VI. RESEARCH THE DESIGN INDUSTRY IN THE LEBANESE CREATIVE ECONOMY “The design industry, with its diverse segments, ranging from industrial and corporate design to service and social design, is one of the key drivers of innovation in the economy. Directly or indirectly, nearly all industrial sectors utilize design-related ideas, concepts and approaches. Design covers a far wider field than just a product with an appropriate or appealing external form. There is increasing interest in resource-efficient production processes, sustainably produced products, and building strong brands or corporate identities. Integrating design expertise into innovation processes is one key factor in developing organizational, process-related and user-centered innovations, and so securing a company’s competitive edge. Numerous studies have shown that strongly design-aware enterprises are more economically successful and have a greater capacity for innovation. For companies both in the creative industry sector and outside it, the method known as design thinking has become accepted as a new approach to generating innovative solutions. Design belongs to those market segments in the creative industries, which comprise a number of diverse business sections and are characterized by a higher-than-average proportion of solo entrepreneurs (“non-employer businesses”) and freelancers. In particular, the main challenges facing solo entrepreneurs include self-marketing and the acquisition of work.” Creative Industries Report, Senate Department for Economics, Technology and Research, Berlin “Great design can change lives, communities and organizations for the better. It can create better places to live, bring communities together, and can transform business and public services. Design is a way of thinking that helps small, medium and large organizations, social enterprises and charities change the way they work.” The Design Economy (2015), The Design Council, London
BACKGROUND Within the past decade, Lebanon - especially Beirut - has become a source of inspiration for creatives around the Middle East and North Africa. The design industry is flourishing, especially in the fields of fashion, furniture and graphic design. With a variety of annual events and a growing number of designers making international headlines, Beirut has created an identity as the design capital of the MENA region. However, the value of design is still underestimated and the lack of statistical infrastructure is a major setback. There is no real data to be able to observe the evolution of this industry, evaluate its progress, define trends, understand challenges and develop strategies for growth and international success.
SCOPE & OBJECTIVES Currently, there are a handful of reports that address the topic of creative industries in the MENA region, many of which have been commissioned and funded by the Delegation of the European Union and the United States Agency for International Development (USAID). These reports usually give an overview of all the relevant industries within the creative economy including music, film, media, design and publishing. Although these reports provide a good overview of the creative economy, they are too general for a better understanding of one particular industry. Moreover, they seem to cater to an international audience and are not of use for the local communities of creatives, who could benefit from the findings. Furthermore, these reports do not address the governments of the respective countries in such a way that they may contribute to policy making that concerns the allocation of state funds and support for the development of the creative industry. MENA Design Research Center (MENA DRC) is developing and publishing the first report that specifically assesses the design industry in Lebanon as a whole, which includes graphic design, fashion design, product/furniture/interior design, digital design, social design and architecture. The report will analyse these different design fields in relation to factors that are constantly influencing the design industry, such as Lebanon’s socio-economic situation, education, policies, local and international markets, manufacturers and suppliers. The insight that is gained from this analysis will be supportive in identifying the strengths, weaknesses, opportunities and threats that the design industry is facing. The objectives of the report are not only to fill the gaps in the aforementioned pre-existing studies of the regional creative economies but also to develop the design sector to its greatest potential. By using numbers and figures, MENA DRC is intending to give the design community a clear understanding of the situation and the structure of their own industry. Additionally, the report is aiming to raise awareness about the underestimated value of design in the economy and to motivate policy makers and investors to supply current and future generations of designers with supportive ecosystems.
OUTLINE The report includes a variety of topics that are influencing the design industry: gender, socio-cultural factors, demographics, policies, education, wages, investments, local markets, global markets, collaborations, social development, environmental development, manufacturers, craftsmen, suppliers, innovation and technology. These topics are brought together in the following chapters: Defining design, Design and culture, Design and education, Design and policies, Design and economy, Design and market and Design and resources. The report does not only explain the influence of the separate factors but highlights the relationships between them. Policies concerning trade are directly related to access to foreign markets. Banks are increasingly investing in start-ups that focus on innovation. Universities are developing courses about technologies like 3D printing. This diversity makes the design industry strong. The report should help any reader, whether they are involved in the design industry or not, appreciate the value of design.
METHODOLOGY In order to adequately describe the design industry and its influencing factors, MENA DRC is conducting both qualitative and quantitative analyses. Quantitatively, the research aims to assess the industry in terms of demographics and its economic contribution to the Lebanese economy. Qualitatively, the study aims to describe the nature of the Lebanese design industry in the context of culture and value.
PHASE 1 LITERATURE REVIEW A series of documents and academic publications regarding creative economies in both European and Middle Eastern contexts were reviewed. The literature review uncovered insights about the research methodologies used and the challenges the studies encountered.
PHASE 4 PANEL DISCUSSIONS During the Beirut Design Week, a panel discussion will be organised to discuss the findings and challenges of the research. The discussions should lead to the first draft of strengths, weaknesses, opportunities and threats for the design industry in Lebanon. This draft will be based on the SWOT methodology.
PHASE 2 SURVEY & DATA COLLECTION An online questionnaire was sent out to over 100 designers including freelancers, company owners and company employees. The questionnaire aims to provide MENA DRC with substantial information of mostly quantitative information regarding designer’s backgrounds, education, income, expenses and resources. Simultaneously, available data was collected from different educational, social, economical and political institutions.
PHASE 5 PRESENTATION & WORKSHOP Based on the first draft of strengths, weaknesses, opportunities and threats and the results of the panel discussion, MENA DRC will organise a full day workshop for designers and people who are involved in the design industry. During this day, the insights from the previous phases will be presented per topic. The presentation will be followed
PHASE 3 INTERVIEWS A series of interviews with specialists with different backgrounds (designers, lawyers, investors, teacher, manufacturers) are conducted in order to obtain qualitative information. The interviews are based on the responses from the questionnaire and seek to gain deeper insight into the influence of the different factors that are described in the outline and the changes that the Lebanese design industry has gone through.
PHASE 6 THE REPORT The last phase of the research project is writing and publishing the report, which will be accessible for everyone. The different topics will serve as a guideline. The report will elaborate on the strengths and weaknesses of the design industry, followed by threats and opportunities for the industry to develop. Besides, the outcome of the panel discussion and the workshop will be analyzed and discussed. The report will conclude with recommendations for potential following research projects.
INITIAL FINDINGS & INSIGHTS Since February, MENA DRC has been working full time on this research project. It will take time to answer all questions we have in order to define opportunities for the design industry, but the Beirut Design Week is an opportunity to share what has been found so far.
DEFINING DESIGN ‘The design industry’ is a term that has no strict definition. People in Lebanon who are not directly involved in the design sector define it based on known or classical design disciplines such as fashion or interior design. This report is not only aimed at designers but also policy makers, investors and educational institutions. In order to avoid misinterpretation and confusion, it is important that the term ‘design industry’ is clearly defined. To define the Lebanese design industry, existing definitions have been compared in relation to design in Lebanon. In this report, the following disciplines are considered to be a part of the design industry in Lebanon; architecture, digital and multimedia design, fashion design, graphic design, interior design and product design.
DESIGN & CULTURE Insight in growth and decline of existing design fields and emerging disciplines is essential in understanding the development of the Lebanese design industry. This chapter will analyse this development in relation to Lebanon’s political and cultural context. The lack of data about the amount of designers and design practices makes it difficult to show the development of the design
industry in Lebanon. The only available data that can give an understanding is the amount of students that graduated from design programmes offered by different universities. The data that is collected so far clearly shows a fluctuation in relation to the socio-political context. Between 2000 and 2015, the number of design graduates increased by 300%. The academic year of 2005 –
2006 however shows the lowest number of design graduates. After 2006, the amount of graduates has been increasing steadily, especially in the field of architecture. This increase clearly shows that there is a growing interest in design. The collection of data that is needed for analysing the development of design in relation to Lebanon’s culture and politics is still in progress.
posure and integration of young designers after graduation, the lack of courses about local design history and the local market, the lack of courses about the business aspects of design and the lack of discussion about contemporary design issues and developments. Yasmine Taan, chair of the design department of LAU, about design education: “Today, we need to rethink the role of a designer. I don’t think that students who start a design programme really know what design is about. The general understanding of design is that it is just
decoration or the ability to use software. It is up to universities to show that the role of designers is improving people’s lives.” Hani Asfour, founder of Polypod says: “We have a good bunch of graphic designers, fashion designers, product designers, but what about the people in between? Design education should focus more on design thinking and design research. At the moment, businesses don’t understand designers and designers don’t understand how to do business.”
is legally protected from illegal use or reproduction and that fair competition is secured. However, the antitrust law, which was implemented in 1929, is completely outdated and does not cover anything in relation to new technologies and industries. This results in a lack of trust in the reliability of these policies. Sarah Beydoun, the founder of Sarah’s Bag, has experienced people copying her work: “People do not respect designs of others. It is very normal for people to copy and present it as if it is their own design. Design that comes
out of a design house can inspire, but it can’t be copied. It is important to raise awareness about this.” In 2015, Lebanon scored 28 out of 100 on the corruption perception index published by Transparency International. This indicates the extent to which nepotism and corruption are ingrained in the Lebanese governmental structure, which diminishes the rights, legal protection and economic opportunity of Lebanese citizens.
DESIGN & EDUCATION Lebanon has seven universities that offer majors in design. Design and Education outlines the challenges designers face in Lebanese education and looks how universities are adapting their education to the changing design industry.Universities are working hard on the establishment and development of programmes to prepare young designers for their professional career. 100 Lebanese designers were asked what challenges they faced in relation to their education. The following challenges clearly came forward: the lack of ex-
DESIGN & POLICIES According to Najib Harabi (2009) governments can influence the climate in which companies in creative industries compete. They can do this through policies concerning the enforcement of intellectual property, antitrust and many other measures. That influence should be used to encourage investment and other determinants of economic performance. This chapter researches the existence and execution of these policies in Lebanon. Lebanon does have policies for antitrust and intellectual property, which means that design
DESIGN & ECONOMY In 2015, the Dubai Design and Fashion Council published the report The MENA Outlook, in which is stated that Lebanon attributes nearly 5% of its economy and total employment to its creative industries. The design industry is just a part of the creative industry, which also covers film, art and literature. This chapter attempts to evaluate the financial situation in the design industry specifically; designers’ wages compared to wages in other industries, the financial support that the design industry receives, and possibilities for investments. According to the United Nations Economic and Social Commission for Western Asia (ESCWA), design as an integrated solution to the cultural and economic sectors is not acknowledged by the Ministry of Culture, nor by any other governmental agency. Data on the economic impact of the
design industry in other countries are ignored. It is unlikely that the government directs any funds to the development of the design industry. If it does, it is impossible to estimate the budget, as this information is not accessible. Given that the Lebanese state does not invest in the development of cultural or economic industries, the Lebanese private sector is the primary driver of growth in the country. Karim Chaya, designer and owner of ACID: “The only way of moving Lebanon forward is with help from private enterprises and individual involvement. These entities are giving hope to designers. It does not only count for design, but for everything; the Red Cross has nothing to do with the government and we all rely on it when there is a problem. The only public financial support initiative is Circular 331, which was issued in
August 2013 by Banque du Liban. Circular 331 is an investment of maximum 400 million dollars in Lebanese innovative startups. It is the first initiative that is trying to boost the knowledge economy and to provide job opportunities. Cyrille Najjar, founder of White sur White: “The way circular 331 allows to make private investments with public money is great. This can create jobs and develop the Lebanese infrastructure. Companies have the chance to innovate and develop themselves; it allows innovators to thrive, it offers access to professional advisors and there is a direct return of investment.” Due to the lack of data it is not possible yet to make an estimation of wages in the design industry. Available data is still being collected, and research on investments in design is ongoing.
ualistic. They want to do everything alone, usually against each other. I call it the falafel syndrome; if someone opens a falafel shop and the business is going well, someone else will open another falafel shop next door instead of opening a chewing gum shop. There is no organisation of competition. It is clear that there are many challenges for designers in Lebanon. In order to sustain themselves, designers need to do a lot of effort. They need to keep changing and make sure they know exactly what the client needs. They also have to work on a good relationship with the client. In some cases, designers should be open for collaboration to get new clients. Karim Chaya: “We realized that we needed to understand what the client wants. Before we start the design process, we have to get to know the clients, their needs and desires. The reason why we grew is because we worked in a system where the service came first.” John Chehaibar, manager of the Beirut Creative Cluster: “In the tech sector there is a lot of support. It is a new field, so at the start, many people encountered the same problems. It is much easier to solve these problems by talking about it and
working together. This does not exist in the creative sector in Lebanon. With the Beirut Creative Cluster, I want to switch this culture of openness to the creative sector.”
craftsmanship. Unfortunately, the amount of craftsmanship is shrinking. It is good that they can create nice things, but they are not designing for a market. I think that innovating the crafts and using the crafts to create something for the contemporary market is very important for the Lebanese identity. It is about creating new things with the old crafts. We should provide the crafts with technology.” Ziad Abichaker, founder of the Green Glass Recycle Initiative Lebanon (GGRIL), recognises this: “Of course, craftsmanship and technology can compliment each other. We want to bring in knowledgeable artisans from abroad to focus on the technology of ovens in glassblowing,
so that the local glass blowers don’t have to rebuild their ovens over and over again. Craftsmen see that if they don’t change, they will perish. We saw that there is a big gap between artisans and the market. With GGRIL, we had to redesign all products so it would fit to the market. We need to create a market for them. What they need to create for themselves is a more affordable way of production.” This shows that technology and craft cannot only exist together in one market, they are able to compliment each other. But without a clear understanding of the market this complementation seems impossible.
DESIGN & MARKET The chapter Design and market gives insight in the challenges designers face in working with Lebanese clients and in general problems of people who work in the design industry. So far, several challenges have clearly come forward. The instable situation in Lebanon’s surrounding countries and the decreasing oil prices that affect the Gulf States have been detrimental for the Lebanese market. The designers who filled out the questionnaire unanimously agreed that price negotiation and the low appreciation of the work are the biggest challenges in working with Lebanese clients: “Lebanese clients don’t appreciate design. They are not aware of the time it takes to develop good design, therefore the budgets are low.” Cyrille Najjar: “In Lebanon, designers don’t have a good understanding of the market; they don’t know the needs of Lebanese people. They don’t know how to conduct a proper market analysis and don’t ask for feedback from the market. This makes it very difficult to scale their business.” Marc Baroud, head of the design department of the Académie Libanaise des Beaux-Arts: “A big weakness of the design industry is that designers are very individ-
EXPANDING ABROAD Sarah Beydoun: “You need to have a stable company in order to expand abroad. The biggest challenge in going abroad was adapting to a new market. You always need to do very good research and find a balance between the market and the local production.”Milia Maroun, founder of fashion label Milia M: “Starting a business in Lebanon is about a quarter of the costs of starting a business abroad, which is a big advantage. Besides, Lebanon is a great platform for building up a network.” The majority of the questioned designers indicate that they focus on foreign markets, mainly in the Gulf States, because the Lebanese market is too small to survive. If they could set up a branch outside Lebanon, it would be in Dubai or London. Both places have a solid infrastructure, a growing market and a general appreciation of design.
DESIGN & RESOURCES New ways of manufacturing, like laser cutting and 3D printing, are being used more and more in Lebanon. Guillaume Crédoz, founder of Rapid Manufactory, was one of the first people in Lebanon who started working with 3D printers: “The 3D printing industry is able to make processes much more efficient. With 3D printing you can easily make complex shapes for a good price and play with materials. A lot of designers already use 3D printing, but most people don’t really understand the potential of the tools.” Where new technologies are being applied more and more, the amount of artisans is quickly decreasing. Sarah Beydoun: “What makes Lebanon special is the variety of
KEY CHALLENGES In the process of finding answers to the research questions, various challenges have been encountered that were a setback in the collection of information and the understanding of the design industry. MENA DRC would like to address these challenges to inform researchers in case of future projects and to emphasize on the importance of the collection and organisation of data.
THE ABSENCE OF DATA There is an enormous lack of data concerning the design industry. MENA DRC assumes that this lack correlates with the underestimated value of design. In countries where the economic value of design is acknowledged, like the United Kingdom and the Netherlands, the development of the industry is documented in detail. An overview of the amount designers and design related companies, market shares, annual turnover and average wages is published every year. In Lebanon however, this data is not available. In order to develop a solid development strategy, this data is very much needed.
THE LACK OF TRANSPARENCY On an economical scale there is barely any transparency. There are few companies that share the turnover and the wages of employees. Most banks are not completely transparent about loans and investments, especially in the field of design. The government is keeping their expenses completely secret. Transparency is important for building trust and responsibility; two elements that are essential for the development of an economy.
THE LACK OF ORGANISATION There are many people in the Lebanese design industry who are not organised. In general, there is a lack of a structured business plan, a model for price determination and financial reports. Organising a business would help a lot in defining opportunities to grow.
ACKNOWLEDGEMENTS RESEARCH DIRECTOR: DOREEN TOUTIKIAN LEAD RESEARCHER: JUDITH LEIJDEKKERS GRANT AND SUPPORT: HIVOS This report would never have been possible without the honesty of all 100 designers who filled out the questionnaire. MENA Design Research Center would like to thank everyone who has supported this research project. We would like to thank the following people in particular, who took their time to give insight in the design industry in Lebanon: Claudine Abdelmassih (Arab Center for Architecture) Ziad Abichaker (GGRIL, Cedar Environmental) Hani Asfour (Polypod) Soha Atallah (United Nations Industrial Development Organization) Marc Baroud (Académie Libanaise des Beaux-Arts) Sarah Beydoun (Sarah’s Bag) Elias Bitar (Kallas Law Firm) Karim Chaya (ACID) John Chehaibar (Beirut Creative Cluster) Guillaume Crédoz (Rapid Manufactory) Sarah Hermez (Creative Space Beirut) Bernard Khoury (DW5) Simone Kosremelli Milia Maroun (Milia M) Cyrille Najjar (White sur White) Denise Sumpf and Vladimir Isaila (United Nations Economic and Social Commission for Western Asia) Yasmine Taan (Lebanese American University) Rana Yazigi (Platform 39)