Michael Shipe Blog

The other day, this toy section caught my eye while walking through Target. “Certified Non-Toxic”, the ludic toy brags. It is clear Target is experimenting here, but I wonder if this toy’s primary selling point speaks to the struggle fair trade products have in getting on shelves.

Granted, most parents want their children’s toys to be non-toxic, but is “Certified Non-Toxic” that big of a selling point? Maybe it is, maybe it isn’t. There are more toxic toys in the US than I know of, but that really isn’t saying much. I grew up playing with steel Tonka Trucks that could give you tetanus with one malicious twinge of the hinge.

Here is my point, let’s contrast the “Certified Non-Toxic” with “Certified Fair Trade”. Some parent sees this non-toxic toy and thinks, “That’s nice, but I’ll just get a cheaper stuffed animal. It isn’t certified non-toxic, but I don’t see a scull and crossbones either, so…it’s probably ok.”

Switch the non-toxic to fair trade. The same parent goes to buy the fair trade stuffed animal and thinks, “The bear is certified fair trade, what about all the other toys? Are they made for children by children? Does Target trade fair for this bear, but unfair for the other 99% of the store?”

I suggest, that the mere existence of a fair trade product calls into question all the other products. That’s why Macy’s fair trade experiments (Shop for a Better World) does not emphasizes that it is a fair trade project. They link it to a specific project and highlight how it helps a specific community overcome a specific problem. Because it is an especially project, it does not cast doubt on the fairness of Macy’s other products.

It makes me wonder if highly charged terms like “fair trade” could survive in big box retailers simply because the brain too easily goes from “fair” to “unfair”. As technology makes the world smaller, consumers will want more evidence that their money is bettering the world hence the rise in corporate social responsibility(CSR). More and more retailers will be experimenting with green-fair-organic-non-toxic products trying to find exactly what consumers are concerned about.

The title reminded me of chatter when e-commerce was ramping up. However, there is a growing tide, a silent tsunami that will be a greater game changer than online retail. The greatest opportunity for differentiation has been price, it has been quality, it has been convenience but it will soon be responsibility.

The responsibility requirement is not coming because consumers are starting to care. It is coming because consumers will soon be able to easily find out which companies are showing leadership in responsibility and which ones are profiteering. The phenomenal growth to 75 million fair trade shoppers shows that the caring consumer will soon be the primary consumer.

I am excited for the day when retail clerks will need preparation to answer questions like,

• “Were the people who made these shoes paid a living wage?”
• “Does the factory where this was made meet international standards?”
• “What has your company done to improve the world?”

My guess is that within 3-5 years, genuinely responsible companies will start taking market share from companies content with status quo. If responsibility is little more than a polite velleity, your company will miss the responsibility boat – a sizably larger boat than e-commerce.

Startupnation has a contest going on for entrepreneurs to upload an elevator pitch. People rate the business idea and their business experts bring the best 5 ideas together to present to venture capitalists. So, here is my elevator pitch:

Follow this link to rate it: http://www.startupnation.com/elevator-pitch-2009/contestant/5355/index.php

You can rate it everyday until March 20th.