imiki crafted with heart
Development + Sourcing
For my capstone project, I would like to develop a company that focuses on ethical values with a unique supply chain that gives artisans of developing countries the opportunity to share their skills with international consumers. For my project, I will develop the branding for the company, as well as trendy product, and I will create a sourcing plan and form a supply chain.
Emily whelan Fasm 430 prof dan green fall 2017
table of contents: branding product selection Sourcing Ethiopia Colombia
Branding
imiki crafted with heart
imiki
= potential
At
IMIKI we believe in the potential of global artisans.
We see the skill of craftspeople in impoverished areas, and strive to give them the opportunities to bring their extraordinary crafts to the international market.
IMIKI + Ethiopia Ethiopia is one of the world’s poorest countries. Out of a population of nearly 80 million people, around 35 million people are living in abject poverty. Ethiopian culture is rich with traditional handcraft skills. Historically, local artisans manufactured most of the essential items used in everyday life. The skill of craft production is passed down from generation to generation and involves both children and adults. Ethiopian craft includes basketweaving, pottery, and leather work. Ethiopia offers the best skill and material option for Imiki, while allowing us to offer an opportunity for talented Ethiopians to market their goods and earn a fair profit.
The IMIKI supply chain connects artisans directly to global consumers, eliminating a middle man. IMIKI offers independent artisans a portal to the international market with mobile phone technology. This way, artists are able to connect with the international market, managing orders and the xshipping of their product to Imiki. With Ethiopian artisans working directly with Imiki, traditional production costs are cut and Ethiopian artists are able to retain 25-35% of revenue.
Product Selection
imiki crafted with heart
zipper- 8 1/4 in
3/8 in depth
8 3/8 in height 7 in width 3/8 in depth zipper- 8 1/4 in long Materials: Cow Leather Hide Metal Zipper Waxed Thread
8 3/8 in
7 in
strap- 23 in l x 2 in w
drawstring- 20 in l x 1/2 in w 9 1/2 in height 9 in width 4 3/4 in depth
9 1/2 in
strap- 23 in l x 2 in w drawstring- 20 in l x 1/2 in w Materials: Cow Leather Hide Waxed Thread 4 3/4 in depth
9 in
back strap- 10 3/8 in l x 2 in w 11 3/4 in height 10 3/8 in width 3 5/8 in depth
11 3/4 in
strap- 10 3/8 in l x 2 in w Materials: Cow Leather Hide Waxed Thread
3 5/8 in depth
10 3/8 in
zipper- 5 in long 3 in height
5 1/2 in
3 in width 5 1/2 in depth 3 in
pull tab-1 in zipper- 5 in long 1 in 3 in
Materials: Cow Leather Hide Metal Zipper Waxed Thread
Dila Slouchy, unstuctured carry all bag. Perfect as a travel bag for makeup or toiletries. Handmade in Ethiopia.
aquamarine
dark orange
lemon
aquamarine
Goba Bucket bag with drawstring close. Convenient crossbody fit allows wearer to be hands free. Handmade in Ethiopia.
Jima Relaxed, slouchy folded carry all clutch. Includes strap on the back panel for easy carrying. Handmade in Ethiopia.
orchid
lemon
Dese Small coin purse with zipper and leather pull tab. Perfect for all that spare change! Handmade in Ethiopia.
lemon
orchid
Target Demographic Meet Ella! Ella is 23 years old. She is a recent graduate of NYU, earning a Bachelor’s degree in International Relations. She is soon to embark on a backpacking trip in Asia, with a group of her closest college friends before starting her job as a social media coordinator at a clean energy startup in New York City. She only shops ethical, sustainable brands. She enjoys thrifting, but is also willing to invest in high quality, ethical products.
Keywords: sustainable, conscious, trendy, global, curious, wanderer, ambitious, involved, independent
Projected Retail Prices Price points are to stay in the luxury affordable range, making the products accessible to a younger, trendy clientele. Labor Costs= $10.57 (average wage per day, 8 hour work day) Small bag= $25 Total expenses: $35.57 Medium bag= $40 Total expenses: $50.57 Large bag= $60 Total expensess: $70.57 90% Markup
Goba
$134
Jima $96
Dila $96
Dese
$67
Sourcing
Ethiopia
Country Traits
Location: Eastern Africa Capital: Addis Ababa Type of Government: Federal Parliamentary Republic Head of State: Prime Minister Hailemariam Desalegn Population: 105 million Geographic Size: 437,794 sq miles Education Level: 49.1% Literacy Languages: Amharic, Oromo, Tigrinya, Somali Ethnic Composition: Oromo, Amhara, Somali, Tigray Median Age: 17.6 yrs (m) 18 yrs (f) Currency: Birr GDP: $177.5 billion Import Volume: $14.7 billion Products: Machinery & Aircraft, Metal, Electrical Materials, Petroleum Export Volume: $2.932 billion Products: Coffee, Oilseeds, Gold, Flowers, Raw Leather Goods Industrial Growth Rate: 9% Labor Force: 50.97 million Unemployment: 26.7% Population Below Poverty Line: 29.6& Main Industries: Food Processing, Beverages, Textiles, Leather, Garments Budget Deficit: -2.6% Budget Revenue: $10.07 billion Inflation Rate: 7.3% Religions: Ehtiopian Orthodox, Muslim, Protestant National Holiday: May 28, Derg Downfall Day (defeat of MENGISTU regime)
Country Stability Ethiopia is on the rise. The country has experienced impressive economic growth rates. Despite being the 14th poorest country in the world, the 5-year Growth and Transformation Plan II, has proved successful since its implementation in 2012. The plan is expected to aid Ethiopia in reaching middle-class status by 2025. More developments in the country include increased regional trade opportunities with Sudan, Kenya and Somalia. The government has prioritized the development of infrastructure with the capital city, Addis Ababa seeing much of this development.
History 1530 Muslim leader Ahmand Gran conquers much of Ethiopia 1889 Addis Ababa becomes Ethiopia’s capital 1895 Italy invades Ethiopia 1896 Italian forces defeated by the Ethiopians at Adwa Italy recognises Ethiopia’s independence but retains control over Eritrea 1935 Italy invades Ethiopia 1936 Italians capture Addis Ababa, king of Italy made emperor of Ehtiopia 1941 British troops, aided by Ethiopian resistance, defeat the Italians 1963 First conference of the Organisation of African Unity held in Addis Ababa 1973 200,000 people die in Wallo province as a result of famine 1977- Thousands of government opponents die in “Red Terror” 1979 orchestrated by Colonel Mengistu Haile Mariam 1984- Worst famine in a decade strikes, Western food aid sent, 1985 thousands forciby resettled from Eritrea and Tigre 1991 Ethiopian People’s Revolutionary Democratic Front captures Addis Ababa, forcing Mengistu to flee the country 1994 New constitution divides Ethiopia into ethnically-based regions 1999 Ethiopian- Eritrean border clashes turn into a full-scale
2000 2004 2009 2011 2016 2016
Eritrea, Ethiopia sign a peace accord which envisage troop withdrawals and UN peacekeepers Start of resettlement programme to move more than two million people away from parched, over-worked highlands Ethiopia formally withdraws forces from Somalia Drought, causing millions of Ethiopians and refugees from Somalia to need emergency aid Tens of thousands of people from Ethiopia’s ethnic Amhara group take part in an anti-government demonstration in the northern city of Gonda Government declares a six-month state of emergency following months of violent anti-government protests
Leather Industry
Largest livestock population in Africa One of the largest livestock populations in the world: 57,829,953 cattle Livestock Production: 2.7 million hides, 8.1 sheepskins and 7.5 million goat skins each year The milk, meat, blood, and skins of cattle play important roles in Ethiopian culture making the cow an essential part of life. Traditionally, artisans have created leather shoes and other garments while builders have used leather to reinforce roofing. The contemporary leather industry creates a wide range of modern goods including purses, bags, and jackets with modern designs. The range of leather products that are crafted in Ethiopia include semiprocessed leather in various forms to processed leather like bags, purses, shoe uppers, leather garments, and stitched upholstery.
Main Supplier HAFDE Leather Tannery Location: Sebeta, outskirts of Addis Ababa Produces “Green Leather� which is free of harmful chemicals particularly, chrome and sulphide. Environmental impact is reduced by 95% in comparison to conventional leathers.
Trade Agreements Ethiopia is one of the top 100 largest goods trading partner with the U.S. African Growth and Opportunity Act (AGOA) Provides duty-free treatment to U.S. imports of certain products from certain sub-Saharan African countries
The Common Market for Eastern and Southern Africa (COMESA) Free trade area with 20 member states
of Africa including East and South Africa.
Transportation
Addis Ababa > Port of Djibouti > Port of Los Angeles Shipping Time: 1 month Shipping Cost (20’ Container): $2800
Business Etiquette
In Ethiopia, when you shake someone’s hand upon greeting, you should make direct eye contact — but that should be the only assertive part of the interaction. The handshake itself should be a bit lighter than it would be in the U.S. Whether meeting someone in a social or business setting, address the person with his or her honorific title. It is customary in Ethiopia to bow to someone who holds a more senior position than you, as well as to anyone who is older than you. Generally speaking, males and females do not touch, even in a business setting. So if you’re meeting with a business associate of the opposite sex you aren’t expected to shake hands. Never rush the initial greeting—as a sign of respect, be sure to ask about the other person’s family, health and personal matters. Ethiopians generally speak in soft tones when doing business. Speaking loudly can be read as aggressive. Ethiopians try to maintain a humble tone while doing business and respect others when they do the same.
Risks & Benefits Risks Ethiopia is an extremely poor country with an unstable regional environment. The business environment can be difficult. With little framework in place, transactions can be hard to manage. The country is also vulnerable to climatic events, such as severe droughts resulting in famine.
Benefits As one of the poorest countries in the world, Ethiopians need opportunity to delve into the international market. Due to lack of infrastructure and resources, Ethiopians are stuck in dwindled local economies. However, Ethiopia has a large, adequate work force and for a brand of handcrafted product, they demonstrate the necessary craft skills in their daily lives. Additionally, Ethiopia has sufficient material for production purposes. Ethiopia would offer the skill and material necessary for IMIKI.
IMIKI would offer Ethiopians the chance to profit fairly from their crafts.
Colombia
Country Traits
Location: Northern South America Capital: Bogota Type of Government: Presidental Republic Head of State: President Juan Manuel Santos Calderon Population: 48 million Geographic Size: 1,138,910 sq miles Education Level: 94.2% Literacy Languages: Spanish Ethnic Composition: Mestizo and White, Afro-Colombian, Amerindian Median Age: 28.7 yrs (m) 30.6 yrs (f) Currency: Peso GDP: $688.8 billion Import Volume: $43.24 billion Products: Industrial & Transportation Equipment, Consumer Goods, Chemicals Export Volume: $33.38 billion Products: Petroleum, Coal, Emeralds, Coffee, Nickel, Cut Flowers, Bananas, Apparel Industrial Growth Rate: 0.6% Labor Force: 24.41 million Unemployment: 9.2% Population Below Poverty Line: 27.8& Main Industries: Food Processing, Beverages, Textiles, Leather, Garments Budget Deficit: -2.4% Budget Revenue: $75.9 billion Inflation Rate: 7.5% Religions: Roman Catholic, Protestant National Holiday: July 20, Independence Day
Country Stability After much turmoil between the Government of Colombia and the Revolutionary Armed Force of Colombia (FARC-EP) the Colombian Congress agreed on a peace treaty between the two groups. The agreement was signed on November 24 by President Santos and FARC leader, Rodrigo Londoño ‘Timochenko’, in Bogotá. Growth is expected to strengthen over the 2018-2019 period, with economic growth driven by the recovery of non-oil exports and oil prices, and an infrastructure program. However, the country still experiences great issues with drug cartels and illegal smuggling.
History 1525 Spain conquers Colombia 1819 Simon Bolivar defeats Spanish, Republic of Gran Colombia formed 1829 Gran Colombia dissolved, leaving present-day Colombia 1849 Conservative and Liberal parties founded 1861- Liberal Party rule sees country dived into 9 autonomous 1865 entities 1899- “The War of the Thousand Days”, 120,000 people die in civil 1903 war between Liberal and Conservatives 1946 Conservatives return to power 1948- 250,000-300,000 killed in civil war 1957 1970- Guerrilla groups formed: Leftist National Liberation Army, 1982 Maoist People’s Liberation Army, Revolutionary Armed Forces of Colombia (Farc, largest group) and left-wing M-19 group 1984 Campaign against drug traffickers stepped up 1985 Eleven judges and 90 others killed after M-19 guerrillas force their way into the Palace of Justice Nevado del Ruiz volcano erupts, 23,000 people are killed 1989 M-19 becomes legal party after reaching peace agreement with government 1993 Pablo Escobar, Medellin drug-cartel leader, shot dead while trying to evade arrest 1998 Andres Pastrana Arango, a Conservative, elected president, begins peace talks with guerrillas
Pastrana grants Farc a safe haven the size of Switzerland in the south-east to help move peace talks along. The zone is off-limits to the army 2002 Pastrana accepts Farc ceasefire timetable and extends safe haven until April 2010 Juan Manuel Santos takes over as president Farc steps up its campaign of violence 2011 Farc releases several hostages in what it describes as unilateral “gesture of peace� to government US Congress passes long-delayed free trade agreement with Colombia, despite concerns over country’s poor record of labor relations 2012 Country-wide protests against the Farc guerrilla group 2016 Farc signs peace treaty that includes their disarmament
Leather Industry Colombia is the fourth largest economy in Latin America. Manufacturing makes up nearly 12% of Colombia’s exports, and grows at a rate of over 10% a year. Colombia has the 3rd largest commercial cattle herd in South America. Leather has been a traditional craft in Colombia since the country’s establishment. Now, Colombia produces leather that’s in high demand among the international market, from the United States to Australia.
Main Supplier
Piel Leather Location: Bogota, Colombia
For over 40 years, Piel Leather has remained the internationally recognized Leader in Naked Leather. By remaining completely dedicated to leather craft, Piel Leather has survived as the leading manufacturer and distributor of naked leather products.
Trade Agreements Colobmia is currently the 25th largest goods trading partner with the U.S.
The U.S.-Colombia Trade Promotion Agreement (TPA) Over 80 percent of U.S. exports of consumer and industrial
products to Colombia became duty-free upon entry-into-force, with
remaining tariffs phased out over ten years.
Andean Community A free trade agreement with Brazil, Argentina, Paraguay and Uruguay.
Transportation Bogota > Port of Buenaventura > Port of Los Angeles Shipping Time: 15 days Shipping Cost (20’ Container): $2364
Business Etiquette Because of the value Colombians put on relationships, greetings are enthusiastic and sometimes lengthy. Expect firm handshakes, lots of eye contact, and many inquiries into your health and your enjoyment of your visit. Colombians tend to be relaxed about punctuality, so expect meetings to start a bit late. Meetings in Colombia should be scheduled well in advance – at least two weeks ahead of time. But don’t be surprised if the schedule changes, even at the last minute. It’s definitely a good idea to confirm the day before. Have business cards printed in English on one side and Spanish on the other. When giving out your cards, offer them with the Spanish side up. Don’t expect that your hosts will speak English. Many people do, but not all. If you don’t speak Spanish, arrange for an interpreter.
Risks & Benefits Risks Recently, Colombia has experienced political turmoil between the government and resurfacing guerrilla groups of the past, particularly the FARC rebels. There have been additional issues with drug trafficking. As made evident with its violent history, Colombia is a volatile country with unpredictable patterns.
Benefits The country is experiencing economic growth, with a stable infrastructure plan implemented by the Colombian government. Colombia has a rich history of leather crafts, and large livestock populations. In regards to trade, there is a positive relationship between the United State and Colombia with the The U.S.-Colombia Trade Promotion Agreement.
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