fair trade market trends and developments
TRANSCRIPT
“How can we rest while so many people are hungry in the world while there is enough food for all?”
3.7 Billion Euro global retail sales Fair Trade
65 Million Euro sales from Asia
43%
2007 20100
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FT Certified Goods
Sales
Year
Euro
s in
Mill
ions
Growth in Fair Trade SalesNon Certified vs.
Certified
6%
2007 20100
50100150200250300
Non-Certified Goods
Sales
Year
Euro
s in
Mill
ion
• Fair Trade has been recognized by the European Parliament (2006),
• The European Economic and Social Committee (2009),
• The European Commission (2009) • The Committee of the Regions (2010)• National initiatives: Italy, France, Belgium
HANDMADE in the MARKET TODAY:
The influences behind the trend.
Karen Gibbs & Colvin English
The Market ContextWhat is the US market environment today for
Handmade products? What trends are influencing the
interest in Artisan?
US retail sales are growing. The American economy
continues to expand. US consumer confidence
improves.
#1.
The US retail sales are driven by higher-end goods. Economic demographic consumption
converges on affluent consumers.
#2.
the EVIDENCE:
• Post recession private spending is largely due to affluent citizens (incomes $100k+ annually) returning to pre-recession spending levels.
• Wealth in the US is concentrated within the wealthiest; the wealthiest 10% of US households account for 36% of total US income and make up half of total consumer spending.
• In 2012, these households consume predominately high-end but not ultra luxury goods.
- Unity Marketing, Luxury Report 2013
Social Impact Purchasing is “in”. Consumers
increasingly care about the impact of their
purchase and they want Transparency.
#3.
The facts:
• The study found that 76% of people say they were willing to pay $25 for a $20 garment if it is certified as being made under fair labor conditions.
– MIT Case Study
• Another study found that 80% of individuals are willing to pay more for an item it assured it was made under good working conditions.
- Washington DC Institute for Int’l Economics
CONTENT + COMMERCEContent marketing is going mainstream.
#4.
• Freely accessible, high-quality educational content is proving to be more effective than advertising. -
American Marketing Association (AMA)
• Marketing is telling the world you’re a rock star. Content marketing is showing the world you are one. – Robert Rose
The SuPPORT:
US Consumer’s have a thirst for Authentic
Brands. Story connects to place & origin.
#5.
• Narratives connect consumers to other people and places, adding a personal and experiential component to a tangible good and giving it an aura of authenticity. - NY Times
• Consumers feel a desire for the real in an increasingly staged, contrived, mediated world.
- James H Gilmore, Authenticy
The SuPPORT:
Culture is being recognized as a driver of
Economic Growth.
#6.
2013 report show that "world trade of creative goods and services totaled a record US$624 billion in 2011 and that it more than doubled from 2002 to 2011; the average annual growth rate during that period was 8.8 per cent." - 2013 Creative Economy Report, UNDP & UNESCO
The facts:
SOME COMPANIES WE ADMIRE
Demand for Global Handmade Product
In the United States today, there is an unprecedented demand for handmade and artisan products in the gift,
home and accessories markets.
This sector will continue to increase as U.S. consumers and retailers seek handmade, ethically sourced products that are sustainable and are differentiated from mass-
produced products
There is a growing desire for products created by artisans with a sense of culture and meaning – products
which give back to the communities from which they come
“There have been more sustainable and ethical ranges introduced by
large corporate retailers than ever before.”-
Ethical Fashion Forum
WholesalersRoostJonathan Adler
Raven & Lily
Artecnica
Canvas
Market Opportunities
In the EU
Mark Kwami
Home Decoration market slowly recovering
• Decline in FT market for Home Decoration• Importers scaling down order volumes• Consumers more conscious about how they spend
Feel Good Products
• Social Impact Design• Environmental Impact Design• Cultural Impact Design
Renewable Raw Materials
Renewable Raw Materials
Natural Finishes
Re-Claim, Re-Use
Up-Cycle
• Sophisticated Recyling
• Products with an identity• Products that show their origin
• Products with a story• Hand-made productsAuthenticity
Selling you QUALITY and your Craftsmanship
“Hand-made”
Small is beautiful & Manageable
• Smaller collections• Quality not quantity
Branding
Branding your products
Website Design
Social Media
Co-Creation
• Design Input• In touch with customers and trends• Brand and Market your products• Lasting relationships
GROWTH of Online Retail
E.g. Flash Sales Sites / or Shopping Clubs
• Online concept stores• Curated collections• Limited time span and limited quanity• Discounted offers• Membership creates community
Smart:• Book limited contingent with designer/manufacturer• Customer pays in advance. At the end of the time period, products shipped to customer (sometimes directly from designer/manufacturer)• Limits risk for online platform
E.g. FAB, MONOQI, Westwing, Urbanara
Changing Distribution Channels • Traditional distribution Channel
Exporter
Importer/Wholesaler
Retailer
End Consumer
New Distribution Channels • New options Exporter
Importer/Wholesaler
Retailer
End Consumer
Direct Importing Retailer
Online Retailer
FullfilmentServices
Increase in direct importing retailers
• Niche Market• Lower Volumes• Higher prices• Shorter order frequency• Long term relationships
Fulfilment Services • New opportunities• Warehousing and distribution• Flexible service offer (invoicing, stock keeping, quality control, returns, customer service etc.)
Invoicing
Customer Service oriented
• Show more interest in the well-being of your customers• How are your products performing?• How is their business doing?• What can you do to support them? (packaging? Shipping?...)• What are they looking for next? (design, trends, products etc.)• Visit if you can
2 Box sizes:
• Inner Box• Outer Box
• 100 Cards/Inner box
• 4 inner boxes in one outer box = 400 cards in Total
Professionalize your export packaging
Smart Shipping Solutions
• Small mixed consignments for retailers• Door to door delivery by postal services• Enables smaller retailers to test product• Can purchase on demand
Conclusions • Invest in Sustainable Design• Authenticity• Quality• Branding
Conclusions • New distribution channels• More customer service• Smarter Shipping solutions• Investigate opportunities of new online-economy (Fulfilment services, online payments etc.)
Conclusions • Diversification- Domestic/Regional• Tap into growing markets• Less vulnerable to fluctuations in export markets
Conclusions • Changing Mind-sets• Move from Poverty Alleviation to Value Creation/Addition
• Fairtrade goes mainstream• Growing consumer awareness• Value for money (both in terms of design and product quality)
Thank you