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How Fair Trade is Transforming the Fashion Industry

Take the niche market for fashion accessories that are designed and produced by indigenous artisans as beaded bracelets, detailed mesh handbags, or long earrings with a unique cut extend it to high end brands like Levis, Anthropologie, and Lucky Brand, and you have opened the potential to tap markets worth billions of dollars.

This is Ruth Degolia vision for Mercado Global, an organization she founded to connect artisan women from the highlands of Guatemala to these types of high fashion brands. Mercado Global works with more than 300 women from Guatemala, who are now earning from three to four times more in sales as a result.

The most transformative change for many of these rural women many of whom have been marginalized by their own society, and told they are not worth educating after living through civil war, a series of coups, and community massacres the result of giving them this kind of market access.

are not only earning more, but they are investing in the children education, incorporating meats and fruits into their diets, adding rooms to their homes, and making down payments on their first plots of land, Degolia said.

The business development opportunity in fair trade is immense. just at the tip of the iceberg, said pandora sale 2016 Degolia. She was one of the first persons to start mainstreaming fair trade goods beyond commodities such as coffee.

market for socially responsible sourcing is so much bigger than what has already been tapped, she said. consumer demand is lifting up the whole tide, from high end accessories and jewelry to chocolate. Providing access to global markets can open opportunities for long term sustainable impact in Guatemala and beyond, paving a path towards changemaking for rural populations.

Guatemala 54.5 percent malnutrition rate remains the third highest in the world, according to the World Bank at a Glance report.

The national government, facing mounting international pressure to eradicate malnutrition from rural areas has started partnering with Mercado Global on a number of large grants from the World Bank and USAID.

During college, Degolia visited Guatemala on a series of fellowships. time I leave one of these communities, as a personal favor, the women would ask me to take back some of their artesenias, she said.

Degolia discovered that these goods commanded a sales price on Yale campus that was at least five times the local price in Guatemala.

Most partners come to Mercado Global either through referral or word of mouth. Though many rural communities need support, the organization focuses on where it will have the greatest impact, targeting communities that produce the kinds of products that are in demand.

haven been able to build a market for crocheted products yet, even though many poor communities have it as a core handicraft, Degolia said.

As Mercado Global has passed through the proof of concept stage, it has become well known throughout the Guatemalan highlands. It has a full waiting list of communities with artisan cooperatives that focus on sewing, weaving, and detailing. Much of the organization work today involves community organizing and legal cooperative building in essence, investing in the pandora charms outlet social capital.

consider the artisans partners, and not beneficiaries, Degolia said. Its community based education program teaches self esteem and financial literacy, while its market access program helps artisans legalize their cooperatives and connect to the market.

Mercado Global intricate system of thumbprint payments, its rotating leadership and treasury, and its cross country training sessions are symbolic of a business model that is here to stay. It scalable, replicable, and is changing an entire system of corporate supply chains not to mention the power of shifting consumer mindset.

Mercado Global impact measures include gender balance. In a region where more than 90 percent of women have experienced gender violence or abuse, the percentage of women participating in household financial decisions is big indicator of a cultural mindset shift.

Partnering companies have also reaped benefits. of the companies work with us for the first time, but once they see that it sells well, and there is a business case for it, they look pandora charms clearance for other partners to diversify and expand their line of socially responsible products, Degolia said.

While Mercado Global greatest competition comes from companies that make high end accessories but are not fair trade, there is immense potential to shift consumer mindset by partnering with these same for profit companies.

artisans could never compete in a race to the bottom on price with China or India, but they can produce some excellent high end accessories, Degolia noted. High end fashion could become fair trade fashion.

The organization impressive distribution network, spanning the Guatemalan highlands, has proven to be a value add in the natural disaster relief efforts of organizations like the Red Cross, as well as the Guatemalan government. The Red Cross has the resources to support relief efforts, but it is not well connected to the knowledge network about existing delivery paths. The end result pandora charms deals has been delays in the pandora charms clearance midst of national emergencies.

the last hurricane that hit, we knew within 24 hours who needed what, within the huge region of Guatemala, because the partner artisans became the perfect network, Degolia said. The artisans were on their cellphones when the landlines were down, and they recruited their husbands to ferry food across the mudslides.

Mercado Global success begs the question: how can other social entrepreneurs reach such impact and sustainability? Degolia offers a few nuggets of wisdom:

Don focus on the mini fixes, but get to core of the challenge. What the women in Guatemala really needed, and has been transformational, is market access. When they have their own income stream, they can address other issues, like health and education, themselves.

Your primary job as a social entrepreneur is to find win wins. When you have limited resources and capacity, your staff time is the most valuable asset. The most important thing is to say it not worth pursuing one off collaborations.

Success as a social entrepreneur is determined by the team of people you build around you. To build a successful team, first hire for the skill set, then vet for your mission, and finally make sure you select people that are entrepreneurial and ready to grow and iterate along with your organization.

Find the right way to pandora jewelry clearance scale up. Mercado Global name, market, came from the aspiration to scale up its operations beyond Guatemala, because the business model could work well in any country with an indigenous population. However, it is staying true to its core mission of by scaling up by sharing what works and what doesn with other organizations that want to replicate its model. This has ensured the greatest impact.

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