This article talks about Kowtow’s business model. The founder, Gosia Piatek, had an aspiration to use entirely Fair Trade-certified and organic cotton. And she’s become extremely successful. She went from 2 to 26 employees in the last couple of years. And even though the creative direction has changed, her motto of ethical sourcing, manufacturing, and production has stayed the same!
The article also highlights the setbacks she’s experienced as a result of trying to do good and help the farmers on the low end of the production cycle. She’s had to drive up her prices and postpone collections, because of her reliance on farmers.
Piatek’s setbacks made me realize why companies like Forever21 and Walmart adopt the practices they do. It’s a way to cut costs and make predictability a constant. Doesn’t make it right, but it shows the efficiently of their business models.