Developing garment markets for women producers in Pakistan

Learning from the MEDA/ECDI program embroidered garment

The Target Beneficiaries
  

At the bottom socio-economic level in Pakistan Homebound, rural, illiterate and poor Desire to contribute to family income and well-being of children Embroidery a recognized skill

Subsector Selection Process
General criteria was applied to 4 subsectors: IT; Handicrafts; garments; embroidered garments Size  Demand and growth potential  Target group involvement  Potential for increased incomes  Employment generation

Subsector Selection Matrix
SS: Criteria: #’s/suitable for women w/ limited mobility Market Demand for Product Potential for profits IT Handcraf Garment Embroidere ts s d Garments High High High Low

Growing demand

Supply exceeds demand Poor – market saturation

Steady demand and supply Fair – but long hours -piecewor k Dominate d by big players

Demand exceeds supply (for quality) Excellent if focus on high value markets Feasible programming options

Excellen t

Complex Establishe Clear set of sector d market constraints and and solutions players

EG Subsector Map Middle/Upper
Poor rural/ urban consumers Income Consumers Export market

Middle to High End Urban Retail Outlets Middlemen/Shops Market Agents Wholesalers Exporters
Subcontract Urban Embroiderers

Rural Microentrepreneur Embroiderers

95 %

5%

Low Quality Inputs

High Quality Inputs

Hand-Embroidered Garment Subsector Market Channels
Poor Rural/Urba n Consumers • traditional designs • inexpensive inputs • low value • low quality • low profit Middle/Upper Income Urban Consumers • contemporary designs • growing fast in large and small urban areas • good quality inputs, fabrics and designs • fashion conscious • higher profit Export Market • contemporary designs • growing • excellent quality • fashion conscious • expatriates • higher profit

What is the most promising value chain? Middle/Upper
Poor rural/ urban consumers Income Consumers Export market

Middle to High End Urban Retail Outlets Middlemen/Shops Market Agents Wholesalers Exporters Rural Microentrepreneur Embroiderers
Subcontract Urban Embroiderers

Low Quality Inputs

High Quality Inputs

1

2

3

Value Chain Analysis

What are the specific demands of middleclass customers in higher value urban markets? Do embroiderers have the capacity to create products for these contemporary markets? How are rural embroiderers currently connected to markets? Does the market channel need to change in order for embroiderers to sell to contemporary markets? What other constraints limit embroiderers

Value Chain Analysis
125 market actors interviewed in the three rural areas and urban centers  Input suppliers  Traders, wholesalers, exporters  Retailers: boutique owners, market shops, stalls, exhibits  Designers

Constraint Market Access Lack of mobility forces women to depend on male relatives who are not Women conversantin interested in embroidery being sales agents don’t have contacts/relat ionships with village

Solution

Potential Solution Provider •ECDI

Identify mobile women who are knowledgeab le about embroidery Link sales and train agents with rural embroiderer s and buyers

•ECDI •Women leaders in villages •Retailers in high end markets

Constraint Input Supplies

Solution

Potential Solution Provider •Retailers •Sales Agents

Lack of access to Access to affordable quality affordable input supplies quality input supplies Technology & Product Development Embroiderers lack market information on contemporary designs demanded by Infrastructure urban middle High cost of class transportation from rural to urban centers Make contemporary design information available to rural embroiderers Lower transport costs by increasing volume &

•Retailers •Designers •Sales Agents

•Sales agents •Retailers

The VC Analysis revealed that:
    

Retailers interested in accessing embroidered garments from rural women if they met design requirements Designers willing to work with sales agents Very few existing women sales agents – but they did exist Gender and mobility is a constraint but not insurmountable Relationships are key – between rural embroiderers and sales agents & sales agents and buyers

Project design
The value chain analysis process led them to develop a project that would enable homebound rural embroiderers to shift from….

selling low value traditional fabrics in weekly markets to…. selling high value contemporary products to middle and upper income consumers in urban markets through wholesalers and traders

Example of Intervention (1)
Recruit and develop women sales agents to provide a package of embedded services to rural embroiderers, offering liaison with urban garment makers and other buyers.
Identify

mobile women who have knowledge of embroidery and interested in being sales agents Build the capacity of new and existing sales agents to find and approach new buyers Enable them to identify and build the

Example of Intervention (2) Develop and strengthen backward

and forward market linkages for sales agents Assist sales agents to develop contacts with rural embroiderers, input suppliers, urban garment manufacturers, retailers Facilitate information sharing and introductions among market players through workshops, meetings of buyers and sales agents, mini exhibitions

Example of Challenges (1)
Traditionally monopolistic intermediaries have taken advantage of women embroiderers’ immobility. Challenge - ensure that the female intermediaries did not use their new position to exploit the immobile women.
 Two

tiers of sales agents developed to ensure access to remote villages - community sales agents buying from producers in the village and selling to local sales agents who then sell in

Example of Challenges (2)
Consistent quality control of embroidered goods so that they meet the specifications of buyers
The transactional relationship between sales agents and buyers has reinforced the importance of quality control.  Facilitated the establishment of buying houses by sales agents which serve as a link between the buyers and SAs, providing quality control and brokering services.

Impacts and Outreach
>9000

women embroiderers – raising incomes 3 times Developed 175 women sales agent entrepreneurs (who average $200 profit per month) Facilitated market access for 200 urban garment makers who make clothing from the embroidered fabrics Input suppliers – developed 27 women-friendly shops and 40 tracer designers