Fair trade : how it works
We are often asked what fair trade is and how we apply it in our project at Pachamama. Developing a bag ethically and fairly requires applying good practices on a daily basis for the well-being of all stakeholders.
In this article, we decided to give you the definition of fair trade as we conceive it and explain to you how it is a component of ethical fashion. This definition is surely incomplete and you will probably find other interesting versions. This definition is the one that suits us the most and that we want to apply in the manufacture of our backpacks, handbags and weekend bags.
What is fair trade?
Overall, fair trade is a trading system that aims to establish greater equality in traditional trade.
The concept of fair trade generally makes sense in developing countries. Indeed, small producers and craftsmen are not able to obtain fair commercial conditions in face of larger, often foreign, companies. Therefore, the concept of fair trade, sometimes certified by a label, allows small producers to access to more favorable trade agreements.
In concrete terms, this means paying producers, especially marginalized artisans and workers in developing countries, at their fair value. Thus, it allows them to live decently from their work, develop their business in the long term and improve their standard of living.
Sometimes, the goodwill of companies is enough to put in place agreements that are fair to all parties. However, this is not always enough. This is why small producers can also join networks labeled «Fair Trade». There are several labels such as Max Havelaar or WFTO.
This label system is very useful for both the brand, the consumer and the producer.
- For the brand and the consumer, the label makes it possible to certify the origin and traceability of products.
- For the producer, it is the guarantee of receiving a fair remuneration and equal to his work.
In the long run, fair trade is very beneficial because it reduces inequalities within the population. It also allows a healthier development of the country.
The ethical bags Pachamama
Making an ethical bag
Indeed, the values of respect and solidarity are fundamental for the Pachamama brand. Our wish is to make ethical backpacks and handbags in the respect of all stakeholders in the project.
That is to say, with respect our partners and suppliers, whatever they are! And in particular, in a climate of trust and exchange with our craftsmen located in Bolivia.
Beyond the well-being of artisans at work, which must be a prerequisite for any activity, the fair trade system seems to us to be common sense in order to maintain a healthy and sustainable relationship. Indeed, to maintain a good functioning over time, it seems logical that everyone benefits from the project. Thus, everyone is happy to participate in the development of our ethical fashion project!
Transparency and price of a fair trade bag
That’s why we decided to be as transparent as possible with you! We decided to explain to you how the price of a Pachamama ethical bag is distributed:
34%: manufacturing represents more than a third of the price of a Pachamama fair trade bag. Manufacturing includes expenses related to raw materials and the remuneration of craftsmen.
19% is devoted to the remuneration of the craftsman, that is to say between 21 € and 30 € per bag depending on the model. This is about 3 times more than the average salary in Bolivia!
=> In total, our margin on a bag is just under a third of its price. This margin allows us to pay ourselves, pay our taxes, finance our communication, the development of new products and relaunch bag manufacturing! All this!
We do our best to do things well, with respect for artisans and our partners. Since its launch, Pachamama is committed to a responsible approach to make its urban bags. We want to continue to do that. With your input and advice, we continue to move forward and improve. Thank you for trusting us and following us in this adventure.
If you want to know more about our project, the newspapers L’info durable and Les Echos have written beautiful articles about our brand Pachamama.
To discover our ethical bags, we invite you to visit our shop!
