A SUSTAINABLE BUSINESS
MODEL FOR A
VULNERABLE COASTAL
COMMUNITY
Maureen Woodrow, Ph.D.
Herbert Bown, P.Eng., O.C.
STAGES AND STORES
Change Islands, NL
COMMUNITY VULNERABILITY
Maureen Woodrow
Carleton University
Ottawa, ON
and
A SUSTAINABLE BUSINESS
Herb Bown
IDON EAST Corporation
St. John’s, NL
OVERVIEW
• Understanding Vulnerability
• Circumstances of Coastal Communities
• Keys to Local Solutions
• People and Community Strengths
• Challenges and Risks
• Opportunities for the Future
• Lessons Learned
UNDERSTANDING
VULNERABILITY
Vulnerability is:
Capacity of communities to anticipate,
cope with, resist and recover from the
impacts of environmental change
(Vogel 1998)
Decreasing coping capacity
Coping
Capacity
• Social
• Economic
• Political
Envir
Stress
• Hazards
• Resource
Depletion
Increasing Environmental Stress
CIRCUMSTANCES OF COASTAL
COMMUNITIES: 1992-2003
•
•
•
•
•
Cod Fishery Collapse
Fishing Moratorium
Employment Base Decline
Out Migration
Economic and Social Vulnerability
Peaks
THE COMMUNITY OF
CHANGE ISLANDS
A COMMUNITY IN THE NORTH ATLANTIC
KEYS TO LOCAL SOLUTIONS
The Local Context:
• Building Trust
• Understanding the Mindset
• Re-inforcing Sense of Place
PLACE
Scenes in the Main Tickle of Change Islands
PLACE
Historic Churches and Homes of Change Islands
FISHING HERITAGE
Scenes of the Fishing Heritage of Change Islands
FISHING HERITAGE
Scenes of the Fishing Heritage of Change Islands
PEOPLE AND COMMUNITY
STRENGTHS
• Strong tradition of hard work and overcoming
•
•
•
•
difficulties
A long/strong history of traditional skills (knitting,
woodworking, rug making, etc.)
Tradition independent work ethic and
entrepreneurship of local fishermen
Change Islands fishing heritage well preserved
(over 200 stages and stores)
The community has a tremendous opportunity in
tourism – in adventure tours and learning
vacations
PEOPLE AND COMMUNITY STRENGTHS
Community Infrastructure and Traditional Skills
PEOPLE AND COMMUNITY STRENGTHS
Change Islands – Tourism and Attractions
CHALLENGES
AND RISKS
•
•
•
•
On-going youth out-migration and aging population
Employment reduction in the fisheries
Declining enrolment in the public school
Difficulties in maintaining and increasing local public
infrastructure
Population decreasing (1901 - 1,067) to (360 in 2001)
•
• Government rules, regulations and policies favour
•
urban areas
General lack of confidence by the residents in the
future of the town
POPULATION HISTORIC DATA
CHANGE ISLANDS
1000
900
800
Population
700
600
500
400
300
200
100
0
1940
1950
1960
1970
1980
Year
1990
2000
2010
COMPARISON OF AGE STRUCTURES (CHANGE ISLANDS AND NL)
30%
29.6%
CI (% age)
NL (% age)
25.0%
25%
Percentage
20%
18.1%
16.2% 16.7%
15%
12.5%
10.3%
9.7%
10%
8.3% 7.7%
8.3%
6.9%
6.6%
6.9%
5.4%
4.8%
4.2%
5%
2.8%
0%
Age 0-4
Age 5-14
Age 15-19
Age 20-24
Age 25-44
Age Groups
Age 45-54
Age 55-64
Age 65-74
Age 75 &
over
OPPORTUNITIES
FOR THE FUTURE
• New fish species introduced to the local plant
• Designation of the town as a Registered Heritage District
• The Stages and Stores Heritage Foundation – master plan
•
•
•
for restoration of the 200 stages and stores
Build on the extensive historic fishing heritage to increase
tourism (specialized inns, adventure tours, learning
vacations, special events, etc.)
Opportunities in craft manufacturing coupling local heritage
skills with modern technology and global marketing
techniques
Design future business ventures to build on the tradition
independent work ethic and entrepreneurship of local
fishermen
LESSONS LEARNED
• Locally made solutions
• Link the local to the outside
• Long-term re-investment
• Multi-pronged strategy
STAGES AND STORES, Inc.
OVERVIEW
• The Company
• Business History
• Products And Services
• Marketing Strategy
• Challenges And Risks
• Business History
• Contact Information
THE COMPANY
VISION AND MISSION STATEMENT
• Establish and maintain itself as the premier
source of artisan products from the Change
Islands – Fogo – Twillingate area and one of
the leading traditional wholesale suppliers of
Newfoundland and Labrador arts and crafts
• Provide a first-class Internet e-Commerce and
North American wholesale/merchandizing
capability, serving the needs of our
Newfoundland & Labrador artisans and their
communities
BUSINESS HISTORY
BUSINESS ACTIVITIES AND DATES
DESCRIPTION
COMMENTS
STATUS
Incorporate Stages and Stores, Inc. & register Trade-mark
Incorporation in NL
√
2001
Develop website (www.StagesandStores.com)
1st Phase completed 2001
On-going improvements
√
2001
Negotiate/incorporate Canada Post eParcel/eStores merchant
system
eParcel and eStores system
incorporated into website
√
2001
Hire Product Managers for the 4 product lines
Manager hired since 2001
√
2001
Arrange to sell its products retail in Change Islands
Selling at the General Store and at
local Craft store
√
2002
Establish agreements with artisans
24 agreements signed to date
√ 2001-2-3
Secure agreements with retailers in Newfoundland, Canada and
USA
37 Agreements: 19 in NL, 16 in
Canada, 2 in USA
√ 2001-2-3
Obtain initial investment financing from owners
Initial investment in place
√ 2001-2-3
Obtain matching investment from government sources
Sell on eBay – The World's Online Marketplace
Completed
On-going – Very successful
√ 2001-2-3
√ 2001-2-3
Add Wholesale ordering capability to Website
(www.StagesandStores.com)
Completed
√
Add new items to product lines
New additions to fused glass,
canvas mat & woolen apparel
√ 2002-3
2003
PRODUCTS AND SERVICES
HIGH QUALITY HANDCRAFTED WARES
Steeped in Time-honoured Traditions
• Canvas Mats – A revival of the eighteenth
century custom of making floor mats (floor
cloths) from old discarded canvas sails from
fishing schooners, oil paints and varnish
• Fused Glass Designs – Beautifully kilnfired stained glass suncatchers, brooches and
magnets epitomizing local marine, avian and
wildlife themes
• Woolen Apparel – Hand-knitted apparel in
traditional and modern multi-colour designs
• Fine Art – Works of art (paintings, posters,
photographs, etc.) emphasizing outport
themes
PRODUCTS AND SERVICES
Local Products and Local Workers
MARKETING STRATEGY
(Page 1)
Stages and Stores™, Inc.
– key target market segments:
• Tourists/visitors/local area residents in Change
Islands, NL
• Tourists/visitors/residents purchasing at retail
outlets across Newfoundland & Labrador
• Tourists/visitors/residents purchasing in Ottawa,
across Canada, the USA, and internationally
• Purchasers at our online e-Commerce arts and
crafts emporium (StagesandStores.com) eBay
and targeted special interest groups (birding
societies, specialty stores, etc.) over Internet
MARKETING STRATEGY
Establish Local Markets:
Tourists on Change Islands
MARKETING STRATEGY
(Page 2)
PROJECTED SALES DISTRIBUTION
2001
(%)
2002
(%)
2003
(%)
(1) Tourists/visitors/local area residents in
Change Islands
15
10
5
(2) Tourists/visitors/residents purchasing at
retail outlets across Newfoundland & Labrador
40
35
30
(3) Tourists/visitors/residents purchasing in
Ottawa and across Canada, the USA, and
internationally
10
15
20
(4) Purchasers at our online E-Commerce arts
& crafts emporium website
(www.stagesandstores.com), eBay and
targeted special interest groups over Internet
35
40
45
MARKET SEGMENT
We project a decrease in % sales in Newfoundland market segments (1) and (2) and plan
for an increase in % sales in market segments (3) and (4) that are outside Newfoundland
MARKETING STRATEGY
Extending Market Reach:
Wholesaling to the World
CHALLENGES AND RISKS
Extending Market Reach:
Internet and e-Commerce
CHALLENGES AND RISKS
• Lower Market Demand For Our Products –
our 4 key market segments including worldwide
Internet e-Commerce and eBay activities helps to
alleviate this risk
• Supply Of Product – do not foresee any
problems in securing additional agreements given the
level and number of talented people and the high level
of unemployment in the area
• Acquiring The Required Investment
Financing For Growth – current owners have
make all required investment to date with some
contribution from various provincial agencies.
Additional investment will be required over next 3
years with planned contribution from federal sources.
ACHIEVEMENTS TO DATE
• Headquarters And Craft Production – in the historic Town
•
•
•
•
of Change Islands
Unique And Traditional Hand Crafted Wares – 4 unique
product lines established
Wholesale distribution – locally, regionally, Canada-wide
and internationally
Internet based e-Commerce – Arts and Crafts Emporium
(www.StagesandStores.com)
Successfully selling on eBay – The World's Online
Marketplace
Attended craft shows – locally, regionally and Canada-wide
•
• Established a retail network – 37 Agreements: 19 in NL, 16
•
in Canada, 2 in USA
Contributing financially – to the mission of the Stages and
Stores Heritage Foundation
ACHIEVEMENTS TO DATE
Re-investing in the Community: Activities of the
Stages and Stores Heritage Foundation
FUTURE PLANS
• Expand Wholesale Marketing Activities across
Canada and the USA (2003)
• Extend The e-Commerce Facility to provide online
worldwide ordering for retailers (2003)
• Obtain/Construct A Manufacturing/Office/Retail
Facility in Change Islands (2003-2004)
• Develop Specifically Targeted vertical marketing
opportunities over the Internet (2003)
• Extend The Fused Glass Product Line to address
up-skill/higher-priced fine art markets (2003-2004)
• Increase On-going Support to the Stages and Stores
Heritage Foundation (2003-2005)
THE STAGES AND STORES
HERITAGE FOUNDATION
OVERVIEW
• Philosophy
• Objectives
• Community Fishing Heritage
• Achievements To Date
• Future Plans
PHILOSOPHY
The Foundation believes in the:
• Traditions and values of the Newfoundland &
Labrador rural and outport way of life,
• The creativity and resourcefulness of the
people, and
• The maintenance and restoration of both the
cultural and physical expressions of the
community.
OBJECTIVES
Our main objective is:
• To preserve and promote the unique fishing heritage
buildings of one of the last picturesque Newfoundland
fishing outport communities.
This is achieved primarily:
• By the restoration of selected stages and stores located
throughout the community, and
• By the arrangement of lectures and discussions,
publications of papers, pamphlets or books, the
preservation of records, and any other means that may
be deemed appropriate.
COMMUNITY FISHING
HERITAGE
Change Islands is:
• An artist’s paradise rich in geologic features and
historical architecture, with salt box houses, tidy
gardens and red ochre fishing stages and stores
that hug its charming coves
• Home of the Squid Jiggin’ Ground, the
Newfoundland cod trap, and a historic fishing
heritage
• Rich in heritage buildings and contains
approximately 200 stages and stores many of
which are still in use
This heritage must be preserved:
COMMUNITY FISHING HERITAGE
Example of Heritage Buildings in Change Islands:
ACHIEVEMENTS TO DATE
(page 1)
Specific preservation/restoration efforts:
•
•
•
•
•
•
Sam Smart's Fishing Stage (2000)
Sam Smart's Root Cellar (2001
John Whitt's Fishing Stage (2002)
Sam Waterman's Outhouse (2002)
Walter Torraville’s Fishing Stage (2003)
Destruction Prevention (on-going)
ACHIEVEMENTS TO DATE
(page 2)
Support for funding preservation/restoration
efforts and promotion of the Foundation
• Funding was made available in 2002 to the Stages and
Stores Heritage Foundation through the Fisheries Heritage
Preservation Program (FHPP) of the Heritage Foundation of
Newfoundland and Labrador to restore John Whitt's Fishing
Stage as an important part of the province's fisheries history
• The Stages and Stores Heritage Foundation supports the
mandate of FHPP in its restorations efforts across
Newfoundland & Labrador
• Promotion of the Foundation within the community, with
funding organizations, with provincial government
departments/agencies and with the federal government
departments /agencies
ACHIEVEMENTS TO DATE
(page 2-1)
Specific preservation/restoration efforts:
Alex Scammell's Stage - Before
Sam Smart’s Fishing Stage – Before
Alex Scammell's Stage - After
Sam Smart’s Fishing Stage – After
John Whitt’s Fishing Stage – Before
John Whitt’s Fishing Stage – After
ACHIEVEMENTS TO DATE
(page 2-2)
Specific preservation/restoration efforts:
Sam Waterman's Outhouse – Before
Sam Waterman's Outhouse - After
Sam Smart's Root Cellar – Before
Sam Smart's Root Cellar– After
Walter Torraville's Stage – Before
Walter Torraville's Stage– After
FUTURE PLANS
• Specific near-term preservation/restoration efforts:
• Walter Torraville’s Stage/Store in the main tickle
• The reconstruction of Sam Smart’s Store on Diamond Point Road
• Additional stages pending support of recent funding applications
• Seeking new near-term funding to enable on-going
restoration of stages, stores, wharves, flakes and root/sod
cellars on the island
• Development of a multi-year master plan proposal to
preserve and restore all of the 200 stages and stores on
Change Islands
• Support an initiative of the Ocean Management Research
Network to present a workshop entitled Vulnerability in
Coastal Communities: Adaptations to Change and Planning
for the Future on 24-26 August, 2003 Change Islands, NL
FUTURE PLANS
Specific Near-term Preservation/Restoration Efforts:
FUTURE PLANS
• Specific near-term preservation/restoration efforts:
• Walter Torraville’s Stage/Store in the main tickle
• The reconstruction of Sam Smart’s Store on Diamond Point Road
• Additional stages pending support of recent funding applications
• Seeking new near-term funding to enable on-going
restoration of stages, stores, wharves, flakes and root/sod
cellars on the island
• Development of a multi-year master plan proposal to
preserve and restore all of the 200 stages and stores on
Change Islands
• Support an initiative of the Ocean Management Research
Network to present a workshop entitled Vulnerability in
Coastal Communities: Adaptations to Change and Planning
for the Future on 24-26 August, 2003 Change Islands, NL