It was thanks to a group of university graduates that Allpa was created in Lima, Peru, in 1932. Allpa is a business enterprise that wanted to help poor native communities to generate a living from their traditional skills. It is important to remember that due to the competition from emerging industrialised countries in Asia, fair trade crafts suffered from structural problems that are related in particular to the poor organisation of the production chain and the inadequate supply in many market segments.
Traditional crafts are among the main sources of revenue for millions of poor people in Latin America, Africa and Asia. Usually, it is women who produce this jewellery, baskets, embroideries, ceramics or musical instruments, and the revenue is primarily destined for education, health or daily household needs.
Unfortunately, the global economic crisis of 2008-2009 seriously affected the trade business of Allpa, and consequently, its suppliers. Many bills remained unpaid and orders dropped by about 40%… The consequences of the crisis were dramatic for hundreds of families who were dependent on Allpa exports to make ends meet.
Highlighting Allpa’s main weaknesses (poor productivity, technological backwardness, poor quality of products, insufficient trade promotion) have enabled them to discover where to progress in order to improve their competitiveness: produce better to sell more.
The TDC was therefore keen to support Allpa financially with €69,080 for one year. This funding has helped to improve the competitiveness of artisan producers through better market positioning and by strengthening their production capacity. More specifically, the sustained action focused on three areas: strengthening the production capacities of the artisans, modernising and broadening the product range, and stimulating demand.
This support has resulted in positive economic impacts such as an average 59% increase in income for most sectors. For the TDC the objective was achieved, as it enabled hundreds of artisans to meet the needs of their families and to improve their design and production techniques.
Looking back at the actions in the three areas mentioned above, the results have been rather positive: many workshops have been modernised and equipped with new machines. As for creating new products, the initiatives set up have gone further than the initial objectives and almost 70 new collections have been produced on the basis of prototypes that were designed throughout the project. At the same time, the commercial activities were very successful, with an increase in turnover of more than 30% in 2010 compared to the year before.
In addition, thanks to a reduction in production costs as well as an increase in productivity, Allpa was able to maintain and even improve its positioning in a competitive market.
Proof of how globalisation can help native communities in Peru, thanks to the benefits of fair trade.
Results
This support has resulted in positive economic impacts such as an average 59% increase in income for most sectors. For the TDC the objective was achieved, as it enabled hundreds of artisans to meet the needs of their families and to improve their design and production techniques.
Looking back at the actions in the three areas mentioned above, the results have been rather positive: many workshops have been modernised and equipped with new machines. As for creating new products, the initiatives set up have gone further than the initial objectives and almost 70 new collections have been produced on the basis of prototypes that were designed throughout the project. At the same time, the commercial activities were very successful, with an increase in turnover of more than 30% in 2010 compared to the year before.
In addition, thanks to a reduction in production costs as well as an increase in productivity, Allpa was able to maintain and even improve its positioning in a competitive market.
Proof of how globalisation can help native communities in Peru, thanks to the benefits of fair trade.
