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Made-By is a Fairtrade Foundation for fashion, initiated by Solidaridad. It appears in the marketplace as a shadow label. It was launched September 2004. For more data, see www.Made-by.org
What does the Made-by label stand for?
The Made-by label stands for companies from the apparel industry that wish to take responsibility for their production chain and wish to create transparency with respect to the origin of their product.
Companies that use the Made-by label choose for a quality approach based on product quality in combination with social quality and environmental quality. The social quality of these fair trade labeled products is related to standards for and certification of the production chain.
The Made-by label is used by brands that work on social improvements. They chose for a process approach, in which social and environmental standards are gradually implemented. This process is based on a previously defined working plan. Justification takes place through reporting and impact assessment, accounting for the tension between reality and ambition.
The Made-by label users are responsible for integral price setting within the chain, enabling producers to comply with the social and environmental standards set by the Made-by label. The trading conditions are transparent and based on the idea of a better price for a better product.
Trough its products, the Made-by label offers consumers the possibility to choose for socially responsible garments and textile. This distinction in the market in relation to consumer preference for sustainable products can contribute significantly to making the textile branch more sustainable.
Who issues the Made-by Label?
The Made-by label is issued by The Made-by label foundation, established in Utrecht. The foundation is an initiative of Solidaridad and is constituted as a multi stakeholder initiative of producers, civil society organizations and companies.
In 2004 a pilot introduction of the Made-by label will take place in the Dutch consumer market. Expansion to other markets is foreseen for 2005 and after.
The Made-by label is a brand supporting label, aimed at supporting regular communication of company owned brands.
The Made-by label can be issued to three types of actors in the chain licensed to use the label:
- licensed raw material suppliers
At present the producer program is limited to producers of organic and/or environmentally friendly (IPM/GMO-free) cotton. In future other raw materials as linen and wool or synthetic fibers can be involved in the standard setting and certification program.
- licensed traders, agents or importers
Within the Made-by chain (cotton) traders will be certified as companies authorized for the buying and selling of Made-by cotton, be it raw cotton or processed cotton, such as yarn, cloth and fabric.
Agents or importers accompanying the production orders of brand owning companies will also be certified in order to obtain a transparent chain.
- licensed brand owning companies on the consumer market
A brand can use the Made-by label in combination with its own brand name once the company in question has signed a license agreement with the foundation. The agreement comprehends the starting situation, a growth model and the end terms for the production chain.
Non-compliance with the license agreement can lead to withdrawal of the license for operation in the Made-by production chain and the use of the label.
The entire production chain and the role and function of licensed companies will be made transparent through a chain management system developed by SKAL International, with product specific certification and/or on the basis of the mass balance method.
Which producers can get access to the preferential market of Made-by?
The Made-by label works with certified producers in the chain; to start with cotton producers and CMT-units.
The foundation verifies the certification of producers that are certified according to the standards, by accredited certifiers of internationally recognized certification programs, like IFOAM for organic cotton (e.g. SKAL, Ecocert), the FLOCERT program which is being developed for fair textile trade, the internationally recognized SAI-program for social standards and the verification program of the Dutch Fair Wear Foundation for the assessment of company codes.
This verified certification of producers by the Made-by foundation offers the basis for the set-up of the Made-by producer network. Within this network flagship chains are being constructed with a specific plan for optimal achievement of the fair trade objectives. At present three flagship chains are being developed, to know in Peru, India and Uganda/Tunisia. Other possibilities are being explored in Benin, Turkey and Eastern Europe.
License fees
As from 2005 the end user (licensed brand owning company) will pay a fee for the use of the Made-by label. Calculation basis are the gross year sales of the labeled brand in countries where the label is promoted by the foundation. The license fee is 0.4 % of the gross year sales over the first five million Euro sales, 0.2 % over the sales above this level. .
After a period of four years the expenses of the Made-by foundation should be fully covered by license fee income. The initial budget of the foundation is about 400,000 Euro. Once the foundation achieves full growth, the budget will rise to a level of about 700,000 Euro a year. In order to cover this budget a joint sales figure of the participating parties of at least 350 million Euro is needed.
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