Using Stones to Build a Bridge to the Future
February 22, 2012 In recent publications, headlines and articles alluded to problems of “systematic default,” “lawless trading environment” and similar disorderly behavior in the cotton business. This negative press does our business no good and encourages further uncontrolled dealings.
The global cotton trade has a very diverse structure, with many participants playing a role in the day-to-day trade all over the globe. A lot of other business divisions envy us for having our own jurisdiction. Arbitral framework has its limitations but nevertheless provides the most stable and secure environment, considering the other alternatives. The progressively close cooperation in all quality-related matters recently agreed and signed between the International Cotton Association and Bremen emphasizes the willingness of established institutions to work together and adapt to the different trading environment.
We are all called upon to participate and improve these rules. We do business very differently today than we did years ago, and we need people to serve on the different bodies helping to regulate our trade and develop new strategies for the future.
Change is often misunderstood. It does not mean we have to reinvent the wheel. Our trading principles and values should remain the same, but we must adjust the procedures and tools we have at our disposal to meet the realities of our present environment and ensure that our principles and values are upheld.
The textile chain has witnessed a huge change over the past decade and continually seeks answers to shifting consumer behavior and expectations. New product lines have to be brought to the market in ever-shorter cycles at reasonable prices. This is a challenge in itself.
The next test is sustainability. The cotton world will have to find answers for customers who want merchandise produced under improved environmental, social and health conditions. With all of the hype today, one can understand why some think the cotton world has something to hide. This is absurd. Cotton is likely one of the most transparent of the producing industries. It involves a huge number of players with different cultural backgrounds, which makes it difficult to control, and black sheep – which exist in every industry – unfortunately get the most attention from the press.
With the exception of food, the cotton supply chain employs more people than any other agricultural commodity. When we talk negatively about our industry, we should bear in mind that we are endangering the livelihoods of many people around the world.
Rather than making disparaging comments, each and every player should strive to improve his section of the textile chain. Not every development is going in the right direction and corrections will be needed, but it is essential that we gain customer acceptance and understanding of the impact of each measure taken – particularly if it has been tainted by the press.
Don’t Throw Stones – Build Bridges with Them
With interest, I watched the most recent marketing campaign by a man-made fiber producer. He insists that his fiber is more environmentally friendly and, in terms of sustainability, better than cotton and other natural fibers because recycling programs have been put in place.
We should not underestimate such campaigns. These arguments have to be considered seriously, as we will have to find our own answers to questions raised in the debate around the limited resources and arable land on our globe. It is up to us – indeed, crucial for our industry’s future – to generate and craft marketing strategies to explain to the consumer why his first choice in the fiber carousel should indeed be cotton.
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