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5 The Market for Certified Products
Pages 39-46

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From page 39...
... Since the entire process is voluntary, and tangible consumer demand is not yet apparent, this area bears more careful consideration if certification is to play a role in transforming markets. Workshop participants discussed the various aspects of the current marketplace, and identified several themes that reveal opportunities to enhance certification's impact: differentiating between business-to-business and consumer markets, recognizing the limits of consumer demand, tapping the potential of large-scale purchasers, and identifying rewards in the marketplace to help build the market.
From page 40...
... 0 certIfIaBlY sustaInaBle? BOX 4 Fair Trade Certification In an effort to reverse the negative impacts imposed on small farmers and artisans due to the nature of the globalized economy, the Fair Trade certification scheme attempts to "undo" what the market has done through an alternative market mechanism -- certification.
From page 41...
... Market Share and Impact It is difficult for nonregulatory agreements such as Fair Trade to achieve success in the market. Without more stringent national and international laws, which emphasize minimum standards for economic, environmental and social practices, the sustainability of the Fair Trade label will continue to be questioned (Jaffe, 2007)
From page 42...
... A primary concern for retailers is still whether or not certified sustainable products will sell. Research on consumer attitudes suggests that consumers buy ‘sustainable' labels for health reasons (NMI, 2008)
From page 43...
... Most certification schemes are focused on the "push" element, i.e., working with producers to enact and support a standard, but what is probably needed are schemes with a "pull" element, educating consumers to specifically demand sustainable products and provide clear incentives for producers to pursue certification. While marketing can be used to tell consumers what they "need" -- an example being the fabricated "demand" for ruffled potato chips -- many participants voiced concerns over having complex issues boiled down to marketing campaigns.
From page 44...
... A participant noted, though, that existing certification programs are not necessarily compatible with CSR efforts -- the Fair Trade scheme, for example has not fit into companies' CSR strategies well because it is perceived as being weak on environmental issues. BUILDING ENDURING MARKETS While there will continue to be interest in building or expanding the market for certified sustainable products, several participants emphasized that the most important question is: How can these become enduring markets?
From page 45...
... Much of the discussion of the market for certified sustainable products focused on consumers in the United States and other developed nations. However, as several participants pointed out, consumerism is growing rapidly in the developing world, but demand for certified products is not.
From page 46...
... Moreover, in some instances certification is perceived as a new constraint on access to developed-world markets. These voluntary standards are not considered globally accepted standards, and so participants noted that some developing-world producers consider certification a new "hoop" they must jump through in order to export their products to the United States and Europe.


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