Fair Trade Enterprises: Innovating During COVID-19 Times

What makes Fair Trade Enterprises stand out from mainstream businesses? How are they distinguishing themselves through the pandemic, and how could they reshape business? WFTO is the global community of social enterprises that fully practice Fair Trade, with a Guarantee System that verifies purpose-driven businesses that put people and planet first. In this episode, Chris Solt, Executive Director of the Fair Trade Federation (US and Canada) and WFTO Board Member, is joined by Alice Grau, Creative Director of Global Mamas and Hisham El Gazzar, CEO of Yadawee to discuss how COVID-19 has impacted their production and trade, the challenges and opportunities that have emerged, and how they remain committed to their workers, artisans and communities.     

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Transcript

Dondrill Glover: 0:02

Welcome to the NY NOW Podcast, a modern wholesale market for retailers and specialty buyers seeking diversity and discovery, gathering twice a year in America's design capital, New York City. It's where buyers and designers on earth have refreshed and dedicated collection of eclectic lifestyle products.

Chris Solt: 0:21

Welcome. My name is Chris Solt. I'm the executive director of the Fair Trade Federation in the United States and Canada and also sit on the global board of the World Fair Trade Organization. Very excited for all of our members to be partnering with and exhibiting at the New York now digital market this winter. It's been quite a year for the world and lots of excitement I think and positivity in the fair trade movement about the way in which fair trade enterprises are navigating our current landscape and trying to be positive changemakers. I'm very excited to also and honored to have two great creative minds in the fair trade movement. Want to welcome first Alice Brown, Creative Director of Global Mamas welcome Alice to you.

Alice Grau: 1:18

Thanks for having me.

Chris Solt: 1:20

And Hisham El Gazzar. Who is the CEO of Yadawee, welcome. Oh, boy. I mean, I feel like we can't really start a conversation. As now we're seeing each other's faces for the first time in quite a while. So that's such a treat. But I can't avoid anyone can't avoid acknowledging the amazing and profound year that we've all just kind of gone through in the world. But it's interesting to think about how Fairtrade enterprises in the space that they occupy in the alternative trading and alternative economy, and social solidarity and social enterprise movements, how specific and different these enterprises have been effective. So I'm curious I wanted to ask you, Alice, Global Mamas is really, I'm a huge fan and Global Mamas, as a leader, I would say very objectively in the fair trade movement, both a member of the Fair Trade Federation and the World Fair Trade Organization set so many great examples for others to follow. Yeah, also, I know transparently open to learn and constantly learning cooperatively with the moms, if you could just talk about from your perspective, how did what were the main challenges global Mama's face last year? And and how did you and how did the Mamas the face?

Alice Grau: 2:54

Thank you for the great introduction. And I think like everybody, we had to pivot, we had to adjust and be flexible. Organization wide, we were very fortunate because of how we work to be able to pivot very quickly. Because we are vertically integrated. Everybody from particular to seamstress to quality control to our team in the US and Germany. We're all global mamas. So you know, quickly, we were on the phone, like how do we, how do we become a part of the global solution to this, and of course, being fabric makers, well, fabric printers and seamstresses, we saw masks as a great channel for that. And quickly, you know, developed our own mask pattern and started sewing those. Before we even had any outside support to do that. We just went dove right into it. Our rep in Germany was amazing. And, you know, in Europe, they were really quick to respond. And so you know, we sold masks very quickly there. And then we were kind of retro actively able to get a grant. To help support that we two grants Actually, we got one through logic, the West Africa biodiversity program, and then one through gi Zed, which is a German grants. So they were able to help fund our mass production so that we could subsidize the cost and sell them locally to hospitals and health centers and communities that were at higher risk. So we're able to sell them at a lower price in Ghana for that. So yeah, it was it was lots of quick moving, quick reactions, trying to find solutions for our own community to keep our own community healthy, and also support you know, the more the wider global effort and it's I mean, the mamas were incredible. I mean, everybody had to change, right? I mean, we're not producing what we're used to producing. We're not making the income that none of us are used to making, but everybody was on board and saw the need. And, you know, took that to heart. And it was it was incredible to see the quick shift mamas who usually only want to show dresses, were like, No, you know, give me as many masks as you can, I'll sell. I think to date, we've sold over 25,000 masks. It's it's been pretty incredible effort.

Chris Solt: 5:35

Wow. That's amazing. I mean, to think about how I knew global mamas, you know, two years ago, or three years ago, to pivot so quickly. I don't want this to be lost, because it's really fascinating. What you didn't say in that response, which was, Why the heck are you doing that? Because there's conventional, we all read the news, right? once once, like in the spring and the pandemic hit, you saw multinational corporations that have worked with factories around the world, in these disparate profit taking supply chains, leave a lot of suppliers kind of holding the bag, as they say, like, you know, really not that great. And the the specific difference of what motivated all of you to work together is very different in the Fairtrade enterprise world.

Alice Grau: 6:24

Yes.

Chris Solt: 6:24

So you knew the Obamas. You were talking with Matt. Right, that so? So talk, talk a little bit about how that's different than if you were just, you know, you're a shareholder, you know, and just what what, what's the difference of how you think about reacting to such a crazy thing as a pandemic? versus a conventional company?

Alice Grau: 6:45

Yeah, relationship, right, every. And it'll probably come out many times throughout this chat. But that's so much at the core of everything we do, is we know each other it is it's integral to fair trade and to Sustainable Economies like we we are friends, we are family. First, we talked about that a lot in the global Mama's community, we use the word community. You know, we, during interviews with new people, you know, this is a family, how do you think you would fit into this space? decisions are not based on, you know, money a lot of times, you know, it's really about what do we do to keep each other lifted up and continuing? And so yeah, at the end of the day, it was all about, you know, what can we do to keep the business afloat together, we're all in this together. Every You know, there's pay cuts, there's, you know, work cuts there, you know, people doing less work, some of our team went down to, you know, 80% work 80% pay, the leaders team did, like, you know, our crop team did our store team, you know, teams that the work was less, so it made sense. But we were dedicated to ensuring that no one lost their job, you know, that was significant to us. And we achieve that we managed to make it through the year without anyone losing their job. And even I mean, we are most of the mamas, we were able to keep you know, their levels, we tried to kind of average things out looking at, okay, how much work Have you had over the, you know, last three years? You know, it was at this level, let's try to keep you at about 70% of that, you know, trying to make sure that everybody was getting, you know, kind of a balanced pay cut, essentially. But it just yeah, it made sense. If there wasn't any, like, oh, should we do this? Or should we do this, you that it's just woven into the the craft of who we are that this is how we respond, based on our relationships, and how we can work together to solve problems.

Unknown: 8:52

Yeah, I think you just did a really, really good job of explaining mission primacy, like stakeholder primacy, versus shareholder primacy, and profit maximization and true sustainability to right, because you know, that you're an interconnected, right. Yeah. So that gets me very excited. And so it's great to hear like amazing stories like that. So thank you for sharing that. So Hisham. My friend, I have to admit that I know Jada we through just a little bit of your beautiful products that you create in partnership with so many artisans and craftspeople, through your beautiful recycled glass and I own some and my wife and I enjoy it so much. I want to ask you something similar, like How did 2020 in a pandemic impact you and Jada we and what steps did you take? How did you tried to respond and what was different about it and maybe if you had been a conventional business,

Hisham El Gazzar: 9:53

Thank you, Chris, for your kind words. And yes, similar to what else just mentioned. We faced the same problems. Suddenly, we found out that starting March 2020, there is a pandemic, we have to stay at home. Also our artisans, they cannot go to the workshop. With just before the pandemic started in February, we were exhibiting at Spring and Autumn fair in Birmingham. And we were hoping to have orders and suddenly, one month after all the buyers, they started to postpone orders, everyone is afraid. So all of a sudden, you find out that there are no orders coming in. But I have to say that our clients who are Fairtrade buyers, they were really very helpful, they started sending emails to us telling us that don't worry, our financial situation is good. So we will be able to keep sending orders to you. I have to mention, one, for example, from Germany, they did this from day one, they sent emails, sent videos telling us that financially, we're stable, don't worry, we will keep sending orders as much as possible. So that was a bit of sending us this message of being comfortable that we don't have to panic. And that helped us to also do the same with our employees and our artisans. So we gathered them in the meeting. And we're told that look, we will we will do the same we we are also financially stable. So as long as we have cash, we will keep on paying salaries, we will keep on paying production fees for our artisans, because with our artisans, we pay them per production. So we will keep on providing all this as much as possible, as long as we have cash and as long as we have funds to reach out to. So I'm happy to say that now. One year, after the pandemic has started. We didn't cut any any money from the salaries from our stuff we didn't, we have the same stuff. So everyone kept their own jobs. And also with our artisans, we kept on providing them with orders. So we were lucky to have some orders. And when was the downtime where we didn't have any orders, we stepped in and we did reach out to our reserves. We had, of course to burn some cash from our reserves in order to sustain the orders and to sustain the income that the artisans are used to have every month. And we also from day one, we offered our artisans, three interest loans. So we told them that look, if you face any financial problems, You are most welcome to ask us for three interest loans. And then you can pay it later when you can. But I'm happy to say that no one from our artisans needed to to take a loan. So the offer was there, but they didn't need to. Of course, it was a very difficult year we had to also we did face masks, but we were not that lucky. Because Egypt the Egyptian government decided to ban export of facemask. Yeah. Yeah, we could have exported so we had to sell in the local market. Yeah, the we is an export company. So we have been exporting since 18 years. Yeah. But start to this year to start investigating the local market. And we started producing for the local market for making corporate gifts, and so on in order to make it asked a lot. That's from the for the expert.

Chris Solt: 13:59

Yeah, well, I'm very happy to hear some of the good news about the artisans being employed. And I was thinking about what you just described, if all of the things that you said from the fair trade buyers, that communication that happens, right, and they're reaching out to you to make sure that he was connected to their sustainability, right? That's really unique. If you if you would introduce these concepts to like a traditional University business students or economic students, they would say what they would say, at a certain point, right? But that's not what you did. That's not what global mamas did. They realize that throughout your whole supply chain, and that that term is inadequate to describe it, but the functional part of the products that connect you, within that everyone's sustainability is connected to each other. And what you describe your shop and what you describe Alice are really amazing examples of that, where there's like shared risks and rewards. And there is a sense of community and really important thing because Shawn, your example of the communication, I mean, just the fact that you were communicated with so you know, what is going on? Right, is a really big deal in business and in trade, and this fair trade enterprise movement. So, I'm glad to hear that, that you're, you're on solid ground for the future. And this is what I wanted to ask next. I mean, oh, my goodness, we are you about to embark on 2021. There's so many unknowns, I mean, you all know what you can produce, which which is a huge strength going into this year. And you know, that there, there is demand for products, you know, shopping responsibly and online. So, Alice, what, what are the global momma's thinking now about their their position in the Fairtrade enterprise world? And, and what do you what do you all thinking about for this year?

Alice Grau: 16:09

Well, I think, everybody,

Chris Solt: 16:12

I'm sorry, that's super open ended. I know. But it's like,

Alice Grau: 16:15

well, aren't we thinking? I mean, I think it's twofold. Right? As you said, even in the outset, there's, there's a sense of kind of excitement over this energy that's building around, more buyers are thinking about who's making their stuff and what goes into it. So there's this excitement of the platform we've been in for almost 20 years, now is finally getting some footing, especially in the US, you know, I mean, in Europe, it's, it has been, but in the US more people are becoming engaged in this world. And so that's exciting. But there's also a sense of worry, right, as we're looking at stores who have excess stock, still from the previous year, maybe not being able to buy as much as they have, in the past, we had excess inventory that we needed to figure out how to handle so, you know, we didn't, we designed a great new collection of products still, which we feel fortunate to be able to do, you know, to, to be able to make new things still in this environment. Um, but it was a lot smaller than we would normally. So we're, I guess the word would be cautiously optimistic, right. So, you know, we have these some new products, new prints that we've added into the collection, some new jewelry items, we were able to launch fall in June with some new products and our home decor collection. We don't typically have we separated our catalogs last year, which was a first for us. So we highlighted our infall our home decor which ended up being act and time leaf it right, as people were home and cozying in. So just you know, we're, again with that pivot trying to figure out new ways forward. And while still doing what we know, well, we were able to secure again, two grants, one through MasterCard and one through. The second one is through the West Africa trade hub. And the the goal through those with with the MasterCard one, again, is pivoting toward capacity building, which is a strength of ours, and we've always done. But it's giving us an opportunity to share those skills with the broader community in Ghana. So MasterCard and the other organizations they're working with will actually be bringing other groups to us too. So we can provide our training, when I'm specifically excited about is the gender equity training, where we will actually be bringing in the mamas husbands to participate in this training. And the Papas wives and we have a few Papa's in organization too. So everybody will be getting that. And then and then of course, organizations outside of ours will also be receiving that training. And then with the West Africa trade hub grant, our goals are to stabilize, you know, to at least this year to really focus on getting back on solid footing with our traditional production mechanisms. And then to grow. You know, we're Our goal is to get back to our 2026 or 2019 sales by 2022. So kind of giving ourselves a couple years to catch up a little bit, but one of the avenues we're hoping to focus that growth is by integrating some new fabrications. Traditionally, global mamas, we are known for our 100% woven Cotton's hand boutiques, we would like to shift We've been wanting to do this for years, but I've never had the money to get the machines and do the training and import the fabrication. But we're looking to expand to knits. So it'll be a shift to us and then focusing more on our on growing our skincare collection as well. It's you know, it's a consumable, it's something that people, you know, they use their bottle, they come back for more. Right now we just do the shea butter, lotion and soaps. But we'd like to, you know, look into chopsticks. And maybe haircare items, you know, who knows what that could look like? So, so pivot, stabilize and grow are our role going forward?

Unknown: 20:36

That's thanks for sharing that. Alice. Well, what a transparent expression of what you guys are thinking of, and mamas I'm so excited about that. That's really great. And it's a really interesting example of what a lot of organizations are doing right now, which is, like you said, Really doubling down on what you do well, and then looking at the markets, you know, what is what is the difference? And what's the connection between what you can do, and what the market is looking for? Yeah, and also interesting, not surprising that you're doing innovative things and involving different demographics in the whole community, which is so exciting. And in Ghana, to in the so my friend Hisham So you mentioned, like Alice talked about building capacity in Ghana, you mentioned. I mean, Lisa was talking to a friend of mine, who, you know, was there 10 years ago in Tahrir Square in Egypt and thinking about how the country has shifted and struggled and thinking about, like, what the opportunity for Yato? Is there in your and your market in Egypt? And then you're an exporter? So what what are you thinking about both of those, like, what's your, what are your plans for Egypt? And what is your plans and exportar kind of similar to what the mamas are trying to pivot to?

Hisham El Gazzar: 21:56

Well, it's funny that you have mentioned the revolution in 2011. Because I believe that was a very good experience for the other week, back at the time. And I think we have used the lessons that we have learned back in 2011, in 2020, when we faced with the problem with the pandemic, so I did exactly the same. So back in 2011, I did the same thing with my artisans, and with the employees and we are going to stick together and we we will fight this and, and we we managed to, to pass these difficult times. And I believe this was a very good experience for us. And that's what we did in 2020 with the pandemic. But now it's a bit different because in 2011, the problem was in Egypt, but the with experts, everything was fine. So we the market there was was available. But now in 2020. It's it's what it's a problem that you find that everywhere in the local market and abroad. So it's worldwide. So it was a it was a bit more difficult than back in 2011. But I'm happy that we have passed this year, I'm very optimistic about what is coming. I do believe that in the future, once people will start to feel safe again, there will be an increased huge increase in demand in the market, everyone is really tired of being locked down. And not being able to travel not being able to see other people not being able to communicate in person. So once this is back, again, I'm sure trade fairs will be back again, people will start to meet again and all those will come. And that's why we have decided in the other way that we need to be ready for this moment. So we are working on new designs, we actually did some face lifting with our logo. So with our branding, and so on, we are working also on our packaging, we are trying to be more green with our packaging, working with our designers on new designs, especially for matrix one because we are one of the local social enterprises with matrix one initiative. So we do work with lots of refugees. And this is something that we are proud of matrix one. And you and UNHCR did also help us with some grants last year, and also the they're going to help us to give some technical trainings to our refugee artisans in the next few months. So this is something that we are working on. As I said, I believe that we need to be ready because once things will be back to normal. I believe we will we will see a huge increase in orders and people coming again into the market and ready to travel and placeholders. Boy, I

Unknown: 25:05

hear you my friend My i'm i'm so missing my friends from all over and just being traveling around the world is something that I definitely cannot wait as well, like, like many people, I'm I'm also hearing from both of you to that there is kind of a an inward kind of building of your own capacity, right? I think for individuals who are trying to do this, I'm trying to be a better person, you know, because we're not as outward as as a huge human base. And so we're in our minds a lot more. And I think also within our communities or organizations, we're looking at how can we take this take advantage of this time to build and be better and look at those things. We said, Oh, I'll get to that one day, and it's sitting there up on the shelf. Oh, that I have. I'm staring at that shelf now. Probably good idea to take care of that. So there's a lot of that going on. At the same time. There's also this kind of a global shift in values. I know that our friends and partners in New York now are struggling with this like, like a lot of our Fairtrade enterprise members in our global community is what what is like, shall we use the term like when we get back to normal and some people are like, well, is normal a good thing? Or what will that normal look like? I mean, we I we all get the sense that yes, we want to go back to connecting with each other to be able to hug and, and see people and share a drink over stories of friends. But it there's a big movement to not just go back to the way things were I know the Fairtrade advocacy offices really spearheaded the bill back fair movement and Fair Trade Federation and wF to support this fully. And trying to think about, what will that look like? What What would it look like? And what do we want it to look like? This is a big, big question. But I'm curious. Alex, if I could put you on the spot a little bit. Like, let's say we get back to as Sean said, once we get back out of the pandemic, to it to a normal back to the way things were? What what are your hopes and expectations from the fair trade movement? Right to position itself in this next phase of our global history? Honestly?

Alice Grau: 27:30

Wow, that's a big one.

Chris Solt: 27:32

But it it's it's a valid look at that's what I keep this is what keeps me up at night. Right?

Alice Grau: 27:37

Yeah, no, it's so good. And I think I think it's a question I hope it's a question that a lot of people are visiting in, like you said, in themselves and in their local communities and in their broader, you know, global community. I have I, again, I'm an optimist. I'm a realistic optimist. So I you know, I always kind of I'm that person that I see the best in people. And, you know, I assume best intentions. I'm definitely a glass half full rose colored glasses kind of person. So let me give you that framework, before I said these things. But I hope that as we shift back to back to or forward to, I hope we're shifting into a new space, where there's a lot more intentionality in the way we do things and how we interact with others, how we travel, how we purchase, I hope that we can get past this space of just buying things or doing things because that's what we've always done, or it's the cheapest option. And, you know, again, I think I think this, the situation of 2020 has shifted some of those perspectives where, you know, people are asking, you know, or requesting these large companies to pay up, you know, there was the whole pay up campaign to the big manufacturers, the big businesses, especially in the US who were taking advantage of producers in other countries, and, like you said, leaving them with a finished product without pay. So I hope that I hope that we, we can start to kind of see past the surface level of things, in our relationships with each other and with our purchases, that we don't just stop and say, Oh, you know, Oh, it looks this way. It must be this way. You know, I hope that we can be more thoughtful in you know, asking questions of each other of our, again, are products of our producer, you know, the companies we're purchasing from, to find out more about why you know, why is it this way, and how do you do it and why is this better? So, you I think I think that's my hope. And, of course, you know, of course, I, you know, I have hope for more peace and for more community and for more engagement in real ways as we move forward. Those are some of the things I hope, you know, as I hope it doesn't just return to, let's just spend all this money because we have it and we can't I mean, a lot of people don't, you know, so how do we, how do we engage with those communities that, that don't have the resources and can't just, you know, spend a ton of money on Fairtrade products that, you know, can be more expensive? How can we be more thoughtful about those engagements and intentional and finding ways to, you know, be a part of the solution and not just a bigger part of the problem?

Chris Solt: 30:43

Yeah, boy, excellent points. I don't think that sort of colored rose colored glasses at all, I think that's actually quite quite, you know, realistic, I think it's, it's achievable. And you, you raise some, some really great points. And so I'm thinking of, like, my friend had Sean like, So Alex, raise all these great points. And it's some of that too, is there are things that we thought were really important that now upon reflection of this time, maybe they're not, and vice versa, things we thought no, that's not really important, are incredibly important, like human touch, and and proximity and intimacy and, and that interaction with community and the things that you were talking about earlier. And then in the Fairtrade enterprise world to yada we is positioned itself to do quite well, with the points that Alice Alice just raised, which is people are, we believe, I believe, strongly with this global shift of what is that what is the value of what isn't now, the shift, that the products that you offer, and bring to market for people to be able to enjoy and use it in their lives in an intimate way in their homes, is way more connected to everything that that glass, I'll use that example of everything that was made, the time the labor, the skill, the you know, the artists and read the shipping the the resources from the earth, what what are your hopes for this, this kind of New World Within the fair trade enterprise movement itself?

Hisham El Gazzar: 32:30

Well, as I said, I believe that things when they come back to normal again, it will be for a better, but let me tell you that I think that this pandemic has, has left or will leave a mark in every one of us things that you are saying, we have taken for granted, we are questioning them now. So like a simple handshake, we are thinking now, before we do a handshake with someone else, before we hug someone or if you want to go and meet a family member, you are thinking twice if this will be safe for you. And for him or not. These are things that you we used to do without even thinking about, we took them for granted. Yeah, and, and now it's also about the safety of our artisans. For example, at the beginning of beginning of the pandemic, we decided that our artisans will come to our workshop during the weekends, and not the weekdays for a very simple reason is that during the weekdays, the buses and the communication is crowded. So yeah, we decided that they will cut we will only work two days in the week. So to minimize any thing with the people in the industry. So these were things that we had to think about. And from that we learned that we have to think about ourselves and also think about the people around us. So we are all one family and one community. And this is what I really like about federates it's always about or feeling that we are one family. The example that I gave you on the buyer started communicating to us their financial situation. This made us feel like one family together. Yeah. And it makes you feel like you know when you are at a problem, the first person you think that you will reach to is a family member, maybe your father, your mother, an older brother or something like that. So it's the same thing with with the factory. When you when you feel that you are in a problem or you will think about reaching out to one of your family in the factory. Also, this is something also that we happened with us when the pandemic started, and we wanted to do face masks. This is something that was completely new for us. I found the post on WSU ag office that they were doing face masks. So I reached out to them. And I'm from Africa, I'm not from Asia. And I reached out to them, I know them. They're their friends. I told the Look, guys, I want to do this. I want to help out artisans Can you help? In 24 hours, they sent me an email with all the details and all the patterns and all the information and instructions about how to do a face mask. And without this, I never could have stopped doing face masks. So this is a simple example of how people in the factory can help each other.

Unknown: 35:33

What an excellent example, my friend, and I don't know what else to say after that, but you made made made the point very, very well. And well, I just wanted to thank you both for your leadership and what you do in the fair trade movement, for being part of this incredible community that we talked about this morning. Thanks for sharing your stories. I'm excited and grateful for the New York now digital markets. Anyone who is listening to this, I hope that you found it a value and it is hopefully shaped your way of thinking about the products that you purchase, or sell. And, and talk about to customers wherever your store or shop or business may be in the world. So please make sure that you talk to Fair Trade Federation and World Fair Trade Organization member exhibitors throughout the digital market and beyond. And you can always learn more about the World Fair Trade Organization WTO calm and fair to federation.org and visit global Mama's and Jada we online. I'm just again a sham. Thank you, my friend. Great to see your face and Alice, the same to you as well.

Alice Grau: 36:56

Thank you so much.

Hisham El Gazzar: 36:58

Thank you, Chris. Thank you.

Dondrill Glover: 37:00

Thank you for listening to the New York now podcast. Make sure to tune in weekly for engaging and insightful conversations, touching on the most relevant topics facing our community today. Is it New York now.com to learn more about our market, and how you can join in on the conversation