STRENGTHENING THE EXPORTER COMPETITIVENESS OF WOMEN ENTREPRENEURS. THE TEXTILE AND CLOTHING SECTOR AREQUIPA, PERU

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1 STRENGTHENING THE EXPORTER COMPETITIVENESS OF WOMEN ENTREPRENEURS. THE TEXTILE AND CLOTHING SECTOR AREQUIPA, PERU

2 THIS IS MY STORY...

3 BACKGROUND FOREWORD This project was conceptualised during the Asia-Pacific Economic Cooperation (APEC) meetings hosted by Peru in 2008 and is part of the APEC SME Working Group s initiative to foster women s entrepreneurship in the APEC region. It was developed in accordance with the priorities of the Government of Peru and in line with the strategy of PROMPERU (the commission for the promotion of Peruvian exports and tourism) to help companies increase their competitiveness and exports and build capacity through training activities. The project is designed to contribute to the strategy of poverty reduction, work on strengthening the production activities of women in Arequipa, as well as aid in fulfilling the Millennium Development Goals. It is aligned with ITC s regional focus for Latin America and the Caribbean and ITC s Women and Trade Programme, which aims to empower women entrepreneurs in developing countries achieve export success, and women in export-oriented value chains derive greater economic benefit from their participation in trade. The textiles and clothing sectors are of vital importance to several countries in the region, offering opportunities for boosting employment and reducing poverty. This sector employs a large number of women entrepreneurs who in turn employ several more groups of women knitters and weavers through the region. In May 2009, ITC began this project in Arequipa with women entrepreneurs in the textiles and clothing sector who specialised in alpaca products. We wanted to help them develop concrete business skills. We started with a study visit to Europe, prepared the companies for participation in the FASHION event PERU MODA, in Lima, helped them design collections, and write their marketing plans. Our national partner, PROMPERU assigned their Arequipa office as our point of coordination for all activities. They actively participated, facilitated and hosted all training activities for the project. Through the focussed inputs in design, marketing and strategy, these women have successfully concluded business deals, increased their sales, entered new markets, sold their own design collections and have now hired 200 more knitters and weavers in the area. This project has impacted the region and its people by not only developing skills and increasing company exports, but has in fact inspired the women to affect change at both a personal and a professional level. After a year and a half of working closely with these women, we are very proud of their achievements. Let's hear some of their stories.

4 MAY 2009 JUNE 2009 JULY 2009 Needs assessment AREQUIPA Selection of companies Finalization of project activities AUGUST 2009 SEPTEMBER 2009 OCTOBER 2009 Training inputs for study visit Finalization of companies for study visit Study visit to AMSTERDAM & PARIS NOVEMBER 2009 DECEMBER 2009 JANUARY 2010 Presentation by PROMPERU Impact of study visit Training by video conference-1st inputs. Marketing -SWOT analysis. Design -Who is your target customer, The product design process. Marketing & Design Training 1 FEBRUARY 2010 MARCH 2010 APRIL 2010 Product design & sampling for collections Sampling for collections Training 2 Finalizing collections & communication materials MAY 2010 JUNE 2010 JULY 2010 Peru Moda Follow up Reporting Peru Moda Design and Sampling new customers AUGUST 2010 SEPTEMBER 2010 OCTOBER 2010 Sample Production Market plan revisited Marketing plan feedback 1st design inputs for new season (A/W ) NOVEMBER 2010 DECEMBER 2010 JANUARY 2011 Design edits for new collections (Las Vegas, NY, Pret a Porter-Paris). Training National Consultants. Final analysis, reporting and filming of project impact. National consultants follow up in company FEBRUARY 2011

5 ELENA OF INKA TRENDS Elena began her company 25 years ago in Puno as a cooperative with a small group of women. When that company closed many of their customers were left without a manufacturer. Elena started making samples for two American clients and soon was producing over 500 pieces per year. In 1996 Elena began focusing her company efforts on London and France and has grown her business as a high-end manufacturer for European clients. In addition she found it important to have her commercial office in Arequipa, where her sister runs key operations. Currently Inka Trends works with many agents who have access to big fashion icons like Hermes, Paroche, Baby Dior, Agnes B., Zadig & Voltaire, Christian LaCroix, Shimamura, Ann Taylor Loft, Lili and the funky boys ( Caramel Baby London, etc. Her clients are from the UK, France, Switzerland, Italy, the US and Canada. Inka Trends currently contracts 250 knitters who can produce 3000 units per month. Elena rotates her workers so they remain interested in the work and do not get stuck doing overly repetitive work. It was Elena s ambition to be able to reach her clients directly and work without a middle person. With the help of this project I have been able to re organize the management of my company. The marketing plan component was very very helpful as I have now got much more focus and have a short, medium and long term plan With the design inputs, I have managed to create and develop newer designs and use my techniques to show them off much better for my high end clientele. With the help of the combination of inputs I received, for the first time, I have been able to make direct contact with a client. In all the 25 years we have only managed to work through agents. We have participated in projects before, but this one was different, because it was practical, and very efficient compared to other development projects we have participated in. The strucure was very well organized. The timing was good and within the fashion cycle, there was good follow up, our participation in Peru Moda was sophisticated, well done and I really like the fact that I have been able to work directly for the first time I met about contacts. I have already concluded a business worth USD 25,000 30,000. The quality of contacts I have made is great

6 DIANA OF CALICAMPO A mother of two, with a background in bank administration, Diana quit her job after having her children. After a few years, as her children started growing, she set up a little store in Arequipa, selling alpaca products to tourists. She did this for approximately 5 years before starting her company CALICAMPO. She founded the company with two partners from the US. The business of Calicampo focussed on hand dyeing yarns. The dyeing process is a closely guarded company secret. Diana is very interested in the environmental and social responsibility aspects of the business. This is why her company only uses organic products that meet or in fact exceed the Global Organic Textile Standards. She has worked to keep the dyeing process environmentally friendly. They use a bicycle powered mechanism instead of using electric or steam powered mechanisms. They also use solar drying methods, rather than gas or electric. The recycle and reuse all containers and make sure that no toxic chemicals are released into the waste water or the atmosphere. They are in the process of being certified as a fair trade company and is registered with PROMPERU in their training programme. Before participating in the project we only dyed yarn as a service for other companies (both in Arequipa and abroad), but now with the inputs from the project, we have prepared our first collection and participated for the first time in two trade fairs (PERU MODA and Ethical Fashion Show, Paris) and we have already received orders worth USD 30,000 for our first collection!!! We now employ several specialised knitters from the region, (we never had any knitters before) and 4 management staff design, marketing, quality control and inventory management We are delighted with the project inputs, we plan to make two collections per year going forward, attend some selected high end fairs in Europe and the US. We are going to look for specific agents and distributors who can promote our brand! This project has allowed me to get KNOWLEDGE, a lot of it and has changed my way of thinking I understand now, that the design collection HAS to be market driven

7 MILAGRO OF HEBRAS PERU Milargo started Hebras Peru two years ago after leaving the ministry where she worked as counsellor to the minister of Lima. She inherited a passion for textiles and the preservation of cultural heritage from her mother. She strongly felt that this work was in her blood. and decided to generate work for the women artisans of her area. Her right hand woman, Andrea taught herself to knit when she was six years old when she cut hair off her families alpaca, spun it into yarn and used cactus needles to knit clothes for her dolls. With Milagro s assistance Andrea learnt all kinds of ancient weaving and knitting techniques. This has enabled her to train the other women who work for Hebras Peru. Milagro wants to continue working with women who are less educated and through training give them new and better opportunities. The company began with one old machine and a few hand knitters. Milagro did not know about exports or business management and she had to train herself in all the aspects of the textile business. MIlargo is also in the process of being certified as a fair trade organisation. She is already certified by the International Alpaca Association which confirms that she uses the purest form of Alpaca yarns. She makes products for women and accessories for both, men and women. She has installed a system of quality control and management in her company since the start of this ITC project. My participation at PERU MODA was very well planned this time thanks to the inputs I received from ITC consultants. I met about buyers from Equador, France, Italy, Peru and US. I have been able to conclude at least 6 deals successfully with various clients across US, France, Peru, Italy and UK With the increase in business and through my new collection and new strategy, I have now hired 90 women. I used to have only 1 woman. I also have 3 supervisors now. I have generated approximately USD 35,000 worth of business purely from the inputs I received through this project. The project has met my expectations more than 100% I plan to use the inputs received to open stores across Peru, improve my designs on a continuous basis. The project inputs helped me plan my participation very well for PERU MODA. I met approximately 45 potential clients from South America, Europe and US and have succesfully concluded 6 deals already.

8 JOANNA OF FINETEX Joanna started the company Finetex, 8 years ago and decided to focus on home textiles only. Her products are handmade by native Peruvians, the products carry a high human value and respect for natural environment. She identifies with the idea of fair trade and focuses on supporting the local communities and the preservation of ancient weaving techniques. Her company, Finetex is a private label manufacturer of home textiles and her goal was to access new markets and new clients in Europe. The study visit was especially inspiring. This has really helped open my eyes, and I now have a lot of confidence to approach new clients in Europe. I have actually contacted people directly now. I have a clear marketing plan, I really needed this and now it has helped me to strategise!. I used to export only to the US, but now I export to Europe also, and have found new clients, thanks to project inputs. I have three new clients, two new markets Latvia and Sweden and also more clients in the US. We contracted many more people as a result, we used to work with only 5 workshops, now we work with 7. Each of the workshops have between people. This year I have been able to do business worth USD 250,000, this is a 20% increase as compared to last year.

9 ROSARIO OF P&P Rosario started P&P after the break up of another company which was owned by her husband. He worked for a bank and Rosario worked at a law firm. Suddenly they were in possession of two knitting machines, three kilos of yarn, a handful of design magazines and two employees who they had to deal with. They installed these two employees in her parents living room and started out! Rosario taught herself to design, sew, iron and stick labels. Under Rosario s guidance, the business grew from a small operation in the living room, to a large studio with at least a dozen machines and several employees, manufacturing over 10,000 pieces per year. I participated in all activities of the project and have gained a lot! I made at least 40 contacts at PERU MODA. I have increased my business by USD$ 110,000 of pure sales from the collection that I prepared and the way in which I marketed it, thanks to the project inputs. I have hired about 45 more people and have contacted new workgroup leaders who themselves work with over 30 women each! This project has allowed me to understand the importance of planning, preparation and presentation. I have come a long way from where I started out, but now I wanted to expand my business to have my own brand for women, children and accessories. I participated in the ITC project because of its nature and tenure. It was structured and l liked the step by step process which was explained very simply by the consultant. I like the fact that it was not just a small one off activity, but in fact looked at the process and kept in mind the actual fashion seasons and helped with the inputs in a timely manner before the fair seasons and not after, which very often happens with such projects.

10 NELLY OF ALPCAOLCA Nelly started her business 10 years ago. From the beginning she has been a subcontractor for large companies such as Michell, Franky Ricky and Inca Alpaca producing garments for end clients such as La Coste. She has two children who help her with different aspects of the company, however they are not fulltime employees. Nelly decided last year to focus on and develop her own collection, Alpacolca (a mix of Alpaca and nearby Colca Canyon). She wanted to export to Europe (specifically Scandinavia) and the US. Her end goal is to produce her own line exclusively. I was surprised at how many clients showed interest in my brand and collection at Peru Moda! I made over a 100 contacts there. I am in the process of negotiating deals with buyers from Brazil, US, India and also a client from France. The deal with Finland has already gone through. I have 5 new markets and 5 new clients. The project has delivered way above my original expectations. It has given me a new approach, a new perspective in line with market requirements. I never exported directly in my life..! But with the project input, I have now exported for the first time successfully!! I was able to design and develop my collection for my own brand Alpacolca! This is a dream come true! And not only did I design the collection, I was able to get export orders from Finland for the first collection under my own brand and for a small boutique store. It is important to note, this was also my first ever participation in a fashion or trade fair.

11 BEATRIZ OF L. PAULET Beatriz grew up in Arequipa and had seen Alpaca materials all around her. She was very interested in working with Alpaca products and started producing Alpaca garments to sell locally. This interest grew as did her business. She then started her company L. Paulet, 15 years ago. The company L. Paulet makes womenswear and childrenswear as well as accessories and some collections for menswear as well. Most of her business had focussed on tourist sales in Arequipa itself, where she has a small shop. She had managed a small amount of exports, but nothing substantial before joining the ITC project in Before joining the ITC project, I had been working on several product categories. But the project helped me to focus, and now I am working only on high end womenswear products. I joined the ITC project because I was very interested in getting focussed inputs for my designs and also for preparing my marketing plan Through Peru Moda, I received a lot of interest in my products. I met 20 very good contacts and have 10 more new clients I now export to France, Japan, Italy, UK and US although the exports are small, I have been able to break into new markets and have been able to do business with high end boutiques which is my target. The project has helped me grow my export business by approximately 10% and local business by more than 15% I have a lot more confidence and have been able to get a much broader view of the business. The study visit to Europe was especially instrumental in opening my eyes and my mind. I would like the project to make a note, that I am very very pleased with the quality of inputs I have received and the direction provided by this project. I do not have a big company, but I received such customised inputs and now know that my business can be sustainable. There was an economic crisis, but I have still been able to grow because of the good designs, the strategy, the constant feedback and follow up. I now understand that my designs can be and are sophisticated.. they are no longer just ponchos and caps. In all the years that I have been working, I have been able to achieve this level of change in just one year!. On behalf of all the women entrepreneurs in Peru, I want to say thank you to the team which made this possible.

12 JENNY AND SORAYA OF JENNY DUARTE Jenny started her brand Jenny Duarte in She runs her brand with her daughter, Soraya, who previously only assisted her mother. The brand is a designer label which creates and shows fashion collections for prêt-a-porter, bridal wear and also prepares jewellery. Jenny studied design in Paris at the Fashion Forum. She did an internship in Paris in a high fashion house and also did another internship with a stylist. She wanted to then return back to her home country, Peru to start her own designer label. When she came back, she realised that it was not easy, so she had to work for several other companies before she could eventually start her own collection. Today she is a recognised name in Peru. Jenny s dream was to have her daughter, Soraya well trained and well exposed to the fashion industry and it was her dream that Soraya would one day be able to join the brand as a designer! Soraya: I have got so much exposure through this project. I have now gained the confidence to actually design myself and I can help my mother to prepare more collections Together we make a great team and now I can participate in much greater capacity I am now a designer. We now sell our line in 7 boutiques across the US. My daughter, Soraya has actually gained so much from going on the study visit to Europe. She is now able to design by herself and her first set of designs have already sold very well!

13 SONIA OF NAREVI Sonia began her company in 2000 by knitting for her family and neighbors with only one machine. The government started a training program for 1080 women who had a low economic standing. Sonia applied to the ten-day training program and was surrounded by women with a lot of expertise. In 2006 she start her own business. She knocked on Michel and Inca Alpaca s doors and began to work as an outsourcer for them. She met someone who really motivated her to improve her quality and formalize her company and in 2006 she created Narevi Alpaca Collection After placing an add in the yellow pages and creating a website, she began visiting all the commercial trade organizations as well as institutions that could help her with local training programs. She participated in a program called 5S with PROMPERU, which helped get everything in order with her business. Sonia began participating in contests, and successfully; in 2005 she won first place in a contest for her hand knit machine work, in 2006 she won 2nd place in the same contest and in 2009 she won 1st place in a contest called the experts. She mostly worked to prepare accessories and womenswear products made in Alpaca. Her goal was to have her own brand Narevi and to develop a childrenswear line using alpaca and organic cotton. This project has helped me to realize my dream of developing my childrenswear collection! Before the project, I only worked with alpaca products for womenswear and accessories and worked as an outsourced contractor. This project has given me the inputs to prepare and sell my own collection. I didn t think I could do it. The key achievement for me was my level of confidence which grew after I saw what I could achieve through my own skills. I now export directly to US, Argentina, and Spain. By participating in Peru Moda, I negotiated several deals I have a much larger view of the world. I am looking at setting up a showroom and store to sell my products

14 NANCY OF SUMAC MAQUI Nancy made garments as a hobby, when her Church priest asked her to do more with her incredible talent and teach other women to hand knit. She is currently involved in a teaching program that is funded by the Peruvian government. The program provides employment for women as well as school uniforms for children in need. In 2001 Nancy won a knitting contest, which came with a monetary prize as well as a contract with Inca Alpaca. This large Alpaca company has been continuously impressed with the high quality of her work and contracts with her to this day. She makes on average 500 pieces per for year for them. Because of her ongoing work with Inca Alpaca she had to formalize her company. Sumac Maqui only makes garments by hand and uses Alpaca fiber, cotton and blends. Nancy has access to a pool of 50 qualified workers that she trained herself. Her goal has been to produce her own line exclusively and to export to Europe, mostly Italy, but also the US and Canada. She makes hand knitted, crocheted, and horquetilla products. She has her group of women who come and work at her workspace. She works on products for babies and womenswear. Before the ITC project I did not export at all, but now I have started with small exports to Canada. I made many contacts at PERU MODA, over 30. There was especially one client from Mexico who wanted a rather large order, but would not pay more than USD 25 per piece. My products are positioned to be exclusive and are all hand made. I have learnt through the project that I have to maintain my image and keep the target right.

15 CAROLE OF TIKSY A Belgian student, Carole visited Peru for a project and fell in love with Arequipa. By partnering with her designer cousin in Belgian, she started a small collection of hand knitted products made in Alpaca. She sold some of her products privately to small boutiques. In 2006, Carole decided to set up her own business in Arequipa and in 2007, she brought together a group of women to knit for her. Carole set up her group with one leader who trained and directed the other women to translate Carole s designs into actual products. The name of her brand Tiksy in the Quetcha language means World. Carole s brand focuses on the ecological labelling and environmental branding concept. She has also joined the fair trade labelling programme through PROMPERU. In addition to making womenswear high fashion garments, Carole is now focussing on baby and childrenswear. With the inputs from the project, I have now got a completed strategy and marketing plan which has helped me focus!. I have increased marketing channels and have increased my sales to USD 21,000. This project has allowed me to VISUALISE my collection and improve the image of my company and hence channel its future potential. The combination of the focussed inputs has helped me to strengthen my company and direct it more effectively I now hire 18 women hand knitters from the area. I am planning to set up a small childcare next to the room where my women come and knit. This way, their children will be close to them, but will not distract them from their work Before participating in the ITC project, I worked with some small clients in Belgium. But now I have new clients in France and am also planning to sell the brand in a store in Lima

16 THANKS AND ACKNOWLEDGEMENTS This project, Strengthening Exporter Competitiveness of Women Entrepreneurs in the Textiles and Clothing Sector Arequipa, Peru is primarily sponsored by the Government of Spain as part of its support to the Latin America and Caribbean region, and Peru in particular. It was developed during the Asia-Pacific Economic Cooperation (APEC) forum hosted by Peru in 2008 and is part of the forum s initiative to facilitate economic growth, cooperation, trade and investment, as well as to foster women s entrepreneurship in the APEC region. Initial project formulation activities were funded by the Government of Norway and by DFID, UK. It also has support from the United States (USAID) towards translation of all training material into Spanish. Facilitation and hosting of activities in the field were supported through National Project Partner, PROMPERU The project is implemented by the International Trade Centre (ITC) in line with its regional focus for Latin America and the Caribbean and its Women in Trade Programme. CONTACT DETAILS Ms. Claudia Uribe Chief, Office of Latin America and the Caribbean International Trade Centre (ITC) Palais des Nations CH-1211 Geneva 10 Switzerland uribe@intracen.org Ms. Meg Jones Senior Advisor, Women and Trade Programme International Trade Centre (ITC) Palais des Nations CH-1211 Geneva 10 Switzerland jones@intracen.org Ms. Rupa Ganguli ITC Consultant - Sector Expert in textiles & clothing Managing Director, Clothing Connect B.V. Amsterdam, The Netherlands rupa@clothing-connect.com Ms. Monica Chavez Sub Direccion de Servicios y Asistencia Empresarial PROMPERU Peru export & Tourism Board Lima, Peru mchavez@promperu.gob.pe

17 AREQUIPA, PERU YOUR NOTES:

18 The ITC project Women, Arequipa, Peru December 2010 Film and communication materials by Clothing Connect BV

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