Monthly Archives: December 2020

It was a journey that started as a hobby for Semhal Guesh. During her university training as an architect, she started making bracelets from scraps of leather, which later led her to create Kabana Leather, a company that produces a wide range of bags primarily targeting overseas markets. .

“My hobby turned into a business when I employed someone and saw the impact it was having on their life. I left my job in an architectural firm to run Kabana full time, ”she said. How we did it in Africa.

Guesh produces under his own brand and also has a division that produces for international labels. Since the company was founded in 2017, it has focused on the international market. However, following the outbreak of the coronavirus pandemic, the company made adjustments to focus on the local market in order to mitigate the effect of the pandemic on its business operations.

In addition to producing leather bags, Kabana Leather now produces PPE and other prevention materials with support from the MasterCard Foundation, albeit on a temporary basis.

The bulk of its products are sold in the United States and Europe, and a small shipment is sold in Rwanda and South Africa. Guesh said his brand tries to have launches twice a year. “Design begins with a mood board with colors, material concepts and design. Usually I work with my team to develop models and designs. We prepare samples and get feedback on them. We then manufacture our selection for launches, ”said Guesh.

The architect-turned-manufacturer attributes the success of her business to her niche of locally made functional bags instead of focusing on seasonal or trendy products. “We are focused on training and investing in our team, so we have close to zero staff turnover,” she said. In addition, 80 percent of the workforce are women.

In addition, Guesh’s business has grown significantly thanks to recommendations from satisfied customers. “We haven’t spent a lot on marketing. We have also had some success at trade shows, ”she added.

However, there are challenges that she sometimes faces. One of the challenges is finding quality leather and accessories for the bags. She also has difficulty accessing finance, which limits her working capital and makes it difficult to transition from a small to medium-sized business or expand operations.

The effect of COVID-19 was another challenge she had to face head on. At first, it laid off some of its temporary staff, but with the support of the Mastercard Foundation, the company recovered and saved a few workers.

Guesh, in his spare time, trains young women and girls living in the streets of the Ethiopian capital, Addis Ababa. These young women, many of whom are refugees from South Sudan and Somalia, join Guesh in his business. Others are starting their own businesses, she said in an interview. “Nothing is more satisfying to me than seeing former employees or the women I trained spread their own wings and start their own businesses,” said Guesh, who grew up hearing a phrase many young people said. girls don’t have, “You can do whatever you want.” want to.”

We are talking to Semhal Guesh, CEO of Kabana Leather, an Ethiopian company that produces a variety of handmade leather products.

1. How did you come up with the idea of ​​creating Kabana Leather?

The concept was born while I was making bracelets from scrap leather in college. After two or three failed attempts to run other businesses, I created Kabana in 2017.

At first it was just a hobby. I am an architect by profession and I love design. My passion for design led me to make leather bags. My hobby turned into a business when I employed someone and saw the impact it was having on their life. I left my job in an architectural firm to run Kabana full time.

We manufacture products under our own Kabana brand and also have a contract manufacturing division that manufactures items for international labels. We were 100% focused on the export market until Covid-19 hit and it tested us economically. Subsequently, our target market partly shifted to the local market. Our customers are people and companies who source ethically produced products.

2. Give us an overview of your product line.

We have tote bags, gym bags, wallets and work bags.

We are currently also producing PPE products, such as face masks and scrubs, with support from the Mastercard Foundation, but this is temporary.

3. Where do you get your raw materials?

Almost 92% of our raw materials are of local origin; these include sheep and goat leather, textiles and canvas. The remaining 8% of raw materials are imported from Egypt, the United States and Taiwan, including zippers, buckles and accessories. We source leather directly from factories and produce it to our color and texture specifications. We choose these factories based on our requirements for sustainability, environmental footprint and child labor-free practices.

Leather used for the manufacture of bags and wallets.

4. Describe your product development process.

For our Kabana brand, we try to have launches twice a year. Design begins with a moodboard with colors, material concepts and design. Usually I work with my team to develop models and designs. We prepare samples and get feedback on them. We then manufacture our selection for launches.

On the outsourced manufacturing side, we get designs from buyers who want products made in Ethiopia. We make samples using their designs with potential alternatives. The approval process typically takes several iterations and discussions; once they approve a sample, we proceed to manufacture according to the purchase orders.

5. Where do you sell your products?

Currently most of our sales are in the United States and we send small shipments to Europe, but it hasn’t grown as much as we would like. We also sell small quantities to Rwanda and South Africa.

Employees of the Kabana leather production plant.

6. Who are your main competitors?

On the contract manufacturing side, we compete with Indian and Mexican manufacturers for the US market. At the level of our own label, we are in competition with other local brands which export to the same markets.

7. Identify the factors that led to your success.

We focus on training and investing in our team, so we have close to zero staff turnover. Women represent more than 80% of the team. We focus on the consistency and quality of our products, which has driven the brand forward. We don’t focus on seasonal or trendy products, but rather on functional bags made locally and sold around the world.

8. What has been the most successful form of marketing?

Much of our marketing relies on word of mouth from satisfied customers who recommend Kabana to others. We haven’t spent a lot on marketing. We have also had some success at trade shows.

A Kabana leather bag.

9. What are the biggest challenges to being successful in your industry?

Our biggest challenge is finding quality leather and accessories that match the bags.

The business environment is tough for startups and entrepreneurs like me. We have difficulty accessing financing, which limits our working capital and makes it difficult to transition from a small to medium-sized business or expand operations.

10. Tell us about one of the most difficult situations you have found yourself in as a business owner.

The Covid-19 was a hardship for me, my team and the Kabana brand. We had major setbacks and almost closed shop; we have struggled like the majority of businesses around the world. This has been the toughest year as our customers have canceled orders and once operations are back in business all canceled orders have been shipped with significant discounts. I was forced to let a few of my temporary workers go and reuse the factory to produce masks and personal protective equipment, which we have never done before as we are a leather company. Fortunately, with the support of the Mastercard Foundation, this has helped us get back on our feet and save the jobs of our employees.

Kabana Leather CEO contact details

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