In the capital Pyongyang, the city authority operates cooperatives for housewives who cannot work in factories because of disability, ill health, old age or domestic duties. Twenty five cooperatives employ over 20,000 housewives. However, the cooperatives have outdated equipment, lack technical knowledge, and are insensitive to market needs. The cooperatives have low productivity, produce poor quality goods, and are unable to employ the 90,000 women waiting for employment.

UNIFEM, with the General Bureau for Local Industries and other agencies put in place the original project (DRK/92/WO1) which:

• set up a factory that accommodates the special needs of women to serve as a model
• established a Trading and Garment Centre to provide support services
• established a revolving loan fund for production and made a small profit
• involved women in decision making in the cooperatives
• sent a study tour/sales mission overseas
• will use this pilot program to develop a plan to rationalise all city cooperatives

The Terminal Tripartite Review (TPR) of the original project was held in October, 1999 and, following the success of the project, UNDP funded an extension through UNIFEM (in UN jargon "under UNIFEM execution") and in early 2002 is in the final stages of supporting a further one-year extension.

Project attends Hong Kong Fashion Week - Fall/Winter 2002 14-18 January 2002

North Korean Women in Business realize a Dream

Attending an international trade fair like the Hong Kong Fashion Week was once only a dream for Mrs Pak Chun Hui, Ms Kim Un Gyong and Ms Kim Yong Hui, women executives of the Pyongyang Women's Garment and Trading Center (PWGTC). Yet, with the help of UNIFEM and UNDP, in 2002 some of these women were actually attending this prestigious event for the second time to exhibit an attractive range of fashion garments and display the product of the skills they had gained through UNIFEM support since 1992.

Pyongyang Women's Garment and Trading Centre

PWGTC is a market-oriented and women-managed firm operating in the Democratic People's Republic of Korea (DPR Korea). The enterprise now known as PWGTC was first established under the original UNIFEM project Rationalizing Cottage Industry in Pyongyang (DRK/92/WO1).

The women managers and workers of PWGTC can be proud of its progress. From zero dollar earnings in 1998, they were able to make a surplus of US$60,000 in 1999/2000. In 2000/2001, they recorded a surplus of US$172,440 from processed orders in excess of US$300,000. With this surplus they purchased a building for $50,000 and new equipment for US$10,000. They also provided staff benefits and performance incentives valued at $15,000, mainly in the form of winter clothing for staff and their families produced from excess production materials. They also contributed 30 per cent of their earnings to the government.

Why the Hong Kong Fashion Fair?

Hong Kong is a fashion capital of Asia and a source of innovative ideas for the fashion world in the region. It is the world's second largest clothing provider, and a global sourcing centre for the garment industry, The Fashion Fair 2002 was advertised as a "swift answer to your marketing needs" a "source of distinctive design capability" and "a perfect partner for entering China". Fashion Week brings together representatives from the entire apparel and accessories industry, from suppliers of fabrics and other materials to final buyers from large mulitnational corporations whose brand names are renowned throughout the world. Fashion Week 2001 attracted a total of 15,309 visitors from around the world. Fashion Week 2002 brought together no less than 900 exhibitors from 19 countries and regions. The PWGTC was the only company representing DPR Korea. Among the buyers attending were buying houses and agents with annual shipments (from various buyers and markets) ranging from US$10 million to $300 million.

Exhibiting in an international trade fair

In 2002, the PWGTC executives were better prepared than at the 2001 fair, and their products, exhibition brochure and layout of the stand were more professional, as can be seen from the photos below:

2001	2002

Click here to see rest of brochure.

With the assistance of Marian Nash, the UNIFEM marketing consultant from the Philippines, the project prepared an attractive brochure showcasing the types of garments that the Centre could produce. The training provided by Marian through the UNIFEM-UNDP project during 2001 enabled the PWGTC team to negotiate more confidently with buyers during this fair. They were also much more familiar with the technical terms such as CM and FOB and the business arrangements involved. The capacity of PWGTC to now handle FOB business was also an important plus.

Exhibitors usually do not expect to gain outright orders in a Fair except from customers with whom they already have an established relationship. However, participation provides an opportunity to meet potential new buyers, as well as suppliers. The fact that the Centre and some of the individual team members were participating for the second year would increase the confidence of potential buyers that they were dealing with an established firm. An additional factor in building buyer confidence was the fact that many were already familiar with the UNIFEM marketing consultant, who is herself a very experienced buyer with extensive networks of her own. The support of UNDP and UNIFEM also provided some assurance to the buyers of PWGTC's stability, security and reliability.

As a result of previous UNIFEM-UNDP support and training, the staff of PWGTC were able to present the Centre as a reliable source with high tech equipment, skilled labour, reliable production capacity and able to deliver quality products at flexible minimums and to finance and source its own materials, supplies, accessories and packaging. The team was able to demonstrate a good understanding of buyers' requirements and the capacity to respond to buyers' needs. It was clear from the attitude of the buyers and their return visits to the stand that they were impressed by both the display and the diligence and commitment of the PWGTC women executives.

Since the primary role of a trade fair is to introduce potential partners, follow-up after the Fashion Fair with firms making preliminary inquiries during the Fair must now be a high a priority for PWGTC. Failure to follow up effectively with potential buyers was one of the difficulties identified after PWGTC participation in the 2001 Fair. It is therefore one of the main areas that Marian Nash will be focusing on with the women managers after their return to Pyongyang. UNIFEM and Marian are also working to improve the capacity of PWGTC to communicate with buyers via phone, fax and e-mail.

Results

The well laid out PWGTC display attracted many buyers from many countries. The mix of buyers visiting the stand was greater than had been expected by Marian, who has worked closely with PWGTC for several years. They included direct buyers, trading companies and buyer's representatives. Many buyers seeking complementary and alternative sources of goods for emerging markets found PWGTC an attractive possibility.

More than 64 buyers from many countries visited the booth with serious inquiries. Some arranged to send sample designs for the Centre, while others even scheduled visits to the factory in Pyongyang following the Fair. Buyers from trading companies and buying offices in Australia, Canada (three companies), China (six trading companies representing EEC buyers), Hong Kong (21 different companies, including Li & Fung, one of the largest buying houses in the world), Mexico, Republic of (South) Korea (seven companies) Russia and the US (three companies) as well as Japanese and European buyers from Finland, Germany, Hungary, Ireland, Italy, Netherlands, Spain and Switzerland showed keen interest.

Both direct retailers and trading /buying houses are potentially good clients for PWGTC. Other exhibitors may also be potential buyers, as they may need supplementary production for larger orders that they are unable to meet alone. However, for the longer term the trading and buying houses in Hong Kong and China who represent various buyers and suppliers worldwide are more important. Their interest opens the way to further opportunities through their global networks of contacts.

The organizers of the World Apparel Market were excited by the potential of PWGTC as a new source of supply and invited PWTGTC to participate at their exhibition in Brussels in March. This is one of the most prestigious Fairs and exhibitions, where selected buyers and suppliers work one-on-one to conduct product development and product clinics, match buyers and sellers and contract orders through product consultants. This fair is also a window for learning about the Quota system for the EEC and to open avenues for quota negotiations.

Dated: 19Feb2002