Companies Collaborate to Go Green
In the textile and apparel industry, companies often stay mum about their development plans and zealously protect their suppliers’ names. But an expanding circle of companies— ranging from giants such as Nike Inc. and Nordstrom Inc. to tiny operations such as Ecoganik and Indigenous Designs Natural Fiber Clothing—are pooling their sources to promote the use of organic fibers.
“It certainly is a different feeling,” said Scott Leonard, marketing director for Indigenous Designs in Santa Rosa, Calif., which creates high-end knitwear. Leonard met representatives from Prana, The Timberland Co., Patagonia Inc. and other companies through meetings and events sponsored by a nonprofit organization called Organic Exchange (OE).
“The thought that you can collaborate with your competitors, still survive and do the right thing is what I call a winwin- win situation,” he said. “Your guard is down, and you end up collaborating in a creative way that fosters very good ideas.”
One project that Leonard is working on is a “Green Steps” booth that will display organic products at upcoming Action Sports Retailer Trade Expo and Outdoor Retailer trade shows. He said this will be the first time that such a booth will be done at those shows.
Mass marketing
Berkeley, Calif.–based OE advocates strength in numbers.
“The apparel business is notably competitive,” said OE President Rebecca Calahan Klein. “People decided [that] because there is tremendous environmental value to the conversion to organic and social value to the conversion to organic, it is important to collaborate together and get as many companies as possible to use organic.”
OE’s goal is to convert 10 percent of the world’s cotton production to organic in the next decade. To do that, Calahan Klein said large companies— including Nike, American Apparel, Cone Denim and Hennes & Mauritz AB––need to be involved. Those businesses also make up the 100-plus companies that fund OE.
OE provides a searchable database of companies on its Web site (www.organicexchange.org) as well as a sourcing directory that includes names, telephone numbers and e-mail addresses of various farmers, yarn spinners and other entities in the organic cotton supply chain. It also schedules meetings thrice a year at various companies’ headquarters and sponsors organic farm tours in India, China and other countries.
The organic trend is picking up. The Greenfield, Mass.–based Organic Trade Association estimated that sales of organic fiber products grew annually by 23 percent to $85 million in 2003, the latest year when it compiled figures. Beaverton, Ore.–based Nike aims to have every Nike cotton garment contain at least 5 percent organic cotton by 2010.
Wal-Mart Stores Inc.’s Sam’s Club will have more than 500,000 units of organic cotton women’s apparel by the end of 2005, said a spokesperson for the Bentonville, Ark.–based retailer.
“This is all to look at the bigger cause,” said Beaver Theodosakis, president of yoga and rock-climbing apparel maker Prana in Carlsbad, Calif. Sharing stories over dinner with other companies’ executives about how they began using organic cotton helped Karen Lung, executive vice president at California Apparel Inc.’s Ecoganik division in South El Monte, Calif. “It was kind of inspirational,” she said.
Sustainable luxe
A similar network for environmentally friendly luxury products is being formed by Linda Loudermilk, who uses sustainable fabrics such as bamboo and soy in her Luxury Eco by Linda Loudermilk label. Loudermilk hopes to connect 30 creators of beauty, fashion, home and lifestyle products online in what she calls the Luxury Eco Social Network (www.luxuryeco.com). The Social Network will provide an online store and a digital forum where individuals and companies can share information on sustainable products, according to Loudermilk’s business partner, Mariana Danilovic.
Danilovic said Loudermilk strives to create a movement rather than just a fashion line. She said a TV show is also in the works. “The fashion industry is what I would [call] very developed, but the sustainable piece of that is in its infancy,” she said.
Terry Kellogg, director of environmental stewardship at Timberland in Stratham, N.H., said in an e-mail that information about certification and tracking, quality and availability of organic fibers would not be easy to find were it not for experienced companies that were willing to share data. “Our interests are aligned in seeing the market for organic grow because as it does, our choices for where and how to source organic fiber will expand, as will general awareness of organic cotton in the marketplace,” he said.
Nevertheless, companies must maintain a balance between sharing and guarding proprietary information. Jill Vlahos, director of environmental analysis at Patagonia in Ventura, Calif., said the understanding with textile suppliers is that specific developments such as finishes and fiber blends are proprietary to Patagonia. “If we develop that, then we own that,” she said.
Still, she said Patagonia is happy to introduce competitors to mills that produce organic cotton. Patagonia’s advice is: “Bring your ideas and put your supply chain together.”
Organic Exchange (OE), a nonprofit organization based in Berkeley, Calif., sponsored, for the first time, a booth showing products from about 45 companies—including Marks and Spencer Group PLC, Greensource, Cutter & Buck Inc. and Norm Thompson Outfitters Inc.—at MAGIC. Visitors checked out everything from Nike White Label tops to Loom State jeans and organic chocolate milk to organic cheese. OE also hosted a seminar that included representatives from Nike Inc. and the Texas Organic Cotton Marketing Cooperative.
Since its founding in October 2002, OE has worked to build an infrastructure with enough farmers, manufacturers and other vendors in organic cotton, said OE President Rebecca Calahan Klein. “And now we are at the point where we have enough brands and retailers who made the commitment to use organic,” she said. Calahan Klein said OE hopes to continue holding the booth at MAGIC and is considering other trade shows focusing on outdoor and children’s markets.
Separately, Howard Gabe said he wants to open a showroom housing organic goods from about 10 companies in downtown Los Angeles. Gabe said he has yet to find a location but that he is considering California Market Center or The New Mart. He also plans to get hybrid cars for his sales representatives to use when visiting retailers. Environmentally friendly products are “a viable business,” he said. —K.T.L.T.
