-Artistii-

Partnerships and Distribution

What we offer – Value Proposition

“Get access to unique and hard to find, culturally connoted and ethically sourced handmade pieces of arts and crafts from local

artisans across the world.

By purchasing these products, you actively support small scale artisans that often struggle in making a living with their crafts in

preserving their traditions and cultural particulars as well as enhancing their lives, that of their families and that of their

communities.”

For more details of our operation plans, please refer to our VL Artistii Team page

Identified Partnerships

Artisans

Agents

Marketing Partners

Other Business Partners

Legal Advice

Web Hosting

Payment Solutions

Identified Distribution

Website

Affiliates

Online Shops

Marketing Partners

Couriers / logistics advice

Mode of Operation

Artisan

Legal advice

Couriers / logistics advice

Website

Ethical players / …

Web hosting

Marketing partners

Agents

Artistii Customer

Payment solutions

Legal advice

Couriers / logistics advice

Web hosting

Payment solutions

Getting visibility

Artisan

Website

Ethical players / …

Marketing partners

Agents

Artistii Customer

Everyone benefits / bi-directional relevance

Artisan

Couriers / logistics advice

Website

Agents

Artistii Customer

Legal advice

Ethical players / …

Web hosting

Marketing partners

Payment solutions

Business partners

Marketing partners

Artistii

Identified Partnerships

Artisans

Artisans are at the core of our business and hence central business partners we

need to establish and nourish long-term relationships with

Artisans provide us with original hand-made crafts – we provide them with a global

customer base

We perform necessary services for artisans (logistics, payment processing etc.)

Some of our current artisans approached us out of interest in our concept – to us this

proofs the value we can create for them

One of our team members reached out to artisans across Morocco and received very

positive feedback; they mainly require support in reaching out to a larger customer

base and export their products, which are exactly the areas Artistii will support them

in

Siri Ram Kaur Kalsa

Producing malas with semi-precious stones choosen in a customized way after a

numerologic consult based on the date of birth. Established international business; she

is interested in new sales channels.

Simona Lombardo - Arte nelle Mani.

Hand-weaving. International customers gathered with too much effort. Interested to ease

her process, and focus on production.

Antonio Carrillo – Huichole community.

>80 years old, he stopped production. We can sell his last items, which are testimonials

of a deep spiritual culture, made of dreams and visions. Through this contact, we can get

in touch – as the business runs – with a host of 10+ younger huichole artisans

continuing their traditions.

Firdose - Master embroiderer from Kashmir.

He is one of the several masters handling all-natural pashmina along the whole

process, adding textile resistance to unbeatable softness and warmth. He contacted us

to expand their business.

Artisans We Already Promote

Agents

Remote artisans may not have access to internet, may not have bank accounts, and may

live in places difficult to reach. Our agents are the ones who will solve these problems,

they will :

Get paid by Artistii via PayPal, and pay the artisans in cash ensuring all local

taxation and legal requirements are fulfilled

Take pictures of the available crafts, and send them to Artistii

Keep in touch with Artistii, take the orders as soon as possible, and commute to the

artisans to order the crafts

Keep in touch with the artisans to be able to pick up the crafts as soon as they are

ready

Ensure the package is available to be picked up by the courier

One of our team members currently acts as agent for Morocco and we reached out to

one more agent that will be in charge of the Philippines; agents for Malaysia and

Mexico are still pending

Legals

Legal advice is crucial in order to:

Establish our business itself

Sign contracts with business partners

Develop the terms and conditions

Evaluate legal risks of exporting and other business activities

We reached out to a lawyer to join our team; he is currently drafting terms and

conditions for end customers and contracts for other partners

Some advice from field specialists could become necessary in the future. Having a

legal in the team will allow us to understand the advice and make the most out of it

Marketing Partners

Reach out to and build relationships with bloggers that write about sustainable/ethical

consumption, DIY and crafting, homemade products, traveling and green living

we compiled a list of bloggers/influencers to reach out to but have to wait

until the site is up and running (shopping cart function not in place yet)

Partner with established businesses that share our values but are not direct

competitors, such as Ben & Jerry’s, The Body Shop and Starbucks

based on one of our team member’s experience with a Singapore based

social enterprise, all these organisations support initiatives ranging from

very small to large scale and actively support young ventures in increasing

their social impact

Partner with travel agencies to promote trips to the countries our products are

sourced from

we haven’t actively reached out to them yet but will compile a list of

adventure travel focused agencies that specialise in our source countries

Other Business Partners

We are already in discussions with companies that are invested in ethical trust:

We are currently in active discussions with the United Nation Cultural and

Development Fund and the European Development Fund and exploring

opportunities with regards to micro loans for our artisans

We are investigating other potential partnerships with businesses whose interest runs

in parallel to ours for future good of the artisans and their traditions/regions, such as

kiva.org (micro loans) and the Grassroots Business Fund

Current web hosting might not be sufficient once the traffic to our site increases

We need to implement responsive design and optimise the site for mobile and

tablet

We are currently looking into alternative hosting partners such as Amazon, who

offers one year of free service; this would allow us to focus on traffic generation and

gaining a critical mass of customers while not having to worry about hosting issues

Web Hosting

Payment Solutions

Payment solutions are crucial for conversion

We are studying ways to allow payments directly to the artists or the agents and the

transporters, but will probably start by using escrow accounts

We will initially offer PayPal payment only to get started and be able to sell first

products and gain traction. PayPal offers many benefits in terms of implementation

and flexibility of payment splitting, methods, escrows etc...

Once the site is up and running smoothly, a credit card payment option will be

implemented which, according to our e-commerce experience and customer

feedback, is likely to significantly increase the conversion rate

We assigned a project lead for each of the below areas to make sure we cover all

important aspects:

Artisans

Agents

Marketing partners

Legal advice

Web hosting

Payment solutions

Partnership summary

Artistii

Identified Distribution

Logistics

Since we follow a drop shipping scheme to cut down warehouse costs, a strong

partnership with couriers is very important.

We have information from a leading international courier company who helps build the

experience and contacts to set up agreements required in the logistics sector. We are

now in active discussions on how to optimise the shipping methods and costs for

Artistii.

Customs are a delicate issue too, which we are starting to understand how to analyze

with care. Every item must be certified as exportable in order not to harm the whole

business. The right advice is therefore of paramount importance.

Logistics(1)

Drop shipping asumes that the Exporter of Record (EoR) and the Importer of

Record(IoR) are aware /of:

The required export regulations inclusive of all apllicable duties and taxes

associated with the relevant product. Although ownes is on the EoR to ensure

compliance of local export regulations, exports generally incure less conditional

releases compared to imports and as such will require less forms of submissions.

Should duties or taxes be incurred at this stage it will the legal responsibility of

the EoR to cover the cost.

The required import regulations inclusive of all applicable duties and taxes

associated with the relevent product. The ownes is on the IoR to ensure compliance

of local import regulations and is legally responsible to ensure all submissions are

attended to prior to the product being recieved at the inbound port. Imports, for most

parts, recieve a greater level of scrutiny and it is imperative that all import taxes,

duties and fees are attended to within the given timesclaes. Import duties, taxes and

fess are the legal reposibilty of the IoR.

Logistics (2)

The production of a Commercial Invoice detailing all information accordance to the

IATA guidelines as well as the required local export and imports customs agencies.

The CI must be produces prior to shipment and becomes a legal document at the

point of shipment. It is also the the main document used by customs agencies for

clearence and as such all information supplied on it must be acurate and traceable.

Supporting document must be attached with the CI should there be any information

requiring supporting evidence.

Any special dispensational requirements of the local regions that may in affect nullify

any insurance aggrement. It is imperative that the appropriate insurance is applied

prior to the shipment if any products that may deemed as high value (generally

anything above 10,000 USD) or deemed as a risk to health or life. It is the

reposibility EoR to ensure that shipments are underwritten unless poof of prior

aggrement can be shown.

That the production of a signed Manifest, Bill of Lading or Air Way Bill is a legal

document denoting contractual agreement between the EoR/IoR and the assigned

shipping company.

Logistic Distribution Summary

Distribution is based on a drop shipping format with the view of cutting

the amount of transit time required between the point of sale to the

completion of sale.

The model incoporates the requirements of the end customer with the

needs of the artisan, while fulfilling the business requirements of Artistii.

The models looks to free up liquidity within the process to ensure all

parties involved are serviced appropriately.

Distribution Channels

We will initially focus on online distribution only with a focus on maximising

exposure of our brand:

Main sales channel is our website www.artistii.com

Partner up with affiliate websites to increase our reach and gain access to their

customer base

Set up shops in eBay and Amazon to increase our exposure

Sell our products through the channels of our marketing partners (see slide 13), e.g.

in Starbucks outlets, charity events hosted by our partners etc.

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Get your ethical gift on:

www.artistii.com