Many consumers hear about ethical or fair trade fashion and don’t understand what this means, does a portion of profits go to charity? Do they give a pair of shoes to kids in need? These guesses only barely scratch the surface of the intricacies of an ethical fashion business. As part of a series that takes a closer look at how to produce and run an ethical fashion enterprise, I am featuring Nancy Dunitz, founder of Dunitz & Company, who started her own fair trade artisan business over 25 years ago before it was the trendy thing to do.
We talked about how shifting consumer habits has made more people attracted to her brand, but has also changed the way people shop. For a small artisan brand, these changes in the industry demand adaptability and making quick high-risk decisions in order to keep supporting and providing work for rural artisan communities. Read more about her journey in the interview below.
As a company that has been doing fair trade fashion for a while now, how have you seen the industry change?
When I first started my business in 1989, the term “fair trade” was not in my working vocabulary. I don’t think it was in anyone’s. What was clear to me, for me, was I wanted to live by the golden rule and treat all people I worked with with the respect they deserved.
I was driven to create a fashion line that was well designed and fashion forward. Obviously, the goal was to create demand for what at the time was a new look. It was also important to pay the artisans we worked with fairly. I always assumed if I was fair and took care of the people I worked with, they would do the same for me.
Until recently, I exclusively wholesaled my designs to boutiques, gift stores and museum shops primarily in the USA. For years, imported traditional crafts were perceived as cheap and not well made. Elevating a collection that higher end shops chose to carry was our goal. And we were successful.
I started hearing the term “fair trade” in the mid 1990s. And from there, awareness of fair trade has slowly and steadily grown. For many years, people purchased our line because they thought it was beautiful. As awareness of fair trade grew, most customers found that the “fair trade” aspect was a bonus.
Has the increased awareness about fair trade helped your business?
There was a time that some retail shop owners bought from Dunitz & Company because we were Fair Trade Federation members (and/or said we practiced fair trade) before they even studied our line and decided it was attractive. Unfortunately, in recent times there has been a lot of ‘greenwashing’ and people using the buzzword “fair trade” because they think it will garner sales. There has also been an influx of compassion marketing. I believe many customers are exhausted by the constant badgering to help this charity or that charity. I think this leads to a lot of confusion. I even have a few recent wholesale customers who now tell me they buy my line because it’s pretty. Full circle.
What was the process like to decide on a specific fair trade certification for your business? These days there are many routes a company could go, you could become a B Corporation, USA Fair Trade, World Fair Trade, Nest Seal Approved, etc.
Dunitz & Company is a verified member of Fair Trade Federation. Honestly, when FTF first launched in 1994, I was approached to be one of their founding members. My colleagues informed me that in order to be a member, I would have to allow the group to audit our financials. As you know, I studied business at NYU and worked in corporate finance before launching Dunitz & Company. That concept made me uncomfortable and I declined. I mean, I knew in my heart I was doing things “right”. But the ‘audit’ aspect made me uncomfortable.
Do you remember my mentioning all the people using “fair trade” as a buzzword to obtain sales? This is why I finally applied for Fair Trade Federation membership. I knew with all the noise out there and people saying they did what they didn’t, it was imperative to be screened. Let me be clear, Fair Trade Federation members are screened and verified. We are not certified. The organization does not have the manpower to send representatives to workshops all over the globe. I can tell you, just the same that the screening process is quite rigorous. A large percentage of applications for FTF memberships are denied. And FTF depends on member dues for survival. That says a lot. Dunitz & Company is also a gold-certified Green America business.
I’ve heard that becoming Fair Trade certified can be cost prohibitive for small businesses, and the records needed to be produced can be time-consuming. Did you face these challenges?
I’m almost certain there isn’t a way for craft items to be certified. The verification process for the Fair Trade Federation is rigorous, but it is not impossible. Dues are based on gross sales. It can be significant, but it is not prohibitive. And if a company passes the screening, it absolutely makes sense to be part of this group. For more than 25 years, I’ve almost exclusively worked with two groups of artisans. I confess, this made the screening processes a lot easier on us.
While you were getting your MBA at NYU did any of your classes cover business and human rights? What was your most important learning experience since running your business on balancing business profitability and fair working conditions?
When I first went to NYU, I had no idea what I wanted to do with an MBA. I was encouraged by my parents to get a practical education and this was viewed as such. The truth is I had always wanted to go to fine art school. When I finished school, I pursued and landed a position in the entertainment business, actually at Warner Home Video. It was not an artistic or creative position. I did, however, have the opportunity to go to a lot of movie screenings! After several years working in financial planning, I naively jumped ship to start something of my own. Honestly, starting a small fashion company involves a lot of hip shooting. At Warner Bros., I was involved with projections and multi-million dollar budgets. With a small business, one bad trade show throws any projections out the window. I always say the first 5 years of my business was my tuition. I lived hand to mouth until I created a jewelry line that customers wanted to buy. I was lucky. It happened.
What is the design process like for Dunitz & Company? Are artisans involved in the process?
I do a lot of homework before I travel to Guatemala each season. I study fashion and color trends diligently. It’s a lot easier these days than when I first started. In the early 1990’s there was no such thing as email or SKYPE. Almost all of our design work was done down there. Now we can do a lot of prep work before I arrive. Communication is so much easier. I concept a good majority of what Dunitz & Company shows. I also absolutely collaborate with the artisans I work with. Very often they show me designs they’ve created. And often I say “Yes”! Let’s create your design in Dunitz colors and see what consumers in the US think. I have to admit, I’ve had a few best sellers I didn’t personally design.
What has been the biggest success for your company up to this point? What does the future look like for Dunitz & Company?
I think the biggest success is that after more than 25 years, I’m still working with and collaborating with the same community of artisans. I’ve frequently been told that without the orders Dunitz & Company generates, the bead workshop I source from would not exist. Unfortunately, a majority of folks who managed similar types of operations are no longer in business. As I mentioned, for more than 25 years, Dunitz & Company exclusively wholesaled our work to fine shops nationwide. The nature of wholesale has dramatically changed. It’s no secret that many specialty shops (and big box stores too) have closed. Most of the major wholesale gift shows have closed. And the ones that remain have become smaller. The way people shop has completely changed.
I’m optimistic for the future. However, it is clear, to continue sustaining the artisans I’ve worked with for so many years, Dunitz & Company must build a significant retail arm. We’ve launched (what I think is a beautiful retail website) www.shopdunitz.com, recently opened an Etsy shop and have a few items selling at Amazon Handmade. I’ve been working diligently on social media and am hopeful it will pay off.
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