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In 2014, 5.9 billion spent for Fairtrade products worldwide (+10%)

The turnover of fair trade products worldwide in 2014 amounted to 5.9 billion euros, with an increase of 10% over the previous year, and 105 million euros were spent for social emancipation and improvement of the production capacity of organisations. The figures come from “Global Change, Local leadership”, the new Annual Report of Fairtrade International activities, the lead organization of the international fair trade circuit. In Italy, retail sales reached 90 million euros (+18%), but the growth involved all the major markets, with the exception of the UK, -4%, but with sales in excess of two billion pounds.

Also growing was the Fairtrade Premium, i.e. the added profit margin that producers receive and invest in production improvement and social projects, which reached 105 million euros, +14% over the previous year.

Good performance for cotton and cocoa, gold takes off

Double-digit growth, thanks to the Fairtrade raw material procurement programmes, was recorded for cotton (+28%) and cocoa (+24%). In addition, with the new business opportunities addressed to goldsmiths, certified gold volumes more than doubled (+259%).

Good news also for farmers. According to a survey conducted in the organisations, 93% are satisfied with the support services received from Fairtrade. The survey, conducted by the independent certification body FLO-Cert, also found that the impact that the system has on workers and farmers is evaluated by the latter with a score of 9/10. The survey also highlighted the need for producers to increase sales, and first and foremost to develop the local market in the countries of origin of the raw materials. As happened in 2015 in Brazil, which has become the fourth producer country where it is possible to buy 0 km Fairtrade coffee and honey, after Kenya, India and South Africa.

The report also highlights the importance of the services that the circuit provides to organisations to strengthen their business. In 2014, thanks to the Fairtrade Access Fund, loans of 11.1 million euros were provided to small producers, with related training and support activities.

Despite this, the living conditions of many farmers around the world are still a real challenge. “The problems they face are the legacy of hundreds of centuries of marginalisation and exploitation – explains Harriet Lamb, CEO of Fairtrade International – . Fairtrade helps to reduce the rich-poor gap, and to change the global food system that exploits people and the planet. But today, false solutions are no longer enough, and the real change will take place when the voices of small farmers will be heard at the highest levels of government and industry, and starting from these decisions will be taken”.

Meanwhile, new horizons are also opening up: at the end of the year, the new climate change Standard will be launched, which will give rural communities the possibility to access the CO2 credit market.

 

Click and collect, what’s the cost… John Lewis charges for the service

Niente più ritiro gratis per un paio di ciabattine da John Lewis.

The logistical costs for online shipping have always been a thorn in the side for retailers: the consumer is used to not paying any shipping costs, but this is not always possible. One solution seemed to be click and collect: order online and collect in store. But even in this case there are costs, and in a country where this service has reached significant proportions (80 million orders last years according to IMRG, with 3 out of 4 online purchasers using it), some companies are taking cover.

John Lewis for example, a mid to high range brand, has decided that from 28 July it will apply a £2 cost (around €2.80) for purchases below £30 (around €42). A significant decision for the English retailer, which processes 6 million click and collect orders each year, with more than 6 billion pounds of online sales in 2013: they now account for 33% of total sales.

According to the British retailer, the current free service is “unsustainable”: the logistics of distributing packages from the central warehouse in Milton Keynes to 360 outlets cannot be covered for small orders, like lipstick or a necklace. “The majority of orders will remain free of charge while allowing us to invest further in the expansion of click and collect” announced Mark Lewis, John Lewis’s online director. According to the BBC, orders under 30 pounds accounted for 18% of the total last year.

It is likely that other retailers will soon adopt this policy. Perhaps they will convince customers to pay for a quicker and more efficient service. In fact, Amazon is looking ahead: they have just launched Amazon Prime Now in central London, which delivers to your home or office within an hour. The price? £6.99 (almost €10).

Millennial dads shop online for leading brands and in the premium segment

They are more optimistic about the general economic situation and their own finances, willing to spend more without getting lost in tedious price comparisons and, above all, are becoming increasingly involved in shopping for the home, including that concerning their children: they are the “new fathers “, those of the Millennial generations, between 25 and 34 years of age. An audience, according to marketing research, which is decidedly interesting, especially for the premium segment, because they more easily allow themselves to be persuaded to spend more, are influenced by the brand and tend where possible to purchase online. So the industry and retailers should start looking more attentively at this target, also for products, such as those for children for example, traditionally considered “mum-centric”. And they would do well to develop effective multi-channel strategies to intercept them.

A survey by Initiative on Millennial dads (from which the infographic below is derived) shows some interesting data. 45% of “new dads” think that brands play an important role in their lives (compared to 39% of men without children), so much so as to be inclined to recommend them (65% of them do, compared to 56% of non-dads and 60% of mums). They are hyper-connected, more than any other group: 62% have three or more devices, and 82% have a smartphone, from which they carry out most of the product research. The young fathers are also sensitive to corporate social responsibility, and are optimistic about the future: 62% think that companies have the potential to do good, and 58% feel more loyal towards brands that prove they have implemented positive initiatives for society. We are talking about a group that in the near future will constitute the majority of families with children, and whose influence is thus expected to increase.

The survey was carried out by interviews with over 5,000 dads in the range 25 to 34 years of age in 19 countries, including Italy.

Millennial_Dads_Infographic

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