An ethical supply chain for Australian plants: Australia and ethics, two words that are currently high in consumer consciousness

Household & Personal Products Industry, June, 2009 by Jane Tiedtke, Juleigh Robins

AUSTRALIA, the recent film with Nicole Kidman and Hugh Jackman, has generated a lot of interest in all things Australian. Tourism Australia, the National Tourism Board, has launched a $26 million international advertising campaign based on the movie, to attract tourists to Western Australia. So, 2009 looks like the ideal time to look to Australia for some new marketing ideas in personal care. Geographically themed products have been popular for many years, so Australia could be the next destination to create a stir (Fig 1).

Ethics is becoming an important purchasing criterium for consumers. (1,3,8) Nielsen carried out a 51-country survey of 28,253 consumers online in 2008 and found two out of three consumers said they would be interested in buying ethical products to support environmental and social causes. (9) Consumers are not only concerned with pampering themselves and going back to nature to relieve the stress of everyday life, they are aware that to achieve this aim and to have a feel-good factor, you cannot exploit the environment or the local people. This rise in eco-ethics has lead to the designation of LOHAS, (2) an acronym for Lifestyles of Health & Sustainability, to this consumer group. LOHAS consumers care deeply about their health, the environment, social issues and sustainable living and are willing to spend accordingly. They are predictors of up and coming trends and early adopters.

[FIGURE 1 OMITTED]

Personal care manufacturers are making products more compatible with emerging lifestyle trends of ethical shopping and eco-consciousness. (5,7) Ethical personal care products or "cosmetics that care," are a growing trend as people often prefer to be defined by what they believe rather than their material possessions. It embraces among other topics, green issues, no animal testing and fair trade. (11) The number of ethical personal care products launched in Europe has increased five-fold in 2007 to 2,260, with France and the UK accounting for 74% of the market. (7) During economic downturns, values will not be sacrificed for cheaper products when it comes to ethical purchasing according to the Co-op Report. (1)

Outback Spirit Background

Outback Spirit Botanicals (OSB) embraces both Australian and ethical themes and is a partnership between an Australian company, Outback Spirit Pty. Ltd., and Cosmetochem International AG. This range of exotic Australian fruits and plants is derived from an ethical supply chain. Outback Spirit is the flagship brand of an ethical partnership with Australian indigenous people. The logo (Fig. 2) shows concentric circles and dots, which in traditional Indigenous culture represent a meeting place. This is the brand where Indigenous partners' interests and aspirations are matched by committed commercial partners, Outback Spirit Pty. Ltd. and Cosmetochem International AG. The brand was created by Juleigh and Ian Robins who developed an ethical supply chain to source indigenous ingredients for the food industry.

[FIGURE 2 OMITTED]

Benefits for Indigenous Partners

Outback Spirit brings social, cultural, economic and health benefits to our indigenous partners. Social and cultural benefits include increased microbusinesses, employment and skills opportunities for women. The use of indigenous plants in today's food and cosmetic industries encourages indigenous people to retain their culture and knowledge of plants and to pass it on. It also helps to value traditional skills and knowledge and to re-enforce social ties and community cohesion.

OSB respects traditional culture and knowledge and is endorsed by Indigenous Australian Foods Ltd. (I.A.F.)--a non-profit Aboriginal-owned and controlled entity, working hand-in-hand with OSB. A 10% premium above the farm gate (market) price is paid for all indigenous materials that goes back to the IAF to support the local community. In addition, 2% of the price of all OSBs sold to customers will go back into the Outback Spirit Foundation (OSF), which supports indigenous micro-business development and social projects at the community level. One current OSF project is in the Tanami Desert in remote northern Australia. The establishment of a desert raisin plantation, established under Fair Trade protocols will provide equity in the enterprise for indigenous Australians as well as providing employment and skills training in a disadvantaged and remote community that has little access to economic opportunities. Additionally OSF will assist the community to build a swimming pool that can deliver multiple community benefits. By donating 1% of sales personal care companies can also use the OSF logo (Fig. 3) on their packaging or in their promotional material, which indicates their support for local Indigenous communities.

Benefits for Personal Care Firms OSB addresses many of current consumer wants/needs and resulting trends in personal care products:

* Ethical supply;

* Traceability;

* Sustainability;

* Purity;

* Defining a new more profound luxury; and

* Australia the next geographical area after the Amazon and Asia in personal care themes.