2. Strengths of Patagonia’s Sustainability Initiatives
Demographic
Patagonia has been making Fair Trade USA clothing since 2014 (Fair Trade, n.d.). They have to pay a premium to have their products made in a Fair Trade factory but they do it. In each factory, a democratically elected committee of Fair Trade workers decides how the funds will be used. (Fair Trade, n.d.).
Patagonia offers ethical considerations and merges them seamlessly with cutting-edge products. At the heart of Patagonia's ethos lies a resolute dedication to environmental preservation (Openr, 2023).
Patagonia’s unapologetic activism could be considered a strength or a weakness depending on views. For our group conducting this case study, we resonate with it being a strength. Its brand identity stands as a testament to the power of conscious capitalism; encouraging conscious consumerism and fostering a community of changemakers who wear their values on their sleeves (Openr, 2023).
Patagonia has a strong corporate culture that emphasizes environmental activism, social responsibility, and work-life balance. It also fosters employee loyalty and engagement which leads to a motivated workforce that drives the company's mission (SWOT Analysis, 2021).
Environment
In 1993, Patagonia became the first company to make fleece from post-consumer plastic soda bottles. This saved 86 million plastic bottles from the landfill over a 13-year span. Subsequently, it also reduced the need for fleece made from petroleum-based polyester (Footprint Chronicles, n.d.).
In 2011, they developed the Worn Wear program, which allows customers to return all Patagonia products for recycling and to not have them end up in a landfill. They have also collaborated with eBay to urge customers to sell used products online instead of throwing them away (Chouinard & Stanley, 2012).
For Spring 2024, 98% of their styles use recycled materials. This allowed the company to avoid 8,500 metric tons of CO2 emission, enough to power more than 1,070 homes for one year in the United States, according to the EPA. (Footprint Chronicles, n.d).
Market
Patagonia has adopted environmental initiatives that have benefited them economically from cost savings, increased sales, and improved performance. Chouinard claims that every step he has taken for the environment, even if costly at first, has turned out to be more profitable for the company in the long run (Chouinard, 2016). One example of an initiative to reduce waste was Patagonia's removal of packaging for thermal underwear. This ended up saving the company $150,000 (Chouinard, 2016).
Another example of financial benefit cited by Patagonia is increased sales found through an enhanced reputation. A benefit of a more positive reputation is loyalty from customers. Chouinard writes that during the 2008 recession, Patagonia and the top five companies that were part of the 1% For the Planet reported record sales despite the economic downturn. He accredits this to the fact that customers may be buying less, but when they do purchase, they only buy from companies they trust (Chouinard & Stanley, 2012).
Governance
Patagonia is working to educate consumers by being very transparent about its products and processes through programs like the Footprint Chronicles. Implemented in 2007, the program allows consumers to follow products through the supply chain using an interactive map on the company website (Polley, 2012).
As technology becomes increasingly available to consumers, this will continue to be a beneficial way for them to gain information about products (Wolff, 2021).
Patagonia also encourages its customers to demand less clothing and purchase clothing that will last longer.
The Common Threads Partnership is an agreement Patagonia offers to its customers. This agreement states that Patagonia pledges to make products that will be long-lasting, repair clothing that needs fixing, and recycle clothing that customers return after use. In turn, customers agree to reduce their consumption by buying only what they truly need, to have their clothes repaired, and to recycle items after use (Patagonia, 2011).
I want to now highlight 'Innovative Business Practices'. Patagonia goes out of their way to use sustianble materials while ehtically sourcing those raw materials. Organic Cotton - Conventional cotton farming is not very environmentally friendly. Patagonia recognized this as an issue and chose instead to use 100% organic cotton in its clothing manufacturing. Organic cotton farming significantly reduces greenhouse gas emissions, encourages fair compensation for farmers, and supports sustainable land management (Gendre, 2024). Business Model - Patagonia’s business model sets the company apart from traditional businesses. Patagonia gives away all the money not required to keep the business afloat (Coldwell, 2024). This money goes to environmental initiatives that are fighting climate change effects (Coldwell, 2024). This is both good for the planet and has positive effects on the company in terms of customer loyalty, as people want to support a company that aligns with their values. Family Buisness- Since 1983, Patagonia made an historic move in support of working parents, becoming one of America's first companies to launch a corporate-sponsored on-site child development center. "With over thirty years of experience, Patagonia shares what they’ve learned about children and supporting working families – and why corporate-sponsored, onsite child development centers are good for business." (Byars, 2016). As a partent myself, I share their sentiments in that this move is what is good for business. Retention rates for emplyees would be higher and overall worklife balance and happiness would be higher.
Next, there are the aspects of 'Product lifecycle initiatives'. Such as the Worn Wear program. Worn Wear Program - Once a Patagonia product has been produced, the intention is that it lasts forever. When an item doesn’t fit a customer anymore, they don’t like it anymore, it breaks or tears, etc., Patagonia will fix it, teach you how to fix it, or buy it back to recycle it into another product (Coldwell, 2024). This ensures that there is as little waste as possible. This program also allows customers to purchase used products from Patagonia. Moreover, they also pay their workers a living wage. (Speaks to their business practices'. The company backs their mission so much that the founder, Yvon Chouinard, sold the company so he no longer profits from this radical brand. Mr. Chouinard transferred his business' ownership to the 'Patagonia Purpose Trust' and the nonprofit 'Holdfast Collective'. They also accept applications annually to donate funds to a plethora of environmental organizations, causes and projects. Overall, the fact that the founder gave his company away to fight climate change is inspiring.
Attached is a newer Case Study, Their #ShellYeah! campaign. I've attached a video on this new to me campaign. It came out in October of 2019. Patagonia had wanted to redevelop their whole line of shells: so waterproof jackets, ski jackets, alpine shells – basically anything that used water-resistant fabric. They wanted to make it out of 100% recycled content. So that's what they did. There also wasn't a reduction in quality or compromise on performance of the garmets.
Lastly, I'd like to touch on 'Transparent supply chain management'. I wholeheartedly believe in voting with your dollar wherever you can. I know that the brand is pricier, and they have their reasons to back it up but with this comes privilege in being able to afford it. Is that enough to justify the high price tag? For me and the reasons of strengths I've talked about in this blog I would say, a resounding yes! The time between farming materials and selling products can only be sped up so much while maintaining a high-quality product. Technological advancements can be made that help speed up this process, but only to an extent. Patagonia values providing a safe and rewarding work environment, which means that the fast pace of fast fashion is not used here. When looking at Workplace Investment - Patagonia works to give its employees a positive workplace, a livable wage, and a say in business operations. Employees having a say in the company matters for employee retention and a strong workforce and can help influence sustainability initiatives. Everyone emits greenhouse gasses and has an ecological footprint. Just by existing as a clothing retailer, they are using resources from the planet, creating waste, and producing greenhouse gasses. They acknowledge this fact (Coldwell, 2024) and do what they can to reduce their footprint wherever possible (through reducing packaging, the Worn Wear program, using organic cotton, switching their factories to renewable energy, etc.). They are doing their dudilgence and then some.
So tell me, what are your thoughts so far--Is Patagonia worth the hype?
Up next I will be covering their 'Weaknesses', stay tuned!
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Citations:
Photo 1: (2023). Logo [Photograph]. Bing.com. https://www.bing.com/images/search?view=detailV2&ccid=GjE59v7P&id=1450F9065D9D089A5BA5E0BF253D3FB5E7CBDE8C&thid=OIP.GjE59v7PwGNqHDHVoizT8AHaEK&mediaurl=https%3A%2F%2Fexternal-preview.redd.it%2Fn44VlN_ISQyOLU76m-yX1YtyCK3drxYJk6HrSiDaPH4.jpg%3Fauto%3Dwebp%26s%3D137efaafb8b95118ceb182f2f6fe8c82d8f8a20e&cdnurl=https%3A%2F%2Fth.bing.com%2Fth%2Fid%2FR.1a3139f6fecfc0636a1c31d5a22cd3f0%3Frik%3DjN7L57U%252fPSW%252f4A%26pid%3DImgRaw%26r%3D0&exph=2700&expw=4800&q=pictures+of+the+brand+patagnoia+and+their+strengths&simid=608038319020778094&form=IRPRST&ck=16FA92278BAB01CEE83E7B1F3329A7F8&selectedindex=20&itb=0&ajaxhist=0&ajaxserp=0&vt=0&sim=11
Photo 2: Byars, T. (2016). Family Business [Photograph]. PatagoniaWorks. https://www.patagoniaworks.com/press/2016/8/8/patagonia-releases-new-book-family-business-innovative-on-site-child-care-since-1983
ShellYeah Video: [Patagonia]. (2019, August 28). Shell, Yeah! | 100% Performance [Video]. YouTube. https://www.youtube.com/watch?v=_IhUi9ECMbM
Byars, T. (2016, August 9). PATAGONIA RELEASES NEW BOOK, "FAMILY BUSINESS: INNOVATIVE ON-SITE CHILD CARE SINCE 1983". Patagonia Works. Retrieved July 4, 2024, from https://www.patagoniaworks.com/press/2016/8/8/patagonia-releases-new-book-family-business-innovative-on-site-child-care-since-1983
Chouinard, Y., & Stanley, V. (2012). The Responsible Company: What We've Learned From Patagonia's First 40 Years. California: Patagonia Books.
Chouinard, Y. (2016). Let My People Go Surfing: The Education of a Reluctant Businessman (1st ed.). New York: Penguin Press: Penguin Audio.
Coldwell, E. (2024, March 4). How Sustainable Is Patagonia? Patagonia Sustainability Initiatives Discussed. Retrieved June 28, 2024, from https://www.msn.com/en-us/lifestyle/fashion/how-sustainable-is-patagonia-patagonia-sustainability-initiatives-discussed/ar-BB1jh4sP
Fair Trade. (n.d.). Patagonia. Retrieved June 28, 2024, from https://www.patagonia.com/our-footprint/fair-trade.html
Footprint Chronicles (n.d.). How Clean Are Your Clothes? Footprint Chronicles. Retrieved June 29, 2024, from https://www.patagonia.com/hidden-cost-of-clothes/
Gendre, I. (2024, July 1). Is cotton culture really sustainable? Greenly. https://greenly.earth/en-us/blog/ecology-news/is-cotton-culture-really-sustainable
Openr (2023, September 6). Unveiling Patagonia’s Target Audience: Who Connects with the Brand? Retrieved July 1, 2024, from https://openr.co/unveiling-patagonias-target-audience-who-connects-with-the-brand/
Patagonia (2011, September 7). Patagonia Launches Common Threads Initiative: A Partnership With Customers to Consume Less. PRnewswire. Retrieved July 2, 2024, from https://www.prnewswire.com/news-releases/patagonia-launches-common-threads-initiative-a-partnership-with-customers-to-consume-less-129372068.html
Polley, L. (2012, April 25). Introducing the New Footprint Chronicles on Patagonia.Com. Retrieved June 28, 2024, from https://www.patagonia.com/stories/introducing-the-new-footprint-chronicles-on-patagoniacom/story-18443.html
SWOT Analysis (n.d.). Patagonia SWOT Analysis. Retrieved June 28, 2024, from https://thestrategystory.com/blog/patagonia-swot-analysis/
Wolff, J. (2021). How Is Technology Changing the World, and How Should the World Change Technology? Global Perspectives. https://doi.org/10.1525/gp.2021.27353
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