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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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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 ■
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