Lecture responsible tourism unit 14 responsible tourism good practice for craft villages in vietnam

By the end of this unit, participants will be able to: • Understand the positive and negative economic, environmental and social impacts of craft villages in Vietnam and the benefits o

Picture source: http://www.flickr.com/photos/nerdcoregirl/3609065883/sizes/m/in/photostream/

By the end of this unit, participants will be able to:

• Understand the positive and negative economic,

environmental and social impacts of craft villages in

Vietnam and the benefits of responsible tourism

• Explain the importance of developing products for markets

and marketing them responsibly and ways to do so

• Explain the principles and practices in ensuring product

quality, innovation and competitiveness to ensure

commercial viability

• Explain issues of waste and pollution management in craft

villages and steps to minimise negative impacts

• Explain how to enhance participation and tourism

destination attractiveness through craft village co-operation

and co-ordination and development mechanisms

Topics

1 Overview of Craft Villages and tourism in Vietnam

2 Developing market links & marketing responsibly

product-3 Ensuring product quality, innovation &

VILLAGES AND TOURISM IN VIETNAM

Picture source: http://t0.gstatic.com/images?q=tbn:ANd9GcQ9HAJdxte3mLSZ1W7Br5hXbhxm1BWkSCzrtZ3pot5kqkyU5jW6

• 2 types - traditional and

new craft villages

• 2017 craft villages

estimated in 2007 Source: Mahanty, S, Dang, T & Hai, P 2012, ‘Crafting sustainability: managing water

pollution in Viet Nam’s craft villages,’ Development Policy Centre Discussion Paper 20,

Crawford School of Public Policy, The Australian National University, Canberra, Australia

Picture sources: http://t3.gstatic.com/images?q=tbn:ANd9GcQyVfnymaeLpoQPqNEkBpi3ms49unjBgBqSW9uKt37JbGxp5Rmt; http://imagevietnam.vnanet.vn/Upload//2012/8/28/28-8TNDP4BaoAnh2882012104754928.jpg;

http://ictpress.vn/uploads/imagecache/center-image/dsc_7456.jpg; http://www.dunghangviet.vn/uploads/content/2012-09-15.07.31.01-gomssu.jpg

Identify the handicrafts!

Picture sources: http://farm4.staticflickr.com/3205/3123924949_2296a7837c_z.jpg; http://imagevietnam.vnanet.vn/Upload//2011/4/21/21-4TNDP09N421.jpg;

http://dulichtaybac.net/images/stories/anhbaiviet/baiviet/dt_22720101447_nghia-an2-20121016123811.jpg; http://www.nguhanhson.danang.gov.vn/Portals/0/Images/1.Tintuc_sukien/3.Vanhoa_Xahoi/2013/130926-lang%20da%201.jpg

Identify the handicrafts!

7.

Picture sources: http://sohanews2.vcmedia.vn/2013/1363650840031.jpg; http://www.ellaviet.com/Uploads/Images/LANGNGHE/ThanhTien.jpg; http://www.sggp.org.vn/dataimages/original/2009/03/images281986_image001.jpg;

http://dancotravel.net/UserFiles/image/Cam-nang-du-lich/Cam-nang-du-lich-sapa/1304914053_sapa-13.jpg

Identify the handicrafts!

…to the nation

• Addresses rural poverty &

helps counter rural-urban

income gaps and migration

• Fosters rural

industrialisation and

modernisation & increases

national and local budgets

…to the community

• Provides jobs and income during off-crop seasons

• Improves quality of life for local people

• Enables the continued expression of artforms

Did you know….?

Craft villages generate jobs for

1.5 million people, of which 60% are women, with most jobs located in rural areas

where employment is needed

most

Vietnam’s handicrafts

are exported to > 100 nations and generate

export revenue of about

US$ 2.8 billion

Source: Cong, T 2012, ‘Handicraft sector told to refresh itself’, TalkVietnam, Available [online]:

www.talkvietnam.com/2012/10/handicraft-sector-told-to-refresh-itself/, Accessed: 14/08/2013

• Crafts can fill employment gaps

• Crafts are accessible to people with limited formal education

Crafts foster employment for the poor

Picture source: http://www.flickr.com/photos/ag_gilmore/8177441079/

Crafts increase income for the poor

• Crafts are based upon traditional forms of art

• Commercial craft production helps preserve cultural heritage

• Crafts help create national pride and inspiration

Crafts help preserve cultural heritage

Picture source: http://commons.wikimedia.org/wiki/File:A_silk_and_painting_shop_in_Hoi_An.jpg

• Crafts act as mementos

or souvenirs that connect people to a place

• Craft villages provide enriching cultural learning experiences for tourists

• Craft villages create opportunities for other businesses to develop and improve local infrastructure and services

Crafts and craft villages create good consumer

products and destinations

Picture source: http://commons.wikimedia.org/wiki/File:An_aged_woman_wearing_traditional_Vietnamese_clothes,_selling_fictile_craft_souvenirs_in_one_of_Hoi_An_Ancient_Town_streets.jpg

Tourists want souvenirs that give a physical reminder of a place, people or experience

• Craft skills can be passed through families and communities over generations

• Competition can help create greater cohesion amongst craft families and communities

Crafts can help foster social cohesion

Picture source: http://commons.wikimedia.org/wiki/File:Black_H'mong_family_%E2%80%93_Grandmother,_mother,_grandson-_Sapa_Vietnam.JPG

Picture source: http://www.dulichnamchau.vn/wp-content/uploads/lang-nghe-lao-cai.jpg

The evolution of the handicrafts sector in Sapa

• Few villagers maintain these traditional skills

• Start engaging in tourism industry

• More villagers involved

• Crafts develop strongly

• More than 10 villages involved in making handicrafts

• Handicrafts exported

• Villages begin attracting tourists

Major challenges of the crafts sector

in sustainability 2/3

Picture sources: Pixabay, http://pixabay.com/; http://commons.wikimedia.org/wiki/File:Beggar_Japan_Man.svg;

! design rights and benefits limited

Adopting a responsible tourism approach to

improve craft village sustainability

Responsible tourism balances the needs of the consumer, supplier, community and environment

Minimises negative economic social &

environmental impacts

Creates greater economic benefits for local people

Promotes greater local participation

Helps conserve natural and cultural resources

Creates more attractive and commercially viable products (and destinations)

Application of responsible tourism

in craft villages

Developing market links & marketing responsibly

product-Ensuring product quality, innovation &

Managing craft waste & pollution

Effective operation & co- ordination

Effective operation & co- ordination

co-Responsible craft village destination development

Responsible craft village destination development

Benefits of adopting a responsible tourism

approach in craft villages

Greater ownership

& accountability

Maintenance of cultural integrity and pride

Empowerment of local residents

Enhanced experiences for tourists & consumer

Enhanced appreciation of contribution of tourism to cultural preservation

What do we mean by product-market links?

• A product is the finished craft that is available for sale to consumers

• Vietnam has 12 craft products groups

• Markets are the end consumers who buy the products

• Markets can be domestic

• Not all markets may be interested

in the same product/s

• Consumers have different needs

in product design, form, and function

• Consumers have different budgets

• Expectations / requirements of product quality can also vary

Why do we need to match products to

markets?

Picture source: Pixabay, www.pixabay.com

Different markets want different product

characteristics

RED COLOUR

LOW QUALITY

HIGH QUALITY

BLUE COLOUR

SIMPLE DESIGN

COMPLEX DESIGN

GREEN COLOUR

MARKET A

MARKET B MARKET C

Additional considerations for developing

commercially viable products

Benefits of product-market matching

• Better meets consumer needs making them more commercially viable and economically sustainable

• More likely to have reliable sales which better secures incomes

Meet specific target market needs Priced to meet the budget of the target market

Ensures producers obtain sufficient profit

Takes better advantage of market opportunities Plans for market risks including those of competitors

Picture source: Pixabay, www.pixabay.com

BUILDING STRONG PRODUCT- MARKET LINKS

2 Develop products using

a market &

competitor analysis

3 Strengthen products by reviewing &

improving business linkages

4 Continually improve products based

on feedback

1 Base products on a value chain analysis Principles of good practice in building strong

product-market links

Principle 1 Build high value products based on

a value chain analysis

• Understand the activities that are performed (add “value”) to develop the craft product

• Used to strengthen products by examining actors and linkages and finding ways to strengthen or improve activities

• Quantification used to understand value, for example:

(products or turnover)

• Analysis generally requires specific skills and experience

http://cityinsight.vn/data/images/uploads/2013/10/van-phuc-silk-handicraft-village-hanoi-one-day-tour-1.jpg

Steps to conduct a value chain analysis

COLLECT DATA

ANALYSE DATA

Opportunities

&

constraints

Mapping actors, functions &

relationships

End market analysis

VET FINDINGS / DEVELOP ACTION PLAN

Example of typical handicrafts value chain

After the value chain is developed, it is possible to identify challenges at different stages of the value chain Based on the analysis, a range of solutions can be developed and implemented such as : technical skills training, gender equality and entrepreneurship development, access to business support services and finance, access to markets, and strengthening

of craft cooperatives.

Source: UNWomen, http://www.unwomen.org/mdgf/B/VietNam_B.html

Calculating product economic value

• Requires assessing market prices at different levels of the value chain

• How much money is spent on raw material, what is the producer price and what are wholesale and retail prices?

• An example of a handicraft value chain is below:

Raw material

$0.5/handicraft

Handicraft production

$0.9/handicraft

Middlemen – marketing

Assessing opportunities and constraints for

pro-poor benefit

OPPORTUNITY ANALYSIS CONSTRAINTS ANALYSIS

• Is there any particular demand for a certain kind of handicrafts expressed by traders?

• What kind of higher value handicraft products are appreciated by tourists?

• Are there any particular product qualities which are in high demand?

• How will the tourism sector change in the country in the near future?

• What tourism trends are pushed by local and international stakeholders?

• What possibilities are there to substitute imported products?

• Are there any possibilities for new product development?

• What market channels can be developed further?

• What kind of raw material can be used in addition?

• Can poor people be helped to upgrade their production?

• Can poor people take over additional functions in the value chain?

• What constraints need to be overcome in order to be able to make use of the market opportunities?

• What other constraints do not allow craftsmen to receive

a higher price paid by the tourists and to increase their income?

• To what extent does the product quality need to be improved in order to increase sales?

• What kind of skills and knowledge are missing?

• Is the raw material supply sufficient?

• Are the technologies and equipment used appropriate?

• How can productivity be increased?

• Are there any particular transport problems?

• How is the relationship between traders and raw material suppliers?

Source: International Trade Centre 2012, Inclusive tourism: Linking the handicraft sector to tourism markets, ITC, Geneva, Switzerland

Principle 2 Develop products using a market

and competitor analysis

• Confirms demand and positioning

of current craft products

• Identifies opportunities for current

or new products with current or new markets

• Allows craft organisations to understand and eliminate threats and challenges and pursue the strongest opportunities

COMPONENTS OF A MARKET ANALYSIS

organisation

Overview of key elements of a market analysis

Industry overview

Current size, historic growth rate, trends and other characteristics such as life cycle stage, projected growth rate

Target market analysis

Critical needs of consumers, demographics, location, seasonal or cyclical purchasing trends, size of the primary target market, annual purchases made, forecast growth, anticipated market share, pricing structure, gross margin levels, promotional offers planned etc

Competitor analysis

Competitor market share, importance of target market to competitors, indirect or secondary competitors

Regulatory restrictions

Customer or governmental regulatory requirements affecting business, operational or cost impacts for compliance

Considerations in a competitor analysis

COMPETITOR

TYPE/S OF CRAFTS PRODUCED

TARGET MARKET

PRODUCT FEATURES QUALITY

PRICING DISTRIBUTION

Picture source: Pixabay, www.pixabay.com

Principle 3 Strengthen products by reviewing

and improving business linkages

• Forward linkages – Identify opportunities and / or gaps

– Develop forums

– Complement existing linkages with new ones

• Backward linkages – Solidify access to sufficient raw materials / quality inputs at reasonable prices

HANDICRAFT COOPERATIVE

RETAIL SHOP

RAW MATERIAL SUPPLIERS

Forward linkages

Backward linkages

• Crafts need to stay informed about what the market wants in order to remain viable

in the long term

• Feedback helps us understand the WHY behind what people are doing:

Why are people

buying her

handicraft much

more than mine?

Why do most

customers only buy one

handicraft and not two?

How can I get

more men to

buy my handicrafts?

Picture source: Pixabay, www.pixabay.com

Three simple ways to get customer feedback

Talk to customers if you

are selling your handicrafts directly in the village If not, ask your retailers to ask some simple questions about what they like and dislike about the

Conduct a survey with

the help of partner retailers Consider talking to a local college

or university to see if they can provide some students to help as a part

of their course.

What is the issue?

• Poor marketing of cultural products can result in loss of meaning and significance

• Poor marketing and communication in craft village tourism destinations can result

in cultural conflict and erosion

of cultural integrity

• Sensitively marketed handicrafts and craft village tourism destinations can promote cross-cultural understanding and respect

This bowl was produced by the

Black Hmong Women’s Cooperative The design uses

traditional patterns that date

back hundreds of years 5% of

all sales support community projects.

Picture sources: Pixabay, http://pixabay.com/

Builds handicraft brand

recognition

Builds cross-cultural

understanding and

respect

Creates more appealing

and interesting products

Can result in increased

sales if handicraft is Fair

Trade certified

EFFECTIVE, AUTHENTIC &

RESPONSIBLE MARKETING

OF CRAFTS

2 Develop a brand that reflects cultural and community values

3 Implement creative promotional strategies

4 Raise awareness and appreciation of cultural heritage

1 Market strategically

Principles of effective, authentic and responsible marketing in crafts