Session 107 summary
Sofia shared a presentation outlining the various pictures showcasing different techniques and materials from Mexico. Her team primarily works with natural fibres, glass, clay, wood, stone, and other materials abundant in Mexico. The country boasts a rich diversity of artisanal techniques, with each community often specializing in unique methods and skills, even when working with the same materials. Despite similarities in materials, the techniques and capabilities can vary significantly among different communities, as can the size of each group. Consequently, Sofia’s company operates as a B2B enterprise, meaning they do not target individual customers directly but instead focus on selling to other businesses. In selecting which communities to collaborate with, they have been meticulous, ensuring alignment with their target market’s needs and preferences. They primarily focus on utilitarian techniques, wherein each piece holds its own intrinsic value and uniqueness, yet they are crafted in a manner conducive to serial production. While they occasionally engage in crafting unique or highly artistic pieces, these endeavours are not their primary market focus, although they may form partnerships of this nature on occasion. They firmly believe in the economic viability of handicrafts, particularly in Mexico where they rank as the second most important economic activity in vulnerable or indigenous communities, with agriculture holding the first position. Many artisans who dedicate their lives to handicrafts often reside in precarious circumstances; nevertheless, they are convinced that their skills and talents can yield a high quality of life. From a business perspective, Sofia’s team strives to create enriching experiences and collaborate with clients who can harness the power of handicrafts to enhance their products or services for their customers. As it is crucial for sustainable business practices or economic endeavors, whether one is an artisan establishing a workshop or leading a team, understanding where they generate value for the market is paramount. Sofia believes that in Mexico, industries such as tourism, gastronomy, and local products like tequilas or mezcales are significant drivers of development in the country, and integrating handicrafts into these sectors could greatly benefit them in approaching customers. Handicrafts indeed contribute substantial value, yet one of the challenges faced by Sofia’s team is that communities involved in handicrafts often lack the necessary structure, financial services, tax infrastructure, team-building capabilities, or administrative capacities to fully capitalize on opportunities to collaborate with these customers. Essentially, Sofia’s team serves as a bridge between these two distinct worlds.
Sofia believes that the values upheld by communities, particularly indigenous ones, in Mexico, differ significantly from those of individuals working in large corporations. The team serves as a bridge and alliance between these two groups, fostering dialogue and identifying common ground where they can mutually create value. Of course, this collaboration benefits all three parties involved, as they operate as an alliance in all projects. The company has been founded on fundamental principles of dialogue and cooperation. Sofia perceives their relationship as very horizontal, a dynamic that wasn’t initially planned or outlined in a business plan. However, drawing from her entrepreneurship studies, Sofia understands the importance of offering something that the market is willing to pay for. Thus, she has learned and adapted throughout the process, shaping the current business model they follow. This year marks their 10th anniversary since Sofia began Mexicateca aquí a decade ago, before renaming the brand. They have formed over 30 artisanal workshop alliances across nearly seven states in Mexico. Each year, they collaborate with over 180 artisans and have cultivated more than 50 commercial partnerships spanning various industries, including spirits such as tequila and mezcal, hotel brands, and restaurants. Moreover, they have exported to the U.S. for various gastronomy-related events. Despite this diversity, a common thread among all their customers is their inclination to innovate, even within traditional industries. Many of them integrate elements of social or community responsibility into their mission or vision, which aligns well with Sofia’s team’s values and facilitates the identification of ideal partners to collaborate with. Sofia states that, “it’s essential to recognize that not everyone is your customer, and it’s okay to decline certain opportunities.” For Sofia and her team, alignment with the values of the community, artisanal groups, and customers is crucial for the success of their long-term projects. Becoming a large corporation this year is a source of great pride for them, as it signifies not only doing things right but also being able to demonstrate it conclusively. They have ensured that all aspects are properly registered, reflecting a strong foundation and transparent communication among all stakeholders. Currently, the team consists of six women, each bringing a diverse range of skills to the table, including administration, product development, digital relations, impact assessment, operations, and sales. However, their journey to this point wasn’t immediate; it involved gradual progress over the course of 10 years, marked by continuous learning, growth, and incremental steps forward in building alliances with customers, artisanal communities, and their internal teams. In a rapidly moving world where entrepreneurs often feel pressured to grow quickly and seek investment, Sofia and her team have taken a different approach, one that has proven beneficial for all parties involved. To provide insight into their business model, she shared one of their projects from 2018 involving a water brand in Mexico. The project entailed collaborating on the decoration of water containers known as carrafones using a traditional technique called talavera, characterized by its blue and white designs. To proceed with this intervention, they had to obtain certification ensuring compliance with hygiene standards and the legality of materials used. Ultimately, they produced 2,000 decorated pieces with the involvement of 10 women artisans.
They handled the packaging, logistics, and all other necessary arrangements to ensure the products reached the customer’s warehouse smoothly. Another project involved producing cups for bottles of mezcal, with a monthly output of 2,000 units in Sierra Norte. This collaboration took place with a community belonging to an indigenous group, who hold significance in the state of Jalisco. Despite being located in Guadalajara, which is not a capital city but one of the three largest cities in Mexico, they are closely connected with various handicraft communities. The team consists of approximately 27 artisans specializing in decorating the caps. Over the past seven years, the collaboration has expanded from producing just 100 caps with a team of three members, including two artisans and Sofia, to doubling their production this year with plans to expand the team further. In another instance, they facilitated exports to the Central Market in 2016 and repeated the process the following year, focusing on products related to Mexican astronomy and cuisine. In September, there is a significant celebration of Latin heritage in the U.S., during which supermarkets often import a wide variety of products from Latin America. These products are essential for preparing traditional dishes, necessitating kitchen utensils specific to those cuisines. To meet this demand, they exported clay plates and cooking utensils, including stone mortars, to complement the imported products. These initiatives demonstrate how they expand beyond the company’s core businesses; for example, while one division sells water and another sells tequila, they provide additional products to enhance the overall customer experience. Sofia believes that there is immense potential for handcrafted items to complement traditional sectors or improve existing products and business models.
The group that produces the caps has been collaborating with them for almost 7-8 years. Understanding the context of the community is crucial; many of these communities lack internet access, and some do not even have dedicated workspaces. Artisans often work within their homes, using makeshift tables originally intended for meals or homework. The team has provided support by supplying equipment and enhancing their working environments with chairs, light bulbs, and other essentials. These tools are vital for improving their workspace, posture, and overall work experience.
When Sofia started the company, the idea was never to embark on this journey. It unfolded organically as she recognized a market need where she could collaborate with communities. She felt a profound connection to this endeavour because, for indigenous communities, fostering relationships is paramount. It’s not merely about employment; it’s about establishing meaningful connections and embracing a different set of values, distinct from those prevalent in mainstream industries. For them, it’s not solely about financial gain; it’s about having a job that allows for an immersive cultural experience, promoting it, and actively participating in it. Being able to attend community gatherings, partake in rituals to honour nature, and comprehend the rhythms of agricultural cycles and rainfall patterns are integral aspects of this experience. Sofia has come to realize that driving change isn’t solely about monetary compensation; it involves fostering dialogue and cultivating mutually beneficial partnerships with customers who understand the importance of preserving traditional techniques and nurturing community values. It’s about creating projects that align with the priorities of indigenous communities, rather than merely providing financial support and making occasional purchases. Sofia believes that in today’s society, people aren’t just seeking jobs for the sake of income. They’re also searching for roles that provide a sense of fulfilment and allow for a semblance of work-life balance.
The story of how the idea came about: It wasn’t something that happened suddenly, but rather something that evolved gradually, spurred by many factors. Sofia was born outside of Mexico to Mexican parents who always emphasized the importance of culture and a sense of belonging. Consequently, she had to experience Mexico in different ways and came to appreciate the value of food and cultural communities every time they visited Mexico. These experiences provided her with opportunities to encounter other cultures and recognize the diversity in stories, philosophies, values, and ways of relating to people across different cultures and countries. After spending around 10 years in Mexico, she ventured on missions to other communities during a period of significant migration in Mexico. This exposed her to entire towns where only women or men were living, often engaged in agriculture and handcrafts. For Sofia, it was about what they could do or share to help these individuals make better decisions and continue their current activities with improved decision-making, savings, and resource allocation. This would enable them to have better opportunities in the future. This realization led her to conceive a business idea focused on providing education for people migrating within the country and working in agriculture. These individuals often had long workdays from 4-5 am to 3 pm, leaving them with idle time afterward. Sofia saw this as a perfect opportunity for them to engage in learning and enhance their academic education during these hours. She embarked on these projects, but faced a dilemma: there was no suitable career or major available in Guadalajara, and she was reluctant to leave the city or relocate to another state for her studies. Remaining in Guadalajara, her only viable option was entrepreneurship. She was informed that within this field, she could establish any business she desired, regardless of the industry, while studying entrepreneurship. This opportunity provided her with comprehensive knowledge about running a company. Above all, it instilled in her the importance of embracing mistakes, viewing them as learning opportunities rather than setbacks, and continuously striving for improvement with each endeavour. This experience empowered her to choose her path and remain open to adapting her approach as needed.
She launched a company, but eventually had to close it down due to bankruptcy among their alliance partners. Following this setback, she explored other business opportunities and ventured into the realm of handcrafts. However, another crucial aspect of her journey is the social component, which has always been integral to her ethos. During her academic career, she spent a semester in Sweden on exchange, an experience that profoundly influenced her perspective on business. In Sweden, she encountered a unique business model at a company called Arla, which specializes in dairy products such as milk, yogurt, and lactose-related items. Arla had structured its operations into small business units, fostering a collaborative environment where everyone contributed to collective growth, rather than a traditional hierarchical model where one person hires a team to work for the company. This innovative approach deeply resonated with her and served as a source of inspiration, guiding her as she navigated her career path. Her father’s career in the hotel industry provided her with invaluable exposure to diverse cultures, travel experiences, and insights into the significance of storytelling in enhancing customer experiences. Following her graduation and the closure of her previous business venture, her father suggested a new opportunity: selling handcrafted items to hotels. He recognized that many luxury hotel managers in Mexico were not native to the country and lacked the knowledge of sourcing handcrafted goods locally. Therefore, he proposed the idea of bridging the gap between artisans and hotels by assisting in meeting quality standards and supplying products tailored to the hotels’ requirements. She began by collaborating with small hotels, gradually expanding her reach and forming partnerships with artisanal communities. It’s crucial to note that their efforts extend beyond indigenous communities to include individuals outside these groups. Their journey has involved collective growth, learning from mistakes, and problem-solving together with the artisans and partners.
Sofia is often asked whether she is happy, content with the current projects, and satisfied with the direction they are heading. She reflects on her journey and acknowledges that she has devoted her entire life to the project, working on it full-time. Through this dedication, she has had the opportunity to open numerous doors, encountering diverse cultures and meeting incredible individuals who have shared their unique stories. This journey has allowed her to gain a deeper understanding of her country and its social issues and challenges. What motivates her most is the aspect of education, not in the traditional academic sense, but rather in the acquisition of new skills and the empowerment to create better opportunities for herself and others.
With the non-profit organization she runs, she aims to establish courses and workshops aimed at enhancing business skills and decision-making abilities for handcrafters and artisans. The goal is to find more effective ways of conducting business while leveraging the skills and unique qualities of their products and pieces. Currently, she believes that there is always room for growth and learning, and while the journey may take different paths, she is extremely pleased with not just what they are creating, but also with the manner in which they are creating it. It has been a challenging few years for Sofia and her organizations, with last year being particularly difficult compared to previous ones, despite the growth seen despite COVID-19 and other global crises. The past year, 2022, has been one of the most trying, but she is extremely hopeful for 2023. She believes her team has forged strong alliances that motivate and encourage them to work with new groups and engage more deeply in the artisanal industry through collaboration. Additionally, she feels it’s crucial not only to be involved in non-profit work and business but also to understand how social entrepreneurship and direct experiences with vulnerable communities or social issues in the country can inform better government decisions. She has initiated projects with various communities in the country, such as advocating for fair tax payments for artisans, which has allowed her to contribute to the country beyond commercial relationships. She believes that addressing problems comprehensively and involving herself in diverse areas has been immensely beneficial, both personally and professionally, fostering learning and contributing to her overall happiness in day-to-day life.
Some recommendations she can share from her experience include the importance of building networks and support systems. This involves fostering connections with customers, suppliers, colleagues, even competitors, and government entities. She believes that collective efforts toward a goal are more effective than individual endeavors, both during good and bad times. While handcrafts are beautiful expressions of culture, she emphasizes the necessity of dedicating one’s life to them to make it a viable economic activity. Understanding the market demand and identifying where value is created for customers are essential aspects. It’s crucial to avoid treating it solely as a hobby if the intention is to build a business. For designers and creators, she advises understanding why customers would choose their products over others. This involves assessing if value creation lies in customer service, logistics, or other factors. In today’s globalized world, competition is fierce, so understanding the market trends and meeting customer needs beyond just the product itself is vital. Customers need to perceive value in what they are purchasing and understand what they gain in exchange for their hard-earned money. One should understand that not everyone is their customer and feel free to say no. It’s essential to be super clear with their non-negotiables, whether it’s regarding price, values, or other factors. For example, for Sofia’s team, it has been super important not to work with people who are only interested in buying from them to resell. They need to be more involved, understand the process, and grasp the community’s situation, including logistical challenges. Sometimes, reaching these communities can take a lot of time, especially if they are located far away and accessible only by car. Therefore, if a person wants a product and intend to create value for their customers as a company, they should also understand its origin and the challenges artisans face to produce it. It’s crucial not to hesitate in saying no. In terms of service, sellers should be super clear about their limitations and what they can and cannot do. This demonstrates vulnerability, honesty, and a commitment to building long-term relationships.
About the Speaker
Sofia Cruz
Sofía Cruz is the founder of Mexikatekatl and TEKITI, two separate organizations that works to promote business education for artisans in Mexico. These organizations take pride in finding new market opportunities for local artisans by assisting in marketing the products and connecting them to businesses that will buy and sell their goods. A fellow of the US Department of State’s Young Leaders of the Americas Initiative Fellowship Program, Sofia wants to create a better environment in Mexico for the artisanal community to grow. Sofia believes that entrepreneurship has given her an opportunity to create whatever she had in mind. Sophia has studied entrepreneurship and business development. She founded Mexikatekatl in October, 2013 and created the brand TEKITI in November, 2015.
