The Urgency and Necessity of a Different Type of Market: The Perspective of Producers Organized Within the Fair Trade Market

The development of the certified Fair Trade market was initiated by a group of indigenous communities in Mexico. Over time, their vision of Fair Trade as a different type of market has become increasingly marginalized by an emphasis on poverty reduction. This article presents their understanding of what Fair Trade should and should not be. It presents the key principles of the Fair Trade market as effectiveness, ecological sustainability, social sustainability, and more direct producer–consumer relationships. The key challenges that confront Fair Trade in living up to these principles are the need to democratize the formal structures of Fair Trade so as to give a greater voice to small producers and to link with other social movements to confront the dominant neo-liberal trade regime.     

The Dynamics of Fair Trade as a Mixed-form Market

This article analyses the Fair Trade sector as a “mixed-form market,” i.e., a market in which different types of players (in this case, nonprofit, co-operative and for-profit organizations) coexist and compete. The purposes of this article are (1) to understand the factors that have led Fair Trade to become a mixed-form market and (2) to propose some trails to understand the market dynamics that result from the interactions between the different types of players. We start by defining briefly Fair Trade, its different dimensions (including the “fair” quality of the products) and its organizational landscape, focusing on the distinction between the pioneer “Alternative Trading Organizations” and the second-mover companies. Then, we recall the theoretical emergence factors for each type of organization (nonprofit, co-operative and for-profit) and apply these emergence factors to the context of Fair Trade. This analysis allows us to capture the specificities of each type of operator with regard to Fair Trade and, thus, to have a better understanding of the dynamics in the sector. Such dynamics includes competition, but also conflict and partnership. Our analysis includes elements on ethical imitation, consumers’ behaviors, effects on welfare and the role of the government.     

Alliances Between Corporate and Fair Trade Brands: Examining the Antecedents of Overall Evaluation of the Co-branded Product

This research investigates the potential for a “fair” co-branding operation. A major corporate brand is fictitiously allied with a Fair Trade labelling organization brand. The sample for the study is composed of 540 respondents, representative of the French population. By considering commercial brands and Fair Trade labels as dissimilar in terms of customers’ perceived Fair Trade orientations, this article studies (1) how this lack of similarity impacts perceived congruence between both entities (i.e. perceived relevancy and expectancy of the alliance) and (2) how prior brand attitudes and congruence influence customers’ evaluation of the co-branded product. The results of this research demonstrate that: (1) Consumer prior brand attitudes toward the partner brands influence very little customers’ evaluation. (2) Perceived similarity of the partner brands has a strong influence toward congruence of the co-branding operation. Results also indicate that congruence (measured as relevancy and expectancy) has a strong influence upon customers’ evaluation. (3) An inverted U-shaped relationship exists between perceived similarity and relevancy of the alliance, and between expectancy and customers’ evaluation. The results obtained through the test of a partial least square model, and inverted U-shaped hypothesis, represent a new insight into co-branding theory. The high discursive power of fair co-branding is a key issue: the corporate brand provides the alliance with its leading position, while the Fair Trade brand provides the ethical attribute.     

Fair Trade Managerial Practices: Strategy,Organisation and Engagement

The number of distributors selling Fair Trade products is constantly increasing. What are their motivations to distribute Fair Trade products? How do they organise this distribution? Do they apply and communicate the Fair Trade values? This research, based on five case studies in Switzerland, aims at understanding and structuring the strategies and the managerial practices related to Fair Trade product distribution, as well as analysing if they denote an engagement with Fair Trade principles. The results show a high heterogeneity of strategies and engagement. In general, strategies implemented by mainstream actors contribute to increase Fair Trade global sales but do not convey the transformative message of Fair Trade through their engagement. The latter is rather communicated through alternative channels. Problems and potential solutions to this issue are discussed.     

Fair Trade Organizations in Belgium: Unity in Diversity?

This article analyzes the dual process occurring in the field of Fair Trade organizations (FTOs) in Belgium. On the one hand, there has been a gradual diversification of the organizational landscape over time from pioneering volunteer-based non-profit organizations to a broader array including cooperatives, group structures, businesses and individual entrepreneurs exclusively devoted to FT. On the other hand, a process of networking is currently taking place among the various types of FTOs in the context of the creation of a Belgian Fair Trade Federation (BFTF). Drawing on neo-institutional theory, including institutional entrepreneurship, this article examines how and why these two processes have taken place. A qualitative field study in the Belgian FT sector, including interviews with 15 FTOs, offers rich empirical material which illustrates the diverse patterns of these organizations. Based on the observed combinations of different variables among Belgian FTOs, a taxonomy reflecting diverse means of conceiving and organizing FT activity is suggested. The different categories of FTOs and the evolution of these categories over time seem linked to the broader institutional evolutions of FT at the international as well as at the Belgian level. Finally, several factors are reviewed to explain why the diversity among Belgian FTOs has not been an obstacle to their collaboration.     

Ethical Entrepreneurship and Fair Trade

Due to several recent scandals, Business Ethics is now firmly embraced. Whereas in the 1980s and early 1990s there were serious doubts expressed about combining ethics and business, the link now seems to have become self-evident. Fundamental questions about the tensions between business and ethics however continue to receive little attention. In this paper, based upon a debate concerning the Fair Trade company, the strains between business and ethics are analyzed. The article shows how several great thinkers have already considered this tension. Three ways to conceptualize the tension between business and ethics have been distinguished, and these are outlined in the paper. In one approach, ethical entrepreneurship, value tensions are perceived as a source for entrepreneurship. However, this approach presupposes pluralistic ethics. Thinking only in terms of black and white is seen as blocking the ability to adequately handle the tension between business and ethics. Opting for ‘‘ethical entrepreneurship’’, as by Fair Trade, has fundamental and important consequences for the company’s communication policy.     

Trade Fair or Sales Fair

Abstract

The central aims of this study were to investigate the objectives of participants at the Botswana International Trade Fair, effectiveness of management of the Fair and linkage effects of the Fair on its host city. Data were collected from a convenience sample of exhibitors and visitors, selected on a “mall intercept” basis, using a self-administered questionnaire under the supervision of trained assistants. The study found that the motives of the exhibitors and those of the visitors were highly complementary, as majority of both were motivated by business objectives. Despite the complementarity, the relative dominance of the business objectives was different. While practically all exhibitors were motivated by business objectives, a significant percentage (29) of visitors included social objectives in their motivation. Most of the participants, visitors as well as exhibitors, expressed satisfaction with the achievement of their objectives. They also rated the organisation and management of the fair favourably, except for cost or charges, catering facilities and car park facilities. The preponderance of retailing activities found at the fair gave it the image of a flea market rather than a true trade exhibition. A greater selectivity of exhibitors might help attract more quality visitors, with higher income and greater decision-making authority as well as more business-to-business transactions.     

Trade Fair for developing countries

It is six years now that the first Import Trade Fair called “Partners of Progress” has been staged in Berlin. Its original form was that of a pure aid to information, but following actual needs, it gradually changed into a commercial trade fair of the developing countries. The number of exhibitors taking part in these fairs, and the growing interest shown by more and more expert visitors, have both made it clear that this kind of trade show has gained a firm position among German trade fairs and specialised exhibitions. We have asked Dr M. Busche, authorised signatory of the Berlin Exhibition Service (Ausstallungs-Dienst Berlin: ADB), about his experiences with the import show, “Partners of Progress”, which is designed exclusively for the promotion of imports from African, Asian, and Latin American developing countries.     

A Cross-National Investigation on How Ethical Consumers Build Loyalty Toward Fair Trade Brands

Although Fair Trade has recently experienced rapid growth around the world, there is lack of consumer research that investigates what determines consumers’ loyalty toward Fair Trade brands. In this research, we investigate how ethical consumption values (ECV) and two mediating variables, Fair Trade product beliefs (FTPB) and Fair Trade corporate evaluation, (FTCE) determine Fair Trade brand loyalty (FTBL). On the basis of two empirical studies that use samples from the U.S. and Korea, we provide evidence demonstrating that the manner in which ECV influence FTBL differs in the U.S. and Korea. In the U.S., ECV determine FTBL only indirectly via FTPB, whereas in Korea they determine FTBL directly as well as indirectly via FTCE. We discuss theoretical and managerial implications of these findings.     

Measuring consumer's willingness to pay for organic and Fair Trade products

Previous research has extensively studied consumer's environmental and social concerns. However, measuring the value of the environmental or social dimension of a product remains a challenge. This paper proposes to partially fill this gap by measuring the double ‘Fair Trade and organic’ labels' value using an experimental method – the Becker‐DeGroot‐Marschak's mechanism. Two ‘organic and Fair Trade’ and two conventional chocolate products were tested on a sample of 102 consumers. Results show that organic and Fair Trade labels increase consumers' willingness to pay, and allow the identification of three consumers clusters. The first cluster represents people insensitive to the label. For the second cluster, the ‘organic and Fair Trade’ labels' influence on the improving image of the products is positive and important. And finally, for the third cluster, the valuation of the ‘organic and Fair Trade’ label is determined by the product's taste. Our research contributes to a better understanding of consumers' valuation of Fair Trade and organic labels, leading to our conclusions, which offer managerial implications with respect to this market (importance of taste and usefulness of double labels).     

Label performance and the willingness to pay for Fair Trade coffee: a cross‐national perspective

In this paper, we investigate how label information detailing the performance of the Fair Trade labelling programme with respect to coffee affect consumers' willingness to pay in the US and in Germany. We provide respondents (university students in the US and Germany) information regarding the hypothetical benefits of the Fair Trade coffee programme on its intended beneficiaries on the production side [the revenue gains to participating marginal farmers (scope of the programme)] and, using stated preference conjoint methods, test how this performance criterion relates to the willingness to pay for Fair Trade coffee. Our empirical results identify a ‘threshold’ property of performance‐based labels. In effect, the willingness‐to‐pay for performance‐based Fair Trade labelled coffee exhibits an inverted U shape in the sense that the willingness to pay is positively related to the scope of the programme, but only up to a critical level. Thereafter, the willingness to pay declines as the income gains to participating growers increase further. Interestingly, this inverted U property is exhibited by both the US and German respondents with different critical thresholds.     

了解中国西部的窗口 国际经贸合作的平台——第八届中国西部国际经济合作洽谈会简介

中国西部国际经济合作洽谈会（简称外资会）,每年4月上旬与中国东西部合作与投资贸易洽谈会（简称西洽会）同期在西安举行。西洽会创办于1997年,由中国贸促会,国务院西部开发办、国家工商总局、国家技术检验检疫总局（今年国家商务部也成为主办单位）等7部委及全国29个省市区人民政府主办,每年举办一届,已成功举办了12届。成为涵盖中国西部、辐射全中国、在境内外具有较大影响的国际经贸盛会。     

Fair Trade and the consumer interest: a personal account

Abject poverty and rampant consumerism are twin ills of global capitalism. This short paper serves to encourage discussion on the role of Fair Trade in healing those ills. After describing the benefits of Fair Trade for producers, a paradox concerning the joys and blights of contemporary consumption is presented. Drawing on an autoethnographic method, the author indicates how Fair Trade resolves this paradox in the consumer interest.     

Are Stated Preferences Confirmed by Purchasing Behaviours? The Case of Fair Trade-Certified Bananas in Switzerland

As the market share of Fair Trade food products in countries of the North grows, understanding consumer preferences with regard to this recent label is becoming increasingly important. This article reports on a test of the consistency of consumers’ stated preferences, for which a survey was conducted at the place and time of actual purchase decisions. The aim of the survey was to further improve the understanding of consumers’ stated motivations for buying ‘Fair Trade’ and ‘organic Fair Trade’ bananas in Switzerland. Hypothetical questions with double dichotomous choices were used to compare two types of bananas – conventional and labelled – and to assess the average stated willingness-to-pay (WTP) for Fair Trade-labelled bananas. The results show that Fair Trade is largely accepted in Switzerland and that the premium for purchasing such products is influenced by age, the number of young children and the perception of the Fair Trade label. I then used a comparative test of field observations and stated preferences for bananas to measure inconsistency in choices. This comparison reveals that less than one-fifth of the answers are in principle inconsistent. These results point to the importance of confidence in the Fair Trade labels if consumers’ purchases are to increase.     

The Fair Trade Idea: Towards an Economics of Social Labels

The concept of Fair Trade is applied to the marketing of a variety of goods. In recent years it has met a continually increasing interest among consumers. Different Fair Trade organizations are trying to accomplish an improvement in working and living conditions in developing countries by means of Fair Trade certificates and by paying a price markedly above world market standard. This is meant to lead to the attainment of basic social standards, especially in agricultural production. The article deals with how Fair Trade works and whether the social aims can be achieved by the application of this trade concept. Our main result is that even though efficiency of redistribution through the Fair Trade institutions is lower than through traditional relief organizations, the Fair Trade concept provides an additional incentive to support better living conditions in the Third World. Moreover, it provides a stimulus for producers to reorganize the production process in a socially more acceptable manner even when this is not rewarded by the Fair Trade company.

Exploring the Path for FINANCIAL INNOVATION——Top Forum of Financial Innovation, Market and Instrument to Be Held Soon

On July 6, a top forum themed with financial innovation and regulation is to be held in Renmin University of China （RUC）. This forum is sponsored by Hanqing Advanced Institute of Eco- nomics and Finance （Hanqing Institute） under RUC and the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University. It is a top talk in the financial world.     

Fair Trade: Dynamic and Dilemmas of a Market Oriented Global Social Movement

Fair Trade is analysed as a new economic social movement to the extent that it is based on new forms of collective action and directs its demands primarily to the market rather than to the State. In addition, it is intrinsically a global movement harnessing development goals to new market relations. It differs, however, from similar movements (organics, animal welfare) to the extent that it focuses primarily on traditional issues of redistributive justice rather than a new generation of rights and duties. Fair Trade is understood as having three components: (i) the organization of alternative trading networks; (ii) the marketing of Fair Trade labelled products through licensed conventional traders and retailers; and (iii) the campaign-based promotion of Fair Trade to change both purchasing practices and the rules of conventional trade. As a market oriented movement, Fair Trade relies crucially on the emergence of a new politicization of consumer activity comprising not only “consumer-activists” but also the State as consumer and a new layer of political consumers sensitive to issues of social justice in their daily purchasing practices.

Fruits Proves Confidence

The East-West China Cooperation ＆ Investment Trade Fair initiated in 1997, and has become the first platform for China＇s regional economic coordination through the joint efforts of 7 ministries, National Development and Reform Commission, Ministry of Commerce and CCPIT, and 28 provin- cial governments, autonomous regions and municipalities. The annual fair plays an important role in promoting the prog- ress of East, Middle and West China to enhance the regional harmony. At the mean time, the Fair opens a window to the world for China western areas. 13 ses- sions of the Fair have been successfully held in Xi＇an, capital of northwest China＇s Shaanxi province. And the 13th East-West China Cooperation ＆ Investment Trade Fair lasted from April 5 to 8, 2009.     

For Love or Money? Fairtrade Business Models in the UK Supermarket Sector

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005–2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006–2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers.