Ethical Consumerism

Rags2Riches offers designer accessories based entirely on recycled materials - but that’s not why people are talking about them. It’s their commitment to social good that’s setting them apart, the company pairing up the impoverished people of Payatas with some of the Philippines’ most reputable fashion designers (Rajo Laurel is the first one so far) to help elevate the area’s standard of living.

Payatas is the main waste dumpsite of Manila. People who live in Payatas have been known for their ingenuity in the face of desperation. They scavenge through piles of garbage for raw materials to make new products. This economically forsaken place represents the cottage underground of sustainable goods. The problem has been the people’s lack of access to market knowledge and their vulnerability to the opportunists - fine-tuned to the desperation - who buy from them at next-to-nothing prices (even for Philippine standards).

And this is where Rags2Riches is stepping in. The company has done well by treating the people of Payatas as stakeholders. The people now understand the concept of pricing to the market and realize the value added by good design. Perhaps most importantly, they now have a regular (and growing) market to sell to which means that they’re no longer put in a situation where they’re constantly selling out of desperation (i.e. getting screwed over).

The end market of Rags2Riches is generally elite. The products retail at select shops in Greenbelt, Manila’s poshest shopping destination. This has allowed Payatas workers to improve their profit by a factor of 50. Higher volume is on the way as export orders are expected this year from New York, San Francisco, Tokyo as well as certain cities in Europe and Australia. Keep an eye on the official site too as it’s expected to open for online retail soon.

Denmark’s Roskilde Music Festival has integrated recycling into the fabric of their 4 day event with the help of that great motivator - money. Collection stands are on hand to take in cups, cardboard, drink containers and more. Rewarded with a cash refund of approximately 10p or 20 cents per bottle, festival goers can clean up in more ways than one. Many attendees have recouped the cost of their ticket while helping keep the environment clean. It’s reported that 97% of cups used at Roskilde’s concession stands are brought back for recycling. At the end of the 80,000 person event, the staff collects abandoned air beds, stereos and sleeping bags for donation and recycling. Over 1,600 sleeping bags were donated to the homeless.

Guardian: “Festival goers recycle rubbish into a tidy profit”

Marketing Magazine has a story that suggests that soccer star David Beckham is threatening to withdraw from future association with Pepsi if they do not connect him better and more healthy products. Marketing reports :

According to industry insiders, the former England captain, who is in talks with Pepsi, could walk away when his current contract finishes at the end of the year unless an appropriate brand is found. It has been speculated that Beckham wishes to launch his own water brand and range of healthy products.

Pepsi’s tie with Beckham has been crucial in closing the sales gap between the brand and rival Coca-Cola.

Pepsi seeks healthier brand for Beckham tie-up - Brand Republic News - Brand Republic

Sari-sari stores are make-shift local community convenience stores that serve the vast underprivileged majority of the Philippines. There are about 650,000 of them scattered around the nation and virtually all of them are individually owned. For years, ambitious local entrepreneurs have dreamed of consolidating this massive retail category. A bunch of them dreamed with a social conscience and are now finding success with a venture called Hapinoy.

Hapinoy seeks to become a “preferred business partner of the poor” by partnering with local microfinance institutions to provide women borrowers with top credit scores a Hapinoy sari-sari store franchise. Hapinoy provides value by serving as a retail consultant, brand marketer and merchandise consolidator (it deals with manufacturers directly). The company makes money by getting a percentage off the merchandise, which ties its long-term interests with each individual store’s sales growth and inventory turnover. Because of the network effect and economy of scale achieved by being under one Hapinoy brand, store owners still end up with higher margins compared with traditional unbranded sari-sari store owners.

Hapinoy store owners also learn best practices on key retail essentials such as inventory management, store efficiency and branding. They achieve better negotiating power for merchandise, financing and even technology. Some stores are already planning to install internet kiosks to provide their communities with much-needed online access. The social community factor has been retained as well: stores allocate space on the walls for posters promoting local events and seminars.

This business is not only ideals-driven, but strategically successful as well. Because of how asset-lite the model is (microfinancers provide the capital and absorb the financial risks, lenders build/convert the stores, manufacturers supply the goods), the company has achieved a considerable level of scalability. Hapinoy is planning to open/convert 40,000 stores by the end of 2008 and 100,000 stores by the end of 2009.

Replating is the term coined by design studio Language In Common for the simple act of giving away leftover food by leaving it on top of garbage cans. Sort of a small scale version of City Harvest. The replate idea is being spread by their website and with downloadable posters and stickers that explain the process. They started this open source food activism campaign as an easy way of channeling this potentially wasted food to the homeless and others that may desperately need it. There are some potential problems in the widespread roll out of Replating such as the food drawing rodents, or the lack of flat surfaced garbage cans in New York City. Overall a good concept, and a step in the right direction.

Replate

[via Neatorama]

Yesterday we spotlighted TerraCycle’s products that make use of reused packaging. Today we’ve spotted another interesting upcycling idea from London-based designer Shiu Yuk Yuen (site is Safari unfriendly). She’s proposed the UNbrella which is a compact umbrella that can be used for short distance trips through the rain. It consists of a handle and expanding pole and ribs which you then add newspaper, cardboard, or a plastic bag over the top of. There’s a thumb screw at the top to secure it all together. Carrying around a heavy umbrella can be a pain and this concept is a nice alternative for times when you get caught out in the rain.

[via Yanko Design]

TerraCycle made a name for themselves producing a line of plant fertilizer products that were organically made by worms and sold in recycled soda bottles. Not content to watch lots of other potentially reusable materials head to the landfill, the company is expanding operations to produce a line of cleaning products, supplies for school and the office, and yes even fashion accessories. The Wall Street Journal recently reported that the company has inked deals with a number of companies to collect some of their packaging waste and ‘upcycle’ it into new products. The company is already offering these products for sale at Target and hopes to be shipping to Walmart and Home Depot soon.

TerraCycle is committed to getting consumers involved. They have setup a nationwide collection network to source recyclables. Anyone can sign up via the website to collect a specific type of packaging. TerraCycle handles all the costs of transport back to their production facility. For every item sent, a donation is made to the charity of your choice.

To complete the circle, some companies like Kraft are already starting to put the TerraCycle logo on it’s packaging as a way to build awareness and encourage consumers to upcycle. For its part, TerraCycle looks to expand the product offer even more. Potentially on the horizon are shower curtains, umbrellas, lunch boxes, and backpacks.

When Silverjet launched in October 2006, we thought this heralded two exciting developments; one, that an airline could put sustainability at the heart of its offering, and two, the emergence of a new consumer trend, eco-luxury.

The all business-class carrier, Silverjet, was the first airline to become carbon neutral. While several airlines and (online) travel agencies offer carbon dioxide offsets as part of their booking process, Silverjet was the first airline to make a carbon offset contribution mandatory. Much was also made of Silverjet’s luxury service; while on-board, passengers enjoyed 6ft 3inch beds and a crew to passenger ratio of 1:10.
In other words, Silverjet made it easy for luxury dependent clientele to go green.

Silverjet took a smart and sympathetic approach to engage their customers with their commitment to sustainability, actively involving customers with offsetting. This concept fitted with our eco-mantra: make it easy and fun for your customers to be green (even if we weren’t so keen on the offsetting part).

But blaming speculation by City analysts for the collapse of the business, Chief Executive Lawrence Hunt announced that Silverjet had been placed into Administration on 30 May 2008. Following Silverjet’s demise, will eco-luxury and progress towards more sustainable air travel also be grounded? Read the rest of this entry »

With Voluntary Simplicity still on our minds, the 100 Thing Challenge, a growing movement of ex-packrats vowing to clear their lives of all but 100 of their necessities, caught our attention. Dave Bruno, a 37-year-old entrepreneur based in San Diego, brought a spotlight to the movement through his blog, Guynameddave.com. On it, Dave details his slow march towards clutter- freedom, explaining what he has and has not decided to cast off (dental floss is a keeper (and for some reason exempt from the 100 Thing list), while old jeans are a definite discard). His plan is to continue whittling down his stuff and eventually reach 100 by November 12, 2008, but he’s enthusiastic about how his efforts have sparked others to join in the challenge in the meantime. While the challenge might seem impossible for some, Dave’s honest account of his struggle to simplify gives us reason to believe that taking on the challenge, even if unconquerable in the end, is something we all might learn from.

[via Richard Banks]