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Accessing Global Markets Via Design Solutions

The power of design to improve products and the way they are manufactured is increasingly being seen as a critical component of successful economic development.

The importance of trade – both South-South and South-North – as a reducer of poverty in developing countries is now widely acknowledged. Countries that have made the biggest gains in reducing poverty, like China, India and Brazil, have done it through trade.

The power of trade in high quality goods to raise incomes has been proven for more than a decade. South-South trade grew by an average of 13 percent per year between 1995 and 2007. By 2007, South-South trade made up 20 percent of world trade. And over a third of South-South commerce is in high-skill manufacturing. Making finished goods, rather than just selling raw materials, improves workers’ skill levels and increases the return on trade.

But trying to get other people to desire and buy your products is very tricky. Design plays a major part in understanding the unique demands of countries and markets, and what people find appealing or repellent.

A product that has both a successful design (people want to buy it) and is produced efficiently (a well-designed manufacturing process), will generate a good profit.

In India, the Craft Resource Centre or CRC Exports Limited of Kolkata (http://en..wikipedia.org/wiki/Calcutta)has been successfully selling leather travel bags to the Vodafone (>http://www.vodafone.com/hub_page.html) mobile phone company in The Netherlands. It did this by teaming up with Dutch Designers in Development (http://www.ddid.nl/english/index.html), an NGO focused on matching European importers and retailers and professional designers with small and medium enterprises in the South.

Founded in 1989, CRC applies the concept of adding value to turn small-scale and poor artisans into successful and sustainable businesses. Many of these traditional handicraft artisans subsist on low incomes. CRC provides artisans across India with marketing, design, finance and exporting help. It also connects them with other artisans and helps to divide projects between them. This has the power of using networks to help in bad times while also sharing opportunities when they come up.

CRC’s director, Irani Sen, has divided the more than 15,000 artisans they work with into 15 different trading groups. CRC has also consulted to over 350 projects across Asia.

“The best thing fair trade gives (artisans) is the continuity of work … and with the continuity comes the basic security,” Sen said on the CRC website. “With that security they can develop, they can plan and then we try to motivate them for education, health (and) education for their children.”

It all began with a need: Dutch company Unseen Products (http://www.unseenproducts.com/home) needed somebody to make high-quality leather travel bags for their client, Vodafone, who in turn wanted the bags as an incentive for their employees. Unseen Products is a business connecting European retailers with small producers in the South to build long-term business relationships. They seek to make “unseen or hard to find products accessible at commercially interesting prices.”

They approached Dutch Designers in Development (DDiD), which in turn recommended CRC.

As a matchmaker, DDiD puts together European clients, Dutch designers and small and medium-sized enterprises in developing countries. The designers share their knowledge of European consumer tastes, product development, design and quality standards.

DDiD receives orders from companies, NGOs and government agencies to stimulate the production and sale of sustainable products from developing countries in Europe.

The Dutch group works with producers to develop skills and adapt producers’ products to present and future demands in Europe. By following this approach, Southern producers can reduce the risk of making products nobody wants, or that lack originality in the marketplace and thus won’t sell.

DDiD explains to producers the importance of design and how it improves the product and the business. Good design, the group believes, should reduce production costs and the time taken to get to market, and boost the reputation of the product brand and maker.

Well-known Dutch bag designer Ferry Meewisse (http://www.frrry.com/hiep/Entrance.seam?labelId=1) was brought in to work with CRC’s artisans to craft new bags and a new way of making them.

Meewisse said he was uncertain at first whether the artisans would be able to make the highly complex bags. The solution was to break down the bag into smaller parts. And that is where the knowledge of design process comes into play.

“The button bag for example is a complex bag that has been taken apart: compartments, pockets, handles,” said Meewisse. “This provided us with elements that were each really simple to manufacture. After that the pieces would only have to be clicked together with the buttons. And there it was: a complete bag with all the elements you need in a good bag.”

The bags can be seen here: http://www.frrry.com/hiep/guest/GuestSeries.seam?seriesId=9&conversationId=30930

Stella van Himbergen, a project manager at DDiD, said the concept is about introducing a new way of looking at things through the prism of design.

“Small producers in developing countries are not lacking craftsmanship,” said Himbergen. But, she added, “it is important for producers to receive support in production-led design, and not only in aesthetic design.”

Conceptually, this is the difference between designing and making something because it is aesthetically pleasing, and taking a market-driven design approach – letting market demands lead to the design solution. As a different way of looking at things, it takes in the company’s vision, brand values and positioning in the marketplace, production requirements (costs, sustainability), organization, and client’s needs.

DDiD helps producers learn how to quickly create new products based on market demands. They also raise the level of awareness of design to global standards, and show how to apply this across the production process, from graphic design, to packaging, retail and exhibition space, brand design and design management. Since 2005, the group has completed 46 international projects.

DDiD also stresses sustainability, encouraging the use of environmentally friendly materials such as biological cotton, bamboo and water hyacinth for paper and rope.

Apart from Vodafone, the CRC-made bags are sold in shops and on the web.

The extra attention to design seems to have paid off. CRC’s bags have been such a success that a second order has been placed. And CRC has picked up another project from Dutch importer Global Goodies (http://www.globalgoodies.nl/). 

By David South, Development Challenges, South-South Solutions

Published: March 2009

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=PBB0LYdAPx8C&dq=development+challenges+march+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Texting For Cheaper Marketplace Food With SokoText

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

An international group of graduate-social entrepreneurs from the London School of Economics (LSE) is pioneering a way to reduce food prices in Kenya using mobile phones.

Answering a call to action to address global food insecurity by the Hult Prize (hultprize.org), the team members looked at how they could make food cheaper for urban slum dwellers.

The Hult Prize, funded by Swedish educational entrepreneur and billionaire, Bertil Hult, is a start-up accelerator for budding young social entrepreneurs emerging from the world’s universities. The winner receives US $1 million and mentorship to make their idea become real.

SokoText (sokotext.com) (soko means market in Swahili) uses SMS (short message service) messages from mobile phones to empower vegetable sellers and kiosk owners in slums when it comes to bargaining the price for wholesale fresh produce. SokoText makes it possible for them to benefit from bulk prices by pooling their orders together every day. Usually vendors lack the funds to buy in bulk and have to make numerous time-consuming trips to the centre of Nairobi to buy stock.

SokoText reduces the price of fresh produce by 20 per cent for kiosk owners by buying the produce earlier in the supply chain. SokoText then delivers the food to a wholesale outlet at the entrance to the slum.

This approach makes available a wider range of produce and reduces the price. And best of all, it will knock down prices for the poorest people and enable them to buy more food and better quality food.

The team behind SokoText come from a variety of countries – Colombia, Canada, Kenya, Britain and Germany.

Hatched at the LSE, the enterprise prototyped its service in Mathare Valley, Nairobi, Kenya for four weeks during the summer of 2013 with 27 users and began the second phase of testing in November 2013, working with a local NGO, Community Transformers (https://www.facebook.com/pages/Community-Transformers-kenya/119937408165671).

According to SokoText, slum dwellers spend on average 60 per cent of their daily budget on food.

Mobile phones can be transformative since they are now a common communications tool, even in slums.

On the SokoText website, respected blogger and commentator on technology in Africa, Erik Hersman (http://whiteafrican.com/about/), calls it “a fantastic low-tech approach that could really scale for decreasing the inefficiencies in urban slum markets.”

SokoText’s 21-year-old co-founder and chief executive, Suraj Gudka, explained the genesis of the project to news and technology in Africa website, 140Friday.com.

“From our research, the Mama Mboga (small-scale vegetable retailers) spend between 150 and 200 Kenyan shillings (US $1.70 and US $2.3) daily, about 25 per cent of her revenue, to buy her stock, and since they do not buy in bulk they [she] get their goods at a higher price.”

Getting the market traders to cooperate is very difficult, Gudka found, because competition is fierce and trust is low. SokoText sees itself as a solution to this situation. By encouraging bulk buying by way of the SMS text service, there is no need to build trust between the traders before the produce is purchased.

“To use our service, the interested retailers would be required to send us an SMS every evening detailing what they need,” said Gudka, “and then we will source the produce and they come pick it up from us the next morning. In this way they do not have to incur the additional costs of transporting their goods and it also saves them time.”

SokoText is being incubated at the Nailab (nailab.co.ke) in Nairobi, a startup accelerator that offers a three to 12 month entrepreneurship program, with a focus on growing innovative technology-driven ideas.

SokoText’s summer pilot test confirmed taking the orders can work but found getting the product to the market in time was difficult.

The next step will be to set up a presence in the Mathare slum.

“We will be selling about seven to 10 different kinds of produce, and from our calculations, according to our projections for how much the Mama Mbogas buy every day, we hope to get  40-50 customers within three months,” Gudka said.

Resources

1) SokoText: The website explains further how the service works. Website: sokotext.com

2) Hult Prize: The Hult Prize Foundation is a not-for-profit organization dedicated to launching the world’s next wave of social entrepreneurs. It encourages the world’s brightest business minds to compete in teams to solve the planet’s biggest challenges with innovative ideas for sustainable start-up enterprises. Annual Hult Prize winners can make their ideas reality with the help of US $1 million in seed funding. Website: hultprize.org

3) White African: Where Africa and Technology Collide! Website: http://whiteafrican.com/about/

4) Nailab: Nailab (Nairobi Incubation Lab) is a startup accelerator that offers an entrepreneurship program focusing on growing innovative technology driven ideas. This is done through providing business advice, technical training and support, professional mentoring and coaching, giving access to market and fostering strategic partnerships as well as linking them to investors. Website: nailab.co.ke

By David South, Development Challenges, South-South Solutions

Published: December 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=hPNcAwAAQBAJ&dq=development+challenges+december+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-december-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

SokoText co-founder Sofia Zab (left). She oversees SokoText’s marketing strategy and manages SokoText’s technology products.

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Carbon Markets Need to Help the Poor

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The global carbon credit trading schemes emanating from the Kyoto Protocol have created a multi-billion dollar market – the global carbon market was worth US $30 billion in 2007 (World Bank) – and represents one of the fastest growing business opportunities in the world. The bulk of this trading is with the European Union’s emissions trading scheme, some US $25 billion. But the big problem to date has been most of this investment is enriching stock brokers, and not the poor.

And this is a huge opportunity missed, as some point out: “These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries,” according to Warren Evans, the World Bank’s director of environment.

And the way to do this is through the Clean Development Mechanism (CDM) – where wealthy countries can meet their greenhouse gas targets by investing in clean energy projects in the South. But so far, it has been criticised for spending 4.6 billion Euros on projects that would have cost just 100 million Euros if implemented by development agencies.

But if done right, the CDM could become directly beneficial to the so-called Bottom of the Pyramid (BOP) – the four billion who live on less than US $2 a day. The CDM allows developed countries to offset their greenhouse gas emissions by paying projects targeting the poor to develop clean energy, or to create what are called carbon sinks (planting trees for example), to cut global emissions.

One mechanism to make all of this work is the CDM Bazaar: officially launched in September 2007, it is about linking together buyers and sellers. This is a place where people with business ideas or projects can go for start-up funding. It is also a place to share information, contacts and learn about how to tap the market.

And two Southern innovators are showing what can be achieved by tapping the power of the sun to help the poor.

One such initiative In India, owned by Mr. Deepak Gadhia and Dr Mrs. Shirin Gadhia, is targeting the 63 per cent of the BOP market that is with rural populations. All of these people need affordable and clean energy if their lives are to improve: most currently use firewood and kerosene for cooking and heating. The company Gadhia Solar is building and selling solar steam cook stoves in rural villages. The giant solar dishes which resemble satellite TV dishes, can fry and roast using the sun and come in Do-it-Yourself kits. The enormous silver dishes beam concentrated sunlight on to a black plate on the oven, reaching temperatures of over 450 Celsius.

In Morocco, the company Tenesol, an electric supply co-operative society, is using solar power to bring electricity to 60,000 poor households in 29 provinces. And it is making Morocco a world leader in the use of solar for rural electricity.

Each house is equipped with a solar home system comprising a solar panel, battery and controller. It is powerful enough to light four to eight lamps, and support a television, radio or mobile phone charger.

Customers pay a connection fee of US $80, and then a monthly service fee of between US $7.50 and US $17.50. The fee competes well with what rural households were spending on candles and batteries.

The initial outlay for equipment is mostly paid for by investors, with the hope that the money will be made back on the service fees.

Tenesol hopes to bring electricity to 101,500 households, and also wire them up and provide light bulbs.

Resources

  • More on emissions trading: Click here
  • UNDP has produced a free users guide introduction to the Clean Development Mechanism.
    Website: http://www.undp.org/
  • South South North has also produced a Practitioners’ Practical Toolkit.
    Website: http://www.cdmguide.com/

By David South, Development Challenges, South-South Solutions

Published: March 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=DqmXBgAAQBAJ&dq=development+challenges+march+2008&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2008issue-44443163

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Afro Coffee: Blending Good Design and Coffee

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY 

The importance of good design and a strong brand in the success of a business cannot be emphasised enough. That extra effort and thought can take a business from local success to regional and even global success. As consultants KPMG make clear, “For many businesses, the strength of their brands is a key driver of profitability and cash flow “. Yet the majority of small businesses fail to think about their brand values or how design will improve their product or service.

The case of Afro Coffee from Cape Town, South Africa shows how a small and humble café can raise its ambitions and its profits. It re-vamped its modestly successful café into a brand with global ambitions. By undertaking a thorough and comprehensive brand development inspired by the colourful vibe of Africa, Afro Coffee has built a consistent image from the design of its café and shop to its wide range of branded teas, coffees and fashion wear – all sold in the café, on the web and through distribution deals with other shops.

“It started out as a café in downtown Cape Town,” said founder Grant Rushmere. “Our concept was to harness a Pan African view of contemporary urban Africa. The pop art nature of African design inspired us to create our own brand of coffee instead of the usual Italian coffee that most cafes use. Our goal was to refocus people to the origins of coffee – that it in fact originated in Africa before being discovered by the Arabs and from Yemen, exported around the world. Many people don’t know this, so we attempt to capture and celebrate this African spirit in our packaging and all we do.”

Afro Coffee had started out as a simple café. But after a major re-design and adoption of a new concept, the café has become a global brand and expanded into a branch in Europe. By infusing the spirit of Africa and its design aesthetics into all aspects of the café and its products – coffee, tea, fabrics, fashion – Afro Coffee has been able to develop a seamless image that is unforgettable.

Rushmere was joined by two Austrian partners to help with building the new brand and facilitating its global launch. “Design and branding have been a passion of mine,” said Rushmere. “and these are realized through the Afro Coffee brand and the fun merchandising we develop. One of my partners has an international network of advertising agencies and the other has developed and owns a world-leading brand. With their experience, I will continue to guide the development of Afro Coffee.”

Afro Coffee’s website includes a video tour of the café and introduction to the ‘Afro dude’ character and a short cartoon video adventure. To help develop customer loyalty, the café has live bands three times a week from across Africa.

“Our mission is to communicate the joys of Africa through our Afro Cafes and our Afro-branded products. The fact that the African people are so wonderfully not self-conscious at all, with their humour and freedom and their style and design. Hopefully we can convey this spirit and enhance the lives of people who consume our product and sip coffee listening to Afro Tunes at our cafes. For South Africa, we try to show just how cool Afro culture actually is and instil a sense of confidence into people to make them realize what they already are – lofty ideals but we’ll have a go!”

As the brand developed, a range of teas were produced using only African teas like Rooibos, a non-caffeine root. The next to come was fabrics based on West African religious clothing. They became table cloths and were so popular, they moved into combining them with leather to make Afro Bags – all part of expressing the lifestyle that inspires the brand.

Distribution deals have been done to distribute the teas and coffees throughout South Africa and in Europe. The clothing range is now available on their online store (www.afrocoffee.com).

Its African-infused design for its coffee stand won the Design Indaba 2007 Award, South Africa’s design magazine and exhibition. Also designed by Peet Pienaar, it is inspired by Ghanaian woodwork and Kenyan coffee. The stand is a giant stiletto shoe stacked with tins of teas and coffees and an over-sized radio that doubles as a counter top.

Afro Coffee is proof a small business can grasp a bigger concept and in turn become a bigger success. It has been so successful, it has opened a new branch in Austria, begging the question: maybe this once-humble café is on the road to being an African Starbucks?

Resources

  • Afro Coffee’s award-winning display stand can be viewed at http://www.designindaba.com/
  • Brandchannel: The world’s only online exchange about branding, packed with resources, debates and contacts to help businesses intelligently build their brand.
  • Small businesses looking to develop their brand can find plenty of free advice and resources here: www.brandingstrategyinsider.com
  • Dutch Design in Development: Dutch designers are able to offer free support to new and small businesses in developing countries looking to export products to Europe.

Published: July 2007

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Each issue of Southern Innovator shows the role design has played in the success of the innovators profiled.

Baker Cookstoves – Designing for the African Customer

Contact me if you wish to receive a copy/copies of the magazine for distribution. Follow @SouthSouth1.

Southern Innovator Issue 1

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Innovator Stories and Profiles

Citing Southern Innovator

Finding Southern Innovator

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Southern Innovator Impact Summaries | 2012 – 2014

“The e-newsletter Development Challenges, South-South Solutions proved to be a timely and prescient resource on the fast-changing global South, tracking the rise of an innovator culture driven by the rapid adoption of mobile phones and information technology …

“In 2010, work began on the development of the world’s first magazine dedicated to the 21st-century innovator culture of the global South. My goal was to create a magazine that would reach across countries and cultures, meet the UN’s standards, and inspire action. Southern Innovator was the result. Mr. [David] South played a vital role in the magazine’s development from its early conception, through its various design prototypes, to its final global launch and distribution.

“Both the e-newsletter and magazine raised the profile of South-South cooperation and have been cited by readers for inspiring innovators, academics, policy makers and development practitioners in the United Nations and beyond.

“I highly recommend Mr. [David] South as a thoughtful, insightful, analytical, creative and very amicable person who has the unique ability to not only grasp complex problems but also to formulate a vision and strategy that gets things done. … ” Cosmas Gitta, Former Assistant Director, Policy and United Nations Affairs at United Nations Office for South-South Cooperation (UNOSSC) in UNDP

“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!” Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation

Team | Southern Innovator Phase 1 Development (2010 – 2015)

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021