NORWAY

The structure of fair trade

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.

The market for fair trade

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.

Table 1: The structure of fair trade in Norway
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
Table 2: The market for fair trade in Norway
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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