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Participant
Coach
 
 
Business established: 

www.goodfromcebu.com

Strengthening fair trade in the Philippines using e-commerce

  • PFTS_shop[1].jpg

    PFTS_shop[1].jpg - 

    detail of our store in Cebu

Using the Internet for marketing and e-commerce open new possibilities and new markets for fair trade food and non-food products. This helps SPTFC to generate more income for it’s contributing organizations. This will help stimulating fair trade, fight poverty and advocate sustainable use of natural resources in the Philippines.

Facts

Year of establishment

1996

Sales (US$)
Two years ago:
Last year:
This year (forecast): 60,000
Year 2 (forecast): 63,000
Year 3 (forecast): 69,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 1,500
Year 2 (forecast): 1,750
Year 3 (forecast): 2,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 40
Year 2 (forecast): 42
Year 3 (forecast): 45

How do you expect this to be financed?

Own Contribution in cash 500
Loans (debt)
Shares in your company that you offer to investors (equity)
Other sources 500
Total finance needed (US$) 1,000

The Business

What is your product/service?

The use of the Internet by consumers and companies to sell and buy goods has proven to be a huge success and is still growing. A great number of enterprises use the Internet to promote its products, to inform customers and to sell products. Safe e-banking possibilities and software for e-stores set technical conditions for successful e-commerce. These new options can be of great value to fair trade because it can easily bridge the geographical bridge between the areas where the goods are produced and the areas where the customers are.

If the producers gain access to a bigger market, their livelihood will become more viable and sustainable. Access to the market would mean higher sales, more job generation and higher income. This situation will greatly contribute to the alleviation of poverty in the country.

One of the major problems is that the products and are produced now do not always match the demand of potential buyers in the Philippines and abroad. Although a number of stores and outlets have been realized, the use of the Internet for both marketing and direct sales has not been used yet. Thus a large number of potential customers, both domestic and international, are not targeted.

We want to use the internet for
• An operational web store for all fair-trade products
• websites for partner organizations to generate additional income through eco-tourism
• Adressing new markets for fair trade products

Once a website and e-store are in place, a portal can be designed for all fair trade and eco-tourism possibilities in Cebu. In this way, sustainable development will be supported and the e-store and the eco-tourism can mutually benefit. As the SPFTC store is now the physical focal point for fair trade in Cebu, the websites can be the virtual focal point.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Our main competitors are the companies in the Philippines that are producing similar products, but do not adhere to the fair trade standards. Our fair trade principles are our unique selling point in this. Using a website and e-store we will focus on these characteristics.

A new market that we are trying to target are companies who are willing to use fair trade products as a way of supporting sustainability. With our range of food (coffee and others) and non-food items we hope to reach these markets in the Philippines and abroad.

What makes your business different/better than your competitors (competitive advantage)?

Our product is unique in the way that it will create a one-stop shop for fair trade and development in the Southern Philippines. It is a focus point for the different developments of our affiliated organisations, but it will be the main face to the world

The Entrepreneur & Management

Describe the entrepreneur & management

Geraldine labradores is managing director of SPFTC and has a long experience in the production, marketing and sales of fair trade products in the Philippines and the world. She manages part of the project facilities, the fair trade store and is in charge of the avocacy activities.

Ubo Pakes is currently senior GIS advisor at van Hall Larenstein University in Velp and at the University of San Carlos in Cebu City. He has over 10 years experience in the implementation of computerized systems in a range of companies and (n)go's.

Development

How does your business improve the local living standards (social and environmental)?

Fair Trade is a trading partnership based on dialogue, transparency and respect that seek greater equity in international trade. It contributes to sustainable development by offering better trading conditions and securing the rights of marginalized producers, awareness raising, and in campaigning for changes in the rules and practices of conventional international trade.

The development impact of SPFTC is therefor manifold:

protection of the environment through the avocay of environment friendly practices
fighting poverty by giving fair prices to the producers of our products while maintaining sound working conditions and no child labour
support of suppresed peoples organisations by training, support and avocacy
Stimulate gender equality

an increase in sales through our website and e-store will mean that our producing organisations will have a higher income for the involved families. It will also lead to more direct and indirect employment and income. In many poor comunities the costs of education are a major limit for children to finish theit education. More income will lead to a higher level of education. With the direct relationships between us and our partner organisations, the results will be felt directly.

Needs
Advice - business management, Advice - PR, marketing