The downside of trading up

The downside of trading up: "
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The downside of trading up
A nonprofit importer moves to the Pearl seeking higher-end sales but has yet to find its niche and prosper
Wednesday, March 23, 2005
LINDA BAKER
Ten Thousand Villages' store in the Pearl District lives up to its name: Onyx chess sets and clocks from Pakistan sit atop tropical hardwood furniture from Indonesia. Textiles from India are folded next to ceramic pots from Vietnam. And turquoise jewelry from Nepal sits next to coffee and chocolate from Central America.

But on many days, a key ingredient of village life is missing: a lot of people. "There's been a slump," said interim manager Karen McKay.

Founded a decade ago, Ten Thousand Villages is a local nonprofit that markets fair-trade products from artisans in Third World countries. The idea goes beyond prohibiting child labor. Buyers pay artisans at least a minimum wage, provide financial and technical assistance to artisans and ensure they have a safe work environment.

The Portland store is one of 180 retail outlets across the country that operate under the Mennonite Central Committee, the humanitarian arm of the North American Mennonite and Brethren in Christ churches. Governed by a local board of directors, the Portland outlet operates as an independent entity, though it has to buy 70 percent of its merchandise from the committee's wholesalers.

Moving on up

Ending a successful 10-year run in Southeast Portland's Hawthorne District, Ten Thousand Villages relocated a year and a half ago to its current location at 914 N.W. Everett St. The goal, said McKay, was to advance the fair-trade movement by drawing more upscale consumers.

"On Hawthorne, we were preaching to the converted," she said.

The Pearl store added and expanded its selection of expensive items. Selling little Guatemalan dolls won't help bolster Third World economies, McKay said. "What's unique about this store is that we have very high-end Oriental rugs and furniture that people don't necessarily think about when they think of fair trade."

But appealing to more than a niche market has not been easy. Ongoing construction of the Elizabeth Lofts across the street has limited foot traffic. Longtime customers refuse to struggle with parking in the Pearl. And a few months after Ten Thousand Villages vacated its space in Southeast Portland, the city's only other dedicated fair-trade store, Global Exchange, moved into the site, drawing some of Ten Thousand Villages' customers.

Making it work

In March 2003 through February 2004, Ten Thousand Villages retail outlets in Canada and the United States sold $15 million worth of merchandise, 8 percent more than the previous year. But at the Pearl District location, the vision of expanding fair-trade profits has yet to be realized.

Shoppers usually bypass the store's luxurious Oriental rugs, that cost $500 to $5,000, and an elegant new line of salvaged wood furniture from Indonesia, priced from $500. Instead, they head for a $15 pair of earrings from Nepal or a similarly priced star garland -- the store's best-selling items, McKay said.

The store does attract customers interested in high-end items. Oregon City residents Nick and Kris Doversberger spent more than $1,000 for an Oriental rug, along with a salvaged wood chest of drawers and coffee table.

"We've bought fair trade coffee and smaller items from other stores," said Doversberger, who discovered Ten Thousand Villages on a shopping excursion to the Pearl. "Finding larger items has been a real bonus for us."

The challenges facing the Portland store aren't unique, said Doug Dirks, marketing coordinator for the Ten Thousand Villages' national office in Akron, Pa. "We're still learning how to get the attention of people with deep pockets . . . how to get them in the door."

But Global Exchange has no trouble getting people in the door. "Business is great," manager Sharon Lassen said.

Lassen attributes the store's steady influx of customers to heavy foot traffic on Hawthorne, a neighborhood well versed in fair trade principles, and the organization's relatively inexpensive and contemporary line of textiles, ceramics and other gift items.

At Ten Thousand Villages, the future looks brighter. Last month, workers completed the Elizabeth Lofts. In May, the store will be part of Pearl City Spaces, a first annual tour of new living spaces with interiors provided by local home furnishing stores. McKay also leaves this month on a "learning tour" of Pakistan, organized by a group of Oriental rug artisans. "The more you can tell the customer about the product, the better," she said."