EU Central Asia Invest Program 2012 Project “Handicraft and business through regional integration and fair trade market”
ASSESSMENT ON KYRGYZ HANDICRAFTS AND THEIR POTENTIAL FOR THE EUROPEAN MARKET December 2014
by
Andrea Ferrioli, altraQualità Soc. Coop. TABLE OF CONTENTS 1. INTRODUCTION 1.1 CONTEXT: THE OIMO FESTIVAL
2. KYRGYZ HANDICRAFTS MARKET 2.1 GENERAL OVERVIEW 2.2 MATERIALS/TECHNIQUE OVERVIEW 2.3 MARKET CATEGORIES OVERVIEW
3. KYRGYZ HANDICRAFTS EVALUATION 3.1 STRENGHTS 3.2 WEAKNESSES 3.3 THE ROLE OF CACSARC
4. EUROPEAN MARKET POTENTIAL 4.1 EUROPEAN MARKET OVERVIEW 4.2 KYRGYZ HANDICRAFTS POTENTIAL 4.3 PRICING ISSUE 4.4 SWOT ANALYSIS
5. KYRGYZ PRODUCERS OVERVIEW 5.1 PARTIAL DATABASE 5.2 MOST PROMISING PRODUCTS AND PRODUCERS 4.3 PRICING ISSUE
6. RECOMMENDATIONS 6.1 TRAINING IN MANAGING AND TRADING PROCESSES 6.2 FAIR TRADE AS NATURAL EXPORTING MARKET 6.3 ATTENDING INTERNATIONAL FAIRS 6.4 EXTERNAL REFERENCES
Assessment on Kyrgyz Handicrafts 2/23
7. APPENDIX
Assessment on Kyrgyz Handicrafts 3/23
1. INTRODUCTION This report is based on the visit to Kyrgyzstan, organised by CESVI and Bishkek Business Club from the 22th to the 31st of July 2014. This document will give an overview of the Kyrgyz handicrafts production, highlighting its strength and weaknesses. It will then evaluate the Kyrgyz handicrafts potential in the European market context, trying to point out which products could better fit in that context. Finally, it will give some general advises and recommendations on how to train the artisans with the aim of entering the European market, particularly the Fair Trade's one.
1.1 CONTEXT: THE OIMO FESTIVAL The opportunity to meet a number of Kyrgyz artisans was provided by the ninth edition of Oimo Festival, an event organized by the Central Asian Crafts Support Association Resource Center – CACSARC, in collaboration with other partners, including CESVI and the BBC. It was created to gather craftsmen and women from Central Asia with the aim to share their experiences and to provide a showcase for their products. The festival is a celebration of regional cultures with meetings, workshops, concerts, events and most notably a large handicraft fair. Artisans from across Central Asia – Kyrgyzstan, Tajikistan, Uzbekistan, Kazakhstan, Turkmenistan and Afghanistan – come to Bishkek to share their unique cultures. Its ninth edition was held three days in Bishkek, then moved to Cholpon-Ata along Lake Issyk-Kul for an additional week. Over 150 artists were present, displaying handmade goods. The crowd among the stands confirms the success of the event, but the perception that the vast majority of citizens of Bishkek did not know of the existence of the Festival gives a clue of the unexpressed potential of it. Oimo Festival has reached its ninth edition, but still does not have a website or at least a Facebook page that can maintain the interest of those who participated, get new contacts and spread the expectation for the next edition. It's a major limitation that clearly shows the great development possibilities of the event and the great handicraft potential even in the local market. Assessment on Kyrgyz Handicrafts 4/23
2. KYRGYZ HANDICRAFTS MARKET 2.1 GENERAL OVERVIEW Handicrafts still play an important role in Kyrgyz everyday life. Carpets, home decorations, handmade apparel and accessories are a common view, showing that they are not just a "plus", but real "needs". Therefore, a number of people are employed (fully or partly) in this sector, while the local market demand is a fundamental boost not only to production volume itself, but also to products development, since people are choosing and testing goods firstly from a practical point of view. The result is an average good design and details quality: Kyrgyz handicrafts offer a good impression from first glance especially in terms of colours and neat manufacture. Prices are an issue, though: they seem to be high, but the room for negotiation is wide, as usual in Asia. In such a short time, it's been difficult to collect definite informations about the wholesale prices on the market. For sure, handicraft producers do not invest in raw materials: they mostly buy on the market what they need, without mid or long term projects. That keeps the production costs high, which means either to shrink margins or to increase final prices.
2.2 MATERIALS/TECHNIQUE OVERVIEW Felt Felt is the most typical ever-present material in Kyrgyz culture. It can be used to produce an incredibly wide range of different items: from carpets to hats, from shoes to bags, from toys to accessories, to apparel and even home decoration. This is for sure a positive value and it should be used at best: notwithstanding the overexposure, it keeps a good potential on the local market. Thanks to an amazing stream of ideas, felt items with nice design and nice colours are blossoming and they easily emerge in a context hit by the average international fashion styles. MARKET POTENTIAL
Kyrgyz felt features may be appreciated in the European market as well, especially in central and northern Europe. Its endless possibilities of use and application make felt a pillar of Kyrgyz handicraft production. Furthermore, this material has always been present in the Fair Trade market, which means that Fair Trade importers are the best partners to develop new designs and ideas with.
Embroidery This ancient technique belongs to every culture that has got the chance to work with yarns, with slightly different results. Thus, it does not hold a typical allure. Moreover, it is a real art that needs time and attention, therefore extremely expensive. For those reasons, it is almost disappeared in western countries, becoming a home activity for old people. As a result, embroidery do not play any role in the European market, because it has Assessment on Kyrgyz Handicrafts 5/23
been almost blown away from the aesthetic horizon of most developed countries. MARKET POTENTIAL
As a matter of fact, the only exporting potential for these kind of products would be to become a mere decoration for other items like textiles, shirts, scarves, bags and so on. Since Fair Trade importers are working with small producers in developing countries, they have always dealt with embroiderers, trying to find a way to constantly work with them. Even in this niche market, though, embroidery almost has not find a place.
Pottery It is a technique that can produce a wide range of different products, from tiny figures to huge garden vases, and because of that it gives a plenty of possibilities to enter the market. Notwithstanding a tradition that is strong and vivid, the feeling is that local pottery has been left behind. As a matter of fact, we have met only one Kyrgyz producer at the fair, exactly the one that we visited at his small terracotta factory in the previous days. MARKET POTENTIAL
Kitchenware, home accessories, garden vases, decorative objects, Christmas articles: the versatility of this material makes it one of the most important for the handicrafts market, whether it is conventional or Fair Trade.
Wool Wool is almost a countrywide asset. It can be used in producing a number of different items, which makes this material always interesting for the market. It is necessary, though, to improve the product processing, working towards natural colours in the dying process. MARKET POTENTIAL
Wool is one of the main materials for apparel and accessories, which means that its market potential is high. In order to enter the Fair Trade market, the wool supply chain needs to be verified and visible.
Leather We have met several exhibitors at the fair showing leather items. Just a few of them seemed to be real handicrafters, though. A good deal of products made by this material look completely out of fashion or cheap souvenirs. Leather items enjoy a well established popularity in Europe, mostly focused in shoes, accessories (i.e. bags, jackets, wallets, belts, etc) and interior furnishing. The average European customer is aware that leather can be expensive, but it expects high quality items. MARKET POTENTIAL
There is for sure a good market for leather products, but to enter it, it is necessary to reach Assessment on Kyrgyz Handicrafts 6/23
a high level of production in terms of raw material, working ability and detail attention. Even more than the wool one, leather supply chain needs to be transparent to enter the Fair Trade market. Cotton textiles This wide group includes all the items that can be produced from a fabric yarn, which means a number of potentially interesting crafts for the market. Unfortunately, for all the cotton Kyrgyzstan produces, even organic, just a few of it becomes a final product in the country. MARKET POTENTIAL
This material has got so many ways to be used that for sure it has a good market potential. Still, cotton is produced or worked by the toughest competitors: China, India, Bangladesh, South East Asia. So, it is probably the Fair Trade market that can welcome and develop a Kyrgyz way to cotton products, provided that the supply chain will be transparent. 2.3 MARKET CATEGORIES OVERVIEW Basketry This sector is an important one for the market, especially the Fair Trade one. Baskets are basic items because they can be easily shaped for many different uses and sold all year long. At Christmas time, then, they are fundamental for gift packs. MARKET POTENTIAL
Unfortunately, there is a number of countries that can supply wonderful basketry at amazingly low prices, thanks to the large raw material availability. The only producer we've met is doing an interesting job, but still prices are too high to compete in the European market, whether conventional or Fair Trade one. Apparel Young designers and tailors are dominant in this area. A number of talented and open minded people have been attending Oimo fair, during our visit. Products are made mainly by felt and silk, but wool and other textiles are often used. The results are very interesting, mixing tradition and innovation. MARKET POTENTIAL
Apparel is a very competitive sector in the EU market, but Kyrgyz creations have got a natural character that should be nurtured and helped. Plus, Kyrgyz Government considers this sector as a priority, which could mean a possible support1. As a matter of fact, Fair Trade market will 1. 1
WTO, Trade Policy Report by Kyrgyz Republic WT/TPR/G/288, 2013 - Section 3.23, p. 12 Assessment on Kyrgyz Handicrafts 7/23
welcome Kyrgyz apparel and, in the short and medium term, it would be the natural outlet for these kind of products. Jewelry Precious stones and metals are among Kyrgyzstan's natural resources, which means that jewelry is part of the Kyrgyz traditional handicrafts. It is all about design and, with such a plenty of raw material, it doesn't seem so difficult to reach great results with a little training. MARKET POTENTIAL
Providing a good quality-price ratio, Jewelry has got great potential, in both conventional and Fair Trade markets. Plus, thanks to its great value and its small volume, it is not so expensive to import by airshipment: a clear strong point in this context (see 3.2).
Accessories It is the common term for "fashion accessories", which includes all items used to contribute, in a secondary manner, to the wearer's outfit. Accessories should be chosen to specifically complement the wearer's look: purses and handbags, boots and shoes, hats, belts, gloves, shawls and scarves, socks, etc. Scarves and bags stand out as the main accessories produced by Kyrgyz artisans. SCARVES
Scarves are apparently the best selling item for the majority of Kyrgyz craftspeople. Easy to understand why they are so successful: colorful, soft, not difficult to produce, therefore not too expensive. With a few exceptions of wool scarves, it is the idea of merging the silk with felt that become the mainstream style on Kyrgyz shops and markets. BAGS
A bag is a practical accessory that no woman (and no man, to a lesser degree) would give up and one of the main icons of the fashion world. Over the past fifty years has also taken on the role of status symbol. It still offers a lot of room to create to an artisan and it could be a "pillar item" for the exportation, provided that a standard quality in details can be set and maintained. In the Kyrgyz handicrafts market, it is possible to find a wide range of styles and manufacture, but the average quality still is not matching the average price level requested. The producers have to work in matching these two factors, quality and price. MARKET POTENTIAL
Although the market is inflated by very similar creations, it is fairly easy to meet new design that still surprise. Accessories is definitely a category that includes artisans with the ability to export and with the capacity to develop always new ideas. Fair Trade market could be a great opportunity to test ideas, designs and their quality/price ratio.
Assessment on Kyrgyz Handicrafts 8/23
Carpets and rugs Traditional felt carpets are one of the foremost arts of the Kyrgyz people and an integral part of their cultural heritage. The making of Kyrgyz felt carpets is inseparably linked to the everyday life of nomads, who used felt carpets to warm and decorate their homes. Creation of felt carpets demands unity among the community and fosters the transmission of traditional knowledge – as a rule by older women who are normally concentrated in rural and mountainous areas, to younger women within the family. MARKET POTENTIAL
Tradition, peculiarity of design and colours make carpets a solid Kyrgyz handicraft asset, even for exports. Due to a plenty of specialized home decoration shops and chains, conventional market appears to be more interesting than the Fair Trade one, although the latter could be a good test for this kind of product.
Home decoration and kitchenware This category includes a very wide range of different products, like small furnitures, decorations, pots and pans, candles, glassware, ceramics, cutlery, even office items. It is closely linked to economic conditions: the majority of its goods are non essential, so primarily prones to reduction in people's purchases. Wood is a principal material in this huge sector and, since Kyrgyzstan is an importer of such a raw material rather than a producer2, this limits the possibility to develop a good range of products. Nonetheless, felt has entered even this sector, thanks to creativity and innovation. Plus, pottery could be a great asset to use in addressing the home decoration sector, which is a very strong one. MARKET POTENTIAL
This is another very competitive sector in the EU market, extremely focused on design and convenience. Even if there is always room for new ideas, to aim at such a market it is not easy in the short term. Plus, kitchenware needs a particular attention, because of EU legislation on food contact materials3. As a matter of fact, Fair Trade market represents the immediate outlet and test for these kind of products.
2. 2 3. 3
WTO, Trade Policy Report by Kyrgyz Republic WT/TPR/G/288, 2013 - Section 2.27, pp. 7-8 Available at: http://ec.europa.eu/food/food/chemicalsafety/foodcontact/legisl_list_en.htm Assessment on Kyrgyz Handicrafts 9/23
3. KYRGYZ HANDICRAFTS EVALUATION 3.1 GENERAL STRENGHTS By far the most interesting and important strong point of Kyrgyzstan's handicrafts situation is the creative talent of its artisans. This is a tremendous asset. No other Central Asian country offers such a distinctive flair in design and production of handcrafted products. There exists a strong tradition in craft that has developed since petroglyfs. Kyrgyz handicrafts’ other strengths include skilled, labor-intensive handiwork; a large and flexible workforce; a unique (and, for many, exotic) history that can be celebrated and promoted. 3.2 GENERAL WEAKNESSES For importers, the greatest challenge in Kyrgyzstan lies in its distance from any seaport, which straightly means higher costs in importing goods. Improvements are expected in the next years4, but still shipments from Kyrgyzstan has to deal with the ongoing situation. Then a second issue is the lack of trade infrastructure, in particular agents and exporters with whom producers, buyers and their agents can reliably conduct business. Again, artisans seem to ignore business basics by a good extent: the interviews showed their difficulty in mastering the production process in terms of numbers and percentages (raw materials and workers costs, production capacity, internal transportation costs, pricing, delivery time, exportation costs, shipping options and costs). To be fair, this is an absolutely normal situation when producers are almost completely not used to real exportation towards demanding markets, but it takes time and efforts in training to reach a production awareness in exportation. 3.3 THE ROLE OF CACSARC According to producers interviews, the Central Asian Crafts Support Association Resource Center (CACSARC) plays a fundamental role for their exportation opportunities. CACSARC was created to preserve the cultural heritage of Central Asian peoples, to revive and develop handicrafts in the region, but also to promote them on regional and international markets and to develop the artisans' skill with that aim. Among its activities, it organizes the Oimo Festival, which represents a fundamental exhibition of Central Asian handicraft production, gathering Kyrgyz, Kazakh, Uzbek, Tajik, Turkmen and Afghan producers at the same venue. CACSARC still lives and works as regional NGO, but since Kyrgyz crafters needs became evident, in 2009 it has been founded CACSARC-KG as a Kyrgyz branch of it, in order to constantly help them in their activity and development. Furthermore, as practical exportation needs have showed to increase steadily, CACSARC-KG decided to create a commercial branch, which is called "CACSARC Trade". As a matter of fact, this branch is playing the part of a Kyrgyz Fair Trade exporter by all means: it cares about quality control, documentation issues, adequate packing and it even gathers orders from customers. As above mentioned, this facility represents a safe opportunity for all small producers without any exportation experience whatsoever. Should CACSARC Trade decide to embrace this activity in a long term perspective, then they would have to become a real exporter, by selecting products, creating price lists, establishing a marketing and promotional policy with the aim of exporting Kyrgyz handicrafts. They would then fill the gap between small producers, which are unable to afford a skilled staff to address the international market, and international wholesale buyers.
4. 4
WTO, Trade Policy Report by Kyrgyz Republic WT/TPR/G/288, 2013 - Section 4.16, pp. 30-32 Assessment on Kyrgyz Handicrafts 10/23
4. EUROPEAN MARKET POTENTIAL 4.1 EUROPEAN MARKET OVERVIEW The European handicraft market has been deeply affected by the economical crisis. That has meant less buyers and more competition. Purchases are much more pondered, so the demand of a fair (or so perceived) quality/price ratio is strictly required. The handicraft market can be simply divided into upper, middle, and lower segments. This segmentation applies both to the retail and other levels in the market. The first is the most promising one, but it demands design and quality at top levels. The middle one still represents the majority, but it is steadily shrinking, as a result if the economical crisis. For the same reason, even the lower segment is growing, but it requires the capacity of a large production with standard quality at low prices, which means to build incomes on big orders rather than high margins. From the end-market perspective, the main area for handicraft products is Home decoration sector, also referred to as “Home accessories”, which tends to include a very wide range of different products, from photo frameworks to garden vases, from candleholders to boxes, from trashbaskets to small kitchenware (mugs, glasses, trays, cutlery, etc.) and so on. Carpets are included in this catergory, notwithstanding the fact that they can be a subcategory themselves. Another fundamental area for handicrafts sales is the wide "Fashion accessories" one: scarves, bags, belts, purses, wallets and everything connected to clothes and garments fashion trends. This area gives a plenty of room and opportunities to new ideas, designs and materials. 4.2 KYRGYZ HANDICRAFTS POTENTIAL Kyrgyz handicraft production is wide, but the main items can be summarized in the following list: carpets, jewelry, scarves, bags and other accessories. Fortunately, these items are included in the most important market categories for the European handicrafts market, as above explained: home decoration and fashion accessories. On the other side, Kyrgyz raw materials used to make such items are a bit of a shortlist. Wool and, as a consequence, felt are by far the most important ones. Wood, which is a prominent material in home decoration, is almost non available for handicrafters, while pottery seems to have been left behind. Then, silk is a basic part of scarves, the best selling article seen around, but it is not produced in the country and mostly comes from Uzbekistan, China or India. Higher costs and the lack of quality control is are issues that should be addressed. To focus mainly on felt and wool is frankly a limit. Felt has shown several times in the past that the European market is not an easy market place for it, in terms of quality, price and season. So, to address that market with such a raw material as main asset, it is undoubtedly risky. Kyrgyz jewelry seems that could easily meet the European market. Silver items seen at Assessment on Kyrgyz Handicrafts 11/23
Oimo Festival especially show typical Kyrgyz decorations mixed with neat minimal designs, easy to be seen in Europe. 4.3 PRICING ISSUE Final prices seen around and at Oimo fair are obviously cheaper than European ones, but still the few informations gathered are confirming that the production process is not properly controled by handicrafters. On the market, for instance, 1 squared meter of felt costs around 500 soms, which are about 7 euros. Still considering negotiations and quantity discounts, that price is incredibly high for the export. An importer could agree with the supplier an Ex Works price, which means the goods' price right outside the production site, or an FOB price, that stands for Free On Board, a price including the local trasportation and all the exportation expenses (documentation, certificates and loading of the goods). It has to be beared in mind that the final price for the european customer will be around 5/6 times the FOB price paid to the supplier. That is because of the high trasportation and customs clearance costs, plus the margin for the importer and distributor, the average margin that the final retailer should enjoy and, finally, the VAT tax, that ranges from 15% of Luxembourg (17% from Jan 2015) until 25% of Croatia, Denmark and Sweden5. A scarf that is sold at 700 soms at Oimo Festival could probably reach the half as FOB price for exportation. Still it will cost 5 euros, which means that the final price in a European shop will be around 25-30 euros, which is not unbearable, but definitely not a cheap price. To give a clue of the competitors, the final European price of a silk scarf from India could range from 7 to 20 euros, depending on quality, design and colours. 4.4 SWOT ANALYSIS We are resuming the potential of the Kyrgyz products on the EU market in the following SWOT analysis. Strenghts -‐ Creative, talented and skilled artisans -‐ Large and flexible workforce -‐ Support of CACSARC Trade -‐ Part of raw materials widely available -‐ Strong tradition in handicraft -‐ Unique history and culture useful for the handicraft promotion -‐ (wool, silver, stones) -‐ Educated people Opportunities -‐ Enter a market in which there is no Kyrgyz handicraft yet -‐ To approach a “sensitive” market, the Fair Trade market -‐ Joining a market development program
Weaknesses -‐ Lack of knowledge about business basics -‐ Lack of knowledge about the western market requirements -‐ Lack of some raw material such as silk and wood.
Threats -‐ Distance from sea port negatively influencing the export costs -‐ Lack of trade infrastructure (mainly forwarding agents and export companies) -‐ Average prices higher than in other Asian country such as India, Thailand, Nepal, Philippines, Vietnam. -‐ To compete in the high competitive
5. 5 VAT Rates Applied in the Member States of the EU, European Commission, taxud.c.1(2014)2276174 – EN, p.3 Assessment on Kyrgyz Handicrafts 12/23
European market
5. KYRGYZ PRODUCERS OVERVIEW 5.1 PARTIAL DATABASE The following is the database of the producers interviewed during the Oimo Festival. Production capacity was noted down if the producer was able to figure it out. The potentials evaluation for EU market and Fair Trade market go from one dot ("No potential") to five dots ("very good potential"). PRODUCER
AREA
MARKET CATEGORY
PRODUCTION CAPACITY
ALUA
Bishkek
Small items: Decorations 20 to 30 /day Souvenirs Bigger items: 5 to 15 /day
AKBARA
Bishkek
Decorations Accessories
GULMIRA AKMATOVA
Bishkek
Scarves: 10 to 20 /day Apparel Accessories Hats: 1 to 5 /day
AKTANTAI
Bishkek
Decorations Apparel Accessories
AIBIRI STYLE
The wool to make felt comes directly from their own sheep.
N/A
Abzalbek Moldokmatov is the leather crafter, while others are caring about felt items and embroidery.
N/A
Founded just one year ago, it is owned by Aigerim, a talented designer focused on leather items. She has definitely developed a distinctive style, resulting in very interesting creations.
Jypara Junusova is one of the designers. They work felt, which they're producing by themselves starting from raw wool. The result is beautiful.
N/A
Accessories
Bishkek
Small items: Decorations 10 to 20 /day Apparel Accessories Bigger items: 1 to 5 /day
SAMIRA BATYRKANOVA
Bishkek
Scarves: 10 to 20 /day Decorations Accessories Small items: 20 to 40 /day
ZVETA BEISHEBAEVA
Bishkek
Apparel Accessories Jewelry
NATALIA BEREZHNAIA
Bishkek
Decorations Small items: 2 to 10 /day Apparel Accessories Bigger items: Jewelry 1 to 3 /day
BESH KURON
Bishkek
Accessories
N/A
SALIMA CHYTYRBAEVA
Bishkek
Accessories
Slippers: 10 to 30 /day
DOM INTERNAT
Bishkek
Accessories Decorations Souvenirs
Founded in 2003 as an organization for the livelihoods of vulnerable households, Alua is made by 10 working women, led by a psychologist. They have a workshop where young students and unfortunate people can learn some activity.
EU MARKET FAIR TRADE POTENTIAL POTENTIAL
Bishkek
ARUUKE AYIM
NOTES
N/A
N/A
It's a Public Union, where Gulzat Chytyrbaeva and another expert are teaching the guests how to craft items.
Managed by Rustam Mambetov, it is a state structure for disabled people that has been created two years ago. Their products are made by the guests with the help of volunteers. The guests are more than 200 people, but just 10 of them are able to work. Close to their structure is the seat of a Turkish University, which helps them maintaining their building, while their everyday activities are backed by an NGO.
Assessment on Kyrgyz Handicrafts 13/23
PRODUCER
AREA
MARKET CATEGORY
PRODUCTION CAPACITY
AYNASH DUYSHEKEEVA
Bishkek
Carpets Decorations
N/A
ABDUSHUKUR GAPAROV
Bishkek
Carpets Decorations
N/A
GOBELEN
Bishkek
Accessories Apparel Decorations Souvenirs Jewelry
N/A
ASEL KALKANAVA
Bishkek
Accessories Decorations Souvenirs
Hats: 5 to 30 /day
NOTES
The offer is very wide and diverse, from carpets to jewelery. The impression is that it is a marketing organization, rather than a group of handicrafters.
EU MARKET FAIR TRADE POTENTIAL POTENTIAL
KELDIKE
Bishkek
Jewelry
20 to 200 /day
Private firm, Keldike produces jewelery and employs more or less 100 people, including the branch they've got in Kazakhstan. They buy silver directly from the Canadian extractors in Kyrgyzstan. They craft their items in the country, but primarily sell beyond the border. They have as many as 7 stores, 4 in Bishkek and 3 in Kazakhstan, two in Almaty and one in Astana.
KENESH
Bishkek
Decorations Apparel Accessories
N/A
Leader of this company is Gulmira Kutueva, which is basicly a painter and a designer. She is also Vice President of the Crafts Council of Kyrgyzstan.
KHURAK
Bishkek
Accessories Decorations Souvenirs
N/A
Public Union of artisans. Their main products are hanging rugs, typical for weddings. The purpose of the structure is to help women building their own business. Now they are 40 members.
KINER
Bishkek
Decorations Apparel Accessories
N/A
KOLDO SHOP
Bishkek
Accessories Apparel Decorations Carpets Souvenirs Jewelry
N/A
ANARA KULMANBETOVA
Bishkek
Apparel Accessories
N/A
Apparel: 5 to 30 /week
They they make garments and textiles with chiffon fabrics printed with ethnic designs. They use Indian raw material, selected and purchased from a trusted supplier in Bishkek. Their products are very unique, although not properly typical Kyrgyz.
N/A
She is not an artisan but a retailer of mostly embroidery and felt items.
Scarves: 5 to 10 /day
This activity was founded with the aim of helping disabled people's groups in their working projects. They have got a shop in Bishkek, in which they sell the items they buy from about 50 disabled workers' groups. They play the role of a distributor, while all the development of new designs of items is completely in charge of those groups.
KUTTU
Bishkek
Decorations Accessories
ISKEN KYZY AINURA
Bishkek
Decorations Accessories Souvenirs
Bishkek
Small items: Decorations 5 to 15 /day Accessories Souvenirs Bigger items: 1 to 5 /day
She is a Kyrgyz artisan living in Uzbekistan. She works directly felt items, while the other kinds of products are made by her Kyrgyz family.
Bishkek
Scarves: 10 to 30 /day Apparel Accessories Apparel: 3 to 15 /week
Led by Burul Mambetova, they design and create very nice garments and accessories, directly processing the wool bought from farmers and turning it into felt.
Bishkek
Decorations Accessories
They are making mostly glass items, even big size, like chandeliers for restaurants. They make also glass jewelry out of quality raw materials coming from Turkey and Italy.
ROSSIA JUMANAZEROVA
MAGIC FELT
NISSA ART
N/A
Assessment on Kyrgyz Handicrafts 14/23
PRODUCER
AYIM RUSLANOVA
MAKHABAT SAGYNOVA
JUMAGUL SARIEVA (CHAPAN)
SAYMANLU TASH
VIACHESLAV STRELNIKOV
AREA
MARKET CATEGORY
Bishkek
Accessories Apparel Decorations Souvenirs
Bishkek
Small items: Accessories 5 to 20 /day Decorations Souvenirs Bigger items: 1 to 5 /day
Bishkek
Accessories Apparel Decorations
Bishkek
Souvenirs: Decorations 10 to 50 /day Souvenirs Vases: Jewelry 2 to 10 /week
Bishkek
Jewelry
PRODUCTION CAPACITY
NOTES
N/A
She produces a wide variety of items, made by knitting, embroidery, felt, silk scarves. They make even souvenir t-shirts with embroidery: very nice idea, but t-shirts are from Turkey.
Scarves: 1 to 10 /day Apparel: 1 to 5 /week
Small items: 10 to 30 /day Bigger items: 1 to 3 /day
STUDIO BURMA
Bishkek
Small items: Accessories 10 to 20 /day Decorations Bigger items: 5 to 10 /day
TAZA DIL
Bishkek
Accessories Decorations
N/A
TUNNUK
Bishkek
Accessories Decorations
N/A
Bishkek
Small items: Accessories 10 to 30 /day Jewelry Jewelry: 5 to 20 /day
UMIKA
Small items: 5 to 10 /day
EU MARKET FAIR TRADE POTENTIAL POTENTIAL
She managed to establish a direct contact in India in order to get quality raw materials from there: it took four years to do so. The effort was justified as she developed her own style and her designs, resulting in beautiful line of products.
Small company for the production of terracotta items, mostly artistic vases and home decors, based on the designs of the archaelogical site that inspired the company's name.
He is a jeweler. 15 people are working in his company. He works only with silver, which is coming from Altyn. Very nice designs, both very Kyrgyz and modern.
It is a public union working for disabled people. Four expert craftsmen teach how to work on materials to the guests.
NATALIA VOLOSHINA
Bishkek
Decorations
YOUTH DESIGN STUDIO (S. ANDREEVNA)
Bishkek
Accessories Decorations
N/A
ALTYN CHYCHYK
At-Bashi, Naryn
Accessories Decorations Carpets
N/A
They work felt and the raw wool is coming directly from their goats. Each one is working from their own home.
Public Union involving 200 women. 27% of the sales incomes go to the union, while the 73% go to workers. They are trying to get better raw materials: now the half is bought on the market, the rest comes directly from members farms. They already attended Ambiente Fair in Frankfurt, Germany, the main European handicrafts fair.
Bigger items: 1 to 3 /day
ALTYN KOL (BURUL JAKYPOVA)
Kochkor, Naryn
Accessories Decorations Carpets
N/A
RAYIM BAEVASOIA
Naryn
Accessories Decorations Carpets
N/A
CHEBER KOLDOR
At-Bashi, Naryn
Accessories Decoration Carpets
N/A
Mostly nice felt toys: they're all hand made and stuffed mainly with recycled textiles.
Public Union which includes 15 women. They all work from home, while the organization supplies the raw materials.
Assessment on Kyrgyz Handicrafts 15/23
PRODUCER
AREA
MARKET CATEGORY
ELDAR KHAN KUT
At-Bashi, Naryn
Accessories Decorations Carpets
Ak-Talaa, Naryn
Apparel Accessories Decorations Carpets Souvenirs
SHADGAR
URMAT UZ (JANLYBU KARYBEKOVA)
UZ NUR AYIM
ALTYN OIMOK (BOKOMBAIEVA)
KARAKOL UZ DARI
JAMAAT ELAIYM (AINAGUL JAMGYRCHIEVA)
MAMYTOV
PRODUCTION CAPACITY
Small rugs: 5 to 10 /week Big carpets: 0.5 to 1 /week
NOTES It is a big family company that now involves 50 people. They've worked in a traditional way carpets and felt for 18 years, even receiving a UNESCO Prize for their working quality.
N/A
Naryn
Apparel Accessories Decorations Carpets
N/A
Naryn
Apparel Accessories Decorations Carpets
N/A
Public Union that employs 24 people, they collaborate with the German NGO GIZ, which helped them opening a small showroom in Naryn. Janlybu is the director of the Regional Union of Artisans (Kyrgyz Uz, 200 members). Even the Swiss NGO Helvetas and the UNDP are buying from them. She teaches craftmanship to women of the villages.
EU MARKET FAIR TRADE POTENTIAL POTENTIAL
Issyk Kul
Souvenirs: Decorations 20 to 80 /day Carpets Carpets: Souvenirs 1 to 10 /week
They work with UNDP, together with other 3 groups. Plus, the main Canadian mining company who works in Kyrgyzstan supports them with funds.
Karakol, Issyk Kul
Small items: Accessories 10 to 40 /day Decorations Bigger items: 3 to 10 /day
Public Union that collaborates with WWF: they do little typical Kyrgyz animals by felt, wool and knit.
Accessories Small items: Decorations 10 to 30 /day Carpets
Since 2009, they collaborate with JIKA, the Japanese Development Project, in a program called "A product from each village". They basicly make felt items and they're able to use natural colours in dying it: they've been trained to do so by the Japanese NGO. They make beautiful puppets in animal shapes.
Accessories Decorations Carpets
They make beautiful animals by felt and leather wallets of good quality. The raw materials come from trusted suppliers: leather from a factory in Bishkek, wool directly from Alai area farmers. They are involved in developing projects by Jika, the Japanese Development Program in Kyrgyzstan.
It's 20 years she's working, primarily creating nomadic tents and related accessories. The raw materials come from the villages' farmers of the area.
They make basicly carpets, tapestries and puppets with felt. Raw wool comes from farmers of the area: they are processing and dying it.
They are involved in the Development Project funded by the Aga Khan. Raw materials are collected from the villages around the area, raw wool is processed and dyed by them.
Kara-Oy, Issyk Kul
Issyk Kul
GULBAR Ton, Tong, TOKSONBAEVA Issyk Kul
Accessories Decorations Carpets
TOLGONAIENE BOZYIORDO
Karakol, Issyk Kul
Apparel Accessories Decorations Carpets
ALAI ARZU (ARZYGUL KURMUSHUEVA)
Alai, Osh
Accessories Decorations Carpets
ALAI UZ (GYLYNKHAN TASHEEVA)
Alai, Osh
Accessories Decorations Carpets
N/A
Small rugs: 2 to 10 /week Big carpets: 0.3 to 1 /week
N/A
Small rugs: 2 to 10 /week Big carpets: max 1 /week
N/A
Assessment on Kyrgyz Handicrafts 16/23
PRODUCER
AREA
MARKET CATEGORY
PRODUCTION CAPACITY
SAYMANLU TASH
Osh
Accessories Decorations Carpets
N/A
SYMBAT
Osh
Small items: Apparel Accessories 10 to 40 /day Decorations Bigger items: Carpets 1 to 5 /day
UZDAT KALAR (TERMERCHKOVA)
Alai, Osh
Apparel Accessories Decorations Carpets
YMYT GROUP (AZMAR PIRMAMATOVA )
Alai, Osh
ART STUDIO BELTA
NOTES
EU MARKET FAIR TRADE POTENTIAL POTENTIAL
N/A
Accessories Decorations Carpets
N/A
Chuy
Accessories Decorations Carpets Souvenirs
Small items: 5 to 20 /day
ARZU BULAK YNYR BULAGY
Chuy
Accessories Decorations
N/A
AIZADA ISRAILOVA
Kant, Chuy
Accessories Decorations
N/A
MARS JUNUSHALYEV
Chuy
Basketry
JUMAKAN MAMBETOVA
Chuy
Accessories Decorations
Small items: 3 to 10 /week Bigger items: 1 to 3 /day
Their targets are tourists, that's why they focused on souvenirs and Christmas decorations.
He's producing baskets with raw material coming from his garden. All the production process is controled by him. Baskets are beautiful but very expensive to be exported.
N/A Small items: 5 to 20 /day
SAIMA (FARIZA SEISHEEVA)
Kara-Balta, Accessories Chuy Decorations Bigger items: 3 to 10 /day
JYLDYZ TOKHTOSYNOVA
Alamudun, Chuy
Small items: Accessories 5 to 20 /day Decorations Bigger items: 2 to 5 /day
TOTYKHAN OSKONBAEVA
Jalal-Abad
Accessories Decorations
It is an association that supports disabled people. Now they've got about 100 beneficiaries. They make only felt items.
N/A
Small items: 5 to 20 /day
BYSINAI (BAISKAN KOCHYRBAEVA)
Chatkal, Jalal-Abad
Apparel Accessories Decorations Bigger items: 3 to 10 /day
BEREKE (JANNAT BORKOSHEVA)
Batken
Accessories Decorations Carpets
N/A
KYMBAT BAIMATOVA (KYSDYN SEBY)
Talas
Accessories Decorations Carpets
N/A
This cooperative associates 32 women. They buy cotton in the villages to process it, while the wool is bought already dyed. They collaborate with JIKA and, thanks to them, they also sell in Japan. Their items are made by felt, silk, cotton, linen, even satin. Many foreigners are interested in their products and JIKA help them with the exportations.
They buy raw wool from villages to process and dye it, making their own felt.
Assessment on Kyrgyz Handicrafts 17/23
5.2 MOST PROMISING PRODUCTS AND PRODUCERS According to the overview and the database compiled during the Oimo Festival, the most promising Kyrgyz handicrafts for the international market are: •
Felt items They show a great creativity level and an incredibly wide range of applications, so it is worthy to bet on them and, especially, to work with the artisans in order to improve production process control and raw material supply. In this sector, the most interesting producer appeared to be Magic Felt.
•
Silver jewelry This area is undoubtedly interesting. Considering Kyrgyz creativity and the fact that the country could supply this raw material as well as precious stones and other metals, it is definitely a promising area for exportations. In this sector, the most interesting producer appeared to be Viacheslav Strelnikov.
•
Pottery As above said, pottery seems not to be on top of the list in Kyrgyz handicraft production. Nonetheless, it is a traditional area and even the only producer seen have showed great potential. As a matter of fact, pottery can produce several different items that are included in the home decoration category, which is a clear strong point. In this sector, the only producer met is Jumagul Tashiev of Bishkek. It could be interesting to do a short specific assessment to see if could be useful and productive a dedicated development action.
6. RECOMMENDATIONS 6.1 TRAINING IN MANAGING AND TRADING PROCESSES As usual with small producers in developing countries, there is a huge lack of trade basics. Training sessions and workshops are going to be fundamental in trying to build business oriented minds. It is especially important to care about the practical part, in a way that the producers could apply for real what they're learning and verify with their own eyes errors or improvements. The same should be done with managing, accounting, pricing and marketing. It is a difficult task that cannot forget the social part of the economical entrepreneurship: democracy of the companies or cooperatives, working age, working hours and conditions, safety conditions, role and rights of female workers, salary level and collective bargaining, environmental standards, social development projects connected. These are topics that should be addressed, no matter if the producers will work or not with Fair Trade importers. It looks necessary a middle term project to train artisans and their structures in: • Ability to use the Internet and the email as working tools The Net is the fastest and cheapest way to be updated about the market, get informations and communicate with potential customers. It is compelling for a company that aims to address a market, whether it is national or international, to learn how to use it as a working Assessment on Kyrgyz Handicrafts 18/23
tool. • Ability to communicate in English Approaching the International market means to be able to clearly communicate in the main trading language. Basics are not enough, as it is necessary to fully understand details in order to meet customers' demands. • Organization and managerial skills The employee structure of an organization is a defining factor of any enterprise, whether it is a nongovernmental organization, a family business or a multinational corporation. Structure and managers' skills have a huge effect on the potential growth of the business. • Ability to calculate costs and product pricing Mastering the production costs is the pillar of a good company management. As above mentioned, issues like raw materials supplying, production capacity and proper product pricing have been underestimated by Kyrgyz crafters. • Quality control, including proper packing Although handicrafts are not mass-produced goods, quality standards have to be set and respected. These standards should be applied not only to the goods itself, but to the whole production chain, from raw materials to packing process. Importers are eager to find reliable partners that are able to do so. • On-time delivery Reliability of an exporter lies also in respecting deadlines, especially when shipments routes are a bit complicated. That means to be able to respond to customers' demands properly, mastering the production chain and the time needed for delivery. • Knowledge of documentation needed for exports Each country has its own burocracy regarding exportations. It means that a company aiming International markets has to know exactly what is needed to reach them. Furthermore, each destination market has its own rules. The EU market regulates each kind of product and material, while each European country could have its own additional applying laws. 6.2 FAIR TRADE AS NATURAL EXPORTING MARKET Producers from developing countries are mostly not ready to address right away competitive international markets such as the European one. As seen above, their practical problems lies firstly in the lack of english speaking and/or the lack of an immediate Internet connection. Then, often they do not have the possibility to afford a staff or even just one person that could care about purely commercial issues: making catalogues and pricelists, finding potential customers, getting in touch with them, pushing for feedbacks, etc. Fair Trade plays a fundamental role in situations like that. Alternative Trade Organizations are the mean to reach independent retailer markets, where the competition is not so strong and chances to enter are given, especially to producers from a country that has never been represented, like Kyrgyzstan. To train Kyrgyz producers in Fair Trade would be a fundamental step for giving them the chance to get in touch with organizations used to work with small exporters and ready to support them in their growth. Moreover, CACSARC Trade could easily be the commercial link between Fair Trade importers and Kyrgyz producers, caring about all the trading issues, as suggested above. Assessment on Kyrgyz Handicrafts 19/23
6.3 ATTENDING INTERNATIONAL FAIRS Trade fair participations are a particularly helpful way to get in touch with international trends and clients. It would be important for Kyrgyz crafters to attend International fairs just as visitors, in order to understand what are demands and expectations of international potential customers. A further step would be to participate as exhibitors, but that has to be done once the selection and development of products has been carefully made. Many successful handicraft exporters have started participating in international trade shows with assistance from national or international trade promotion programmes, like the Dutch one CBI6 or the Swiss one Sippo7. Such programmes often offer possibilities to obtain trade fair stands at reduced prices. 6.4 EXTERNAL REFERENCES To track and stay informed about the European handicrafts market, an easy an up-to-date source for Developing Countries exporters is the Market Infomation section of CBI website8. CBI is an Agency of the Ministry of Foreign Affairs of the Netherlands. Another statistic source about numbers and figures of the European market is the Eurostat website9.
6. 7. 8. 9.
6 7 8 9
Info available at: http://www.cbi.eu/About%20CBI/CBI%20services/Export%20Coaching%20Programmes Info available at: http://www.s-ge.com/switzerland/export/en/exporthelp/ExportHelp Available at: http://www.cbi.eu/market-information Available at: http://ec.europa.eu/eurostat/web/international-trade/statistics-illustrated Assessment on Kyrgyz Handicrafts 20/23
7. APPENDIX Handicraft and Business through Regional Integration and Fair Trade Market Launched in 2007, Central Asia Invest is the European Union program that promotes the development of the private sector, especially of small and mediumsized enterprises, in Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. To have as wide an impact as possible, the program targets Business Intermediary Organizations (BIOs), which serve as advisors and advocates for SMEs. The Italian NGO Cesvi, together with its local partners NASMB (National Association of Small and Medium Business of Tajikistan), UCT (Union of Craftsmen of Tajikistan) and BBC (Bishkek Business Club), is implementing the project “Handicraft and business through regional integration and fair trade market”, funded under the third edition of the Central Asia Invest. With a budget of EUR 587.000 and a duration of two years, the project, started in January 2014, will reinforce the capacity of Tajik and Kyrgyz BIOs to support handicraft Small and Medium-sized Enterprises (SMEs). The action will count also on the support of the Italian partner Promofirenze, Special Agency of the Chamber of Commerce of Florence, which will support Tajik and Kyrgyz micro and small enterprises in being more competitive on local and international markets. Three main results are expected: 1. BIOs will increase their capacity to influence State actors and policies in favor of SMEs in the handicraft sector; 2. BIOs will strengthen their role and will improve their technical skills; 3. BIOs will increase their capacity to assist SMEs in approaching internal and foreign markets. The project has been conceived to achieve sustainable results, whose benefits will persist after the end of the EU funding. Capacity building therefore represents one of its essential components and local BIOs will be responsible or actively involved in the organization of all the activities.
Assessment on Kyrgyz Handicrafts 21/23
Partner Organizations:
Cesvi Tajikisan 16 Firdavsi st. 734003, Dushanbe Tel: +992 224 67 28 e-mail:
[email protected] Bishkek Business Club 245/1, Chui Street, Bishkek,, Kyrgyzstan Tel: (+996 312) 93 55 81 е-mail:
[email protected] PromoFirenze, Special Agency of the Chamber of Commerce of Florence Via del Castello D'Altafronte, 11 - 50122 Firenze – Italy Tel. +39 055 267141 email:
[email protected] www.promofirenze.it National Association of Small and Medium Enterprises of the Republic of Tajikistan (NASMB) 3 Loik Sherali st., 734003, Dushanbe, Republic of Tajikistan Tel: ( + 992 44) 625 00 08; +992(48)701-33-32 e-mail:
[email protected] www.namsb.tj https://www.facebook.com/namsb.tj Union of Craftsmen of Tajikistan (UCT) Aini st. 15, Dushanbe, Republic of Tajikistan Tel: +992 (907) 111457 e-mail:
[email protected] https://www.facebook.com/groups/154847428047837/
Assessment on Kyrgyz Handicrafts 22/23
This project is funded by the European Union
This project is implemented and cofunded by Cesvi
The European Union is made up of 28 Member States who have decided to gradually link together their knowhow, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders.
The contents of this publication are the sole responsibility of Cesvi and can in no way be taken to reflect the views of the European Union. Cesvi, which means Cooperazione e Sviluppo, is an independent organization whose aim is to foster international cooperation and development worldwide.
altraQualità is a Fair Trade cooperative that imports and distributes handicraft products in Europe ever since 2002.
http://europa.eu/
www.cesvi.eu
http://www.altraq.it/
The work of altraQualità is based on a philosophy that encourages artisans to experiment original ways of developing and innovating their products, while respecting and enhancing the history and tradition of their territories.
The contents of this publication are the sole responsibility of Cesvi and altraQualità and can in no way be taken to reflect the views of the European Union.
Assessment on Kyrgyz Handicrafts 23/23
