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Dec 2007

Creating Business Opportunities | Solving Development Challenges

Hong Kong

Summit on Social Enterprise

Panel II: Marketing and Business Models

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Social enterprise: a more sustainable solution

NGO

private sector

Social impact Financial returns Double bottom line

Not the only solution

- Still need traditional NGOs and private sector players

Not an easier solution- Requires people with experiences from both sectors- Needs to meet both measures of success- Often need to make trade offs

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ViD Theory of Change

Statement of Belief

Given that certain basic needs of society are met, we believe that promoting the growth of social enterprises is a more sustainable way to achieve higher levels of economic and social development.

Awareness

AbsorptionAction

Increase the # ofsocial

entrepreneurs

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VID’s current work

Awareness

Absorption

Action

Knowledge Development

Enterprise Development

What we do How we do itv v

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Life Cycle of ViD EnterprisesIdentify Incubate Implement Pilot Scale Up/

Spin Off

Identify Development Based and Market-based opportunities 

-Conduct rigorous market and industry research-Develop business plan

Launch pilot project to test feasibility of the concept

Expand the pilot into a full-blown for-profit business

-Stock Incentive scheme for community entrepreneurs/workers

Sus- tourism

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How we got started with yaks

Social impact

+

Financial sustainability

Need Local skills or resources

Solution

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Business

• Value proposition

Introduce an exotic, high quality and socially conscious fiber to consumers who value luxury with a story

• Capture a new market trend

Being socially conscious has progressed from a tree hugger movement to a lifestyle trend

• Branding

Established Shokay branding for knitting yarns, fashion items, and home furnishing goods that will be carried online as well as in retail stores around the world

Development

• Create a market demand for yak fur will provide a sustainable source of higher income for many marginalized Tibetan communities.

• Help preserve herders’ traditional way of life

Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

Opportunity

Test of Concept

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Social Need Assessment

Aug ‘06

Marketing & Sales

Dec ‘06Jun ‘06 Aug - Nov ‘06

Production

Design,

Manufacturing

R&D

May ‘06

Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

Our Products : Yarn

Our Products : Baby

Our Products : Accessories

Our Products : Home

Development Impact : Fiber Cooperative

We built our first cooperative of 3000+ members at Hei Ma He village, located three hours away from Xining, Qinghai. Their average income/year is US$530. Year 2008, we will be working with 15000 nomads.

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Business Development

•Launched knitting yarn , baby, home and accessories furnishings line

•Going into OEM yarn market

•Products carried in stores in Taiwan, China, Hong Kong, and US ; over 150 + stores worldwide

•Working with Esquel/ Loro Festa on R&D

•Story covered in Asia Wall Street Journal (Dec 2007) Time Magazine (April 09 2007)

•Worked with more 3000 people in 300 households.

•Develop Yak Loan Program and Woman Knitting Cooperatives

•Estimated income increase 25-40%

•Creative : to find own market niche

•Innovative : to be competitive and sustainable

•Adaptive : to market needs and changes

•Passionate