APF #3
Centro de Bordados
7 JULY 2009
Team Esperanza
Client: Centro de Bordados
Executive Summary:
The Centro de Bordados is a clothing embroidery store in Cuenca begun in 1989 with funding from Switzerland. It offers clothing, bags, greeting cards, and an extensive catalog of designs. The center has previously experienced success in the domestic and international markets, but in recent years their sales have gone down dramatically.
In an unsuccessful attempt to increase their exposure, they distributed over 2,000 pamphlets throughout Cuenca. The building was donated thus the Centro incurs no costs as a result, which allows the project to continue despite very limited business.
Forty members continue with the project, but almost zero purchases are made on a normal basis as they receive only 2-3 customers per month in the store due to a less than strategic location in an industrial part of Cuenca.
They do have a customer in Florida who places large orders around the holidays. Due to the fact that most orders come from abroad (U.S. and Canada), the women wish to seek out a place in the international market while still maintaining availability for customers within Ecuador.
Previously the Centro de Bordados was a member of the Latin American branch of the World Fair Trade Organization called INFAT. They have a website (centrodebordados.com), however it lacks the ability for customers to make purchases online. Also, they will need a new brand name as CBC is already copyrighted in Colombia.
APF Progress:
Team Oportunidad
Oportunidad met with the Centro de Bordados, and conducted an APF 1 needs analysis with Centro de Bordados. They also left them with instructions to fill out the PLC and GRE to be picked up by the next group. Unfortunately this was not done by Impacto or Esperanza, due to unawareness that it needed to be done.
Recommendations:
Oportunidad concluded that Centro de Bordados really lacks international exposure, and that a documentary film on the women, their culture and heritage as related to their work could increase their product value and demand.
Team Impacto
Impacto met with Centro de Bordados, gave a presentation on what Fair Trade is, and provided them with an application to become certified Fair Trade. They recommended 10,000 Villages as a possibility, which was well-received as Centro de Bordados itself had previously attempted to initiate contact with 10,000 Villages but received no response. Impacto wrote a second letter on behalf of Centro de Bordados, and are still waiting for a response. They also concluded that getting a new logo is a priority for Centro de Bordados, for that reason they came up with 3 examples for Team Esperanza to present on the APF3. Impacto also brought some photos of examples of a more modern style of embroidered clothing to show Centro de Bordados as a possible way to revamp their clothing and attract young and foreign customers.
Recommendations:
Research the possibility of Fair Trade certification in Latin America, specifically with the World Fair Trade Organization. Provide Centro de Bordados with information on Paypal registration. Bring more pictures of clothing examples offered in stores in Cuenca.
Team Esperanza
Logos:
We met with two women from Centro de Bordados and came upon some new insights. Firstly we received the logos from Impacto and emailed them before the APF to Centro de Bordados´email so that they would have our contact information. At the APF, we presented the 3 logos made by Team Impacto and received their feedback. They liked the rough ideas, but apparently have a pretty specific idea in mind of what they would like for the logo. They would like to work from the basic form of one of Impacto´s logos, but they want to incorporate two images they showed us on a pamphlet: an embroidered Ecuadorian woman and the letter C on their current logo with the special needle and thread design of the letter. We inquired and they do have digital images to work with, and requested that they send them to the email from which we sent the logos. We followed up with a second email requesting the images, and have yet to receive a response.
Fair Trade:
We brought information on the Latin American division of the World Fair Trade Organization (IFAT) to present and complete with Centro de Bordados to get them moving towards membership. However, in the course of our APF we discovered that Centro de Bordados actually already was a member of IFAT for 2 years until 2003. Due to economic reasons, they ceased paying their membership fees and are not interested at the moment in reinitiating that relationship. They told us that it was expensive and that back then their products were too high of price and quality to compete with cheaper goods coming in from places like Southeast Asia and China. We emphasized again the value 10,000 Villages might provide as they do sell quite a bit of higher-quality and higher-priced items. They feel a bit helpless in regards to this connection, and requested that we assist in that especially given our English language ability.
Paypal:
We brought an application and detailed guide to registering with Paypal to the meeting with plans to actually walk through the online application with them if possible. Before we got into our presentation, however, the woman with Centro de Bordados stopped us and told us about how they had in the past attempted to create a facility on their website without success. As she explained, they originally built their website with the purpose of offering online purchases, even gained a convenio with DHL for shipping. They ran into the problem, however, that without a U.S. bank account they could not provide this service, as the banks needed to run the transactions through the U.S. This type of challenge regarding online purchases was unforeseen by us, and we could not tell her whether they would be able to realize purchases with Paypal. We promised to look into it.
Paypal Results:
After researching on Paypal´s website, it appears Paypal is not an option for Centro de Bordados in terms of banking transactions. CdB has a bank account, but not with a US Bank (Banco Pichincha), nor do they have a card to go with it. However, we think there still exists an opportunity.
The site showed various levels of service that Paypal offers by country, and the following what that under which Ecuador fell:
Send. Receive. Withdraw to a U.S. Bank Account, a card, or via a Check.
Send and receive payments in these countries. Withdraw from your PayPal account to a U.S. bank account or request a check from PayPal.
Judging from this, we think CdB can still create a Paypal account, and simply receive payments through checks from Paypal. This might be a much more complicated method, and will require more meticulous bookkeeping and monitoring of purchases by CdB, but if it makes online purchases possible for CdB we feel it is worthwhile. This will not only hopefully increase purchases, but also open Centro de Bordados up to a much larger market internationally and domestically.
We found a 384-page guide on setting up online purchasing, in English unfortunately, but very detailed. We also have a basic summary of Paypal options in Spanish which we did not leave behind when we thought Paypal would not work but which now we feel might be of use to CdB in their decisions. After looking over the options, we would recommend to Centro de Bordados that they utilize the ¨Pagos en el sitio Web: version estándar¨ option, with the ¨Buy Now¨ button feature.
The first step in setting this is up is to establish botones de pago on their website (https://www.paypal.com/ec/cgi-bin/webscr?cmd=_flow&SESSION=LrczD4YxQbak5YOVlxu-eWeEmZEluZ17v08aMbuPTFfrP29IDIqVTQAFkSS&dispatch=5885d80a13c0db1fb6947b0aeae66fdb090c3508df63c7a078883ba93cc8aafe). After completing this step they may register for an account with Paypal.
Website:
After reviewing the website we feel Centro de Bordados has a pretty nicely designed and organized site and reworking the structure won´t be very necessary. Regarding the products offered on the site, the sweaters and handbags looked like they could appeal to the international crowd. The cards were also nice, though more variety could be offered. The women´s shirts in particular need reworking – more specifically the cut and fit of the shirts – if CdB hopes to appeal to the young and international market.
Goals and Objectives
- Present specific information on CdB´s Fair Trade option and begin application with them.
- Provide CdB with the means to start up a online ordering system on their website
- Help CdB begin to think about how to revamp their product lines to increase sales
- Provide CdB with a new logo that represents their business as they wish for their market to see them.
SolCom Follow-up
- pick up completed GRE/PLC
- follow up with them on the Paypal option
- follow up with 10,000 Villages communication
- present the revised logo
- assist with exposure to internationals in-country and out if possible
- perhaps a study on the current market and whether their products remain too high in quality and price to compete in INFAT stores