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Connecting with Customers through Fair Trade 

Consumers today are considering the effects of their spending on the global economy, particularly on people and natural resources in developing countries.

Fair trade may not be as well known in the United States as it is in the United Kingdom, but it’s a movement quickly gaining momentum stateside as consumers become more educated about manufacturing and farming processes.

At its core, fair trade is an international movement designed to alleviate global poverty and promote sustainability through global trade of commodities such as coffee as well as handmade crafts like baskets and jewelry. The basic tenets of fair trade include paying fair wages to the artisans who are making the products, ensuring no sweatshop or child labor was used in the production of the item, and consistent work is provided to the artisan groups.

The fair trade movement was developed as a means of holistically addressing inequities in conventional trade models. In addition to setting a minimum floor price for commodities, which aims to cover the cost of production and cost of living in a local context, fair trade helps producers by requiring fair labor conditions, safe environmental practices, and fostering community development.

While the U.S. continues to battle shifting economic tides, customers are reevaluating how they spend their discretionary dollars. Rather than blindly purchasing items for themselves or gifts for family and friends, they are beginning to consider the effects of their spending on the global economy, particularly on people and natural resources in developing countries. Stocking fair trade products is one way to ensure that the dollars they choose to spend reflects their values and allows them to use their purchasing power to shift the global marketplace.

Retailers also appreciate the stories often associated with fair trade products. In fact, one of the reasons Cynthia Glensgard opened up Global Handmade Hope in Park Ridge, Illinois, is because she wanted to offer her community a place to purchase products that really makes a difference in the lives of artisans in developing countries. “I believe all people inherently have good hearts and are often looking for a way that they can help others,” says Glensgard. “A fair trade store allows people to help others by offering them a life free from poverty. When you shop fair trade, not only are you receiving items that you need or like but you are also offering others the gift of hope.”

Carmen Iezzi, executive director of the Fair Trade Federation (FTF) (www.fairtradefederation.org) definitely is noticing a marked increase in interest from both retailers and wholesale importers over the past two years.

“More than ever, American consumers are aware of the many options they have to make responsible choices and to bring fair trade into their lives,” says Iezzi. “Whether it's the gifts they give, the coffee or chocolate they enjoy, the clothes they wear... they are starting to understand that they can get great products that also create tremendous positive change for artisans and farmers. They want to combine their values with the value of the product.”

Iezzi admits, though, that while the movement is gaining interest, there is growing confusion about what fair trade is, what it isn't, and who practices it. “We work diligently to clarify what fair trade means and to make it simple for retailers to introduce these items into their shops,” Iezzi adds.

Sourcing Fair Trade Products

Finding high-quality and beautiful fair trade products is also easier than in previous years, as many retailers are members of the FTF, which makes it a convenient starting point for businesses. Price points vary based on several factors, including the wages of the countries from where the products emerge, materials used and complexity of the product’s design or process.

The FTF also sends out a monthly e-mail that allows stores to stay abreast on what is happening with fair trade. “We provide tailored recommendations when asked and tools to help retailers easily find fair trade organizations at trade shows and in other venues,” adds Iezzi.

“It's very easy to find high-quality, affordable products for your store that not only resonate with customers, but create tremendous positive change in the lives of the artisans and farmers from which they come,” says Iezzi. “We encourage retailers to ask questions, everything from where products come from, who made them, to how the artisans or farmers work together or are organized. If retailers wonder what to ask, they can see what the Fair Trade Federation asks of wholesalers by downloading our application from our website at www.fairtradefederation.org/join.”

Trade shows have begun showing more FTF members as well as non-FTF companies that offer fair trade products. In the case where companies are not members of a fair trade organization, it is wise to ask questions to ensure that the products you are purchasing are indeed fair trade. After all, you probably won’t find companies telling you flat out that their business employs sweatshop or child labor.

“When attending gift shows, retailers should know how easy it is to identify the Fair Trade Federation members who are there,” notes Iezzi. “FTF produces easy-to-use handouts to help retailers locate Fair Traders among the sea of other vendors.” 

To that end, Iezzi has been working closely with several trade shows throughout the country to host seminars on what fair trade is and how to incorporate fair trade products into a shop’s existing merchandising mix. Although many retailers purchase fair trade products online, many FTF members continue to see gift shows as a useful way to let buyers experience the quality of their products and to share the stories behind these great items, notes Iezzi.

“The New York International Gift Fair is home to approximately 40 FTF members because it creates a positive experience for them and good contacts with retailers from across the globe,” says Iezzi. “At the same time, the California Gift Show at the LA Mart and Beckman's Handcrafted Show at the Chicago Merchandise Mart have been very welcoming to the Federation. Each of these shows features a special pavilion that is exclusively for fully committed Fair Trade Federation companies. There, retailers will find a one-stop-shop for numerous FTF vendors coupled with educational opportunities. Through these shows, we introduce fair trade and the distinctive elements of members' work. We have also noted rising interest from others, such as the Boston Gift Show, to enhance the presence of FTF members, which we see as a good sign that, even after 60 years, interest in fair trade continues to increase at a rapid pace.”

The Chicago Market: Living & Giving started receiving requests from retailers for more fair trade products at its shows in the last year with the rise in popularity for eco-friendly and sustainable items. The show will host the first ever FTF Pavilion January 23–26 with products from more than a dozen developing countries, from Guatemala to South Africa.

“Retailers started asking us where to find fair trade products through our visits with retailers and our surveys,” says Trisha Schultz, director of marketing for The Chicago Market. “In addition to a prominent advertisement in our pre-show directory mailed to thousands of retailers prior to the show, we’re also recognizing FTF members via booth signage and flyers throughout the show, a special display with fair trade products, a dedicated FTF booth with knowledgeable staff ready to answer retailer questions and a complimentary power lunch seminar featuring Carmen Iezzi of the FTF so retailers can learn more about fair trade and how to best sell it in their stores.”

The New York International Gift Fair (NYIGF) also features many fair trade companies throughout the show. Dorothy Belshaw, director of the NYIGF, attributes a large number of exhibitors are attracted to the show because of the sophistication of the retailer who typically attends NYIGF. Belshaw also admits that interest in fair trade has risen commensurate to green and sustainable products. In fact, fair trade is now a sub-category of Handmade in their directory listings.

“Our SustainAbility display features more than 200 products produced in accordance to specific and stringent criteria and is a great introduction to retailers interested in carrying these types of items,” says Belshaw. “Participation in the display is limited to global gift and home industry suppliers whose products or production processes are eco-friendly, or companies whose business practices are socially responsible, philanthropic or fair-trade oriented.”

Beginning this February, NYIGF will award exhibitors with platinum, gold or silver status based on their product make-up and production practices.


Education Is Key

To help educate her customers who want to learn more about fair trade or some of the products, Glensgard hangs posters throughout her store. “The boards share their stories, what the women are grateful for and how the project has changed their lives. We take the time to talk with customers about the people and projects where the products come from and how their purchase helps keep these projects alive.” Glensgard also offers additional information on her shop’s website and started a Twitter account to keep customers abreast on what is happening in the store and with her artisan partners throughout the world.  

Another reason women are drawn to supporting fair trade is because approximately 76 percent of fair trade production is done by women who then can change their own lives and work to lift themselves out of poverty, according to Iezzi. “As the critical connection between producers, importers, and consumers, retailers have tremendous power to affect this kind of change.”

Additionally, while consumers are seeking out products that make a difference, it is important to note that fair trade is not about charity. “Fully committed fair trade organizations seek to create long-term, sustainable change among the poorest of the poor by creating viable partnerships with producers and offering great products to customers,” adds Iezzi.

Fair trade products are becoming more widely available thanks in large part to specialty retailers and local coffee shops who can take the time to share stories with their customers. As more consumers become aware of fair trade and seek the products, make your store a destination and you will see your fair trade section only continue to grow.

Megy Karydes is a professional marketing/PR consultant and founder of World Shoppe (www.world-shoppe.com), a fair trade wholesale and retail business. She is active in the fair trade movement locally and nationally.

Resources:

Dunitz & Company, Inc.
323-769-8600
www.dunitz.com 

Friends of Tilonia, Inc.
888-759-8175
www.tilonia.com 

Handmade Expressions
512-535-5228
www.handmadeexpressions.net

Laarsen & Associates
303-400-4810
www.laarsenassociates.com

MayaWorks
312-243-8050
www.mayaworks.org

Pueblito
888-326-5395
www.pueblito.ca

WorldFinds
800-609-9303
www.worldfinds.com

World Shoppe
312-560-2715
www.world-shoppe.com 



 
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