Date of publication: May 3, 2006
Source: Women's Wear Daily
By Ellen Groves
PARIS - Ethical fashion is broadening its scope as major European
retailers respond to heightened consumer concerns about apparel
manufacturing that damages the environment or violates human rights.
British giant Marks & Spencer began selling its own fair trade-certified
cotton line in March, which guarantees higher prices for cotton
producers. High Street chain Topshop's initial one-month trial of
ethical brand People Tree was so successful at its Oxford Street
flagship that it is doubling the size of the concession and extending it
through the summer.
In France, PPR-owned catalogue retailer La Redoute is following up an
initial run of 200,000 fair trade cotton T-shirts in 2005 with an
eight-unit collection of activewear this year. And Galeries Lafayette's
Boulevard Haussmann flagship launched a fair trade cotton section
featuring brands such as Amor Lux in April.
"Eighty percent of our consumers wanted to know more about how clothing
products were made," said Mike Barry, head of corporate responsibility
at Marks & Spencer, citing research the firm commissioned with
London-based market researcher Yougov. The Yougov study found more than
one-third of customers were willing to put clothes back on the rack
based on the country of origin or what they had heard about particular
brands and how they sourced clothing.
One hundred million households worldwide are involved in cotton
production, according to the U.K.'s Fair Trade Foundation, including
those in some of the poorest countries where small producers are most
vulnerable to price fluctuations.
When prices fall, the environmental impacts rise as farmers use more
chemicals to increase yields. It is estimated the cotton industry is
responsible for 10 percent of the world's pesticide use.
"Until recently, very few questions were asked about how cotton was
produced," Barry said. "Now, people are beginning to realize there are
very serious social and environmental issues associated with cotton
production."
Elisabeth Cazorla, La Redoute's apparel director, said, "We believe
[fair trade cotton] answers, and will answer more and more, consumers'
demands."
That growing consumer consciousness already is translating into big
gains for makers of fair trade fashions.
In 2004, ethical clothing sales in the U.K. grew 30 percent to 43
million pounds, or $76.6 million, according to The Co-operative Bank's
Ethical Consumerism Report. Those figures represent a fraction of
overall household expenditures on clothing, which totaled 44.6 billion
pounds, or $79.5 billion at current exchange, in 2005, according to the
U.K.'s National Statistics office.
The consumerism report cited the emergence of a fair trade trademark for
cotton, introduced in November, as a possible catalyst for future growth
in the ethical clothing sector.
Major retailers are eager to capture their fair share of that growth.
"We believe [fair trade cotton] answers, and will answer more and more,
consumers' demands."
Elisabeth Cazorla, La Redoute
"Topshop introduced fair trade labels as a response to consumer requests
and also the interest expressed by several members of our buying teams,"
said Karyn Fenn, the chain's buying director.
As well as introducing fashion brand People Tree, Topshop will launch
three fair trade babywear labels, People Tree, Gossypium and Hug, in its
new Topshop Mini section this month.
Fenn said a positive consumer response to People Tree and jewelry brand
Made means Topshop is "continuing to work with fair trade labels and is
looking at some exclusive future collaborations" in this area.
Safia Minney, founder and director of People Tree, said its success at
trendy Topshop suggests "that fair trade fashion has broken all the
stereotypes and is at the cutting edge of fashion retail. It marks the
beginning of a big change in the fashion industry, and to the unfair
structures that currently have such a detrimental effect on millions of
workers."
Thousands of those workers already are reaping the benefits of higher
demand for fair trade cotton, which has increased twelvefold
year-on-year, according to Max Havelaar, a foundation that sets the
European standard for fair trade. The number of its producers this year
has quadrupled to 28,000, generating 4,000 tons of cotton. That compares
with the 700 tons produced by 6,100 cooperatives a year ago. The Western
and Central Africa-based producers will pocket a total revenue of 4.2
million euros, or $5.2 million, compared with the estimated 1.5 million
euros, or $1.9 million, that amount of regular cotton would have cost.
While fair trade lines are still less profitable for retailers, they can
burnish an image; for example, Marks & Spencer's look-behind-the-label
campaign at the end of January, which included the announcement of its
forthcoming line of fair trade T-shirts and socks and featured slogans
such as "Our coffee won't leave a bitter taste in your mouth. It's
Fairtrade."
"Before the launch of the campaign, M&S's corporate reputation had been
heading downhill," according to a Yougov Brand Index poll in February.
"Since the [ads] debuted, M&S's corporate reputation in the supermarket
sector has recovered by eight points," and the firm gained two points in
terms of its fashion reputation.
La Redoute said its fair trade foray is not a marketing strategy.
"It is not simply a question of image, but an expression of what La
Redoute is about: modernity and innovation, trust and reassurance," said
La Redoute's Cazorla. "Customers are not surprised [by the fair trade
offer]. It's legitimate."
Both La Redoute and Marks & Spencer aim to make fair trade as profitable
as regular apparel. "We are not a charity," Cazorla said. "We need to
make profits. The ambition is to arrive at the same profit margins, and
that the consumer accepts a price which corresponds to that."
Barry said, "The price of fair trade cotton should come down without the
farmer getting any less money, but through operational efficiency."
A recent study by the French Institute of Fashion suggested that
retailer forays into fair trade are reassuring for consumers in terms of
quality, price accessibility and opening up the market. The institute's
consumer panel also was surprised by the variety of clothing items as
well as the style, quality and softness of fair trade apparel.