2010 - European Fair Trade Association

the global economic crisis are seen as strong challenges to
business profitability. No particular sales growth is indicated,
but the respondents do identify an enormous opportunity in
market growth. An increase in competition with mainstream
producers is identified. The effects of this are magnified by
the fact that high resource prices force up prices, while customers
demand low prices.
3. Labelling
With the exception of Chinese companies that are not allowed
to carry Fair Trade certification respondents in all countries
identify an increase in the use of labelling. Some countries
develop their own label, and others join existing label initiatives.
Notable is the high number of respondents indicating
that they wish to work with the Sustainable Fair Trade Management
System (SFTMS).
4. Markets served
Even though the majority of customers is Western, a big
change in markets served is witnessed by the respondents.
Because of the global economic crisis and the relative growth
of Asian countries, a local middle class has come into being,
which provides the Fair Trade sector with new opportunities.
More and more sales are local, which is reflected in the growing
number of Fair Trade shops that are established. However,
these local customers’ wishes are different from Western
customers’, which poses challenges to the sector. Some
respondents also indicate that they are expanding into new
markets internationally.
5. Marketing
Relatively little attention has been paid to promotional activities
in the sector, but it seems this is changing slowly. Some
respondents indicate that they have scaled up marketing efforts
and use Fair Trade as a promotional tool. However, this
is still a challenge for many respondents.
6. Products
Many respondents indicate that demand has grown considerably
for sustainable, natural, green and eco-friendly products.
The quality of the products has become better over the years
as well. The WFTO is now developing a label and control system
for Gifts & Living (non-food). This might enhance market
access for non-food products. Another trend in products is the
increased use of recycled materials.
takes place is among producers who organize themselves in
networks or other forms of cooperation. Sometimes these networks
are said to be very effective, but many respondents
indicate that these cooperative efforts need to be improved.
8. Cause
Some Fair Trade organisations indicate that they have plans
to increase the amount of effort they put in to the cause they
are working for. These causes differ considerably among the
respondents, but to give some examples: some want to create
more opportunities for rural women, others want to engage
in community development activities and, again, others just
want to make their businesses more accountable.
9. Original ideas
A plethora of original ideas have sprung up in the sector.
Several examples are the establishment of bazaars, Fair Trade
networks, forums, conferences and business associations, but
also an increase in advocacy efforts or the creation of a franchise
plan.
10. Internal issues
Almost all Fair Trade organization respondents mention the
effect of internal issues of all kinds, now and in the future.
Some internal issues are related to organizational growth,
when they start having to deal with managerial and administrative
issues that they haven’t faced before, such as quality
control. Others are about getting the right resources for
the right price. This has proven more difficult over the years.
Seasonality of demand raises difficulties in providing year
round work to artisans.
11. Other
Some respondents provided this research with other insights.
These include the customers seeming to want to know more
about the products they buy; improving communication within
the sector and, owing to urbanization and industrialization,
a declining number of people in villages have handicraft
skills.
Figure 2.1 in section 2 depicts the percentage of responses
for each area of trends and developments, to see their relative
importance to each other.
7. External relations / Value chain
Some respondents indicate that they are trying to improve
relations with customers abroad to increase their presence
in those markets. But the main area in which development
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