novica’s mission is to empower skilled artisan...

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“NOVICA sets itself apart by melding for-profit goals with a humanitarian mission and streamlined

distribution strategy that cuts out multiple middlemen and their markups.”

NOVICA’s mission is to empower skilled artisan groups and to actively promote the many undiscovered traditional skills and talents abundant worldwide.

NOVICA Overview

Overview

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NOVICA Overview: International Infrastructure

! NOVICA has constructed an international infrastructure based on regional sourcing and fulfillment centers and a proprietary technology and logistics backend

! NOVICA has over 100 employees through its offices in Asia, LatinAmerica and Africa

! NOVICA works with over 1,700 artists and artisan groups representing over 10,000 artisans. The “impact community” of NOVICA is over 50,000 people worldwide.

Overview

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Armenia NercessianCo-Founder and President of International Operations

! NOVICA’s international infrastructure was spearheaded by Armenia Nercessian de Oliveira, a former United Nations Human Rights Officer who has conducted business in more than 50 countries throughout her career.

Overview


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! NOVICA has built an efficient market where artisans make more and consumers obtain better values

ArtisansNationalDistributor

Int’lDistributor

RetailStore Consumers

WORLD ARTISANS

WORLD CONSUMERS

Artisans can make

significantly more with

NOVICA than through

traditional channels

Consumers obtain better

value at NOVICA than at

traditional retail outlets.

Artisan sellsproduct todistributor

Localdistributorsells productto Intldistributor

Retail storesells product toconsumer

Consumerpurchasesproduct

Intl distributorsells productto retailstore

Traditional Supply Chain

WHOLESALE CLIENTS

Overview


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NOVICA

A commitment to cultural education and

sustainability

• A mission-driven, entrepreneurial culture

• Direct relationships with world artisans

• International sourcing capabilities for catalog

and retail channels

• Rich content focusing on artisan stories and

cultural traditions

NATIONAL GEOGRAPHIC

A commitment to cultural education and sustainability

• Worldwide brand credibility, recognition and prestige developed over a

112-year history

• Distribution via online and offline commerce channels

and content outlets

•Access to content, media, and other intellectual

assets

! NOVICA formed a strategic alliance with National Geographic securing financial and cross-platform strategic support.

The National Geographic alliance gives Novica a "substantial advantage" over competitors, says Heather Dougherty, an analyst at Jupiter Media Metrix in New York: "It matches the target audience they are going after.“

- Business Week, April 2000

Overview

NOVICA Overview: National Geographic

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Two Primary Sales Channels

! NOVICA reaches the consumer market through two primary sales channels

ArtisansNationalDistributor

Int’lDistributor

RetailStore Consumers

WORLD ARTISANS

WORLD CONSUMERS

Artisan sellsproduct todistributor

Localdistributorsells productto Intldistributor

Retail storesells product toconsumer

Consumerpurchasesproduct

Intl distributorsells productto retailstore

Traditional Supply Chain

WHOLESALE CLIENTS

RETAIL B2C

WHOLESALE B2B

Overview

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! NOVICA retail customers fit the Cultural Creative* profile:! Are the fastest growing segment of the U.S. population! In 2000, Cultural Creatives represented 50 million people in the U.S.

and 60 million people in Europe! Are 60% female and have above average education level and

household income! Are independent, innovative thinkers with a social conscience ! Are focused on environmental and cultural sustainability! Are world travelers and interested in learning about other cultures! Are avid readers and radio listeners, but not TV watchers! Are focused on values-based purchasing! Think globally and act locally – they are involved in local community

groups! Their décor is “typically eclectic, with a lot of original art on the walls

and craft pieces around the house.”

* The term “cultural creative” was coined by Paul Ray, a market researcher, cultural anthropologist, and author of The Cultural Creatives: How 50 Million People Are Changing the World

Overview

NOVICA Overview: Target Market

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Unique Home Décor with a Story

! With over 50,000 SKUs in the database and 1,500 new items sourced monthly, NOVICA gives consumers access to a world of authentic and unique home décor goods with a story:

Jewelry and Gemstones

Masks from Around the

World

Vases and Ceramics

Tableware Carvings and Sculptures

Dolls and Traditional Costumes

Table Games & Entertaining

Original Paintings

Musical Instruments

Apparel and Accessories

Gifts Rugs and Tapestries

Overview

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! NOVICA has developed an extensive technology-based logistics platform with patents pending

! The company’s logistics team pre-screens new products for customs and other government agency admissibility and obligations

! NOVICA’s logistics system facilitates timely fulfillment and full compliance

! NOVICA ships through three main ports of entry to USA depending on the region of origin:

- Los Angeles for Asia- Laredo for Mexico (truck-shipping) - Miami for South America and Africa

International Logistics Platform

Overview

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International Logistics Platform

! NOVICA’s proprietary technology system generates all shipping documents

Overview

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International Logistics Platform! NOVICA’s proprietary technology system generates all customs

declarations

Overview

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Case Study Questions

Case

Study

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Primary Services Offered to Grassroots Organizations

! B2C Benefits through NOVICA! New Sales Channel! No Fees! Personal Exposure and PR Opportunities! Price Flexibility! Professional Photography and Descriptions! Free Catalog! Market Research! Product Development Opportunities! Steady Stream of Orders with fewer Spikes

! B2B Benefits through NOVICA! Qualified Groups accepted into Wholesale Program! Catalog, Designer Store, Museum and Department Store

Clients allow for a variety of price points/product mixes ! Potential for larger wholesale orders! Product Development Opportunities

Case

Study

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Constraints in Enabling Grassroots Organizations to Access World Markets

! Constraints addressed through NOVICA system for artisan groups:

! Language and Communication Systems! Geographic Separation! Shipping Costs! Logistics Procedures! Market Access! Photography, Description and Design! Merchandising! Packaging Systems! Standardized Products and Quality Control

! Ongoing Constraints:! Business Organization! Raw Material Purchasing ! Product Development ! Quality Control! Cost Management and Financing

Case

Study

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Success Factors, Collaboration and the Key Role of ICT

! Factors in Success:! Matching the right product with the right customer segment! Level of Responsibility! Understanding pricing! Unique products, designs and stories

! Greater Collaboration among Northern Organizations?! Partnerships drive demand! Generating cost efficiencies on the supply-side! Complementary business relationships

! Key Role of ICT! Central to all NOVICA operations

! Primary Opportunities for Grassroots Producers! The global consumer market is very segmented. It is

important to understand your market segment and focus.

Case

Study

novica’s mission is to empower skilled artisan...

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