Info age boost for Nepal’s pashmina

Although one of Nepal’s best-known exports, the success of the pashmina industry unravelled in recent years. From a peak of Rs5 billion in 2000-1, exports fell to Rs1.8 billion in 2004-5 because of a surge in cheap counterfeit, lack of processing facilities, shortage of skilled labour, over-production and under-cutting.

The launch of ‘Chyangra Pashmina’ brand has helped the industry recover slightly, with exports earning Rs2.2billion in 2017-18. But there is another tool that could revive Nepal’s fine wool product and boost exports: open data.

Information that can be freely used, re-used and redistributed by anyone for any purpose is called open data. The information can be used to innovate, improve business efficiencies and performance. In Nepal, the availability and use of open data has been restricted because it relies heavily on government websites. Still, private businesses have slowly started using open data to identify customers, pricing and assist in product development.

Yet most businesses involved in the pashmina industry still restrict themselves to using internal data, for example, analysing past years’ revenues and expenses to set targets for following years, when they could be doing much more.

Producers could use data on imports of processed raw materials and exports of finished goods to set specific financial targets. Through data released by the Department of Customs or the Trade and Export Promotion Centre, producers could find niches for items that are most exported and generate more revenue. All this information can help them invest time and effort where it is more profitable, increasing organisational efficiency.

The pashmina sector could also take advantage of such data to understand markets of importing countries, including trends, pricing style and seasonal demands, which they can use to better respond to those countries’ needs.

Despite the industry’s shortcomings, Nepali pashmina still enjoys a strong international reputation and a variety of pashmina items, such as shawls, mufflers, scarves, blankets and sweaters, are exported to over 60 countries.

Hari Chandra Aryal of the Nepal Pashmina Industries Association (NPIA) notes: “We have taken steps to start using from open data and developed a tracking system that includes labels with a bar codes and a hologram that can be scanned, enabling suppliers to track exports.”

However, Aryal admits that the database is not being updated as employees either overlook the task or are too busy to update details of each sale. The NPIA could also use data to tackle the shortage of skilled labour by better understanding their employees’ strengths and weaknesses, then organising targeted training to address workers’ skills gaps.

According to research by FACTS Research and Analytics, 68% of businesses in Nepal believe that better access to government data can help them identify new customers. Likewise, 61% believed data could help them do market research, 59% said the information could be used to develop new products, and 49% make better pricing decisions.

A sustained commitment is required from businesses that wish to profit fully from open data. Despite demonstrable benefits of investment in data sharing, stakeholders in Nepal’s pashmina industry are not investing in awareness and application. It is time to change that.

Aakriti Shrestha is researcher at FACTS Research & Analytics.