NOVICA Overview
NOVICA’s mission is to empower skilled artisan groups and to
actively promote the many undiscovered traditional skills and
talents abundant worldwide.
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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 Overview: International Infrastructure
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NOVICA has constructed an international infrastructure based on
regional sourcing and fulfillment centers and a proprietary
technology and logistics backend
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NOVICA has over 100 employees through its offices in Asia, Latin
America and Africa
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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.
NOVICA Overview: International Infrastructure
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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.
Armenia Nercessian
Co-Founder and President of International Operations
NOVICA Overview: International Infrastructure
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NOVICA has built an efficient market where artisans make more
and consumers obtain better values
Artisans
Artisan sells
product to
distributor
National
Local
Distributor
distributor
sells product
to Intl
distributor
Int’lIntl
Distributor
distributor
sells product
to retail
store
Retail Retail
Store
Consumers
store
sells
product
to
consumer
Consumer
purchases
product
Traditional Supply Chain
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Artisans can
make
significantly
more with
NOVICA than
through
traditional
channels
WORLD
CONSUMERS
WORLD
ARTISANS
WHOLESALE
CLIENTS
Consumers
obtain better
value at
NOVICA
than at
traditional
retail outlets.
NOVICA Overview: National Geographic
!
NOVICA formed a strategic alliance with National
Geographic securing financial and cross-platform strategic
support.
NOVICA
NATIONAL GEOGRAPHIC
A commitment to cultural
education and
sustainability
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• Worldwide brand
credibility, recognition and
prestige developed over a
112-year history
A commitment to
cultural education and
sustainability
• A mission-driven,
entrepreneurial culture
• Direct relationships
with world artisans
• Distribution via online and
offline commerce channels
and content outlets
• International sourcing
capabilities for catalog
and retail channels
•Access to content, media,
and other intellectual
assets
• Rich content focusing
on artisan stories and
cultural traditions
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
Two Primary Sales Channels
!
NOVICA reaches the consumer market through two
primary sales channels
Artisans
Artisan sells
product to
distributor
National
Local
Distributor
distributor
sells product
to Intl
distributor
Int’lIntl
Distributor
distributor
sells product
to retail
store
Retail Retail
Store
Consumers
store
sells
product
to
consumer
Consumer
purchases
product
Traditional Supply Chain
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WORLD
ARTISANS
WORLD
CONSUMERS
RETAIL B2C
WHOLESALE
CLIENTS
WHOLESALE B2B
NOVICA Overview: Target Market
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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.
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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
Unique Home Décor with a Story
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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
International Logistics Platform
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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
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NOVICA’s proprietary technology system generates all shipping
documents
International Logistics Platform
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NOVICA’s proprietary technology system generates all customs
declarations
Case Study
Questions
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Primary Services Offered to Grassroots Organizations
! B2C Benefits through NOVICA
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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
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Constraints in Enabling Grassroots Organizations to Access
World Markets
! Constraints addressed through NOVICA system for artisan
groups:
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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:
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Business Organization
Raw Material Purchasing
Product Development
Quality Control
Cost Management and Financing
Success Factors, Collaboration and the Key Role of ICT
! Factors in Success:
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Matching the right product with the right customer segment
Level of Responsibility
Understanding pricing
Unique products, designs and stories
! Greater Collaboration among Northern Organizations?
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Partnerships drive demand
Generating cost efficiencies on the supply-side
Complementary business relationships
! Key Role of ICT
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Central to all NOVICA operations
! Primary Opportunities for Grassroots Producers
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The global consumer market is very segmented. It is
important to understand your market segment and focus.