 • An export plan is a guiding management tool to better overlook export opportunities and increase the probability for your company to choose the best options, use resources effectively and achieve success in export markets • Putting on paper and structuring your mind and your objectives 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

10 Part II Sourcing quality silk yarn

11 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 origin 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

12 Part III Expanding your network of producers & weavers

13  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

14 Part IV Develop your brand identity and products

15  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

16 Part V Improve your production techniques

17  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

18 Part VI Develop your export markets

19 European Market (Germany)  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

20 US Market  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 offices See project studies on import markets and trade fairs

21 Japanese Market  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

22 Korean Market  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