1 Dec 2007 Creating Business Opportunities | Solving Development Challenges Hong Kong Summit on Social Enterprise Panel II: Marketing and Business Models

2 Social enterprise: a more sustainable solution NGO private sector Social impactFinancial returns Double bottom line Not the only solution -Still need traditional NGOs and private sector players Not an easier solution -Requires people with experiences from both sectors -Needs to meet both measures of success -Often need to make trade offs

3 ViD Theory of Change Statement of Belief Given that certain basic needs of society are met, we believe that promoting the growth of social enterprises is a more sustainable way to achieve higher levels of economic and social development. Increase the # of social entrepreneurs

4 VID’s current work Awareness Absorption Action Knowledge Development Enterprise Development What we do How we do it v v

5 Life Cycle of ViD Enterprises IdentifyIncubateImplementPilotScale Up/ Spin Off Identify Development Based and Market-based opportunities -Conduct rigorous market and industry research -Develop business plan Launch pilot project to test feasibility of the concept Expand the pilot into a full-blown for- profit business -Stock Incentive scheme for community entrepreneurs /workers Sus- tourism

6 How we got started with yaks Social impact + Financial sustainability Need Local skills or resources Solution

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8 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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10 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

11 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

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13 Business Value proposition Introduce an exotic, high quality and socially conscious fiber to consumers who value luxury with a story Capture a new market trend Being socially conscious has progressed from a tree hugger movement to a lifestyle trend Branding Established Shokay branding for knitting yarns, fashion items, and home furnishing goods that will be carried online as well as in retail stores around the world Development Create a market demand for yak fur will provide a sustainable source of higher income for many marginalized Tibetan communities. Help preserve herders’ traditional way of life Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■ Opportunity

Test of Concept 14 Social Need Assessment Aug ‘06 Marketing & Sales Dec ‘06 Jun ‘06Aug - Nov ‘06 Production Design, Manufacturing R&D May ‘06 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

15 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

16 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

17 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

18 Identify ■ Incubate ■ Implement ■ Scale Up ■ Spin Off ■

Our Products : Yarn

Our Products : Baby

Our Products : Accessories

Our Products : Home

Development Impact : Fiber Cooperative We built our first cooperative of members at Hei Ma He village, located three hours away from Xining, Qinghai. Their average income/year is US$530. Year 2008, we will be working with nomads.

24 BusinessDevelopment Launched knitting yarn, baby, home and accessories furnishings line Going into OEM yarn market Products carried in stores in Taiwan, China, Hong Kong, and US ; over stores worldwide Working with Esquel/ Loro Festa on R&D Story covered in Asia Wall Street Journal (Dec 2007) Time Magazine (April ) Worked with more 3000 people in 300 households. Develop Yak Loan Program and Woman Knitting Cooperatives Estimated income increase 25-40%

Creative : to find own market niche Innovative : to be competitive and sustainable Adaptive : to market needs and changes Passionate