AFRIKA HANDMADE SYMPOSIUM 2015

RAPPORTEUR’S REPORT By Wanjiru Ndung’u

This report is licensed to Craft Afrika under a

Creative Commons Licence.

This licence permits non-commercial use

of this work as long as attribution is given.

craft@craftafrika.org

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1. About Afrika Handmade

A market development initiative of Craft Afrika, Afrika Handmade is a platform that congregates stakeholders within the artisan and

handmade design sector for the main purpose of networking, sharing of ideas and resources and community mobilization around a

common purpose.

The initiative was developed as a response to the deeply entrenched social and economic perceptions on the handmade sector.

With broad-brush strokes, the sector is depicted as

cheap

lacking intrinsic value

created for the tourist market and

belonging to a dusty patch of earth at the ubiquitous maasai market

While this depiction may have some truth in it, the more exciting canvas is the one that portrays the contemporary genre of

handmade. A genre that is by far trendier, more sophisticated and more detailed in every aspect of its shape, line and form.

This is the genre that Afrika Handmade symposium and gallery represents and that it aims to create an awareness of and

appreciation for.

The 2015 edition of Afrika Handmade launched on 30th September at the Alliance Francaise in Nairobi and featured three

concurrent activities:

Afrika Handmade Gallery (30 September – 17 October): The Gallery featured 16 designers representing the best of East

African home décor design including Simply Sandara (textile design), Esprit Ethnique (lighting) and The Design Kingdom

(furniture)

Afrika Handmade Symposium (1-2 October): The two day forum provided a critical networking forum where

contemporary artisans, designers and other stekholders meet to network and share ideas and resources on the sector

Afrika Handmade Lifetime Achievement Awards: These inaugural awards sought to honour individuals who have made

immense contribution to the handmade/design/heritage sector both locally and on the international stage. Alan

Donovan and Elkana Ongesa were the two recipients of the 2015 award

2. Our sponsors and partners

Afrika Handmade 2015 was largely a success due our sponsors and partners

Design Network Africa

Bamburi Cement

Alliance Francaise

HEVA Fund

Arterial Network Kenya

The GoDown Arts Centre

Kenya Copyright Board

Anselm Kitengela Hot Glass

Rob Rooker Designs

Spinners Web Kenya Ltd

Goodies Interior Design and Gifts

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3. Afrika Handmade Symposium

3.1 Background

The Afrika Handmade Symposium 2015 was held at the Alliance Francaise’s multi-purpose room on the 1-2nd October. It

provided an opportunity for contemporary artisans and designers to share ideas and information, learn, discuss and network on the

current state of the sector.

Featuring presentations, practical skills workshops and Q&A segments, the main discussion tracks included production, distribution,

branding, pricing and costing and intellectual property.

This was the second edition of the Symposium, bringing together multiple stakeholders from within the sector, including

government, academia and private sector.

3.2 Presentations in Summary

3.2.1 Discover Gearbox: The Open Space for Design and Prototyping

By Simon Wachira

Simon, a partner at Gearbox, introduced the institution as a maker’s space for design and prototyping. He said that it was an open

space where designers could attain membership and gain access to state of the art design software and prototyping equipment

that could substantially improve the finished product. Available tools include 3D printers and scanners, laser cutters, industrial

sewing machines and vinyl cutters, working on various mediums including wood, plastic, resin and sheet metal.

There are various options for membership to Gearbox; each allowing members the use of tools and machinery as well as software.

On intellectual property, Simon asserted that Gearbox does not claim ownership for any products developed within the space. He

further urged designers to visit the space so that they can feed into the expansion plans moving forward.

3.2.2 The Social Enterprise: Working with a Triple Bottomline

By Sammy Makau (Marketing manager, Kazuri Beads)

During its 40 years of existence, Kazuri has emerged as one of the most successful Fair Trade enterprises in Africa. Although more

popularly known for fashion accessories, Kazuri also creates ceramic tableware.

Maintaining an in-house production model, Kazuri employs over 400 single mothers in the labour-intensive process of bead

making. The organization’s success and longevity is attributed to among other things the founder’s visionary leadership as well as

niche positioning that has made it one of the most recognizable brands worldwide.

On challenges, Sammy pointed out that imitation- not only of the brand aesthetics, but also of the brand name -was an everyday

threat. He recounted an incident where a second party attempted to register Kazuri in China but quick action thwarted the

intention.

He added that gaining a foothold into the local market was also proving to be a challenge. He said that while over half of their sales

accrued from the tourist market, the organization was well aware of the risks of such a business model. The company was therefore

looking for creative ways of shifting the balance, in order to attract a local clientele for a more sustainable business model.

He also cited high production costs, an increasing wage bill and developing a new design aesthetic as some of the other challenges

facing the company.

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3.2.3 Outsourcing Production: The Challenges and Opportunities

By Katungulu Mwendwa (fashion designer & owner, MOFTI) and Sisi King (Founder, Ziko Afrika)

Katungulu business began at home with a sewing machine nicknamed ‘the beast’ –a hand-me-down from her grandmother.

As demand grew, there was need to increase her production capacity and it was then that she decided to outsource her production.

She started out by assigning work to individual tailors but quickly realised that this not only compromised her quality standards, but

her delivery timelines.

Opting for a more established set-up with the professional capacity to fulfil orders to international standards, Katungulu got into

agreements with manufacturing workshops Panah (Nairobi) and Bedi (Nakuru).

Despite all the benefits that came with outsourcing, Katungulu noted that being a micro-enterprise in this mode of production had

its own set of challenges, including the minimum quantities required by most manufacturing facilities, which in turn affected her

economies of scale and the final product price.

Sisi mentioned that affordability was an important aspect of Ziko Afrika’s business model and that creating a balance between price

and quality was always a priority. She added that mechanization of some production aspects was the direction the brand was

headed. Such a production model allowed Ziko Afrika to deliver on quality, timelines as well as reduce production costs.

3.2.4 Defining Your Customer: Whom are you really selling to?

By Larrissa Muthoni (Founder, Zamoyo)

Larissa started by defining what market segmentation entails and its vital importance in businesses that create lifestyle goods. She

noted that segmentation was along four main perspectives: psychographic, geographic, demographic and behavioural.

In a practical exercise, Larissa divided participants into groups and tasked them with picking a particular company/organization,

identifying their consumer base within the local market, their triggers, barriers and motivations.

She underscored that an intimate understanding of the consumer allowed the business owner to make informed decisions on the

right marketing mix of price, product, placement and promotion.

3.2.5 The Science of Retail: What You Might Not Know but Should

By Mark Stephenson (MD, Sandstorm)

“Sandstorm is a brand I have been involved with for 10 years and I have learnt the hard way that believing in something doesn’t

necessarily take you where you want to go faster or easier.” – Mark Stephenson

Mark Stephenson, the MD of Sandstorm made a presentation focusing on a number of things that he had observed as being critical

to successful retail.

He started his presentation by noting that competition was a good thing and that the lack of it can quickly create a culture of “good

enough” - a threat worse than competition.

He said that being great starts with the commitment to creating a product that meets and ideally exceeds the expectations of the

customer.

This is why his best definition of a brand is a promise, he added, “Because building a successful brand is all about how well you keep

your promises.”

Delving into a discussion on quality and quantity versus costs, Mark explained that it had become more difficult over time to access

good quality leather. Neighbouring Ethiopia had imposed high tariffs on wet blue while Kenya was giving preference to export over

value addition. He said that in order to manage the situation, he used price to manage not only demand but quality as well.

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3.2.6 Global Markets: Where are the Top Export Destinations for Handmade Products?

By Lucy Waithaka (General Manager, Small and Medium Enterprise Development, Export Promotion Council)

Lucy started by sharing statistics that showed that Kenyan imports are increasing while exports are decreasing on a ratio of 3:1.

She asserted that Kenya’s top export destinations in Africa were Rwanda and Tanzania with basketry, sculpture and jewellery being

top handmade export items.

She noted that some of the challenges facing Kenya’s exports were pricing, poor branding and packaging, poor marketing skills and

lack of information on where new market opportunities were.

Lucy called for the handmade sector to coalesce around a common purpose and form an organization that would champion for

shared interests. She opined that it was only by employing such a strategy that issues such standardization, enforcement of

intellectual property, tax rebates and other pro-sector demands would become a reality.

3.2.7 AGOA: Gaining Access to the US Market

By Zohra Baraka (Chair, African Women Entrepreneurship Program, AWEP)

Zohra introduced the African Growth and Opportunity Act (AGOA) as a nonreciprocal trade preference program that provides duty-

free treatment to U.S. imports of certain products from eligible sub-Saharan African (SSA) countries. The list of products eligible for

export - which include separate provisions with regard to textiles and apparel - has recently expanded to include footwear, luggage,

handbags, watches and flatware.

She added that the objective of the AGOA is to facilitate trade between the US and specific African countries, thereby using trade as

a vehicle to decrease poverty, increase economic progress and create stronger markets in the countries in question.

Zohra noted that despite the possibilities the opportunity presented, the handmade sector was slow in its uptake.

She informed participants of the existence of three regional trade hubs (West, East and South Africa) created by the US government

to assist in the realization of AGOA. She urged designers to take advantage of the trade hubs and the services offered including

market linkages, training and technical assistance.

Some of the helpful tips she gave for those who would want to tap into AGOA included:

Create a strong brand within the domestic market. It makes export much easier and ensures that you have the necessary

cash flow/turnover to fulfil export orders

Ensure quality that represents international standards

Always deliver on your brand promise - don’t over promise and under-deliver

Work with contracts all along the export value chain

3.2.8 Create a Powerful Brand through Story Telling

By Ken Oloo (Founder, Filamu Juani)

Ken took participants through the art of telling compelling stories. He explained that many times when we talk about brands we

think about logo or design aesthetics when really what we identify with is its sum attributes, including the intangible value of the

product. Great brand recognition comes about because of how the consumer ‘feels’ when they engage with it.

He added that every storyteller needed to live and embody the truth in their stories (including in their product quality and design),

because consumers could always recognise half-hearted efforts.

Ken urged participants to craft different stories for different audiences, but always with the same underlying message to maintain a

cohesive narrative.

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3.2.9 Copyright 101: Practical Steps to Take when Infringement Occurs

By Liz Lenjo (Intellectual property lawyer – KIKAO)

Liz began by pointing out that entrepreneurs in the design sector could protect their work under copyright, trademarks and patents.

Liz offered practical steps to protect ones designs including:

Use contracts (that include a non-compete clause): A contract is a designer’s friend when protecting their work

against imitation (especially when work is outsourced).

Galleries should have a ‘no photography’ clause

When sharing new work online, include a copyright notice, place security on images such as water-marks and

download restrictions

3.3.0 Pricing for Profits: How to Calculate your Optimal Price Points

By Beth Nyaga (Loans officer, Letshego)

Beth took participants through the four Ps of marketing i.e. product, place, promotion and pricing.

Focusing on pricing, she explained the three main strategies one can employ

1. Cost based pricing

This involves setting a price by adding a fixed amount or percentage to the cost of making the product. Although considered an old-

fashioned pricing strategy, it is still widely used

2. Customer based pricing

Penetration pricing: a technique of setting a relatively low initial entry price, usually lower than the intended established

price in order to attract new customers

Price skimming: involves setting a high price before other competitors come into the market. It is often used for the

launch of a new product which faces little or no competition

Psychological pricing: Sometimes prices are set at what seems to be unusual price points in order to address any

perceived price barriers customers may have. For example, pricing a scarf at Kshs.899

3. Competitor-based pricing

If there is strong competition in a market, customers have options to buy from the cheapest or perhaps from the one who offers the

best customer service. That said, customers will always be mindful of what is a reasonable or normal price in the market.

3.3.1 Building Blocks to Credit Worthiness

By Amal Mohamed and Maureen Njuguna (project coordinators, HEVA Fund)

HEVA Fund was established in response to the gap apparent financing in options for creative enterprises. Based in Nairobi, the Fund

recently rolled out its first investment cycle focused on three value chains; fashion, music and craft.

The Facility offers loans of between Ksh. 100,000/ and Ksh.1, 000,000 at a 14% interest rate, reducing balance, with bi-annual

disbursements (March and September).

Amal revealed that they consider various factors while considering an applicant’s submission, including the company’s financial

record, projected income streams and public repute of the enterprise.

Amal added that HEVA was also prioritizing business support skills including marketing, financial management and intellectual

property.

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