Cuban Fashion Entrepreneurs: Unique Challenges, Unique Barriers
Economic reform, improved diplomatic relations with the United States, and holiday series just released by Chanel...
Cuba sent a joyful signal to the outside world, but its
Latest fashion
market
The future is still uncertain.
In the vicinity of boutique shops in the Cuban National Hotel (HotelNacionaldeCuba) in Havana, it is hard for wealthy tourists to realize Cuba.
brand
The sparkling jewellery displayed by Rox950 is made in a charming but confusing apartment with a temporary workshop made up of 35 employees.
RosanaVargas, the ambitious designer behind the brand, can produce as many as 500 handicrafts every month in the apartment, with a monthly turnover of about 20000 Cuban convertibility Peso (CUC).
Because the peso is pegged to the US dollar and equivalent to the US dollar 1:1, Vargas's silverware company can achieve this "great feat" in this country which regards capitalism as dirty and dirty.
Vargas explained that because of the Cuban government's regulations on the management of private enterprises' property, the assets she owned were still limited to the factory which was rebuilt in the three bedroom apartment.
But 5 years after entering the market, the products designed by Vargas are sold in more than 10 locations across Cuba: including resort hotels and state-run chain brand Artex.
Now she is negotiating with an American distributor.
"At present, we only sell 50% of the total production, and the output is not yet as high as I expected.
Our main goal is to maintain appropriate production so that we have enough stock to export.
I can't go all the way to meetings with potential distributors, "Vargas said.
New business era
The trade embargo of the United States against Cuba in Cuba is known as "ElBloqueo", which has harmed the country in the past half century.
Despite the recent thaw between the two countries, the embargo has not been lifted.
But when President Obama of the United States began revising some economic sanctions last year, some of the goods produced by independent Cuban entrepreneurs are now authorized to export.
Despite the fact that Cuba's external consumer goods flow is still being controlled to a minimum, entrepreneurs have to accept certain restrictions, said TheBostonConsultingGroup, partner of the Boston Consulting Group (BCG) and MargueriteFitzgerald, the latest Cuban report of the group.
"They must be able to prove that they are truly independent enterprises, not in any way related to the Cuban government, and that the goods they can export are also restricted."
She said.
Prohibited items are mainly food, vehicles and machinery, while handicrafts, such as clothing, footwear and accessories, are allowed to export.
Vargas is the representative of the growing spirit of entrepreneurship in Cuba. The business environment of the country began to become more challenging several years ago.
A series of market-oriented reforms began in 2010. Entrepreneurs can employ more than 25 employees. The scope of enterprises is expanding and some government controls are loosening.
According to the BCG report, the number of Cuban entrepreneurs has increased by more than two times since the implementation of the new rules, and it is estimated that Cuba's economy will grow by 2% to 4% over the next 5 years.
If important reforms continue and the restrictions imposed by the United States continue to loosen, Cuba will have a relatively fast growth potential in the long run.
Cuba has a small total economy - almost as large as Sri Lanka or Hawaii, the United States. Although state-owned enterprises still occupy the leading position in the country, market-oriented reforms still represent a major pformation in a country that has planned economy, is not open to the outside world, the government adheres to communism and has maintained decades of hostile relations with the United States.
According to some market analysts, more and more contacts between Cuba and the outside world have created a new era not only for entrepreneurs in the country, but also for multinational brands.
Many big companies are seriously exploring different options or maintaining a quiet wait and see.
So far, luxury brand Chanel has made the most open and symbolic gesture in the fashion industry. It has just launched a series of early spring holidays in Havana in May 3rd.
"Chanel will be released in Cuba. I think this is a great feat. I am looking forward to seeing what the vision of KarlLagerfeld is for Cuba. If you stop a man on the street, you probably don't know what Chanel is, and you know that Chanel is going to play in Cuba."
Cuban fashion designer RolandoRius said.
RolandoRius owns a women's clothing brand called Ryo, but he is not among the stars, fashion editors and supermodels in this high-profile fashion event.
Indeed, most of the 11 million Cuban people living in this small tropical island do not dream of buying Chanel grade brand products.
Most people in the industry believe that Cuba's role in the conference is only a "background screen" and will not become a "market" in the near future.
But Cuba has nothing to do with luxury fashion.
Before Fidel Castro (FidelCastro) came into power in 1959, the Caribbean island also attracted women's design brands such as ChristianDior to enter ElEncanto store, one of the first boutiques opened in the Americas.
But then, during the half century of communism, the once famous rich Cuba went away, leaving only a glorious island that had passed away, becoming a "frozen" country to a certain degree, attracting global fashion professionals to come here to make charming fashion photographs.
"VanityFair", "WMagazine", "MarieClaire" and the current Chanel are all coming to Cuba's picturesque landscapes. But it is the Cuban designers who are advancing with Vargas and Rius, who have been trying to preserve the fashion of the Cuban fashion industry for decades, and have formed the fashion ecosystem here, making foreign industry leaders both unfamiliar and familiar.
Unique challenges, unique obstacles
The biggest obstacle facing Cuban entrepreneurs like Jos LuisGonz lez is the high cost of materials.
Gonz lez worked for the state textile industry for 25 years, specializing in decoration and fabric drawing. After that, he left the State Department and started the personal dress brand Modarte.
"Buying fabrics from state-run stores costs more.
I often use chiffon fabrics, because I like Chiffon pendant, but the chiffon with good color costs 5 pesos per meter.
When I had the chance to go to Italy, that was the last time I imported fabric, the price of chiffon per meter was less than 1 pesos, "Gonz lez explained.
He also said that the import tax laws and regulations are complicated, tariff increases, and some government officials do not understand the distinction between retail and wholesale businesses, which are challenges faced by Cuban entrepreneurs.
In Cuba, Gonz lez, Rius and Vargas face a small and unique consumer group.
The Gonz lez series can be sold in the state chain stores Artex and ElFondoCubanoDeVienesCulturales.
Gonz lez works with a small sewing team, producing about 100 items every two to three months, and he says these products can be sold quickly because of pre-sale and high market demand.
The Rius series also includes accessories, jewelry priced at about 40 to 50 Pesos, and handbags priced at 80 to 90 pesos.
Such pricing seems reasonable or even cheap for consumers in the European and American markets, but according to the World Bank estimates, the per capita GDP of Cuba is about $6000, and such a price is unattainable for most Cubans.
The target group of fashion entrepreneurs is the minority consumers in the country. They can identify at least follow the trend of international luxury brands, and these international brands are limited in access to channels, information and purchase prices.
"For example, it's harder to watch the latest fashion show online.
One hundred percent, it is also difficult to understand the information in time.
But many people will try their best to do it, though this is also a minority group in general.
Rius explains.
According to a 2015 report by the FreedomHouse, the United States human rights agency, despite the fact that up to 30% of Cubans can visit intranets under government supervision, only a small number of them can access the global Internet.
{page_break}
Decades of isolated blockade also produced cultural differences, which made some fashion entrepreneurs more difficult. But for others, this is a chance to survive in the tight and underdeveloped fashion industry in Cuba.
JuanCarlosUrquiola, a model, trained a model in his LaAcademiadeModelajedeActuar school.
In addition to training students to walk or pose or to wear skirts or suits, a large part of them is to teach them the correct way to do things and tell them that the world of fashion is different.
Once you enter the world, everything will change, and they will not think like their own friends.
Urquiola said he was also responsible for the FIMAE sponsored by the Cuban government sponsored fashion, furniture and interior decoration industry conference, which was held in Havana in June each year.
The awakening of brand awareness
"Despite all these recent changes, people sometimes think that Cubans and Cubans are isolated outside the world, which is wrong," said Gonz lez, who believes that affordable multinational brands will have a bright future here.
Mango, Benetton, Zara and other fast fashion brands are more recognizable because they can be purchased in state stores and apparently through intermediaries.
Meanwhile, small traders in LaCuevita, the most famous black market in Havana, have started selling brand clothes.
Young consumers are also susceptible to Cuban rappers and baseball players wearing designer costumes.
"Those singers who play Reget n style music can earn a lot of money and travel abroad, which is a good example for many young people.
These stars go out to buy Gucci, D&G and Armani, and young people feel that they will dress very much.
So many people can recognize these brands. "
Rius said.
"ElPaquete", which means "package", is a unique phenomenon in the recent Cuban society. The brand can enhance its popularity in Cuba through entertainment programs.
In Cuba, as long as the monthly payment of the equivalent of 2 to 5 dollars, can receive a foreign television program, drama, film and fashion magazines in the United States U disk.
Although it is illegal to subscribe to such packages, the government has always turned a blind eye to it. It has been estimated that nearly 70% of Cubans use this service.
HugoCancio, a Cuban American entrepreneur, founded FuegoEnterprises and OnCuba, two media companies with extensive domestic branches.
He believes that ElPaquete marks a tidal wave of change in Cuban society.
"Cubans...
Now we begin to know how people dress up abroad, and are beginning to worry about how to improve their personal image.
So now, if there are family members who want to bring gifts from abroad, they may now say...
Bring me some CalvinKlein jeans or something Gucci.
Cancio explains.
The "new Cuba" in the Cancio description is made up of private enterprises, restaurants and bars. The vast majority come from overseas Cuban expatriates, overseas returnees or relatives who have fled Cuba and made their home in Miami.
In this new business climate, Vargas, Rius and Gonz lez are also capable of building small and strong businesses, though there are still many obstacles to be faced.
Continuous progress also depends on foreign investment, market freedom, wage increase, retail and infrastructure development and economic growth, but none of them is clear in this new Cuba.
The Cuban leader, Raul Castro (Ra lCastro), is expected to step down in 2018, not only to make the pace of domestic reform more complex, but also to complicate the complex and changing relationship between Cuba and the United States and the halo effect between international allies.
"I don't know how these changes in relations with the United States will develop," Rius said. "We may be able to expect some information and ideas to communicate. I really don't know."
As the authors of the BCG report conclude, Cuba's market development is "curious" but far from enough to bring about "significant business opportunities", but this has not weakened the confidence of Cuban optimistic entrepreneurs of Rius, Gonz lez and Vargas.
What they are going to witness is that after decades, the world is excited for the first time to do business with their motherland.
- Related reading

Pakistan Is Expected To Catch Up With The Rising Cost Of China'S Apparel Industry And Become A Big Garment Producer.
|- Show show | Hunan Fashion Fair, Su Bai Is The Champion.
- News Republic | In Order To Ensure The Quality Of Ready To Wear Clothes, The Children Of The Time Box Are Escorted By Many Links.
- Footwear industry dynamics | New York Brand Steve Madden Launches Brand New Shoes, Naked Copy?
- Fashion shoes | Nike Air Tailwind 79 Shoes Orange Orange New Color Comes Out, Retro OG Fan
- Bullshit | Herschel Supply 2019 New Winter Luggage Series On Sale
- Market trend | Crude Oil Explosion In Iran Oil Tanker Is Expected To Skyrocket. Chemical Fiber Raw Materials Will Probably Increase.
- Fashion shoes | Grey Nike Air Force 1 Must Not Be Missed!
- Popular color | Popular Color Release: Autumn Forest Group Green, You Win A Lot!
- Daily headlines | Quality Bulletin: 40 Batches Of Samples Of Textile And Garment Products In Hainan Province Are Unqualified, 1 Batches.
- Market trend | ICE Cotton Slipped, Investors Are More Concerned About The Progress Of Sino US Trade Negotiations
- He Was Appointed As The Olympic Business School Of The Olympic Business School.
- Lin Congying: The Pformation Of Traditional Enterprises Should Return To The Essence Of Commerce.
- The Sale Of Rayon Grey Fabric Market Is Rising And Prices Are Stable.
- Gong Li Demonstrates White Shirt Collocation To Teach You How To Get Out Of The Goddess Fan.
- Physical Stores Enter The Era Of Intensive Cultivation
- Dahongmen Will Carry Out Overall Urban Renovation Work.
- The Sixteenth China (Qingdao) International Fashion Week Opens In Oriental Fashion Center.
- Luxury Tod' S Performance Decline Plan Focus On Leather Products Development
- U.S. Department Of Messi'S First Quarter Revenue Fell 7.4%
- Gong Li'S Domineering Appearance In Cannes Red Carpet Is All The Queen'S Fan.