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: IT Handcraf Garment Embroidere
ts s d Garments
Criteria:
#’s/suitable
Low High High High
for women
w/ limited
mobility
Growing Supply Steady Demand
Market
demand exceeds demand exceeds
Demand for
demand and supply (for
Product
supply quality)
Excellen Poor – Fair – but Excellent if
Potential for t market long focus on high
profits saturation hours value
-piecewor markets
Clear set of Complex Establishe k
Dominate Feasible
constraints sector d market d by big programming
and solutions and players options
players
EG Subsector
Map
Poor Middle/Upper
rural/ urban Income Export market
consumers Consumers

Middle to High End Urban Retail Outlets

Middlemen/Shops
Market Agents Wholesalers
Exporters
95 5% Subcontract
% Urban
Rural Microentrepreneur Embroiderers
Embroiderers

Low Quality Inputs High Quality Inputs

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

Middle to High End Urban Retail Outlets

Middlemen/Shops
Market Agents Wholesalers
Exporters
Subcontract
Rural Microentrepreneur Embroiderers Urban
Embroiderers

Low Quality Inputs High Quality Inputs

1 2 3
 Value Chain Analysis
 What are the specific demands of middle-
class 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 Solution Potential
Solution
Market Access Provider
Lack of Identify •ECDI
mobility mobile
forces women women who
to depend on are
male knowledgeab
relatives who le about
are
Womennot embroidery
Link sales •ECDI
conversant in
interested in and train
agents with •Women leaders
embroidery
being sales rural in villages
agents don’t embroiderer •Retailers in
have s and buyers high end
contacts/relat markets
ionships with
village
 Constraint Solution Potential
Solution
Input Supplies Provider
Lack of access to Access to •Retailers
affordable quality affordable •Sales Agents
input supplies quality input
supplies
Technology & Product Development
Embroiderers lack Make •Retailers
market contemporary •Designers
information on design •Sales Agents
contemporary information
designs available to
demanded by
Infrastructure rural
urban middle embroiderers
High cost of Lower transport •Sales agents
class
transportation costs by •Retailers
from rural to increasing
urban centers volume &
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.
Identifymobile 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