Fair Trade - What does it mean?
Fair Trade is a term that is being banded around a lot at the moment, but what exactly does it mean? Fair to whom?This is what we do
1) Personally find and vet our suppliers according to our ethical policy
We at One World is Enough spend several months every year travelling around developing countries either meeting new producers or working with our existing producers on new designs. We know all our producers personally, in fact they have all become our friends. By making our own contacts we are able to personally vet them according to our ethical policy It also means that we able to reach the primary producers of the goods, in fact many of the people we buy from are the very poorest craft people living in remote villages. In creating a market for their goods we enable our suppliers to help themselves. We believe very strongly in the concept of 'Trade not Aid'
2) Buy Direct
We buy directly from them, bypassing the usual route of retailer in this country buys from wholesaler in this country who possibly in turn buys from another wholesaler in this country who imports the goods. The importer buys from an exporter in the developing country, who buys from a wholesaler who buys from a regional wholesaler who buys from the producers. As each level takes its cut it is not difficult to understand why the producer is not left with very much.
3) Working in Partnership
We develop long term relationships with our suppliers, this enables them to plan for the future and gives them the necessary stability they need to grow.
We also work with our suppliers on the designs of the products that we sell. This is particularly true of clothes, our suppliers are great crafts people but know nothing about Western Fashion. We have to work with them designing clothes that use their traditional techniques but will be popular over here.
4) Pay a Fair Price
This is perhaps the part of the Fair Trade process that many people find hard to understand;
a) Fair Price to the Producer
We agree a price with the producers in advance, this price enables them to cover the costs of producing the goods and to make a reasonable profit. The profit is in effect our producers wage and this is what they live on. A reasonable profit allows them to care better for their children and to afford medicines when they need them rather than always worrying where the next meal is coming from. We also pay in advance so that our producers do not have to finance expensive credit.
b) Other Costs
However many people do not appreciate all the other costs that we have to bear;
Cost of travelling overseas to meet producers
Shipping or Air Freight
Importing Charges
Customs Duty
VAT
Storage
Advertising and Marketing
Vehicle Costs
Office Costs
Internet Costs
Bank Costs
Insurance Costs
Staff
Shop Rent
Rates
TaxWe try to run our business as efficiently as possible however these costs do add a substantial amount to the cost of the product, however all of the costs are essential to running 'One World is Enough' and without any one of these we could not function and our producers would not have an outlet for their goods.
c) Fair Price to our Customers
We believe that Fair Trade should not just be a preserve of the rich, nor that you should have to pay through the nose for having a conscience, indeed we have to survive in a competitive retail market place. We therefore price our products as competitively as possible given all the costs that we have to bear. We only make a small profit which is ploughed back into the business to enable it to grow.
We are glad to report that others who have studied our business have been impressed, indeed we won the '1999 Best New Business' Award from the Cambridge Enterprise Agency.
However it is important to remember that it is not the percentage of the final price which is important to our producers, it is the actual amount that they receive. Our suppliers are businesses themselves and have similar costs to bear themselves.
But the more we sell the more it helps our producers in developing countries. Many people profess to supporting Fair Trade but as with most things it is deeds not words which count. So show your support for Fair Trade and what we are trying to achieve.