SuVyapar-Good Trade
Connecting artisan communities globally
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Connecting artisan communities globally
By creating a low cost distribution network and following a 'high volume-low price' strategy, SuVy through its innovative business model will launch its own branded merchandise of handmade products and in the process create employment opportunities to around 1 million artisans globally.
Facts
2005
| Two years ago: | |
| Last year: | |
| This year (forecast): | 1,250,000 |
| Year 2 (forecast): | 5,000,000 |
| Year 3 (forecast): | 7,500,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 47,000 |
| Year 2 (forecast): | 880,000 |
| Year 3 (forecast): | 1,485,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 17 |
| Year 2 (forecast): | 24 |
| Year 3 (forecast): | 29 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 4,200 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 24,300 |
| Total finance needed (US$) | 28,500 |
How do you expect this to be financed?
| Own Contribution in cash | 2,400 |
| Loans (debt) | |
| Shares in your company that you offer to investors (equity) | |
| Other sources | 25,000 |
| Total finance needed (US$) | 27,400 |
The Business
In the current model, handmade products with an FOB of USD 1 are sold to the consumers in the price range of USD 6-10. The chain has lots of waste. SuVy through its low cost distribution model will strive to reduce ‘retail waste’, improve user experience and price a product in the range of USD 4 to 6. Within 3 years of its launch, we expect to garner a 25% market share.
Target Customers:
The overall theme will be to target young fashionable without offending a slightly older aspirational customer (30-45 yrs).
Target Market:
With a 70% share of total sales, Europe including UK is the largest market of 'fair trade' products with sales of Euros 660 million in 2006. The business has grown almost 154% in last five years with a sustained growth of almost 20% every annually. Out initial target market will be Germany and UK.
Products:
Range will principally Home Décor/Ware & accessories. Each country will supply products that reflect the traditions & heritage of that country but with a design twist provided by designers. The products from each country will complement each other so that the overall range fits into the brand theme & target market. Branding/labeling/packaging will be consistent for all countries but we will market each country with description/photos of the communities involved.
Model: Stores sign-up with us agree to provide free space for our branded display stands occupying a store space of not more than 1.5m2. These stands come with a set of products which are offered to the stores without any cost. On sale of each product they earn a commission of 30%.
The display stands will be modular so that it can be assembled easily. It will hold minimum inventory of each product displayed in the stand so that we can quickly refurbish each display stand on a regular basis.
CFM has gained significant experience in sourcing handicrafts from India at low costs yet maintaining quality of products and artisan welfare. This experience will help us source products globally through a network of 'fair trade' wholesalers like CFM.
To keep our cost low and reduce 'retail waste' we will initiate a unique marketing strategy with a focus on creating a community of users. This will be through the concept of a 'charm'. The fundamental idea is to create a Fair Trade Bracelet System. We will sell a basic bracelet with one 'charm' and the customer can attach as many charms as possible to complete the whole bracelet. Each charm to have a unique story of a good deed/sentiment/fair trade cause which is packaged as a certificate of endorsement . People could buy these charms as a gift to show personal sentiments and at the same time be proud that they endorse/support a social cause. The 'charm' is basically 'beads' that can be easily attached to the bracelet.
*Each type of charms to have its own story with a specific social cause.
*Each charm to have a different color/shape/design.
We want consumers to buy the charms regularly…“as a hunter”. This will help create a lot of excitement around our products. Since these 'charms' are available at retail stores, this will expose our product line to a large customer base.
Quality handmade products from across the globe at competitive prices. Every purchase creates wealth at the community level.
The Entrepreneur & Management
I have a degree in Agriculture and a post graduate diploma in rural management from Institute of Rural Management, Anand (IRMA). After passing out of IRMA, I co-founded a not-for-profit organization, MITRA Technology Foundation in 2000 with support from ICICI Bank, India’s largest private bank. At present MITRA owns and manages India's largest volunteer placement initiative, iVolunteer (www.ivolunteer.in). In 2004, I took a sabbatical from MITRA to look at opportunities in the handicraft sector and founded Community Friendly Movement (www.whycfm.org), with whom I am associated as its CEO since its inception in 2005.
Before that I worked with the Centre for Environment Education, a center of excellence for Ministry of Environment and Forests, Govt. of India and in an Indo-Dutch project on drinking water.
Development
Creating Jobs: By following a 'low margin-high volume' strategy we will be able to create more jobs at the community level. Our target is to create a million jobs through this initiative.
Fair Wages: With our focus on 'fair trade' issues we will be able to increase wages by almost 20% from the present level.
Quality of Life Issues: By keeping aside 10% of our profit for an Artisan Fund we will be partnering with other civil society organisations to use this fund to create infrastructure at the community level which can impact lifes.
Environment Issues: We will also be able to impact the environment by:
*Using freight methods with least environmental impact
*Reduce air travel by personnel
*Promoting products using locally produced natural materials & components from sustainable sources as much as possible.