Mary and Martha Mongolia

Published by WFTO in early January 2012

2012-02-13T08:31:00.000+08:00

Mary & Martha Mongolia

04 January 2012

(We're welcoming 2012 with inspiring stories from our members who shared to us their experiences building Fair Trade in a challenging environment. -WFTO Team)

Mongolia has a low population but geographically is vast. It can take up to 5 days and nights to drive across the open steppe from East to West. While Mongolia has one of the world’s fastest growing economies, based on huge mining resources, this is giving only short term employment. More and more goods are available but prices are getting higher and higher. Cap that with high unemployment rates and we see a country moving to a two-track system of wealth, with most families struggling to survive.

The Mary and Martha story starts in about 2006. Having headed up an NGO in Mongolia (www.jcsintl.org) for several years we realized two things;

NGOs were doing a great job of developing hand craft skills in people who most needed employment and a living wage.

Most of these people, after an initial flourish of orders from foreigners linked to the projects, found themselves with the same products their trainers had taught thousands to make and no markets.

Our model was to set up a “Social Enterprise” company that would follow Fair Trade Principles, to be a bridge for artisans to sell products and to develop their businesses. The bridge would be via a local shop run by Mary & Martha and via exports, preferably through but not limited to Fair Trade shops around the world.

We wanted to develop a shop that people would seek out on their travels - staffed by locals (with a heart for those in or near to poverty) speaking English to support our customers; to have intimate knowledge about the products, the artisans and the country in general.

We went with the company route so that we would not be reliant on donor funds. We and our artisans would need to survive in the tough market place based on the quality of our products, NOT on sales through customer sympathy for those in poverty.

Mary & Martha was started in April 2007, working from our apartment with 4 artisans producing felt slippers, hand-knits, fridge magnets and a some embroidery. For the first nine months, people shopped by invitation only and we worked hard with artisans on how to produce quality products on time. We then rented a small area in a local supermarket as a ‘window’ for about nine months, and finally, we had a BREAKTHROUGH moment when we were offered a sub-basement in the centre of the capital (Ulaanbaatar). This was summer 2009. No windows, no front door, and a fight for signage outside, we rely on our landlord opening their shop so customers can get to us.

But M+M is really about the Artisans. We offer several services to our Artisans:

M+M gives artisans advances up to 50% of Order Value

Interest-free Loans are given to help investment in raw materials and equipment

One-on-one Business Training is offered by the M+M owners

Expertise is offered in relation to Quality Assurance and Production Issues

Product Design and Modification to Add Value is offered

Having been in business for 3 years we started the application process to join WFTO in early 2010. This was the next stage of the dream we had in the beginning. To be recognized as following Fair Trade principles. It was a great process for us to walk through – a walk through all the 10 Fair Trade principles to determine if we were indeed on the right track. Our Artisans are all independent, and they are not required to sell solely to Mary & Martha. We believe they need this freedom to develop their own new markets and to sell through outlets other than ours. We aim to support, not to control.


The independent artisans of M&M Mongolia Photo: M&M

However, acting as a bridge and gaining WFTO membership based on our independent Artisans was a challenge. We work through relationship, trust, dialogue and close friendship knowing and being a part of the lives of our Artisans. This takes time. Understanding the Principles and how they play out in reality for us and the Artisans takes time. In January 2011, we were delighted to receive our WFTO Certificate and while increases in Exports have been very low, we believe the membership has attracted a lot more discerning shoppers to our UB shop – sales are up about 45% in country. WFTO Membership was our SECOND BREAKTHROUGH.

The key is that knowing our Artisans receive a Fair Price for their products (and we don’t ask for volume discounts), when our business goes up so does theirs. Indeed, Artisans who have partnered with M+M since 2007 have seen their businesses grow at least 10 fold.

From day one, we have worked very closely with the local tax, and health and social welfare authorities. They are starting to understand our model and to appreciate the concept of a Fair Trade Social Enterprise Company. We are ethical and transparent, and that is gaining recognition as we are asked advice on how the underlying tax systems and laws could be changed to increase small businesses in Mongolia.

We are now working with about 25 cooperatives, companies or individuals, and we believe more than 140 people have part or full time employment making products for M+M alone. The Mary & Martha Story is only just getting started!

To learn more about M+M visit website www.mmmongolia.com and blog http://maryandmarthamongolia.blogspot.com/

(Bill Manley, Mary & Martha Mongolia)

Mongolian Chamber of Commerce Export Event

2011-11-22T12:38:00.000+08:00

We'll be exhibiting at the Mongolian Chamber of Commerce on Thursday 24th November

Shop by Flash Light

2011-07-31T19:48:00.000+08:00

Normality

Our landlord arrives late but we're into the basement shop by 10.30. Still working through the aftermath of heavy rain this year in a country that simply does not do humidity. 11am and folk arriving on the late night / early morning flights are wandering in, trying to stay awake and trying to get their bearings. Others who are getting ready to leave are doing their final shopping.

Pitch Black in the Basement

We are suddenly hit by the UB power cut; the shop is in total darkness - but calmly our staff grab the safety lights to prevent customers from having accidents; another staff saves vital information and closes down the computer. And then ...

Break out the Cave Lights

Our manager informs customers that now everything is under control they can continue to shop ... looks of disbelief until our manager helps a customer to put on one of our Cave Lights ... and shopping continues as though it is quite normal to "look for products" with your shopping flash light.

Breaking with Tradition

Word is getting around and more shoppers are arriving for a possible once in a lifetime experience. An orderly queue has formed at the door as other shoppers and their personal shop assistants fill their baskets. No electronic point of sale - just back to the trusty notebook. But the fully charged Credit Card machine keeps chugging away. We refuse to close!

The Fun Continues

So the sudden power cut which no one knew was going to happen, and expected it to be short, continued for the rest of the day. Shopping continued until the lights became dull and it was normal closing time. Mary & Martha are convinced shoppers just loved their experience - where else can you go and shop in the basement by Cave Light and still pay by credit card.

Going the Extra Mile

Mary & Martha are keen to look for innovative ways of serving our Artisans by continuing sales at all times and very keen to give customers a genuine Fair Trade experience despite "normal" UB actions such as power cuts. COME SHOP WITH US.

Highs and Lows of a Mongolian Naadam

2011-07-17T16:04:00.002+08:00

High 1 - Completed the half year returns; hard copy, internet, employee tax, VAT and company tax. All went well and we're finally into profit territory this year. Slight glitch - the Employee tax authorities hid their new software inside the VAT software and did not publish the fact! Caught it reading the new menus in Mongolian in the downloaded VAT software.

High 2 - Had our best day ever the day before the official Naadam Holidays - sales greater than January and February put together!

Low 1 - The Stationery Shop hold the only key to our shop. They took off for a 3 day picnic during the Naadam Holiday - potentially the busiest days of the year for us. We used "The Deck" to engage the public but still believe we lost 50% of our business on those days to The State Department Store.

Low 2 - It rained "cats and dogs" on July 11th so we came upon our flooded shop on the 14th when our dear land lord came back with the key. Lots of damp to deal with and drying of products as well as cleaning of muddy floors - but by about 2pm we were back in business. However we're still airing stuff 3 days later!

Low 3 - Our wonderful "Made from the Heart" cooperative held their Naadam early (1-2 July) and were then going to set about our extremely urgent Export Orders for Hong Kong and the now famous Snooshies for Holland. Half of the cooperative decided to take another week's holiday and in so doing are causing us to miss both Export deadlines. In one case we will simply send the order less the missing products. A loss to us and the cooperative. Snooshy is being patient with us but we fear repeat orders are in danger of evaporating. Folk want money - usually quickly - but have no concept of keeping commitments or that customers have long memories. Our Following the Blue Eyes cooperative delivered substandard knitwear for our Hong Kong Customer and were surprised when all products were rejected even though they knew they has deliberately ignored our specifications. The whole of society is so used to hearing "unavailable" in shops and restaurants (despite extensive brochures and very long menus) and long term business thinking is in the hands of a few who really work for their future. The good news is a number of Mongolians who have visited other Asian countries are starting to expect better from their own.

Low 4 - Keeping the nation pure - Mongolia has a growing number of dissatisfied men who tend to have limited education, limited prospects (due to their behaviours) of gaining wives and have taken to harassing Mongolian women who happen to be with foreign men / Foreign men with Mongolian women. Mongolian women are looking for foreign husbands who will show them care, attention and respect. So I'm standing on the street outside our shop holding an umbrella over one of our leafleters to keep the sun off the young lady and one of these "thugs" comes up aggressively questioning what she is doing with me AND seems surprised when she says she works for a company making a positive difference to Mongolians. he strutted away with a puzzled look!

Low 5 - Pick Pockets Paradise - From mid May to the end of August each year the pick pockets come out in force. Fearless because in the height of tourist season the police presence (uniformed and plain clothed) seems to disappear and because Mongolian Joe Public will never lift a finger to stop someone being pick pocketed. There may be a streak of nationalism which finds its roots in the CK hero but little sense of ground up changes to society to make Mongolia a safer place for all. Ok so I reacted to one pick pocket working on a Mongolian lady's handbag in clear view of several people. I admit I meant to grab him but I guess rugby days came into play and the next thing was him out cold and me on top. At that moment I remembered I was on concrete not grass and realised I had left blood skid marks from my own knees on the side walk. maybe I should be less spontaneous in future!

High 3 - We need to remember that our turnover this year in country is more than 35% up on last year across all our products which means that our Artisan's businesses are also up similar levels. With all the lows we need to realise we are still being blessed in our work.

High Altitude Shopping

2011-06-19T17:45:00.002+08:00

Or moving upmarket!

We're always looking for ways of increasing sales for our Artisans. The Latest venture / adventure is THE DECK. It is hard to raise your profile, never mind highlight your shop entrance when it is in the second basement level after going through a poorly lit Mongolian Stationary Shop and when the restrictions for above ground sign-age are major.

So our latest cunning promotional plan has been to hire the wooden deck of a Hair Dressing Salon run by a bemused Korean lady.

So as you can see we have a form of awning and more sign-age, wonderful customer facilitators AND of course products on display. Two days in and the actual sales are low - break even level - but everyone who visits THE DECK also overcome their fears of the subterranean cave system and burst into the light of our best kept secret - THE BASEMENT SHOP - maybe with a little help from our staff who are out looking for customers. Better still customers buy as well as looking!

Finding the SNOOSHY

2011-06-14T08:57:00.003+08:00

Or a micro and many cars ...

We visit our artisans to encourage and teach and to see how they are doing personally. This time it was Irene's turn ... and the task to help a Cooperative in a town some 200km away learn how to make the famous Dutch SNOOSHY. Read on.

Travel is always full of surprises, and sometimes the destinations are too!

Last week saw me and Uyungaa, one of our students head north up the train line to visit Zuun Kharaa, and the felt cooperative. The reason being – we have an initial order for a ‘character’ called ‘Snooshy’. www.snooshy.com

Hi we're breeding well and getting better looking every generation!

This has been really challenging for the cooperative – it is not easy to make things that are designed asymmetrically with a lot of different detail! Our first order is for 250, so a lot of opportunity to make a lot of mistakes. But more on production in a later blog!

We had a great time with the ladies and finally after much angst over the ears managed to produce a couple of samples we agreed on.

Tungalag, the leader then headed off telling us we could phone for a taxi to get back to UB or wait for the 4am train. The taxi seemed like a good idea so we phoned and waited and waited. About an hour later, Tungalag arrived back saying if we hadn’t heard from the taxi folk there wasn’t a taxi. OK, so off to the station to buy tickets. Meantime, Uyungaa had been terrified by a mouse running round the room – the mouse certainly wasn’t frightened. We had by then struggled with the lock on the room, and at different stages were either locked in or out.

At the station we met a lady who said – don’t wait for the train, I have a microbus, we are going north but can take you to the small town on the main road where you’ll easily get a taxi to Ulaanbaatar (UB). So after returning to the room and another extended fight with the lock, we got our bags and set off across the Mongolian Steppe in a minibus. Uyungaa was amazed as we passed herds of horses, sheep, goats and cows. She had not been in the countryside since she was 7.

The Micro folk held up their return to help us find a car going to UB. Mongolia is the land of limited safety regulations, so we found ourselves in a small car with another 5 adults and 2 children – very cosy! Mongolians also love their food so the journey was an occasion of passing round whole salami and biting off chunks, tearing up loaves, munching crisps and biscuits and washing it all down with fizzy drinks. Amazingly no one was sick! I got hit on the back of the neck with an extremely hard loaf of bread when we had a sudden stop – just as well it wasn’t a brick.

We arrived in UB just before 1:00 am in the morning and got dropped off at a bus stop on the far west of the city. Got a taxi to take us to the east side and as we were congratulating ourselves on that, the taxi driver suddenly stopped and said we had to leave he had something else to do. So, again we found ourselves at the side of the road in the middle of nowhere (it felt like nowhere even though it was in the city). However, we did get another taxi after a short wait and arrived home safely. It was great to be back and sleep in my own bed but I did wonder if waiting for the 4am train might have been more sensible?

World Fair Trade Day Outside & In

2011-05-15T08:32:00.000+08:00

Kicking Off WFTD
The band was playing and the banners waving - slightly sad it was for another celebration altogether!

And our staff were displaying our banner much to the bemusement of passers-by

The Good News

Shoppers came early, few knew about World Fair Trade Day and the fight against poverty but they were very willing to listen and we had our best sales day since last August.

Remembering WFTD

Each customer received a Mary & Martha "Lost Sheep" felt fridge magnet to remind them of two things in particular:

1. The Role of Fair Trade

2. The Way Mary & Martha is fighting poverty through dignified work

Another Year Maybe

We failed to generate any TV or newspaper interest this year ... but we live in hope!

A BIG THANK YOU to everyone who supported WFTD yesterday in Mongolia.

World Fair Trade Day - 14th May

2011-05-11T20:30:00.000+08:00

World Fair Trade 2011 has the theme

“TRADE FOR PEOPLE – Fair Trade your world”.

World Fair Trade Day this year is 14th May and Mary & Martha are grateful that we can officially support WFTD in MONGOLIA.

We'd love to see you and to answer your questions on Fair Trade

and to encourage you to support local Artisans.
Saturday is so close ... come and join us!

An Honour Indeed

2011-05-11T15:27:00.000+08:00

Why a small company like Mary & Martha

Wednesday - Tax consultation day. About 50 Mongolian / Joint Venture / Foreign Owned companies were invited to present to Mongolia's Senior Tax Officials to say what we thought of the Mongolian Tax System. We realised we are "small fry" in a big pond but were given the opportunity to speak for 10 minutes very early on in the meeting. We were the only fully foreign owned company to speak and ....

We were able to introduce the idea of Fair Trade and Social Enterprise - both basically new concepts to the Mongolian business environment. We are just very grateful that our Tax District "Bayanzurkh" chose us to represent their district.

We asked what we thought to be a few minor questions in relation to "stamped" receipts, and their validity, trying to extract VAT receipts from 80% of businesses and how we could cut down on the masses of paperwork involved in tax returns. To our amazement it set off a kind of chain reaction - we were not alone and seemed to have hit on sore points most companies had in relation to tax business.

During the session we were called out of the room by officials and were surprised it was so that a TV station could interview us - to find out more about our company and our views on the tax system. We have been blessed today with wonderful opportunities to highlight Fair Trade and Social Enterprise ahead of World Fair Trade Day on Saturday 14th May.

We are still amazed that being so small we were still selected to attend.

Good Tax Payers - Bizarre

2011-05-11T08:02:00.001+08:00

It seems we've graduated as a company. We have received our certificate for being "Good Tax Payers in 2010".

However, as we know pride comes before a fall so we'll probably be notified soon that we are due for an audit covering the first 4 year's of trading.

The event itself:

Bizarre - first we were summoned to attend an event for which the date and location seemed unclear! However, in true Mongolian style all was finalised and we pitched up to an event outside a large supermarket. We spoke to several officers - they know us well in the tax office because of all the oddball questions I have.

The stage was set with a traditional music group and children dressed as tax officers. Seven of our local tax officials in full uniforms, the ladies in large peeked hats and standing in rather high, high heeled boots, the men looking rather imposing, all sang to the assembled invitees. I could not imagine tax officials in the UK or USA knowing it was part of their job description to sing to "Good Tax Paying" companies outside of a supermarket.

Certificates were then presented to companies receiving recognition. We left empty handed as my translator said the event was over. Must have miss understood about our role in the event.

My translator's English is getting far too good at the expense of her Mongolian! It seems we left at "Half Time" - but we were able to receive our certificate in a local hotel car park a few hours later.

Next on the agenda:

An invitation to the main tax payer's celebration to talk for 10 minutes on the benefits and difficulties of the Mongolian Tax System - should the receiving of a certificate influence what we say? Seriously, we will be introducing the concept of a Fair Trade, Social Enterprise company for inclusion as a new class of company in the tax system. More later ....

Exporting but loosing momentum

2011-05-02T16:10:00.001+08:00

The good news is exporting from Mongolia has gone ON LINE. Yes, we can now complete our data input on line and collect our export papers two hours later ...

It is at this point that the momentum drops. Every process is as strong as its weakest link. The customs process at the Main Post Office is the weak link in this case. Not only are the rules relating to product category, invoicing style, number matching to 1 100th of a MNT (0.000008 of a USD) continually open to different interpretation BUT also the DESK Service involves 3 people processing the same application. The connection between desks seems to be by a rather dodgy internet connection - not even by standard network. Last visit the system continually crashed - taking over 3 hours to complete our process paperwork.

But sometimes the quirks and vagaries come out positive. For once we did not have to take every one of our 75 items out of the well packed box so the customs official was absolutely sure we were not shipping "irregular" gold bars. Further more, although practised "queuers" we were not embarrassed one bit when a Post Office official recognised us and forced us to jump the que, I think to gain merit.

However, due to the time taken by customs we missed the pick up slot for the goods to make the next day flight so momentum was lost again while the said box stewed for the next 4 days.

We give thanks for having a GOOD EXPORTING DAY.

Blessed Education

2011-03-23T14:34:00.000+08:00

Blessed by our education or without it led to do some interesting things!

Take 1:
I feel under the weather today ... I'll take an antibiotic. Do you mean a course? No just one will do and I don't need the plastic capsule ... I'll just break it open and swallow the contents. That is not how antibiotics work or should be taken. It is in our locality.

Take 2:
I think my toe bones are growing too fast. My feet will be too big. I'm going to treat it the local way ... drip vinegar on to the flesh above the bone. Agh! Why is my foot burning? Because the vinegar was the regular 70%. Besides which unless you're trying to kill your toe, this treatment will never work. It does in our locality.

Take 3:
My mobile phone just went up in smoke and with a bang. What happened? I tried to fix my charger like I fixed my hair dryer.I cut the wires and tried to join them back into the little black box. They were too small so I just pushed them straight into the socket like we do with other electrical things. Maybe the charger steps down the voltage. No, all electrical things work the same in our locality!

Could be worse. I've heard of tablets and capsules being pushed into the ear for direct results rather than taking orally. Frost bite is one sure way of reducing bone length and the safe way to fix a charger is to buy a new one at less than 2 USD.

Miracles happen: A trip to the repair centre was greeted with "everyone brings their dead and dying phones to me expecting me to "raise them up"". Fix, fix ... there you go, 30 USD lighter but the phone is back in action.

Nepchin

2011-03-21T09:00:00.001+08:00

Met this guy in the British Embassy "Steppe Inne".

He runs a website called NEPCHIN with the strap line "what do you need?"

It's all about bringing Customers and sellers together so those who need can find what they need, quickly and without hassle.

Mary & Martha have joined as a Seller primarily and in the last few days we were interviewed by "nepchin". There some neat photos of a couple of our artisans and products as well as a plug for fair trade.

Take a look if you have the time ...

http://nepchin.wordpress.com/2011/03/20/mary-martha-of-mongolia-nepchin/?utm_source=twitterfeed&utm_medium=twitter

Business Loans or the Story of Apples and Oranges.

2011-03-04T08:16:00.000+08:00

In the short term Apples allow guaranteed survival but there is something about Oranges that offer an improved sustainable life and an even more healthy future. But Oranges are rare to find and not always available.

Sellers need to find Buyers of these life giving products. The Apple sellers are becoming more in numbers as Apples are in good supply. Even with lowering prices the Apple sellers see a market for those who want to survive.

Those thinking long term survival do have a demand for Oranges when they can afford them but the market is tricky. Orange sellers have a complicated life themselves. They want to retain their customers but don’t always have Oranges for sale. So they have come up with a novel scheme. They offer to sell Oranges at very reasonable to low prices for Oranges (which are still higher than Apples) but in the small print only to supply Oranges when they are available – otherwise Apples are supplied at Orange prices. The track record says Oranges are supplied most of the time but there is no guarantee. Actually the Orange Sellers don’t talk much about their track record unless pressed – they tend to rely on reputation or word on the street. But the word is changing …

Then there are the adventurous Apple sellers; no, not the ones who just trade Apples; the ones who know that Buyers would really like to buy Oranges for longer life if they can buy them. They offer Apples at good prices, maybe a touch over the regular Apple price but they claim that on occasions they will mix in a few Oranges if available at their slightly overpriced Apple prices. When surviving on Apples this could be very appealing.

And of course the issue is all about risk. If the Buyer goes for Oranges but is delivered Apples, he then has fewer funds to simply survive in the future. But if the Buyer goes for Apples he may survive long enough and have sufficient funds to buy Oranges when they become available.

But the situation is dynamic. As Oranges Sellers loose sales because there is growing doubt that they can deliver Oranges, some of the Apple sellers are looking at officially selling Apples and Oranges with new small print – Oranges will be more expensive than the sole Orange Sellers BUT if Oranges are not available they will supply Apples at the regular (not adventurous) rate until Oranges are available. The Apple sellers have generally also been Apple eaters and know how to survive and they realize that in this growing market of Apple and Orange sellers they are in the ascendancy while the Orange Sellers see demand dropping even though the quantities of Apples and Oranges are the same or more than ever.

It is time for the Orange Sellers to decide if they can change and offer a product mix the Buyers can feel more certain about if they the Orange Sellers are to survive.

The bottom line is Buyers really want to know that Apples are Apples and Oranges are Oranges and want to know up front what they are buying.

Funny the excuses

2011-02-16T22:38:00.002+08:00

We have numerous stories about trying to "export" from Mongolia via the central post office - never funny at the time but we can usually laugh about each situation within a few weeks.

I was planning a couple of orderly "exports" to Denmark and the USA when both customers independently pressed the "go fast" button. We scrambled and our staff dutifully headed for our favourite "what's the new procedure" today Central Post Office.

Denmark's fine was the first SMS. All quiet for 30 minutes and then "we cannot post to the USA". The story was new to us ... a story we could not have come up with. For security reasons the US were not accepting any parcels or boxes arriving via the postal system weighing more than 500gm. No levy or extra procedure ... we just could not post items.

Further checking on the web suggests that the US have introduced surcharges on items over 500gm a month or so back - USD 9 a shot and it may be to do with extra security and extra screening of parcels.

Thanks to my enterprising staff the shipment was divided into 3 and 2 out of 3parcels are in the system ... business continues to toughen with fortress USA. Still not sure why the Postal services here did not simply say "it'll cost you USD 9 more if you want to post the item in one piece". Maybe it seemed less hassle to simply say the USA was refusing parcels over 500gm. Life is never the same in UB Mongolia.

So we are in no doubt! There is a big sign in the Post Office saying nothing over 500gm can be sent to the USA before 10th March and even that is not certain!

First and Only WFTO Member In Mongolia

2011-02-12T13:40:00.001+08:00

Over a year ago we realised that some of the values we hold as Christians are also Fair Trade Values / Principles. So since we are running a Hand Crafted Gifts business, whilst helping Artisans in Mongolia to develop their small businesses, we decided to apply to join the World Fair Trade Organisation (WFTO) www.WFTO.com

After nine months of working through the application process, conducting a self assessment and in the process being assessed by our key Artisans, Staff, Customers and Export Customers, we received our Certificate of membership from WFTO.
We sincerely hope that along with supporting production of quality products that the membership will encourage Fair Trade Organisations to buy from us, thereby improving the quality of life of the 100+ Artisans we work with. We hope many folk will join us fighting poverty through business.

Please visit Mary & Martha Mongolia to find out more about our Business as Mission.

First and Only WFTO member in Mongolia