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ORGANIC COTTON - Market Potential

Organic is happening all over!!!

By buying and wearing organic, you are directly supporting these farming efforts. You also have the opportunity to greatly improve your health and make a positive impact on the environment. Although changing your clothing habits may seem small, collectively we can make a difference. In 1998, Nike, one of the largest sports clothing lines in the world, decided to incorporate organic practices. Most of their products contain 3-5% organic fibers and they also offer a 100% organic line.

Although 3-5% may seem insignificant, in the scheme of things (and in the volume that Nike is producing) the numbers are quite large. Nike alone uses nearly three-million pounds of organic cotton per year! And other large companies such as Patagonia, Timberland, and Orvis also incorporate organic fibers into their clothing lines; without public support these companies would not be successful. So next time you're shopping for yoga wear, casual wear, workout clothes, or items for your kids, look around—organic fashion is hot. ••

  1. Increasing retail sales of organic products. Organic has caught on US & EU consumers like wild fire. The sales have been reported to increase over more than 300% in last five years. Moreover, the projections are even more bullish and the sales are expected to increase by about 1000% by 2008.

Global retail sales of Organic cotton products

  1. The bottom line Large retailers are profitably incorporating organic cotton into their garmentseither with one hundred percent substitution or by blending with conventional fibers.

  2. Proven business models Patagonia in Ventura, California, and Nike, in Beaverton, Oregon are just two of the examples of companies who have pioneered the organic cotton market and are sharing their expertise with the Cleaner Cotton Campaign.

  3. More and more brands joining the league Next, Adidas, M&S, Roots, Cotton Ginny, Target, Walmart,

  4. Consumer preference Market analysts report that consumers expect corporate responsibility as a matter of basic business practices. Organic cotton is a great way to implement it.

  5. Increasing production and availability Global organic cotton production has increased rapidly, keeping pace with its increasing demand. From 99-00 the production has increased 4 times with India taking lead and in 05-06 it is expected to be highest producer of Organic cotton.

Global Production of Organic Cotton


Sales of Organic cotton (In MT)

  1. Forthcoming regulations Possible bans on the most toxic agricultural chemicals, as well as potential regulations about labeling on genetically engineered products, point to the need to develop sustainable, practical solutions for cotton.

  2. Quality product differentiation Most consumers who care about the environment also care about quality; organic cotton fibers provide the opportunity for market differentiation, particularly among companies with a high-quality brand image.

  3. Motivate the work force Companies who have made the switch to organic cotton report that employees are inspired, motivated and energized by the challenge.

  4. Environmental leadership Companies taking positions of environmental leadership are gaining market advantages.

  5. A Cleaner Approach Each T-shirt made from one hundred percent organic cotton saves one-third of a pound of synthetic fertilizers and farm chemicals.

  6. An Industry Movement The apparel industry stands poised to voluntarily raise its standards for materials by beginning to incorporate organic fibers into mainstream products.

  7. Farmers' choice Our farming and manufacturing methods can no longer compromise the environment we pass on to our children and grandchildren. Moreover, they have realized that in longer run, organic farming is better for healthy soil and reduces their dependency on expensive pesticides & fertilizers and in turn, saving them from claws of evil money lender.

 

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