PDF Download - Puma-catchup.com

P_44 CAtch up | # 02_April 2013
Vision
P _45
As PUMA continues on its road to becoming
more sustainable, CATch up looks
at how the FairTrade
IS FAIRTRADE FEASIBLE?
Making and selling products that balance
people, planet and profit is difficult, but
PUMA’s pledge to sustainability gives it
unique brand advantage among its rivals.
Can FairTrade help seal the deal?
Putting a price tag on its environmental
impact and being serious about reducing
its paw print have made PUMA an eco pioneer
among big corporations but capitalizing
on this success is still an uphill
battle, as recent experience shows.
On top of this, proving a company’s eco
credentials is tough. Studies show only
16 percent of customers believe what
corporations tell them. So certification
from an independent third party is the
best way to verify a product’s social and
environmental claims.
concept can help
The value equation at present seems to
suggest not, at least in some countries.
Consumers in South Africa would be happy
to pay around 10-15 percent more for
a FairTrade clothing product, said Collin
Allin, PUMA Performance Sport Manager
in Cape Town.
Fair Trade Tee from
the Wilderness Collection.
“Being the first to measure environmental
profit and loss is a great coup for the
company … and gives PUMA a huge lead
against its competitors,” wrote Anna
Levy, who specializes in building and facilitating
networks for change at The Hub
in London.
But she acknowledges that today’s profit-driven
culture still makes sustainability
an “add on bonus” rather than a central
influence on behaviour, even though
people know that unsustainable development
puts us all at risk in the long term.
GREEN GUARANTEE
Enter FairTrade, an organisation that has
set sustainability standards, branded
them and underpins them with a seal. It
is the most widely recognized eco label in
the world, according to opinion research
consultancy GlobeScan.
FairTrade coffee, the organisation’s poster
child, is a resounding commercial success
with its UK sales booming almost
1,000 percent over the last five years. But
does the approach work for apparel and
shoes?
But anecdotal evidence suggests that
the mark up in South Africa is much
more. “(It’s) 50 percent we’re seeing with
FairTrade in South Africa now,” said a
South African PUMA employee, pointing
to sales of PUMA’s Wilderness Collection,
which uses over 80 percent Fair-
Trade cotton in its styles.
FairTrade goods are more expensive because
the organization guarantees to pay
farmers a minimum price above market
rates. On top, it pays a “FairTrade premium”
that can be reinvested by farmers >