South Africa and Mexico are other growing markets for this label Fair Trade brand belong to FLO Germany. They licence other outlets to sale this brand and provide all sorts of support. The brand has entered the growth phase from its low neigh position in 2000. The brand is well recognised for its value and has been darling to the global consumers. There are over 6000 Fair Trade certified products from 60 countries available to buyers at present. About 1.4 million people are engaged in producing goods and commodities for fair trade.
Many global companies are introducing 'Fair Trade' in their network and included it in their procurement list. The retailing giant Tesco in UK has introduced Fair Trade successfully in its outlets. Starbucks, Ben and Jerry's, Candico Sugar and Cadbury's chocolate including Fair Trade certified ingredients into their mainstream products. These big brands don't take Fair Trade as competing product but accept it readily in their shelves.
The brand Fair Trade is so strongly embedded in the minds of consumers that they prefer buying this brand on the price this is sold as they perceive it as Fair and value lade, Other brands are match their prices to that of the prices offered by Fair Trade. Price differential between the Fair Trade and non-Fair Trade is gradually narrowing in favour of the former.
There are doubts expressed in some quarters that Fair Trade is also not able to maintain its pre recession position in recession period. Fair Trade is not recession proof. The industry which was growing at a rate of 40-50 percent per annum for about last nine years is gradually slowing down particularly in the traditional retail market. But the fact is that big brands which are slowing down have courted the Fair Trade outlets for a place. This trend is an indication to the Fair Trade to remain firm during recession. Fair Trade suppliers who are mainly growers get losses on account of the currencies of their country being devalued that results in their payment to be lower in return of their supplies.
Ruben Ravera, spokesperson for the Argentine Fair Trade Network, is
among those who see a gloomy outlook. According to him it is very likely that because of
economic contractions "the consumer's commitment to fair trade will decline,"
According to Latin America regional director for the World Fair Trade Organisation, some groups that sell in Europe, Canada and the United States have reported a five-percent decline for last year.
Love for ethical products thrives even in the period of recession. This has been found in one important research conducted by a research organisation. Ethical food and beverage, personal care and household products that fall in the ethical products and certified as organic food are frequently purchased by adult shoppers in United States and remain ready to pay more. Recession does not bother them. The survey indicates that more shoppers understand the environmental, social, and economic implications of their choices. Sizeable number of consumers who will purchase typically more expensive ethical products even in economically challenging times are from the country that is most affected by recession. According to the report from Packaged Facts forecasts, for last five years US market for ethical