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Transcript of Roger Valenzuala
(Feel The Hand of the Andes)
Kuna is part of the Group Inca’s , recognized Peruvian entrepreneurial consisting by companies that covers areas in : Textile, agro-industrial, tourism, finance and E-commerce.
It’s Philosophy is focused on the environment and the preservation of native communities.
Supported by a long background particularly in Textile to renowned international firms. Kuna decides to make their own designs with own identity.
The use of a systematic improvement of its elements preserving the species of the animals in Andes of Peru makes this a sustainable business for the local communities, companies and the environment.
The worldwide accreditation of the products and safe trading consolidate the philosophical basis of the company.
- Day 0 : Raising
- Day 1 : Shearing
- Day 45 : Separation
- Day 60 : Dehairing
- Day 70 : Carded
- Day 75 : Brushing
- Day 80 : Dyed
- Day 85 : Sewing
- Day110 : knitting
- Day 140 : Clothing
April , 2014
Design products that delight the spirit and simplify life.
Make clothes that work together, guided by these design principles: Simplicity. Beauty. Comfort. Ease. Function. Versatility.
Invite every woman to express her own style.
Produce only what we love.
The population of Alpaca in Peru represents the 80 percent of the world population, which means 3 millions of Alpaca. There are two types of Alpaca: Alpaca Suri (curly hair, silky hair) and Alpaca Huacaya (soft hair).
VALUE CHANGE (INCA GROUP)
It inspired by polar landscapes that evoke a fresh shades of gray, blue and soft lilac that combined with cream colors make us feel the warmth of the collection.
Depending on the season the designs will change. For example, Fall / Winter has three line of tendency: “after ski Geology lesson” and “Paleta de colores,” each of these lines content ecological awareness that helps to reinforce the philosophy of the brand. For its part, KUNA summer is not separated from the natural tendency focusing its clothing in “Tuareg type.”
The production for house accessories has been given the opportunity to offer blankets, sheets and bed covers making a tendency of cultural fusions of the Andes mixing colors never seen before in product.
Target segment: Men and Women over 28 years old of a medium, high social economic status and tourist in Peru.
Fibers used in the production:
It has been a long way for the company to compete with the needs of the market same as to overcome with the brand name that originally was Alpaca111. The fact is that, the name of the brand was the same as the name of the animal that they used for the extraction of fibers and this brought them two implications:
1. The name “Alpaca” is a generic name that’s why it gave them more than a problem to stress the brand from their competitors. Similarly, the idea of making a well-recognized brand with the name “Alpaca 111” was not easy because it was not attractive and it didn’t express the values that their philosophy wanted to transmit for.
2. By including the name “Alpaca,” It also didn’t permit them to make products not only made of “Alpaca but also made of (Vicuña, Guanaco, Llama, Algodón, Seda, Lana, Lino and Bambú) and to change the brand’s name rapidly could give them problems with customers for the recognition of it
3 YEARS PROJECT:
The first year, they just made a very slight change removing the logo but keep “Alpaca111,”
The second year, KUNA become a logo but they still kept Alpaca111 in a small later below the logo.
The third year, they finally changed the full Logo into “KUNA” as the brand name of the company for the national and international markets.
BRAND'S TRANSFORMATION : ALPACA 111 TO KUNA
The change of the logo brought changes on the design of the clothes making them more classic, modern and casual.
BRAND'S TRANSFORMATION: ALPACA 111 TO KUNA
However, the brand still keep its relationship with the Andes culture and its nature same as that design of the products improving the presentation, merchandising and exhibition.
BRAND'S TRANSFORMATION: ALPACA 111 TO KUNA
Now they offer a very fresh image, the new brand permitted them to enter successfully to the national and international market increasing their sale from 7% of the total market in 2002 to 23% of the total market in 2007.
Principle attributes of the brand:
The brand has more alternative to be sold as souvenir made of Alpaca
Between tourists/travelers/Tourist Agencies, etc
Principle attribute of the brand:
Trendy Clothes that fashion imposes that express positively the best of the Peruvian Andes and the mysticism of the culture (It was not a souvenir anymore)
Recognition of the Brand
National and International Buyers
The word KUNA comes from the Quechua languages and it means warm and quality.
It’s easy to pronounce
Easy to memorize
Presidents at APEC wearing "KUNA" ponchos
"KUNA" color's are inspired in the Peruvian traditional clothes. The green color represent the nature and dry green the Andes' Fall, Red color is reld with harmony and warmth.
The type of letter used in the logo is particularly inspired in the precolumbian textiles.
The logo evoke the designs of the Wari Culture.
KUNA's strategy is the differentiation.
They price the products depending on the positioning function that they want to reach. Its clothes are focused to a segment of customers with high purchasing power in Peru, Argentina, Chile, US and he United Arab Emirates.
People who purchase Kuna products not only look for a coat, but also for a fashion original, color and quality made by natural fibers that evoke history and ancestral legacy.
Tourists who visit Peru are a potential customers for KUNA.
KUNA ASIA (HONG KONG)
THE 4 P'S KUNA ASIA (HONG KONG)
PLACE (Hong Kong and the rest of Asia)
THE INTERNATIONALIZATION OF KUNA ASIA
It is known that the company is originally based in Peru. The reason we have chosen to open a shop in Hong Kong is actually a combination of various different drivers. Some of these drivers are illustrated below.
A gateway to mainland China
Business-friendly tax system
Global financial center
World’s freest economy
A place to live as well as work
For our distribution we needed to concentrate on just two aspects. Firstly, we need warehousing. Secondly, we needed to decide whether to use partners for transporting our goods across the Asian countries or purchase our own fleet of trucks. Finally we had decided that it was more convenient to just partner up with a transporting company instead of investing in the purchase of trucks and hiring of drivers.
In order to increase the growth, the firm will make use of E-commerce to cover the whole Asian market creating a new platform
offered in English, Chinese, Japanese, Korean and Thai to respond the continuous demands.
SCREENING THE COUNTRY
We screened several countries and finally came up with our targets. Hong Kong is the right place to open the first Shop and warehouse because of its location, business opportunities and transportation to ship our products from Hong Kong to the rest of the Asian countries through the Hong Kong platform/website. Secondly, being so close distance wise, distribution costs will be relatively low. Asia, although the culture here is very different, they enjoy an equally high purchasing power.
We screened three kinds of partners as part of our entry strategy, namely, licensing, franchising and distributors. We decided to do a direct foreign investment to start with the first Shop and the construction of our first warehouse in Asia. However, we have also agreed to use distributors as partners for our entry strategy in all Asia. This is because of the following reason. Our main competitive advantage is our product itself, especially the quality and innovative design. Hence we chose distributors and not the other two, licensing and franchising, as in this kind of partner freedom is zero and we enjoy complete control of our product.
In Hong Kong, we expect the sales to grow rapidly and soon be at par with the sales in the United States. Thailand, Malaysia, Indonesia, though we expect the sales to grow rather slowly as compared to Japan, Korea, China, Taiwan. We have calculated an estimate of reaching profitability within 2 years and our international sales reaching 35% of net sales.
In conclusion, we may say the decision to internationalize is not an easy one. Though, with respect to our company, one may say that we have achieved export readiness and can internationalize. Our product and management meet the norms required not only to survive but also to do well in the international market. We also enjoy the funds to back up our plans to internationalize and are willing to expand. These funds are generated from the profits made due to the high level of success achieved in our home country.