BHcrafts Annual Report 2005

Dear Friend,

From the day we gave first financial compensations to women in refugee camp "Jezevac", the organization went through many hurdles on its way to become one of the leading factors of social change in Bosnia and Herzegovina.

We started under the umbrella of Norwegian People's Aid, we strengthened as locally registered organization with separate trading arm called BHCrafts, and we are constantly growing as a B&H brand that people are proud of.

Over the years, we have grown in size, we have grown in markets, we have grown in education and we have grown in products always driven by the mission to address the also growing need of marginalized women in Bosnia and Herzegovina.

In our work, we have combined work therapy with business concepts. We have matched education and hard work. We have brought together professionals and women living on economic margins. We have crossed the entity borders and have been open to any nationality. We have preserved tradition and introduced modern trends. 

It was not easy, but we are proud of what we have achieved. We are proud of the women who decided not to rely on humanitarian aid, but to use their skills to provide for their families. We are motivated to grow further.

Feel proud for supporting our mission. Everytime you buy something in our store or receive our product as a gift, think about the women who make them.

In their name, and the name of BHcrafts, I thank you all.

Sincerely,

Lejla Radoncic

BHcrafts

BHcrafts works with hundreds of marginalized women from around the country, uneducated and rural women from different ethnic backgrounds.

The Year in Review

Craft Producers - History Or Future?

During the past ten years we have witnessed many craft producing associations having problems functioning. The biggest problems they faced were not having the material and human resources to sustain production and find markets.

That inspired us to launch the project "Centre for transfer of traditional craft skills."

The Centre is located in Tuzla, and it is currently working towards strengthening SMEs from NE BiH. Within this mission the Centre provides a variety of services starting with design services, product development, market research, marketing services on domestic and foreign market, training programs for employees of small and medium enterprises and their end beneficiaries - craft producers.

The Centre currently provides design and product development services, market research, marketing services on local and foreign markets and training programs for three SME's from North East B&H:

-         Association "TREBAVA-SJEVER", Modriča

-         Association "ZORA", Milići

-         Association "LUČA", Bijeljina

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However, the long term objective is to provide these services to all craft associations in B&H and become the Centre for entire country.

Direct Support

Last year we provided income to approximately 550 women. The total of 70 564Euro were distributed to women for their knitting/crocheting/weaving engagement.

In 1995., we have offered only informal training programs, i.e. individual training programs for new women.

Stability Is The Key!

In year 2005. we have strengthened bonds with our customers and supporters. We are proud to have many repeated customers which are very much satisfied with our products, our customer service and most importantly who are proud of our social mission.

We have also invested considerable time and finances into finding new markets. We managed to create many new partnerships i.e. the National Geographic from USA, Felissimo from Japan, Sarajevo Airport and many others.

Here are some of the items they were buying:

	Almost all items sold by Bugs and Fairies are custom made per their own designs. Their offer include classic & contemporary wear for boys & girls,  the baby collection from newborn to 18mo. , complementary accessories and must have baby essentials - dreamy bunnies and darling booties.
One of our intricate sweaters in off-white wool found its place in National Geographic catalogue, showing the beauty of B&H handwork to entire world.

The Year in Review (continued)

Social Responsibility!

The quality and recognition of Bosnian Handicrafts is also proven by support of the big, socially responsible BiH companies/institutions, such as: Bosnalijek, Pliva, UMEL Dalekovodmontaza, Raiffeisen Bank, Raiffiesen Osiguranje Uniqa Group Austria, Hidria, Flash Production, Canton Sarajevo and many others who are buying our handicrafts for their business partners.

We hope that BH ambassadors and state delegations will follow their example, and by giving away these unique presents to their associates and partners abroad, represent Bosnia and Herzegovina as a modern state, one that cherishes its own tradition.

Philanthropy in Bosnia and Herzegovina!

I am happy that there is philanthropy in BiH. We have witnessed people provide beds and supplies for children's home "Bjelave" after our initial donation in less than six hours, people buy annual planners to support the work of their favourite NGOs, hundreds of people and organizations support our humanitarian auctions and thousands of individuals and companies shop our products with purpose.

New Home For BHcrafts!

From the end of 2005. BHCrafts team can be contacted at the Sarajevo address: Muhameda Hadzijahica 29. The office was purchased through loan, while the sister agency Bosnian Handicrafts Inc., helped with furnishings.

A line of souvenirs

BHcrafts was always a stop for those who wanted to get unique and traditional handicrafts from Bosnia and Herzegovina.

In 2005., we have started to expand the selection of souvenirs inside the project "Center for transfer of traditional craft skills". The aim of souvenir development is to significantly improve the tourist offer of Bosnia and Herzegovina and to secure the income for the people who make them.

We hope that in a years to come souvenirs with BHcrafts label could be find in all tourist destinations in B&H, from ski resorts, pilgramage destinations, sunny Mostar and other attractive locations.

We offer hand knit products including adult and children's clothes and accessories, home furnishings, toys, traditional Bosnian products and much more.

Financial Highlights

The total income in 2005 was 238.952,00Euro. We are very proud that our activities are mostly financed through own sources (sale of handicrafts), while donations are used only to finance new initiatives, craft training programs of higher scale (20-30 women at a time) and some marketing campaigns. Income from the fundraising campaigns we implement twice a year has increased, which is signaling the growing support of the local community. For percentage details pls. see chart of left.

Income from sales in 2005. was 176.410,00Euro. The chart below shows the comparison of local retail, local wholesale, export and total sales in Years 2003, 2004 and 2005. As shown, the overall sales in country have increased substantially and are higher than export sales (64% vs. 36%), that have levelled with export sales in 2003. Note: High export in 2004. reflects the extremely high order from the Sundance catalogue in the amount of 123.000Euro, who remained our customer in 2005 with the smaller order.

Income on local market came from the retail program (sales through own retail outlet in Sarajevo), wholesale program (selling through different shops on commission – Tuzla, Sarajevo & Mostar) and corporate gifts program, while the export market included: USA, France, Great Britain, Japan and Switzerland. All international clients are wholesale clients. The chart of left and the following charts show the composition of overall sales and the composition of local and export markets in 2005.

The local market expands. BHcrafts can be bought at Sarajevo international airport, two shops in downtown Sarajevo, Buybook bookshops, and boutiques in Tuzla and Mostar. All segments of local market shows steady growth, which signals that more and more people/companies appreciate the quality and beauty of products and the social benefits the program provides.

The export market has diversified, as we entered the new market: Japan. USA remains to be number 1 export market for our products, while UK has had the biggest growth thanks to our sales representative Bugs and Fairies. Despite the investment in Switzerland market (exhibition at Ornaris fair in Bern co-financed by BHiŽ) this market has not shown improvement.

How sales reflect on women we work with?

 The higher the turnover is the higher are the artisans' salaries, and the higher is the possibility to include new women in production program.

The promotion and sales of handicrafts is performed

by the organization's for-profit arm "BHcrafts d.o.o." 

Year 2006 - The Year Of

In Year 2006., we will work on:

1.     Strengthen SMEs from NE BiH which are involved in craft production

BHcrafts will continue to work on strengthening of SMEs from NE BiH through the project "Centre for transfer of traditional craft skills" supported by the European Union.

2.     Increase sales of handicrafts from NE BiH on local and foreign markets

BHcrafts will take every opportunity to promote its products in country and abroad - from promotional campaigns organized locally to participation at international trade fairs.

3.      Provide better income-generation opportunities for craft producers

Although number 1 priority of our program better income generation is named as third, because it will logically follow as a result of the aim number two.

4.      Improve the tourist offer of Bosnia and Herzegovina improved offer of well designed and high quality souvenirs

In 2006, we will have an array of original souvenirs that will be marketed throughout the country.

5. Education of the craft producers & craft management

Enhancing production, marketing & organizational skills is one of our permanent aims and is very important for the success of the program.

6.     Visibility of its actions, collections and social impact

BHcrafts will partner with McCann Erickson, respectable PR agency, professional models, photographers, web designers etc. to improve the visibility of its actions. Continuous PR, development of brochures, update of organization's web site are just a few things BHcrafts will be working on the year to come.

7.     Development of new programs

BHcrafts will be open to new ideas and their implementation.

By purchasing these products made with love and care you will help

                            ease lives for the hundreds of Bosnian women who make them.

Get Involved

Sustaining our program is not an easy task. It requires innovation, energy and resources.

When supporting our organization think beyond the quality and beauty of products you buy. Think about all the women from around Bosnia and Herzegovina that you are helping. Think about Samida from Srebrenica who now lives in Banovići, Dika from Kalinovik who now lives in Sarajevo, Sajma from Srebrenica who now lives in Tuzla.

Back in 1995, Samida was only twenty four when she was forced to leave her home in Srebrenica with her three children, the youngest of them having only ten months. Her mother-in-law, 68 years old at the time, joined her and five of them luckily found a refuge in the Sports centre in Banovici.

The Centre was just a temporary home for Samida. Over the following years, the uncertainty of her life was increased by constant change of homes. She remembers that she moved from place to place seven or eight times, not knowing what happened to her husband who disappeared in 1995. during the siege of Srebrenica.

Samida now lives in Banovići with her son who is now going to Tuzla Gymnasium, daughter, Jasmina, who is attending 7^th grade of elementary school and second daughter, Elma, who is attending 5^th grade at the same school. She is proud of her children, who are all good children and hard working students.

She is still grieving in silence for many family members who died or were declared missing in 1992-1995 war. Her father, two brothers and husband who was find dead in 2003. in Glogovo and buried in Potočari.

She supports her family through family pension and some monthly donations. Although satisfied with the money she gets this way, Samida is always working hard. She is a member of BHcrafts program since 2004. and is one of the best knitters, neat, responsible, hard working.

Thanks to her persistence and work habits she managed to buy about 600m2 land in Donja Visća (near Zivinice, about half an hour drive from Tuzla). She intends to start building the house for her family and is always working diligently to provide for her family and ensure them safe future.

While BHcrafts is always anxiously expecting the beautiful sweaters

HAND MADE BY SAMIDA.

Think about Samida the next time you buy from us.

 To receive more information about our work and how to get involved please contact: