In Norway there are several smaller organizations that import fair trade products. A variety of solidarity groups, private organizations and also world shops import products on their own, but there is one bigger import and wholesale organization: Alternativ Handel. As a wholesaler, Alternativ Handel has 300 to 400 customers, but it also has its own shop. Other retailers include 9 other world shops (members of Alternativ Handel), several NGOs (using mail-order catalogues), individual commercial shops (no chains of stores) and an unknown number of solidarity groups which, in a way, could be regarded as "third world shops". Stiftelsen Alternativ Handel is the mother organization of Alternativ Handel; Stiftelsen is concerned with support to producers in the Third World, political action and development education; it also conducts some educational activities on fair trade.
There is no fair trade mark or trademark organization in Norway.
Alternativ Handel employs 7 salaried persons; Stiftelsen 4. Both organizations together have a voluntary staff of 40 to 50 persons.
The budget for development education at Stiftelsen is 96,000 ECU; a small proportion is spent on education on fair trade.
Alternativ Handel's budget for marketing is about 55,000 ECU, about half of it being co-financed by the national government.
In 1993, Alternativ Handel's wholesale turnover was 429,000 ECU; in 1994 it had grown by 52% to 653,000. Retail turnover of Alternativ Handel was 278,000 ECU in 1993 and 212,000 ECU in 1994. In 1994 the number of world shops increased from 6 to 10.
An estimated 10% of the public has heard about fair trade. Most customers are women between 40 and 60 years of age. The market share of fair trade products is too small to be estimated.
The attitude of commercial importers and wholesalers towards fair trade is positive: they do not see fair trade as a competitor (obviously due to its limited size until now). Retailers are enthusiastic about the imported products and buy them from Alternativ Handel. The prices of fair trade products are roughly 30% higher than "normal" products; this is not seen as a problem because of their high quality and their solidarity background. The products are very attractive. Availability is often a problem, caused by a lack of working capital at Alternativ Handel.
Only 14% of fair trade products in Norway are food products; accessories are the most important articles (21%), followed by toys (16%), clothes (11%), and jewellery (9,4%).
At the moment, efforts are being made to organize the 10 world shops on a franchise basis. The professional approach within the framework of the Stiftelsen's franchise concept will help to make the shops more attractive.
import organizations: | unknown |
wholesale organizations: | 1 |
retailers: | |
world shops | 10 |
action groups | several |
commercial stores | several |
points of sale: | 300-400 |
staff: | |
Alternativ Handel | 7 |
Stiftelsen | 4 |
trademarks: | - |
retail channels: | |
mail order | yes |
individual fair trade stores | yes |
chains of fair trade stores | yes |
commercial stores | yes |
commercial chains of stores | no |
budgets for education & PR: | small |
wholesale turnover: | |
Alternativ Handel | 429,000 ECU (1993) |
653,000 ECU (1994) | |
retail turnover: | |
Alternativ Handel (own shop and mail order) | 278,000 ECU (1993) |
212,000 ECU (1994) | |
estimated total retail market in 1994: | ca. 850,000 ECU |
public awareness of fair trade: | to 10% |
public awareness of fair trade products: | |
population buying fair trade | - |
willing to buy fair trade products | - |
familiar with fair trade | 10% |
willingness to pay a higher price: | yes |
market share: | - |
turnover per category: | |
accessories | 21.0% |
toys | 16.0% |
food | 13.9% |
clothing | 11.0% |
jewellery | 9.4% |
wooden articles | 8.4% |
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