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An Exploration of Opportunities for the Growth of the Fair Trade Market: Three Cases of Craft Organisations

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Abstract

Businesses that maintain ethical standards have an advantage in the marketplace based on the increasing interest of consumers in products that have a social and ethical component. Fair trade organisations that adopt environmental, social and ethical principles in trading are in a good position to make the most of this growing interest in the market. However, it is unclear whether fair trade organisations are taking full advantage of emerging market opportunities for ethically traded products. This research explores this issue by describing the business strategies of three fair trade organisations that import and sell craft goods into Western countries and evaluates them in the context of this growing market. The research findings indicate that in order to remain in business, fair trade craft organisations have had to adopt better business practices in recent years, improving quality, customer service and product offerings to customers. However, growth appears to be limited, as distribution remains focused on a small, niche market. This paper explores the distribution strategies of two fair trade commodity organisations that are successfully reaching a wider customer base, demonstrating that fair trade products have a unique selling advantage in the mainstream marketplace. In conclusion, fair trade craft organisations are not exploiting this market opportunity to the degree they should and will need to explore wider distribution and alternative business strategies to expand their market share.

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  1. 2240 Lawson Ave, West Vancouver, BC, V7V 2E4, Canada

    Debora C Randall

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  1. Debora C Randall
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Correspondence to Debora C Randall.

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Debora Randall completed her Master’s of Management at Massey University, in Auckland, New Zealand. She is currently using her interests in business and community development to work towards practical economic solutions to poverty. She is living in Vancouver, Canada where she is working on a number of community economic development initiatives.

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Randall, D.C. An Exploration of Opportunities for the Growth of the Fair Trade Market: Three Cases of Craft Organisations. J Bus Ethics 56, 55–67 (2005). https://doi.org/10.1007/s10551-004-1756-6

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  • DOI: https://doi.org/10.1007/s10551-004-1756-6

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