Unit 14 Responsible Tourism Good Practice For Craft Villages In Vietnam

Unit outlineObjectives 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 Vie

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UNIT 14.RESPONSIBLE TOURISM GOOD PRACTICE

FOR CRAFT VILLAGES IN VIETNAM

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

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Unit outline

Objectives

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 &

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TOPIC 1 OVERVIEW OF CRAFT

VILLAGES AND TOURISM IN VIETNAM

RESPONSIBLE TOURISM GOOD PRACTICE FOR CRAFT VILLAGES IN VIETNAM

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

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Craft villages in Vietnam

• 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

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Vietnam’s 12 categories of handicraft products

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!

1.

2.

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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

5.

6.

8.

7.

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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

12 Others

11.

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The importance of craft villages…

…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

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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

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

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

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• Crafts use accessible

skills and resources

• Crafts can support

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• Crafts are based on

traditional skills

• Other sources of income

can be limited

• It is estimated craft

workers have an income

60% higher than the average income of other rural people

Crafts increase income for the poor

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• 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

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• 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

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Why handicrafts are the ultimate souvenirs!

HANDICRAFT

Handicrafts use a special

mix of design, materials

and production making

them unique to a

people and place

Handicrafts use a special

mix of design, materials

and production making

them unique to a

people and place

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

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• 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

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

The evolution of the handicrafts sector in Sapa

• More villagers involved

• Crafts develop strongly

• More than 10 villages involved in making handicrafts

• Handicrafts exported

• Villages begin attracting tourists

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Major challenges of the crafts sector

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in sustainability 2/3

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

and benefits limited

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Adopting a responsible tourism approach to

improve craft village sustainability

Responsible tourism balances the needs of the

consumer, supplier, community and environment

Creates greater economic benefits for local people

Promotes greater local participation

Promotes greater local participation Helps conserve natural and

cultural resources

Helps conserve natural and cultural resources

Creates more attractive and commercially viable products (and destinations)

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Application of responsible tourism

Managing craft waste & pollution

Effective co-operation &

co-ordination

Effective co-operation &

co-ordination

Responsible craft village destination development

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Benefits of adopting a responsible tourism

approach in craft villages

Maintenance of cultural integrity and pride

Empowerment of local residents

Enhanced experiences for tourists & consumer

Enhanced appreciation of contribution of tourism to cultural preservation

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TOPIC 2 DEVELOPING PRODUCT-MARKET

LINKS & MARKETING RESPONSIBLY

RESPONSIBLE TOURISM GOOD PRACTICE FOR CRAFT VILLAGES IN VIETNAM

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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

or international (export)

• Markets can be further

defined into market segments

MARKET

PRODUCTS

Picture source: Pixabay, www.pixabay.com

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PRICE

• 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

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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

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Additional considerations for developing

commercially viable products

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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

 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

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BUILDING STRONG PRODUCT- MARKET LINKS

2 Develop products using

a market &

competitor analysis

2 Develop products using

a market &

competitor analysis

3 Strengthen products by reviewing &

improving business linkages

3 Strengthen products by reviewing &

improving business linkages

4 Continually improve products based

on feedback

4 Continually improve products based

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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:

– Number of the different actors (companies or workforce)

– Product quantities sold by different actors

(products or turnover) – Number of persons employed, gender ratios etc

• 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

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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

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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.

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

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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:

$0.9/handicraft

Handicraft production

$0.9/handicraft

Middlemen – marketing

$1.0/handicraft

Middlemen – marketing

Source: International Trade Centre 2012, Inclusive tourism: Linking the handicraft

sector to tourism markets, ITC, Geneva, Switzerland

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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

• 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

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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

• Market characteristics

• Input supply

• Technology / product development

• Market characteristics

• Input supply

• Technology / product development

• Management &

organisation

• Policy framework

• Finance

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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

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Considerations in a competitor analysis

COMPETITOR

TYPE/S OF CRAFTS PRODUCED

TARGET MARKET

PRODUCT FEATURES QUALITY

PRICING DISTRIBUTION

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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

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Principle 4 Continually improve products

based on feedback

• Markets needs and wants are continually

changing based upon social, cultural and

economic influences

• 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?

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Benefits of gaining customer feedback

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