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FEDEXCORPORATIONVicePresidentCorporateCommunicationsNEILGIBSONDirectorCitizenshipReputationCINDYCONNERManagerReputationManagementNATASHIAGREGOIRECommunicationsAdvisorTRACEESMITHStaffPhotographersSTEVECOOKBURTPITTMANContactusaccessfedex.comTogetafreesubscriptionandadditionalAccesscontentgotofedex.comaccess.AccessisproducedbytheFedExCorporationandHanleyWoodMinneapolisMinn.2013FEDEXCORPORATIONAllrightsreserved.HANLEYWOODExecutiveEditorROBERTGIBSONStrategicDirectorBRYANIWAMOTOExecutiveArtDirectorSANDYGIRARDProgramDirectorLIZSCHINDLERProductionDirectorPAMMUNDSTOCKProjectManagerKELLIESCHMIDTaccessmore.Getglobaltradenewsandanalysisandsignupforfreeemailalertsatfedex.comaccess. ACCESS1contentsACCESSVolume72013departments22SUSTAINABILITYTOATEALucknowIndiabasedOrganicIndiaisbuildingaholisticpathtoglobalgrowthonelocalarmatatime.20ADRESSMAKERSPATTERNFORGLOBALSUCCESSFromGleetoGlamourUniqueVintageishiphotandhiring.12SCRABBLESSILvERSCREENSTheBestSupportingActorinthemoviebusinessmightbethisscrappyglobalstart-up.CoverphotographybyJaySilverman2ACCESSOUTLOOKIspolicykeepingpacewithinnovationFedExChairmanPresidentandCEOFredSmithandthreeglobaltradeexpertsweighin.4ACCESS20Discover20othemostintriguingpoliciesplacesandideasdefningglobalcommercetoday.1015MINUTESwIThWIREDco-ounderKevinKellyrevealsthecomplexrelationshipbetweenaccesstotechnologyandstandardoliving.28REGIONSPOTLIGhTSouthKoreaisameccaorbusinessownerslookingtoimportorexportintothisast-growingconsumer-orientedculture. 2ACCESSACCESSOUTLOOKBYFREDERICKW.SMITHWelcometoAccessIllustrationsbyRandyGlassPolicyatthePaceofInnovationIntodaysslow-growthbusinessenvironmentaccesstoglobalmarketshasneverbeenmoreimportantnoritsbeneftsmoreproound.AskKrishanGuptaaCEOoOrganicIndia.Guptaarecentlyrejuvenatedtheonce-strugglingIndianbrandbyrelaunchingitintheglobalmarketplace.Withbusinessthrivinghesabletoprovidehigherwagestothearmerswhogrowteaandherbsorhim.Guptaasevenestablishedanewoundationundedby5percentothecompanysprofts.TodaytheOrganicIndiaFoundationisprovidingreehealthcaretotheverysamevillagecommunitiesthatsupporthisbusiness.ANEEDFORSPEEDGoodthingshappenwhenweconnectpeopleandpossibilitiesaroundtheworld.BusinesspeoplelikeGuptaatapnewmarketsgrowtheirbusinessandhirepeople.Theirsuccessiscontagious.Jobshelpboostthelocaleconomyinjectingcommunitieswithhopeandvitality.WecallthistheAccessEectanditsaworldwidestory.Inthelast50yearsglobaltradevolumeshaveincreased16times.TheriseingloballivingstandardsasmeasuredbyGDPpercapitaisnow350percenthigherthanitwasin1963.Todaytheworldischangingasterthaneverandtradepoliciesmustkeepupwiththetimes.Technologycontinuestorebootthewayweliveanddobusiness.Tradeinserviceshasbecomeoneothemostdynamicsectorsotheglobaleconomybutitstillacesbarriersthatlockoutorconstrainbusiness.TRADEOPPORTUNITYFedExsupportsree-tradeagreementsFTAsbecausetheyempowerbusinessestobetteraccessgrowingglobalmarkets.Thistranslatesintobusinessgrowtheconomicgrowthjobshigherlivingstandardsandamoreefcientpipelineorgoods.DespiteconcernswithglobalizationthebeneftsotradearerealasdocumentedinarecentstudybyMatthewSlaughterassociatedeanCenterorGlobalBusinessandGovernmentatDartmouthsTuckSchooloBusiness.GlobalgrowthandglobalsupplynetworkstendtocreateAmericanjobs.Annualincomeisatleast1trillionhigherthanitwouldhavebeenabsentdecadesotradeandinvestmentliberalizationSlaughtersays.GloballyengagedU.S.companiesalsocreatejobsinotherAmericancompaniesincludingsmall-businesssuppliers.TheU.S.parentcompanyothetypicalmultinationalcompanybuysmorethan3billioningoods ArewegoingbackwardontradepolicyIseeamismatchbetweenveryrapidtechnologicalinnovationandslow-movingtradenegotiations.Thereistalkaboutanewsysteminwhichanynewgoodsandproductswillbereeotradebarriersunlessnegotiatedotherwise.ItsabigissueintheTrans-PacicPartnershipnegotiationshowcanpolicyandregulationbemoreresponsivetothepaceoinnovationRightnowpolicyremainswellbehindthemarket.EDWARDALDENBernardL.SchwartzSeniorFellowCouncilonForeignRelationsNotonlyhastradegrowthsloweddowntradepolicyliberalizationhastrulysloweddown.Onthedigitalsideweregoingbackward.Countriesareincreasinglyputtinginreactionaryshort-sightedlegislationonhowbusinessescanusedatafowsandserversacrossborders.Tocombatthiscountriesneedtopresumethatdatacanfowbetweencompaniesunlessthereisadangeronationalsecurityorprivacy.GARYHUFBAUERReginaldJonesSeniorFellowPetersonInstituteforInternationalEconomicsItmaybeboomingintheU.S.butglobale-commerceishighlyundeveloped.Betweencountriesitshinderedbyarangeobarriersincludingcustomsdeminimuslevelsvaluationceilingorgoods.Thiscanmakeanexchangeunviableiyouwanttopurchasea15productandtheproducthastogothroughacustomsprocess.Trustedtraderprogramsthatratehowmuchthebuyerorselleristrustedcanhelpglobale-commerceworkbuttheseprogramsmustbecompatibleacrosscountries.Andseamlesstransportationbetweenbuyerandsellerisessential.JOSHMELTZERFellowinGlobalEconomyandDevelopmentBrookingsInstitutionACCESS3andservicesrommorethan6000Americansmallbusinesses.Iwanttopointoutthatglobaltradeisdenedbymuchmorethanthefowogoodsacrossborders.Wehaventcomeclosetorealizingtheullpotentialotradeinserviceswhichincludeconsultingnanceretailinormationtechnologyandmore.Worldwideservicesmakeupabout70percentoeconomicoutputandjobs.FedExispleasedtoseetheU.S.theEUJapanand18othereconomiesmakeseriouseortsthisyeartonegotiateanInternationalServicesAgreementISAinGenevapage6.ThecaseiscompellingGrowthintheservicesectorgoeshandinhandwithhigherGDPgrowth.Servicesemploymorethan80percentoAmericansanddrivemorethan75percentoGDP.About3millionadditionaljobscouldbecreatedthroughpolicyreormsandotherU.S.servicesinitiatives.EXPORTSCREATEJOBSTradenegotiationsopenedatwo-waystreetbetweentheU.S.andPanamaonOct.312012.Oneotheastest-growingeconomiesinLatinAmericapresentsanewopportunityorU.S.businesses.Tradebarriersandhightarissomeashighas81percentonmanuacturedgoodslikeconstructionequipmentandagriculturalproductshavebeeneliminated.Thatsworthcelebratingbecauseevery1billionoU.S.goodsandservicesexportedlastyearsupportedmorethan5000jobsaccordingtotheU.S.TradeRepresentative.RecentU.S.FTAswithColombiaandSouthKoreaalsorepresenttremendousopportunitiesorbusinesseslargeandsmall.SouthKoreaisthemostcommerciallysignicantU.S.FTAinthelast16yearspage8.OnalargerscaleelevencountriesareworkingtoconcludetheTrans-PacicPartnershippage5.Anagreementcouldsupportthecreationandretentionohigh-qualityjobsathomebyincreasingAmericanexportstoaregionthatrepresentsmorethan40percentoglobaltrade.Wemustcontinuetomakesmartpolicychoicesbuttheymustkeeppacewiththechangesandopportunitiesthataredeningthe21stcentury.Onlythencancompaniesandcommunitiesworldwidereachtheirullpotentialorgrowthandabetterwayolie.A 2013ispoisedtobethemostimportantyearortradesincewell2012.Thereareasmanyexcitingree-tradeagreementsFTAsundernegotiationastherearepowerulnewpactsgoingintoeect.Thestimulus-ueledbuild-outoglobalinrastructureisstillmakinganimpact.Anddigitaltechnologycontinuestoorceustoredefneandevenre-legislatedoingbusinessacrossborders.JoinAccessaswetakeyouonaworldtourosomeothemostintriguingpoliciesplacesandideasdefningglobalcommercetoday.ACCESS20Discover20othemostintriguingpoliciesplacesandideasdefningglobalcommercetoday.4ACCESS 2TheFTATariToolTariandtradedatahavebeencombinedintooneonlinetoolorthefrsttime.UsethenewFTATariToolexport.govftaftatarifftooltoseehowspecicproductsaretreatedunderU.S.andFTApartnertaris.Youcanalsoseewhichtariswillbeappliedandwhenproductswillgoduty-ree.3YossiShefWanttounderstandregionaleconomicdevelopmentGatheraround.WhyhaveRotterdamLosAngelesorevenlandlockedcitiessuchasMemphisorDallasFt.WorthsucceededastransportationandeconomichubswhileothercitieshavenotMITproessorYossiShesnewbookLogisticsClusterslaysitalloutandevenoersaprescriptionorpolicythatcanignitelogistics-clusterdevelopment.ThebenetShearguespersuasivelyissustainablelocalizedjobgrowthespeciallyamonguntrainedworkers.AccessaskedShewhatlogisticsclustershewaswatchingthemostclosely.IyoulookatPanamasve-yearplantheywanttobecomemorethanjustthecanal.ChongqingincentralChinaisanothercitytowatch.AndtheGermangovernmentjustput100millioneurosintoDortmundGermanynorthoCologne.4ChinasMegacityotheFutureInsixyears150majorinrastructureprojectswillcombineninecities.BymergingninecitiesinGuangdongincludingglobalmanuacturinghotbedsGuangzhouandShenzhenChinawillcreatetheworldslargestcityby2018.TheTurnthePearlRiverDeltaIntoOneinitiativewillcreateasinglemanuacturinghubo42millionpeopleourtimesthesizeoNewYorkCityencompassingageographicalareaequivalenttoNewJersey.5GermanInrastructureWhichcountrycanboastthefnestinrastructureintheworldJustsayausgezeichnetAccordingtoa2012surveyo221citiesbyNewYorkbasedconsultingrmMerceritsGermanythatbestexempliesexcellenceininrastructureplanningandengineeringtoppingevenHongKong.WhileSingaporecameinrstoverallGermanydominatedthetopvewithFrankurtMunichandDsseldorallplacing.Mercerssurveymeasuredtraccongestionavailabilityofightsromlocalairportsqualityopublictransportandavailabilityowater.ACCESS5GUANGDONGShenzhenGuangzhouHuizhouDongguanFoshanJiangmenZhuhaiZhaoqingZhongshanCHINA1TheTrans-PacifcPartnershipTPPImportantYoubetcha.ThisFTAinvolvesaregionwithsomeotheworldsmostrobusteconomies.ThishugenegotiationincludestheU.S.CanadaMexicoAustraliaSingaporeandmorewithJapanSouthKoreaandChinaallpotentialadditions.GettingtherulesrightintheTPPissignicantJoshMeltzertellsAccess.MeltzerisaellowinGlobalEconomyandDevelopmentattheBrookingsInstitutionandtheormerrstsecretaryortradepolicyattheAustralianEmbassyinWashingtonD.C.BecausetheseruleswontjustgoverninternationaltradeandinternationalinvestmentamongtheTPPpartiestheypotentiallycouldbeextendedandexpandedtotheAsia-Pacicregionasawhole. 6ACCESSACCESS206InternationalServicesAgreementAccesstomoreservicescanbeagamechangerfortheglobaleconomy.Servicesareattheheartothemoderneconomytheyprovidegoodjobsthatpaywellandareavitalcomponentoeverymanuacturedgood.Manuacturingcompaniesneedefcienttelecomsinsurancefnanceandsotwareservicestosucceed.ThisyeartheU.S.EUJapanand18othereconomieswillmeetinGenevatonegotiateanewinternationalservicesagreementISAthatbreaksdownbarrierstotradeinservices.Thepotentialishuge.TheU.S.istheNo.1exporteroservicesintheworlditexportsmorethansecond-rankedGermanyandthird-rankedGreatBritaincombined.BradJensenoGeorgetownUniversitysMcDonoughSchooloBusinessestimatesthatremovingbarrierstoservicescouldboostU.S.servicesexportsby860billionayeargenerating3millionadditionaljobsintheU.S.7High-SpeedRailHSRFromBeijingtoLondonwithjustonechangeofclothes.ChinaandtheU.K.and17countriesinbetweenarecurrentlynegotiatingtheworldsmostambitiousinternationalHSRnetwork.Whileportionsothenetworkarealreadyonlinehopesaretoullyconnectthenetworkby2022.ThoughHSRrarelycarriesreighttheimpactonbusinesstravelisproound. ACCESS710TheStudyoftheYearGoinggloballiftsmoreboats.Andheresthestudythatprovesit.AmericanCompaniesandGlobalSupplyNetworksbyMatthewSlaughterromDartmouthsTuckSchooloBusinessquantifesthepositiveimpactU.S.-basedmultinationalcorporationshaveonthedomesticeconomy.SlaughtersresearchshowsthatwhenviewedinaggregateasU.S.companiesexpandoverseastheytendtoinvestmorenotlessindomestichiringandRD.Furthermoretheytendtocreateincrementalnewjobswithinsmallerbusinesseswithintheirglobalsupplynetworks.Linktotheullstudyatfedex.comaccess.8Web-ControlledCarsJustlikeinTheJetsons.RosietheRobotnotincluded.WhenAccessaskedWIREDmagazineco-ounderanduturistKevinKellywhatwoulddefneglobaltradeinthenext24monthshedidnthesitate.Ithinkintwoyearswellseecertainpartsohighwaysystemswhereyoucanturnyourcarovertothecomputerwithincertainparametershesays.Web-controlledcarsarealreadylegalinCaliorniaandbothAudiandToyotahavepubliclydemodthetechnology.Thepotentialorcost-savingstobusinessandtheoveralleconomyishuge.By2020theTexasAMTransportationInstituteestimatestheannualcostotrafccongestionintheU.S.toreach133billion.9PredictiveGPSWhoknowsyoubetterthananyoneHintItsnotMom.ThinkoitasFoursquareonsteroids.ResearchersattheUniversityoBirminghamintheU.K.havetakenlocation-basedprogrammingtoawholenewlevelbydevelopinganalgorithmthatusestrackingdatayourphonescombinedwithyourriendsphonestopredictwhereyoullbein24hours.GetthisTheaverageerrorisjust65eet.Employ28.1MAmericansMULTINATIONALCOMPANIESBASEDINTHEU.S.Perform253.8BinRDBuy8BfromU.S.suppliersAnewinternationalservicesagreementcouldmean3millionnewjobsintheU.S.accordingtooneestimate. ACCESS208ACCESS1215NewTradeAgreementsFuelingGrowthThreenewFTAswilleasehurdlestodoingbusinessfromPolandandPanamatopointsbetween.Free-tradeagreementshavebeensignedorenactedallovertheworldinthepast18monthsromAustralia-MalaysiatoCanada-Jordan.Amongthemostsignifcant13theU.S.-SouthKoreaFTAwillmakenearly95percentobilateraltradebetweenthesetwoeconomicsuperpowersduty-reeinthenextfveyears.14TheU.S.-PanamaFTAnewlyineectremoveshundredsotarisorbusinessinbothcountriessomethatwereashighas81percent.And15theEU-SingaporeFTAsettledinDecember2012makesiteasierorEuropeanautomakersandfnancialinstitutionstodobusinesswiththecity-state.11SocialShoppingFriendswhoshoptogetherstaytogether.ThinkoitastheultimateintersectionoPinterestandAmazon.Newhighlycuratedcommunity-drivenshoppingexperiencesareallowingglobalconsumerstoanandollowtastemakersandgainincreasinglyrictionlessanddemocraticaccesstopreviouslyhard-to-fndgoods.ApparelisfrstwhatsnextCheckoutsvpply.comshopstyle.comfit.comandpolyvore.comoratasteowellgoodtaste.EuropeanautomakerswillbeneftwhenSingaporeallowsduty-reeaccessorallimportsromtheEU.Thepactexpectedtobesignedin2013willremovetarisonallEUimportsromSingaporeoverfveyears. ACCESS918BetterLegislatingDataItsoneoftheleastdiscussedmosturgentissuesaffectingtrade.Wantavirtuallycost-reewaytounlockinnovationThatseasyexpertsatmajorpolicyinstitutessayModernizeinternationaltradepolicytokeeppacewithdigitaltechnologyandBigData.IanythingtheresbeenaretrogressionrecentlysaysGaryHubauertheReginaldJonesSeniorFellowatthePetersonInstituteorInternationalEconomics.Countriesareincreasinglyputtinginreactionaryshort-sightedlegislationonhowbusinessescanusedatafowsandserversacrossborders.Hubauersprescriptionistwoold.Weneedinternationaltradepolicythatsharesadenitionoconsumerprivacy.Andbusinessesneedabreak.Itshouldntbethatacorporationhastoproveitsinnocencewhenitsmovingdataandserversacrossborders.Thepresumptionshouldbeintheotherdirectionhesays.17SmartGlassesForgettapeonyourglasses.Trythese.Tonerdsitsanaugmentedrealityhead-mounteddisplayHMD.TotherestousitsGoogleGlasses.Youreyewearwillsoonprovideaccesstoahands-reereal-timeinormationstreamemailsocialmediaandYelpreviewsromaroundtheworldorwhateverbusinessorproductyourelookingat.ItsnotsciencectionbothGoogleandAndroidwereshowingothetechnologyatthe2013ConsumerElectronicsShowinLasVegas.16GlobalGatewayConcentrationItsanincreasinglydiverseglobaleconomyservedbyever-concentratedaircorridors.AlandmarkGlobalGatewaysstudybytheBrookingsInstitutionrevealsthatwhileinternationalpassengerairtravelhasrisendramaticallysince1990doublingintheU.S.thanksinlargeparttoemergingmarketsitstakingplaceinsideincreasinglyconcentratedcorridors.YesWichitaandWarsawaremoreconnectedorbusinesstravelerstodaythan10yearsagobutNewYorkCitystillliesbetween.TosupportglobaltradeacrossallU.S.marketsBrookingssaysederalandlocalpoliciesmustocusmoresupportonexistingmetropolitangateways.20ShanghaiHubExpansionShanghaiPudongInternationalAirportwillbetheworldstopaircargohubby2015.ShanghaiPudongInternationalAirportgoesbythecalllettersPVGbutsoonitmaybeknownasyourbusinesssMVP.TheShanghaiAirportGroupCompanyLimitedSAArecentlyapprovedanexpansionprojectexpectedtoincreasePVGsreight-handlingcapacityto5milliontonsannuallyby2020.FedExisinvesting100millioninitsShanghaihubwhichwillallowittotripleitscapacitythere.A19GlobalStimulusCanadianbankCIBCWorldMarketsestimatesglobalinfrastructurespendingat35trillionoverthenext20years.Thenancialcrisiso2008promptedgovernmentstoundthebiggestglobalbuild-outophysicaleconomicassetsinthehistoryomanaccordingtoTheCollaboratoryorResearchonGlobalProjectsatStanordUniversity.TheonlytimethismuchmoneymovedthisquicklyintotheglobaleconomywasduringWorldWarII.150U.S.500INDIA585CHINAINFRASTRUCTUREBUDGETSINBILLIONSGoogleGlassesphotographybyInocuxTechnologies 10ACCESS15MINUTESWITHKEVINKELLYFEWPEOPLEHAVESPENTMORETIMEthinkingabouttherelationshipbetweentechnologyandhumanprogressthanKevinKelly.Aco-ounderoWIREDmagazineandtheauthoromorethanahal-dozenbest-sellingbooksKellybelievestheiPadwasinmanywaysasinevitableastheBigBang.AccesscaughtupwithhimathisSiliconValleyofce.ACCESSInyournewbookWhatTechnologyWantsyousuggesttechnologyoperatesbyasetofprinciplesthatmakeitsimilartoanevolvingorganism.SowhatdoestechnologyultimatelywantKEVINKELLYItwantsthesamethingthattheevolutionoliewantsincreasedcomplexity.Technologylikelieistendingtowardincreaseddiversity.Itstendingtowardincreasedspecialization.Itstendingtowardincreasedenergydensity.Itstendingtowardincreasedmutualism.IusedthewordwantbutImeanwantinawaythatagrasshopperwantstoeat.Itsnotnecessarilyaconsciousthingitsjustabuilt-intendencyorthatsystem.ACCESSHowdoesthatrelatetoglobalizationTechnologyhasalwaysbeenkeytoraisingourstandardofliving.Itseemsasifdigitaltechnologydoesthisexponentiallyfaster.KKInacertainsenseitsakindotautologybecausewepartlydefnestandardolivingasanincreaseduseotechnology.Imnotusingthewordtechnologylikemostpeopledowhichistodescribesomethingthatwasinventedatertheywereborn.WethinkotheiPhoneastechnologybutocoursetechnologyismuchbroader.ItstheconcretetheRomansinvented.ItsthesteeltheChineseinvented.ItsthematerialsotheIndustrialRevolution.Iwouldevenincludeintangiblethingsthatwehaveinventedwithourmindslikethecalendarlibrarieswriting.Whatweseeovertimeisanincreaseinprogressanincreaseinlivingstandardsanincreaseintheprevalenceotechnologythatisbroughtaboutbyprevioustechnologies.Itscircularinthatsenseanditeedsonitsel.Therehasbeenahopethatwecouldleaprogandbringdigitaltechnologytothedevelopingworldwithoutthemhavingtogothroughanindustrialage.Unortunatelyitdoesntworkthatway.Butthereisaast-ollowingeect.Theintroductionosaycellphonesintoanareathathasverylittletechnologycanhelpacceleratethearrivalonecessarythingslikecleanwaterandroads.Butyoucantliveoncellphonesalone.ACCESSSowhatideasandgovernmentalpoliciescanunleashthispositiveeffectthefastestKKIndevelopingcountriestelecomstendtobeastateindustryregulatedandrunbythegovernmentandnotatallmarket-oriented.Thatsoneothereasonswhytheirresourcesaresoscarce.Andmuchothedevelopingworldstransportationindustryisotenlikethat.Makingthingsmoreopenmoretransparentmoredecentralizedunleashesthenaturaltendenciesotechnologytowardincreasedcomplexitydiversityandspecialization.Itslikenature.Yourelettingtheplantsgrow.Youprotectthemwhentheyreseedlingsandthentheylljusttakeo.AndsoIthinkmanyothebestpolicydecisionsaremovinginthedirectionoopennessanddecentralization.Thereareplentyoproblemsthatmarketorceswillnotsolveontheirown.Thisisnotalibertarianargument.Butwhenweseetechnologybeingconstrictedanopeningupanddecentralizationwillhelpitaccelerate.ACCESSManypeopleassumetechnologyandthenaturalenvironmentareenemies.Youseemtocounterthisview.KKThatsright.Myargumentisthattechnologyisanoutgrowthothesameorcesthatshapedlieandevolutionontheplanet.Theyareromthesamegenealogicalstock.Sotheyarenotinherentlyantagonistic.Butjustaswecanweaponizeanytechnologywecanalsomakeversionsotechnologythataremoreharmultotheenvironment.Orless.Sowecanalwaysmakesomethinggreener.WildWiredWorldWIREDco-founderKevinKellyrevealsthecomplexrelationshipbetweenaccesstotechnologyandstandardofliving.WHATTECHNOLOGYWANTSInthisprovocativebookKevinKellyturnstheconversationabouttechnologyonitsheadbyviewingtechnologyasanaturalsystemanextensionobiologicalevolution.Bymappingthebehaviorolieweparadoxicallygetaglimpseowheretechnologyisheadedorwhatitwants.3WEBSITESKEVINKELLYCANTLIVEWITHOUT1Google.GooglecountsrightIalsolikeGooglemorethanFacebook.2Kottke.org.OneotwoorthreeblogsIgotodaily.3LaughingSquid.Itssortoadigitalculturething.PhotographybyJamieTanaka ACCESSPeoplestillsaythingslikeImgoingtogoandlookthatupontheinternet.ButarentwealwaysonlineatthispointWheredoestheinternetstopandtheso-calledrealworldbeginKKItsaskeuomorphismwhichisaancywordorusingoldtechnologytodescribenewthings.Sowestilltalkaboutdialingthephoneeventhoughtherehasntbeenadialonaphoneinalongtime.Orwesaywereflmingsomethingeventhoughwedontuseflmanymore.Theideaobeingontheinternetmaybesimilar.Thelanguagemaybecarryingonpastitslogicalexpirationdate.Perhapspartothereasonistherehasbeenanexpansionowhatwethinkoastheinternet.Peoplemaynotrealizethatwhentheyretextmessagingtheyreusingtheinternet.WhentheyreSkypingeventhoughitsoundslikeaphonecallitisovertheinternet.Sotheinternethasexpandedtoincludebehaviorsthatwerenotinternet-ishbeore.Butthatspartotheprocessanditmaytakeagenerationbeorelanguagecatchesup.ACCESSItseemsasifwhattechnologywantsisnodifferentfromwhatglobaltradewants.KKThroughouthistoryandineveryculturethatImawareopeoplemovetowardchoicesandopportunities.Inacertainsensethisistrueothelargermovementthroughtheuniverse.ImtryingtoconnecttechnologytothelongjourneyromtheBigBangwhichbeganwithonlyaewparametersandeventuallybecameanentireuniverseopossibilities.Ithinktradeispartothatkindosel-organizationwhichincreasesthepossibilitiesthatinthemselveswillthenunleashuturepossibilitiesdownstream.Thisisoneothereasonswhytradeisgoodandwhyithasdonesomuchgoodintheworld.PeoplelikebiologicalevolutionistRobertWrightbelievethattheprocessoexchangeisreallytheundamentalelementosocietyandprogress.Itendtoagree.Itsalongthreadthatstartedwaybeoreusandwillcontinuewaypastus.AMyargumentisthattechnologyisanoutgrowthofthesameforcesthatshapedlifeandevolutionontheplanet. TherichcolorsandcrispresolutionomanyoyouravoriteBollywoodreleaseslikeSonofSardarshownherearefne-tunedinScrabblesMumbaiscreeningroom.PhotographybyBurtPittman12ACCESS BYROBERTGIBSONLIGHTSCAMERABOLLYWOODTheBestSupportingActorinthemoviebusinessmightbethisscrappyglobalstart-up.ACCESS13 HEREARETWOPRIMARYFORMSOFENTERTAINMENTININDIASunilKhaturiasays.Cricketandthemovies.KhaturiawhoisseniorvicepresidentoMumbai-basedScrabbleEntertainmentPvt.Ltd.issittinginsideaBollywoodscreeningroomthevibrantcolorsothehitflmSonofSardarsplashedacrossanenormousscreenalongonewall.Whilethegameocrickethasntchangedallthatmuchoverthepast200yearsthemoviebusinessisnearlyunrecognizableromjustfveyearsago.Nowhereisthetransor-mationhappeningastertodaythaninemergingmarketssuchasIndiaandtheMiddleEast.AndnooneisbetterabletoexplainwhythanKhaturiaandhiscolleaguesatScrabble.TakeSonofSardarorexample.AsKhaturiaspeakstheflmisshowingonmorethan2000screensaroundtheworldenroutetoanet20millioninitsfrstourweeksoscreeningsnumbersonceunthinkableoraBollywoodrelease.T14ACCESS WHATSTHESECRETGreatactionsequencessurenottomentionpowerulmarketing.Butyoucouldarguethatthetruestarosomanyrecentglobalhitsisthislittlecompanyyouveneverheardountilnownamedonawhimateraboardgame.LetsgobehindthescenesothemoviebusinesstounderstandwhyandwhatmoreexcitingplacetostartthanrighthereinBollywoodThedigitaldivideRemarkablyeventhoughSonofSardarwasaworldwidehitnoteverytheateraroundtheglobewasabletoshowit.AsHollywoodandBollywoodstudioshaveabandonedcumbersomeragilecelluloidprintsordigitalcinemaownersinplacesliketheIndiansubcontinentandtheArabianPeninsulahavebeenchallengedtokeepup.Theprohibitivecostodigitalprojectionsystems50000perscreenandupmakesitincrediblydauntingespeciallyoramily-ownedcinemasinabusinessenvironmentwhereinvestmentcapitalislimited.Theshitisarguablythebiggestinthecinemabusinesssincesilentlmgavewaytothetalkies.EnterScrabblethebrainchildoKhaturiasbossCEORanjitThakuraMumbai-basedentrepreneurwithdeeprootsinentertainment.ThescreeningroomweresittinginwithhisteamisinsideScrabbleheadquarterswhichsince2008hasbeenacentralorceinhelpingthebiggeststudiosandthesmallestcinemaownersalikecapitalizeontheneweraodigitalcinema.ScrabblesbusinessmodelisdeceptivelysimpleSignHollywoodandBollywoodstudiosanddistributorstoaVirtualPrintFeeVPFcontracttoensureastreamobox-oce-worthycontent.Atthesametimesubsidizeinstallandmanagestate-o-the-artdigitalprojectionsystemsorcinemaownersinexchangeortheirsubscriptions.Itstheclassicmodelogivingawayrazorstosellthebladesorinthiscasecontent.ScrabblehassignedagreementswithcinemaownersandmajorstudiosaroundtheworldandissupportingitsglobalbusinessnetworkwithnewocesinDubaiLondonandBurbankCali.YetScrabbleisaboutmorethanmakingaastbuckromficks.Thecompanyhasacommitmenttoconnectingstudiostomoviegoerswhileeasingthetransitionromanalogtodigitalorcinemaowners.ThinkoitthiswayTheyreinbusinesstohelpotherbusinessessucceed.WewanttohelpcinemaownersmakethedigitaltransitionorthelowestpossibleexpenseThakursays.Itsthatsimple.CinemaownerslovetheScrabblepartnership.ScrabblehasabsolutelyhelpedmybottomlinesaysKaranAnanddirectoroAlNisrCinemaCompanywhichoperatesanumberotheatersintheMiddleEastincludingLamcyCinemainDubai.Itboostsourboxoceinanumberowaysincludingnewrevenueromalternativeprogramminglikepay-per-viewsportsandevents.Scrabbleoritspartkeepsdiscoveringthatsuccessbreedssuccess.Forexamplethemoretheaterinstallationsitdoesthemoreitsabletoleveragevolumediscountsonprocurement.Itsawin-winoreveryonesaysPruthuShahheadoScrabblesMiddleEastRegion.ShahworkedcloselywithAnandPhotographyonleftbyBurtPittmanonrightbyJaySilvermanACCESS15Wewanttohelpcinemaownersmakethedigitaltransitionforthelowestpossibleexpense.ScrabbleCEORanjitThakur 16ACCESStodigitizeAlNisrCinemasandlovesnothingmorethanseeingcustomerslineduptobuyaticketandsomepopcornatAnandstheaters.Thestudiosareveryhappywithusbecauseinawayweredigitizingentireregionsorthem.LightscameradeliveryYoumightimaginethatastudiocoulddeliveraeatureflmtoanexhibitingcinemathesamewayyousendahomevideotoyourauntVernaoverthewebwiththeclickoamouse.Itturnsouthoweverthatmoviesmassiveflesizesomeaslargeas200GBnearlythesizeoyourcomputersentireharddrivemakethewebprohibitivelyslowandexpensiveorcontentdelivery.SounlessyourtheaterhasadirectsatelliteconnectiontheSkyfallshowingatyourlocalmultiplexhastobeginwiththephysicalshipmentoanencryptedharddrivetoapointodistribution.AndthatsexactlywhatScrabbledoeseverysingledayotheweek.Asyoucanimaginetimelyandsecurehard-drivedeliveryhundredsareshippedallovertheglobetosupportthelaunchoasingleflmiscriticaltotheScrabblebusiness.ThecompanyhasturnedtoFedExExpressornearlyitsentireworldwidelogisticsoperation.DependableovernightshippingandstreamlinedcustomsproceduresinplaceslikeDubaiallowScrabbletogeteventhebiggestHollywoodblockbusterintocinemasaroundtheworldintimeoropeningweekend.Pre-alertsromFedExallowScrabbletomanageitsreleasescheduledowntothepreciseminutewhichiscriticalwhenlate-arrivingcontentromthestudiosputsScrabbleinatightspot.Oftheapproximately600screensintheMiddleEastScrabblehasdigitized550ofthem. ACCESS17AmovieeverythreeweeksFiteenminutesawayromScrabbleheadquartersinashinyofcebuildingoverlookingtheWesternExpressHighwayinMumbaiisaclassicScrabblecustomerViacom18MotionPictures.ItproducesonetotwoHindiflmslocallyeverymonthandhasadealtodistributeanadditionalHollywoodflmortwothroughoutIndiaeverymonthorParamount.AsaresultViacom18hasasteadystreamocontentthatneedstoreachcinemasinIndiaandtheMiddleEastast.Scrabbleisaone-stop-shopormesaysNeerajGosswamiassociatevicepresidentosalesanddistributionorthecompany.ThewallsotheViacom18ofcearedecoratedinenoughSpongeBobSquarepantsmuralstomakethefve-year-oldinsideanyonesmile.WhetherGosswamineedslocalHindicontentmasteredandsubtitledorHollywoodcontentclonedScrabblegetsittothetheatersontime.ThekeytoScrabblesvaluepropositiontousisitsoperationsinbothMumbaiandtheMiddleEastGosswamisays.ScrabblesDubailocationbecomesextra-strategicsincetheweekendthereallsonFridayandSaturdaywithSundayasaworkday.WevehadflmsthathavereachedScrabbleinDubaionFridayhesaysandwithinthreedaystheyareinalloourinternationalmarketswellintimeortheollowingFridayrelease.WhatnextItsacoolwinterdayinDubaiiyouimagine88andsunnyeelingcoolwhichitdoesintheUnitedArabEmirates.WerezippingalongtheSheikhZayedexpresswaytowardScrabblesofceinacardrivenbyShah.ThakursentShahbyhimseltoDubaiinthesummero2011tolaunchScrabblesMiddleEastoperationsandbeginsigningtheaterownerstocontracts.Shahworkedoutohisownsmallapartmentatthetime.Thereare600screensintheentireMiddleEastShahsaysgesturingoutthecarwindow.WhenIgothereonly40weredigital.Inthelasteightmonthswevesigned550screens.IitsoundsasiShahshowedupandshotfshinabarrelhequicklydisabusesyouothatnotion.Hesaysittookseveralmonthsopresentationsandpersuasiontogetthefrstcontractsigneddueinnosmallparttoculturalhurdles.InalmostnotimeDubaihasbecomeanessentialhuborScrabble.InDubaiitsreallyeasytogetharddrivesandprojectorsinandoutocustomsShahsays.OurharddrivesmoveinternationallyviaFedExandwehavenoproblems.IndeedDubaistax-riendlybusinessclimatepage18hasbeengoodtoScrabblewhichmightotherwiserackupsix-fgureimport-exportdutieseveryyear.Forexamplewhenweimportdigitalprojectionsystemswepayonly5percentcustomsdutyhesays.Thiscompareswithdutiesashighas80percentinothercountrieswhereScrabbledoesbusiness.Sincewereinvestinginthesesystemsitreallyhelpswithourbottomline.Withsuccesscomesvitality.ScrabblehasmovedintogleamingnewofcesinaDubaihigh-risejustotheexpresswaywithmorethantwodozenclientservicesrepresentativeslogisticsmanagerscloningtechniciansandsubtitlingtechnicians.Theworkorcecontinuestogrowrapidly.ForShahandScrabbleasawholesuccessindigitizingsomanytheatersinbothIndiaandDubairaisesanimmediateWhatnextquestion.TheanswerisEasternEuropeMexicoandSouthAmerica.AndThakurhasaskedShahtoleadthechargesmallwondergivenhisrecentsuccess.OthedozensoworkersemployedbyScrabbleinDubaiitshardtofndonemoregrateulthanShahhimsel.IoweeverythingtoRanjithesays.Hegavememybigchance.AINSIDESCRABBLESeethevideoatfedex.comaccess.ScrabblecustomerKaranAnandpicturedandhisfatherNirmalAnandarethefather-sonownersofAlNisrCinemaswhichownsandmanagesdozensofscreensthroughouttheMiddleEastregion.ThecustomerbaseatDubaisLamcyCinemarangesfromEmiratistoexpatsfromIndiatheU.S.andvirtuallyanypointinbetween.Scrabblehelpsthetheaterprojectcontentthatkeepsthesecustomerscomingback.PhotographybySteveCook 18ACCESSCurrentMarketsFutureMarketsScrabbleOfcesDubaiL.A.LondonMumbaiMovingPicturesScrabblesglobalsupplychainisevolvingatthespeedofaHollywoodthriller.MexicoandSouthAmericaarepoisedtocomeonlineinthenext24months.Dubaihasdiversifeditseconomytoapointwhereitsoilreservesproducejust5percentoitsGDP.Theresultorbusinessesaroundtheworldisacenterorglobalcommerceunlikeanyother.Hereswhy1Itsalogisticspowerhouse.DubaiisstrategicallylocatedintheheartotheMiddleEastageographicallyefcientdistributionhuborcompaniesdoingbusinessinEuropeAsiaandArica.NowonderitsairportistheeighthbusiestcargohubintheworldaccordingtoAirportsCouncilInternational.2Itstaxfriendly.IndividualspaynosalesincomepropertyorcapitalgainstaxesinDubai.Mosttypesocorporationspaynocorporateincometax.AsithatwerententicingenoughmorethanadozenEconomicFreeZonesallowcompanieslikeScrabbletodobusinesswithoutpayingimportorexportdutiesoncertaintypesoproducts.3Ithasjobs.Allthateconomicactivitycreatesjobs.Asolate2012theunemploymentrateintheU.A.E.wasbelow5percentoverallandbelow4percentorex-patswhomakeupnearly90percentothepopulationaccordingtotheNationalBureauoStatistics.SKY-HIGHDUBAIThreereasonswhytheemiratehasbecomethedarlingofinternationalbusiness.18ACCESS ACCESS19WithayoungworkforcearrivingfromaroundMumbaiScrabbleheadquartershasalltheenergyyoudexpectofarapidlygrowingmediacompany.EnjoyastrongcupocuttingchaitheIndiansubcontinentsversionoanespressoshotasMeghnathanNaidushowsyouaround.NaiduisheadodigitalcinemaatScrabble.ThisisScrabblesotherbusinessareyousensinganentrepreneurialthemeherethemasteringandsubtitlingomoviespriortofnaldistribution.WhatmakesdigitalcinemadierentromanalogisthatthequalityisthesamewhetheryouviewtheflmonceorathousandtimesNaidusays.HesstandingjuststepsawayromtoweringstacksoharddriveseachencryptedwithacopyoLifeofPi3D.DestinationBangalore.Naiduandhisteamoyoungtechniciansworkaroundtheclockinshitssevendaysaweek.ThankstotheirworkScrabblehasdevelopedauniqueabilitytomastersubtitleinecessaryanddelivermoviesaroundtheglobeasterthananyoneintheEasternHemisphere.YoulearnonthejobhereNaidusays.Thingsmoveast.ThisMumbaiofceemploys25ull-timeworkersandisgrowingata20percentclipasoutboundhard-driveshipmentshavedoubled.Revenuegrowthisothecharts.Naiduisconstantlybringinginnewtalent.HislabisakeypartoScrabblesoperationonethatBollywoodincreasinglyrelieson.ABehindtheScenesMeghnathanNaiduheadodigitalcinemaatScrabbleoershands-ontrainingtohisstaastheyperormcolor-correctionontheflmSonofSardarinMumbai.PhotographyonrightbyBurtPittman ADressmakersPatternforGlobalSuccessSMALL-BUSINESSFOCUSFromGleetoGlamourUniqueVintageishiphotandhiring.TimemachineThe1940sDustyRoseTullePartyDressisoneofmanyauthenticvintagepiecesthathaveinspiredcustomersworldwide.20ACCESS ACCESS211Thinkscale.AskEcheverryaboutthekeymomentinherevolutionasanentrepreneurandshedoesnthesitate.ItwaswhenIrealizedIcouldsellmorethanoneosomethingiIswitchedromauthenticvintagetovintage-inspiredclothingshesays.Iknewwhichvintagepiecesalwayssoldwell.Theproblemwastherewasonlyoneoeach.Whenshemovedrombeingaresellertobuildingherownbrandbusinesstooko.2Takealeap.AtertryingtoworkwithwholesalersEcheverryquicklyrealizedshewasgoingtohavetopartnerdirectlywithamanuacturertodeliverexactlywhathercustomerswanted.TheinternetisawonderulplaceEcheverrylaughs.ItwasactuallyeasierormetofndamanuacturerinChinathanhereinL.A.EcheverryhasbeenworkingwithaChinesemanuacturingpartnereversince.Togethertheycreateapproximately24000dressesperyear.Iknowwepositivelyimpacthiscompanybecausehetellsmeallthetime.Hesverygrateulshesaysandthatmakesuseelgood.3Leanontrustedvendors.AsUniqueVintagegrewroma10-order-a-daybusinesstoa500-orders-a-dayonlineretailerEcheverryhadtomoveherbusinessoutohergarageandintoa12000-square-ootwarehouseaddingashipperreturnsspecialistpickerandpart-timemodelsandstylists.AllgreatnewsorUniqueVintageandthelocalBurbankcommunitywithonehitchEcheverrydidnthaveexpertiserunningawarehouse.Ihadplateauedwithmyknowledgeshesays.EnterJohnBrokerFedExseniorsalesexecutivewhobroughtinFedExconsultantstostreamlinewarehouseoperationsandhelpwithsotwareplatorms.RecentlyEcheverryhasturnedtoanothertrustedconsultanttohelpherhireacontrollerprogrammerandmarketingmanager.Imgettinghelpfndingthehigher-levelemployeesIneedtotakethisbusinesstothenextlevelshesays.4Makeshippingacustomerserviceweapon.EcheverryisintenselyloyaltoFedExHomeDeliveryserviceoritsspeeddependabilityandSaturdaydelivery.Inactaull23percentoUniqueVintageshipmentsarriveonSaturday.Becausesomanypeoplearelast-minuteshoppersandwedealwithsomanyeventslikepromourcustomerswanttheirdressesrightnowshesays.SaturdaydeliverypreventsabigchunkoourcustomerscallingusonaMondayandsayingWheresmypackage5Celebrateyourimpact.AsEcheverrysonlineempirehasgrownshesalsoopenedtwobricks-and-mortarlocationsaroundL.A.tocapitalizeonpromseason.ThatsmeantmorestafngupsomethingEcheverryisproudtodoasaBurbankresident.Ieelreallygood.Notonlyismybusinesscreatingjobsbuttheyreinaunhipcreativeenvironmentbecausethatsourcultureshesays.IeelgoodthatIcanprovidethattoourpeople.ASOMEWOMENNOTICEASTUNNINGVINTAGEDRESSatanestatesaleandseeanopportunitytospiceuptheircloset.WhenKatieEcheverryseesthatsamegarmentshespieshernextbusinessopportunity.In2000theormerpharmaceuticalrepwalkedawayromtheratracetocreateabusinessoutoherpassionvintageashion.BurbankCali.basedUniqueVintageisdedicatedtoormaldressesromthe1920stothe1960s.InthepasttwoyearsUniqueVintageapparelhasbeenseenonTVsGleeandinthepagesoGlamourandhasbeenshippedbyFedExtocustomersinSouthDakotaSaudiArabiaandnearlyeveryplaceinbetween.WhenyoutalktoEcheverryhersuccessboilsdowntofvekeyprinciplesForownerKatieEcheverrygoingglobalstartswithadmittingyoudontknoweverythingandthenassemblingtherightvendorteamthatdoes.PhotographyonleftbySteveCookonrightbyKevinSteele 22ACCESSOrganicIndiaisbuildingaholisticpathtoglobalgrowthonelocalfarmatatime.BYROBERTGIBSONteaSUSTAINABILITYTOAPhotographybySteveCook ACCESS23FarmerswhogrowrosepetalsleftneemleavescenterandpunarnavarootrightforOrganicIndianotonlyreceivebetterwagestheyalsogetfreehealthcare. 24ACCESSStoppingbrieytositintheshadeandenjoyasoothingcupogreentulsiteaisthemanwhomakesitallhappenOrganicIndiaManagingDirectorandCEOKrishanGuptaa.GuptaatookoverOrganicIndiain2007justastheglobaldemandorbothteaandorganicoodswasexploding.OrganicoodsalesintheU.S.havebeenaveragingcloseto10percentgrowthperyearsince2007poweringrightthroughtherecessionandvastlyoutpacingnonorganicsalesaccordingtoNutritionBusinessJournal.Guptaacutsacommandingfgureinhiselegantlyembroideredkurtaandjodhpursandhisresumeisjustasstriking.HehasachemicalengineeringdegreetogoalongwithanMBAanddeepexperienceinnew-productdevelopmentromstintsatColgateandGilletteintheU.K.OrganicIndiastwomainproductlinesareteaandherbalsupplements.OntheteasidethecompanytrailsmarketleaderssuchasCelestialSeasoningsandTazoTeabutitsquicklyclosingthegap.Its6.1millionrevenuein2011ispartoa40percentyear-over-yeargrowthrateinthepastseveralyears.YoucanspendanentiredaywithGuptaaandhewillsidestepeveryopportunitytotakecreditorOrganicIndiasrisedeerringitalltothecompanysoundershisteamandthearmerswhogroworhim.Itstheteamthatmattershesayssippinghistea.Thatismystrongbelie.Butinactthecompanywasadormantbranduntilhecameonboard.Ithadgreatrootsbutithadntyetullyowered.STEP1GettherightmixTherearetwowaystobecomeaplayerinorganicoods.ThepatholeastresistanceBuyupmaterialsontheopenmarketafxyourownbrandtothemandinvesteverythingelseinmarketingmuscle.SothatTHEREARENTMANYLOVELIERPLACESINTHEWORLDtoenjoyacupofteathanthegardenlawninthemiddleofOrganicIndiastestfarmjustoutsideLucknowIndia.Theteasingredientsincludingtheall-importanttulsiholybasilplantarebeingharvestedjustanarmsreachaway.Geesecacklepleasantlyinthebackground.Theairisredolentwiththescentofjasminehibiscusandlemongrass.Demandfororganicteasandherbalsupplementshasspurreda40percentyear-over-yeargrowthrateforOrganicIndia. ACCESS25hypotheticalpackageoMotherNaturesFarmcrackersintheorganicoodsaisleOtennosucharmexists.OrganicIndiatookonelookatthatbusinessmodelandsaidnothanks.WevetakenthetougherrouteGuptaasays.InsteadobuyingproductsandingredientsoverseasandputtingourlabelsonthemwegrowalloourproductsourselveshereinIndia.Qualityiskey.Icantellyouithasntbeeneasy.ThefrstsevenyearsoGuptaastenurewerespentbuildingoutanentirelynewsupplychainromthesoilup.ThecompanyhadtofndarmersandtraintheminorganicbestpracticespositionagriculturalexpertsnearthearmsortroubleshootinggetinternationalcertifcationromorganizationsaroundtheworldincludingtheU.S.DepartmentoAgricultureUSDAandensureproductsamplescouldbedeployedtomarketrapidly.Wehadnothing.NotasinglearmerGuptaasays.OncewewereassuredooursupplychainthatwewouldbeabletoscaleupassalesimprovedwesaidItstimetogotomarket.Gototheendconsumerandgivethemwhattheyrereallylongingor.GoingtomarketisexactlywhereFedExcomesin.OrganicIndiausesFedExExpressoralloitsshippingwithIndiaaswellastodelivertime-criticalsamplestonewconsumersdistributorsregulatoryorganizationsandretailersinmorethan30countriesworldwide.ThatincludesboththeU.K.andakeyOrganicIndiadistributioncenteremploying15inBoulderColo.ThisishowwegetnewordersGuptaasays.Iourproductsamplesarenotdeliveredontimeandhandledwithcarewewillnotbesuccessul.WeareproudtoassociateourselveswithFedEx.STEP2SteepinorganicmethodsThesunbeatsdownrelentlesslyontheLucknowtestarm.Darkredhibiscusleavesarespreadouttodryonaconcreteslabcurlingintheheat.Youdontneedagreenthumbtorecognizesuchaertileplace.AndaspiritualplaceAshrineoBuddhagleamsinthesunmagnoliablossomsletpeaceullyatitspedestal.ThistestarmalsoservesasOrganicIndiaseducationacilityprovidingreetraininginorganicagriculturetoitsnetworkolocalarmerstheystayinaguesthouseontheproperty.Thattrainingincludesproperseedselectionnaturalertilizationandpestpreventionwastemanagementandotherearth-riendlytechniques.StartingwithjustthreearmersinAzamgarhIndiain2006thecompanynowworkswiththousandsoarmersthroughoutIndiawhoproducemorethan2000metrictonsoorganicteaperyear.Thesearesmallamilyarmsthekindworkedandhandeddownthroughgenerations.IlltellyouourbusinessmodelWeonlyworkwithmarginalizedarmersGuptaasays.Farmsthatmightbeassmallas400squaremeters.Bygrowingtulsiorustheyareearningmuchmoremoneythantheywouldromatraditionalcrop.NotonlydothearmersreceivereetrainingandpremiumpricestheyalsogetaccesstohealthcaretheyINSIDETHETESTFARMInadditiontotrainingvillagearmersinorganicagriculturebestpracticestheOrganicIndiatestarminLucknowIndiaactsasthecompanyslivinglab.Farmmanagersthereworktoincreaseproductivitywithoutsacrifcingorganicprincipleswhiletestingandmarketingnewcropspreviouslynotgrownintheregion.HerearesomeothearmsrecentfndingsRosepetals.ApilotprogramhereprovedthatthiskeyingredientorteacouldbegrownusingorganicmethodsinIndia.Chiaalsoknownassalvia.OriginallyaccessingthisplantromLatinAmericaOrganicIndianowgrowsitdomesticallythankstoanherbtrial.Quinoa.AtersuccessultestingOrganicIndianowgrows20to30metrictonsothisgrainperyear.Chicory.ThankstothetestingarmOrganicIndiaisnowoneothelargestexportersochicoryaroundtheworld.OrganicIndiaCEOKrishanGuptaahasrebuiltthecompanyssupplychainromthegroundandteaup.OrganicIndiagrowsitsowningredientstoensuretopquality.Theheadotheresearcharminspectsafeldohibiscus. 26ACCESSwouldalmostneverreceiveotherwise.Seesidebar.TheimpactonsmallandisolatedcommunitiesthroughoutNorth-CentralIndiaisproound.SincethedaywestartedthissystemnotasinglearmerhaschosentoleaveusoranothercompanyGuptaasays.Thoughtheyarecompletelyreetodoso.Thereisnocontract.InthewordsoKailashNathoneothefrstarmerstoworkwithOrganicIndiaOrganicarminghascomeasarealblessingorouramily.Oursucceedinggenerationswillreapthebeneftsandrealizetheertilityothelandisourtruewealth.InadditiontoboostingincomesandhealthcareOrganicIndiaprovidesarmerslikeNathaccesstoamuchwiderglobalmarket.OrganicIndianowexports60percentoitsproductswithsalesorecastedtoriseineveryproductcategory.STEP3BringtoaboilandserveOrganicIndiasmainproductionacilityisjusta40-minutedriveromthetestarminbustlingLucknowacityonearly5millioninNorthernIndia.Stepinsideandthechaoticsoundsohornsandtrafcade.Theenergizingscentoteahitsyourightaway.Packagingmachinerypulsesrhythmicallythereassuringdrumbeatocommerceasworkersquicklyfllcapsulesteabagsconsumerpackagingandeventuallylargeshippingboxes.Thecompanywillproducemorethan270millionteabagsand300millionhealth-supplementcapsulesthisyearalone.Guptaasofceisjuststepsawayromtheactoryoor.Onhisdesksitseveralleadershipbooksalongwiththebest-sellingTheOmnivoresDilemmabyamedorganic-oodwriterMichaelPollan.WhenaskedwhetherOrganicIndiaiscapitalizingontheorganicrevolutionintheWestGuptaarespondsdiplomaticallybutfrmly.IndiawasalwaysorganicGuptaasays.Bygoingorganicwearesimplyreturningtowhatwealreadywere.Itsabusinessopportunitybutitsalsoanethicalopportunity.Whenaskedwhatkindoimpactthecompanyhasmadeonits350employeesinIndiaGuptaaimmediatelygesturestotherontgatesandsmiles.Lookoutsidehesays.SeethoseexpensivemotorbikesMostomyemployeesusedtoarrivebybicycle.Manyomymanagershavegraduatedtocars.IrememberwantingamotorbikesobadlywhenIfrststartedmycareer.WhenIseemyemployeesbuyingtheseexpensivemotorbikesIeelgood.IyouwonderwhatsnextorOrganicIndiajustpeekoverGuptaasletshoulderatawhiteboardonthewall.Itlistsanambitiousnumberoinitiativesincludingbrandedretailstorescosmeticsandbabyandtoddlerproducts.WillanyothemsucceedliketulsiteaDontbetagainstGuptaa.AndbeassuredthatwhateversuccessollowsOrganicIndiawillpayitbacktothecommunitiesthatsupportthecompanyseorts.ItstheoneuniyingingredientoeveryOrganicIndiaproduct.ThisisauniquemodelsaysGuptaawhereeveryoneinthechainwins.Hopeullyintheuturewewillleaveabetterplaceorourchildrenandgenerationstocome.ASellingproductsisgreat.Wewanttomakesurewecontinuedoingthat.Butwewanttomakesurewesupportsocietyinamuchlargerway.OrganicIndiaManagingDirectorandCEOKrishanGuptaa ACCESS27ThispageFarmerswhogroworOrganicIndiaarenotunderanycontract.Thecompanysextraordinaryrateoretentionisdrivenpurelybywagestrainingandbenefts.LetAworkerscoopsbaelleaahealthsupplementingredientintoagrinder.THEORGANICINDIAFOUNDATIONYoucanmeasureOrganicIndiascommitmenttoitsfarmerfamiliesindiseasescuredandlivessaved.ThroughitstworegionalhealthcarecentersandmanymobilehealthcarecampstheOrganicIndiaFoundationprovidesreecaretothousandsoarmersamilymembersandvillagerseveryyear.ServicesgobeyondtreatmenttoincludepreventivecaresuchasAIDSawarenessblood-pressurecheck-upsandwomenshealth.OrganicIndiaundstheoundationthroughacontributiono5percentoitsannualprofts.PeoplesaywearehelpingthesemarginalizedarmersGuptaasays.Buttheactisthesearmersarehelpingusandthisplanetsothatcominggenerationscanhaveabetterplacetolive.ONEVILLAGEONEMONTHTogetasenseothescaleotheOrganicIndiaFoundationsoutreachheresasnapshotothehealthcareservicesitprovidedtoAzamgarhavillagelocatedinarNorthernIndianearTibetinjustonemonthlastyear.FARMERLABORERSTUDENTHOMEMAKEROTHEROCCUPATION7940171615AGE19132428254217435529OVER557UPTO12632TOTALPATIENTSTREATEDTopsymptomstreatedweregeneralweaknessarthritisasthmaever304MALEPATIENTS328FEMALEPATIENTS 28ACCESSREGIONSPOTLIGHTSouthKoreaisameccaorbusinessownerslookingtoimportorexportintothisast-growingconsumer-orientedculture.Guesswhatcountryhasthesecond-highestGDPinAsiabehindJapanIyouguessedChinaguessagain.SouthKoreaisamongtheastest-growingmarketsintheworldanditjustgotamajorboostthatwillpropelitsgrowthevenhigher.InMarch2012representativesromtheUnitedStatesandSouthKoreasignedtheU.S.-KoreaFreeTradeAgreementKORUS.Theagreementinstantlyopenedapowerulmarketthatwaspreviouslyachallengingandexpensiveonetonavigate.ThisisagoldstandardagreementbecauseitssogoodorourcompaniessaysTamiOverbypresidentotheU.S.-KoreaBusinessCouncilandvicepresidentorAsiaattheU.S.ChamberoCommerce.JusttwodecadesagoSouthKoreawasclosedtotraderomothercountries.Asitbegantoopentarisweresohightheyprohibitedmostorganizationsromdoingbusinessthere.Thingslikepopcornhada600percenttarionthemOverbysays.Opportunityiswaiting.TheKORUSagreementlevelstheplayingfeldorsmallbusinessesOverbysays.IyouvegotagoodproductorserviceyouregoingtofndawillingmarketoeducatedsophisticatedbuyersinSouthKorea.OverbyseesopportunitiesinseveralsectorsbutnotesthatAmericanproductsareverycompetitiveinprocessedoodsagricultureandconsumergoods.Tofndoutiyourproductsandservicesareduty-reevisitexport.govandsearchtheFTATariToolorvisitustr.govuskoreata.YoucanalsocontactTamiOverbyattheU.S.ChamberoCommerceattoverbyuschamber.com.SOUTHKOREAOPPORTUNITYATAGLANCEConstructionEquipmentPaperScientifcEquipmentConsumerGoodsTextilesAgriculturalEquipmentAircratandParts2015Now100PercentDuty-FreeAutomotive2017FootwearLeatherandTravelGoodsGOINGDUTY-FREETheU.S.-Korearee-tradeagreementrequiresthetwosignatorycountriestoeliminate95percentotarisonindustrialandconsumergoodswithinfveyears.Allsectorsincludealargepercentageoproductsthatarenowduty-ree.Seethechartbelowtoseewhen100percentoproductswithinsectorswillbeduty-ree.SourceU.S.InternationalTradeCommissionandOfceotheUnitedStatesTradeRepresentativeYOUNGHIPPLUGGEDINSouthKoreaisacountrydominatedbyyoungtechnology-savvyurbanites.1Rankedthemostapp-crazedcountryintheworldbyGoogle11thmostinternet-connectedcountryintheworld98opeopleages25to34havegraduatedromhighschool63havehigher-educationdegreesSourceCIAWorldFactbookandOrganizationorEconomicCooperationandDevelopment ACCESS29Thisportcityhasthe5th-largestseaportintheworld.SourceBloombergBUSAN3.439MILLIONPEOPLEIn2011IncheonInternationalAirportreportedthat34millionpassengers2.5milliontonsofcargoand5.6milliontransferpassengerstraveledthroughtheairport.SourceAirportsCouncilInternationalandIncheonInternationalAirportINCHEON2.572MILLIONPEOPLEHometoaboomingfashionandtextileindustrywheredesignersgototesttheirdesignsonthehipinhabitants.SourceKoreaTourismOrganizationDAEGU2.458MILLIONPEOPLEThecapitalofSouthKoreaisabustlingmetropolisthatshometoaquarterofthecountryspopulation.SourceCIAWorldFactbookSEOUL9.778MILLIONPEOPLEFASTFORWARDSouthKoreaisastunningexampleofhowacombinationoftradeeducationandtechnologycanskyrocketacountrysplaceintheworld.Inthe1960sthecountryhadaGDPpercapitaofonly100.Todayits32100.SourceU.S.DepartmentofCommerceSOUTHKOREAChemicalsElectronicsInstrumentationandInformationTechnologyProductsInfrastructureandMachineryLumberandWoodMedicalEquipmentShippingandTransportationEquipment2027Fish2022BuildingProductsMetalsandOres Businesswithheartisbusinessyoucanbelievein.AtFedExweconnectpeopleandpossibilitiesaroundtheworld.Whenthathappensbusinessesprospercommunitiesfourishandpeoplethrive.Allowhichmakestheworldalittlemorewelcomingandalotmorehuman.Formoreinormationgotofedex.comaccess.FedEx.SolutionsThatMatter.SMOurmostimportanttraderoute.