Dive Brief:
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Requests for Fair Trade certification for textile factories have grown since the deadly textile factory collapse in Bangladesh two years ago, according to certification group Fair Trade USA, rising five times in 2014. Fair Trade USA’s apparel certification has been given to 20 brands, and that will increase to at least 25 by the end of this year, up from fewer than five in 2012.
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Fair Trade USA developed its more than 334 compliance criteria for textile factories in 2012.
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Patagonia, Williams-Sonoma, West Elm, and Bed Bath & Beyond are among those offering Fair Trade Certified apparel or home furnishings in the past two years, according to Fair Trade USA.
Dive Insight:
The tragedy at Rana Plaza in Bangladesh two years ago that killed more than 1,100, garnered a lot of media attention, but the immediate media focus and horrified public reaction has faded somewhat. Audits of conditions are still turning up deplorable conditions and unfair treatment of workers, and some retailers have failed to pony up the contributions they promised in the aftermath of the collapse.
Still, the pressure for reform has continued for much longer than reactions to other similar tragedies over the years. Now, continued concerns about the sourcing and manufacture of apparel has apparently spurred growth in items certified by Fair Trade USA as meeting a range of criteria, including factory working conditions, worker pay and rights, and environmental impact.
Fair Trade certification, long a choice for consumers buying coffee, chocolate, and other goods, brings to fashion a clear set of credentials that has more meaning than many of the claims made by individual retailers about how their goods are sourced. And if demand for the designation continues to grow, that could increase pressure even more to take steps to ensure fair working conditions. That will mean higher costs for retailers and shoppers, but the Fair Trade designation helps indicate what the extra dollars are going toward.
“What happened at Rana Plaza spearheaded the growth,” said Maya Spaull, director of Fair Trade USA’s apparel and home goods category, told MarketWatch. “It’s a wake-up call for the industry.”
Participation typically costs 1% to 5% above what they pay to the factories, and their Fair Trade premium covers items like third-party factory auditing and worker training according to Fair Trade USA’s apparel and home goods unit.
But these costs could be rewarded as millennials grow up and enter their prime acquisition years. Studies show that millennials are willing to pay more for apparel that is sourced responsibility and has been made by workers who are treated well. Factory conditions overseas could become an increasing concern as that generation gets older and spends more.
“They’re more cosmopolitan, and the barriers between people in different countries and far away have declined,” ethicist Peter Singer told the Wall Street Journal in April. “Another factor is that with the IT revolution, a different kind of person makes a lot of money and…they’re extremely well paid, and they’re wondering what to do with that money.”