Fairtrade sales need not slump, says brand boss

August 10 2009

MANY Fairtrade brands are failing to maximise potential sales by assuming that consumers won’t buy Fairtrade during the recession, according to London-based brand management agency Brand Reputation.

Fairtrade sales have taken a noticeable hit since the recession began, but Graeme Crossley, MD of Brand Reputation, is urging Fairtrade brands not to admit defeat and believes that consumers are still prepared to pay when they see a value in the purchase.

“Brand owners are becoming too influenced by the media saying that people are not buying Fairtrade and this is affecting how they conduct their marketing activity,” said Mr Crossley. “But the truth is that they need to be even more aggressive with their marketing tactics than they have been in the past if they want to regain and build on market share. People will pay a premium in the current climate if they see a value in doing so and brands need to work harder at getting consumers to believe in that value and act on it.”

He added: “Fairtrade is still a relatively new concept which is why it is proving harder to maintain sales when times get tough. Many brands are shying away from shouting about their products through fear of being told they are too expensive, but people are still paying a premium for food that matters to them.

“People still buy free range eggs; they still buy locally-sourced produce and they will continue to buy Fairtrade if they can see just what impact it is having on the communities it supports.”

Your views:

Patrick Dodd said 212 days ago:

Fair trade may not be the solution to end poverty in the developing world, but it certainly has done more than alternative ideas or movements. Unfortunately, the credit crisis has adversely affected the fair trade movement. Just like businesses in the North, fair trade businesses in the developing world need access to fair financing for such things as overcoming temporary shortfalls in cash flow or term loans for capital equipment. The reality is that there are few (if any) financing options available and as a result we are starting to see seemingly vibrant fair trade businesses beginning to fail. Shared Interest is a co-operative lending society and world’s only 100% fair trade lender that aims to reduce poverty in the world by providing fair and just financial services. We work with fair trade businesses all over the world, both producers and buyers, providing credit to help them trade and develop. If you would like to learn how you can invest in fair trade, I would like to encourage you to visit our website or send me an email.

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