April 26, 2024

Pressed by Consumers, Retailers Are Revealing More

With fair-trade coffee and organic fruit now standard on grocery shelves, consumers concerned with working conditions, environmental issues and outsourcing are increasingly demanding similar accountability for their T-shirts. The issue has been brought to the forefront by the garment factory collapse in Bangladesh, which killed more than 800 people.

And some retailers are doing what was once unthinkable, handing over information about exactly how, and where, their products were made.

Everlane, an online boutique, last week added paragraphs to its Web site describing the factories where its products are made.

Nordstrom says it is considering adding information about clothes produced in humane working conditions.

An online boutique breaks down the number of workers involved in making each item and the cost of every component, while a textiles company intends to trumpet the fair-trade origins of its robes when Bed Bath Beyond starts selling them this month.

And a group of major retailers and apparel companies, including some — like Nike and Walmart — with a history of controversial manufacturing practices overseas, says it is developing an index that will include labor, social and environmental measures.

New research indicates a growing consumer demand for information about how and where goods are produced. A study last year by professors at the Massachusetts Institute of Technology and Harvard showed that some consumers — even those who were focused on discount prices — were not only willing to pay more, but actually did pay more, for clothes that carried signs about fair-labor practices.

“There’s real demand for sweat-free products,” said Ian Robinson, a lecturer and research scientist at the University of Michigan who studies labor issues. Consumers “don’t have the information they need, and they do care.”

The garment factory collapse that killed more than 800 workers in Bangladesh last month has added urgency to the movement, as retailers have seen queries stream in from worried customers.

“In the clothing industry, everybody wears it every day, but we have no idea where it comes from,” said Michael Preysman, Everlane’s chief executive and founder. “People are starting to slowly clue in to this notion of where products are made.”

Major retailers have long balked at disclosing the full trail, saying that sourcing is inherently complex — a sweater made in Italy may have thread, wool and dye from elsewhere. Another reason: Workplace protections are expensive, and cheap clothes, no matter where or how they are manufactured, still sell, as HM, Zara and Joe Fresh show through their rapid expansion.

But labor advocates note that consumers’ appetite for more information may put competitive pressure on retailers who are less than forthcoming. In recent weeks, government officials, including Chancellor Angela Merkel of Germany, and labor and consumer advocates have cited the Bangladesh collapse in calling for the adoption of fair-trade standards or labeling. In direct response to what happened in Bangladesh, Everlane added information to its Web site about the factories where its clothing is made. “This factory is located 10 minutes from our L.A. office,” one description for a T-shirt reads . “Mr. Kim, the owner, has been in the L.A. garment business for over 30 years.”

Everlane says it will soon add cost breakdowns for all of its clothing, along with photographs of factories where that clothing is made and information about the production.

Mr. Preysman says Everlane has long received questions from customers “around where the products are sourced from and how we can tell that the labor is good.” It is an inexact science, he said. But he added that he looks for factories certified by independent outside organizations and has executives spend time with a factory’s owner to see if he or she “is a decent human being.”

Honest By, a high-fashion site introduced last year, includes even more specific information about its products. Take a cotton shirt that costs about $320: it took 33 minutes to cut, 145 minutes to assemble and 10 minutes to iron at a Belgian factory, then the trim took an additional 10 minutes at a Slovenian plant. The safety pin cost 4 cents, and transportation about $10.50.

Bruno Pieters, the site’s founder, said by e-mail that “as long as we keep paying companies to be unsustainable and unethical, they will be.” But, he said, that may be changing. He cited a spike in sales that he asserted was in response to issues raised by recent overseas sourcing disasters.

Lush Cosmetics, a company based in Britain, has added video from its factories and photographs from buying trips to places like Kenya and Ghana to its Facebook page. Simon Constantine, head perfumer and ethical buyer, said he would like to add links to the factories Lush buys from, to encourage other cosmetics companies to support them.

Nordstrom said it had provided factory information in response to shoppers’ calls, and was considering going a step further, said Tara Darrow, a spokeswoman. The Nordstrom Web site specifies eco-friendly products, “so how can we do the same with people-friendly?” Ms. Darrow asked. “Hearing from customers and knowing they care definitely compels us to want to do more.”

A variety of groups are working on new apparel industry labor standards.

Article source: http://www.nytimes.com/2013/05/09/business/global/fair-trade-movement-extends-to-clothing.html?partner=rss&emc=rss

As Fair Trade Movement Grows, a Dispute Over Its Direction

A tempest in a coffee pot is bubbling in the world of “fair trade,” the socially responsible food movement that seeks to lift farmers in the developing world out of poverty by offering them a premium for crops like coffee, cocoa and bananas. And the fight will soon reach your local Starbucks, Wal-Mart and Whole Foods.

Fair Trade USA, the movement’s leading advocate in the United States, angered critics by saying it would cut its ties at year’s end with the main international fair trade group and make far-reaching changes in the sorts of products that get its seal of approval.

The changes include giving the fair trade designation to coffee from large plantations, which were previously barred in favor of small farms. The group is also proposing to place its seal on products with as little as 10 percent fair trade ingredients, compared with a minimum of 20 percent required in other countries.

The group says the changes will benefit more poor farmers and farm workers around the world and make it easier for large corporations to sell fair trade products. Sales of fair trade goods in 2010 were $1.3 billion in the United States and $5.8 billion globally. Fair Trade USA said it hoped to double sales in the United States by 2015.

Critics accuse Fair Trade USA of watering down standards, perhaps motivated by the bigger fees to be earned from certifying a higher volume of products. Some sellers of fair trade products fear small coffee farmers will lose market share to the big plantations and that companies will have an incentive to include only the minimum amount of fair trade ingredients in their products.

“It’s a betrayal,” said Rink Dickinson, president of Equal Exchange, a pioneer importer of fair trade coffee, chocolate, tea and bananas, based in Massachusetts. “They’ve lost their integrity.”

Paul Rice, chief executive of Fair Trade USA, said the fair trade movement was dominated by hard-liners who resisted needed changes. “We’re all debating what do we want fair trade to be as it grows up,” Mr. Rice said. “Do we want it to be small and pure or do we want it to be fair trade for all?”

He dismissed criticism that his group was seeking to increase revenue for its own sake. “The more we grow volume, the more we can increase the impact” of fair trade, he said.

As part of his efforts to expand the fair trade designation, Mr. Rice is cutting ties between his group and an umbrella organization, Fairtrade International, which coordinates fair trade marketing activities in close to two dozen countries. He said his group paid outsize fees to Fairtrade International — about $1.5 million last year — and received little in return. The international group has also rejected the changes put forth by Mr. Rice.

“The best thing we can do is make sure we’re staying true to the principles that got us to where we are,” said Rob S. Cameron, the chief executive of Fairtrade International. “I’m not going to water those principles down.”

The brouhaha has surprised many companies that sell fair trade products and will soon be forced to take sides. For consumers who pay attention to where their food comes from and how it is produced, the result could be confusion as they try to sort through a proliferation of competing fair trade labels with differing claims.

The logo overload will include a redesigned Fair Trade USA seal; a Fairtrade International seal, which previously did not appear in this country; and labels from smaller programs, like one run by Catholic Relief Services.

Coffee, which Mr. Rice said accounted for more than 70 percent of the fair trade market in the United States, is at the center of the dispute.

Green Mountain Coffee Roasters, which calls itself the largest buyer of fair trade coffee in the world, said that it would continue to work with Fair Trade USA as it sought to increase the amount of fair trade coffee it used.

Article source: http://feeds.nytimes.com/click.phdo?i=07de9fc1021e03c54fbfe168c567bb8d