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OXFAM A NEW BUSINESS APPROACH?

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Gavmacp | 19:35 Mon 21st Nov 2011 | Business
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I had an idea for Oxfam which I sent to them. I do not think they really got it, I notice that sometimes people do not get my train of thought. This is part of a letter that I sent to someone else which I think says it all.

"I was in an Oxfam shop recently and noticed that it hasn’t really changed since the early eighties. Why has Oxfam not embraced new and innovative ideas to change the face of the charity shop to make it ready for the 21st century?
I was watching a programme about Africa and in it they mentioned a clothing factory closing in some township,due to cheap imports from China. This got me thinking, why Oxfam is not seeing this as an opportunity. Get cutting edge designers such as Stella McCartney to design a fashion range, use the factories in Africa to produce the goods and sell them in Oxfam stores. I felt this idea could be adapted to other areas such as housing goods using designers such as Jasper Conran or the Art world to. If Oxfam could get some celebrities to be seen wearing these goods then it would make them desirable and slowly make the Oxfam label cool."

I work with a lot of young people and I asked them if they had been into an Oxfam shop and none of them had because they are not 'cool'.
I still think this is a good idea!
Please give me your thoughts.
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I don't know. My instincts are that it wouldn't get off the ground, but maybe that's why I'm not a millionaire businessman. Does Oxfam have the resources to finance the setting up of such an operation? Their business model is based on getting goods given to them that they then sell on.And top designers might want to be assocated with it but really are in business to make money from their commercial lines.
It's worth writing back though asking for feedback. Who did you write to?
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I wrote to someone high up in oxfam, Bob Geldolf and I think I sent it to The Bill Gates foundation (my wife by the way thinks I am mad).
I raised money for Band Aid and look back with pride at what Britain did then.
But is charity the way? I do not know. I did Economics as an 'O' Grade and it made no sense to me. But I thought that using economic principles may help poorer countries. There are some people doing such things charities that lend money to people starting up business's in poor countries. I watched a programme where they mentioned that factories are closing in Africa because of cheap imports from China. So if there are factories in Africa lying vacant the how can we use the means of production to benefit the people. This is where my business model comes from. I did not know if it would work. Someone talked about ethical business years ago and I hoped that it might of started happening in the business community.
I sort of hope that there could be something in this but like you I have doubts.
I don't know the solution to the problem faced by Oxfam.

What any of us sees as a logical solution to the problem is fraught with problems due to politics and the infrastructure and corruption in the countries that we want to help. Oxfam is moving forwards (as are most of the big charities) and now sell 'stuff' on-line via their website. ( http://www.oxfam.org....highstreet/F6318.html - this is the link to one of their shops).

I have volunteered in an Oxfam shop for about 5 years - we specialise in books and music but we also sell Fair Trade food and goods. It is hard work trying to raise money but we are moving in the right direction (I think). They have tried out some of the ideas that you have suggested - but mainly for a limited time.

Your heart is in the right place.
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Question Author
When I was young, and that was a long time ago, I often used Oxfam for my overcoats ( I was a punk).
I work with a lot of young people and have asked them if they have been in an Oxfam shop and not one person had. This is what I am trying to change.
My brother did a design degree and as part of it they had to take an everyday object like a chair or table and re-look at the design. I liked that re-looking at something and seeing if it can be improved.
I do not believe I have the answer but just by talking about it might, just might make something happen.
I think your heart is in the right place too Gav - but I'm afraid your business sense isn't. All that really matters to most individuals/organisations/businesses/governme
nts
and the like - is making money! The African factories have closed because too many people in the business world and governments of Africa and China are making too much money for themselves. Those are the individuals with the economic and political power and it is those individuals who are only looking after themselves. They don't care about the little man or woman living in poverty in some rural village. Those people have no say - money does!

It's much the same with the designer names and labels you mention. The only reason designers, celebrities, manufacturers, agents, promoters, retailers etc get involved in a product or celebrity name - is to make money! If they were feeling charitable it's a lot easier to just write a cheque and take the credit without possibly compromising the name or reputation of a quality product or celebrity by linking it with poor parts of the world. It's also dangerous as those areas of the world are often subject to rule by unsavoury characters such as various terrorists and mass killers who find themselves flavour of the month or hunted criminals depending on the arrows of fortune (evidence Gaddafi, Mandela, Mugabe, Amin etc etc. ) Who would attach their wealth and reputation to that bunch? Imagine some designer recruiting Winnie Mandela - then learning about her so-called Soweto Football Club and their murder of Stompe?

There's also the issue that most of the money earmarked for charity doesn't get to the people who need it. It was known a few years ago that only 2p of every £1 given to Oxfam actually got through to those it was donated for - 98p went in administration and salaries! Hopefully it's changed now - but I used to visit Oxfam HQ in Summertown as a chauffeur a few years ago and I was amazed at the scale and obvious cost of what was happening just there! They weren't all volunteers either - many of the people I met were on good salaries!

It's also recognised that a lot of aid is used by regional governments or warlords as a weapon or for political purposes - election bribes for example. There's nowhere more corrupt than Africa and much of the aid sent there lines the pockets of those oppressing the very people it's supposed to help.

Only when those issues - Oxfam's internal adminstration costs/salaries and the widespread corruption at various destinations - will people be more inclined to hand over their own money. Of course, many of those people are only concerned about paying their own bills or increasing their own finances anyway, not in giving money away.

Good luck with your idea and I hope it works, but many people don't like those issues I've mentioned here.
The main difference between our generation Gavmacp and the current young people is globalisation. The very products you talk about from china etc were not available to us. We had to use charity shops or jumble sales for our cheap clothes, we had no option other than to make our own or wear pass-me-downs. Today's young people have a whole host of options including supermarkets. Given the option of a new pair of jeans for £7.50 on the high street/supermarket over a second hand pair for £4 they're going for the new ones.

This makes it extremely tough for an organisation such as Oxfam to compete in the market. They can only do it if the products are donated. Any costs such as raw materials, production or transport would put the prices above those of the mass markets from the east.

Unless of course some ethical laws were passed to prevent such imports. Never going to happen unfortunately.
£7.50 for a pair of jeans Maidup! I've bought several Tesco 'Value' jeans - and they are £3! I know those are made in China and they are pretty good too. Not the cheap things with dodgy zips that fell apart a few years ago.

It all boils down to the money again.
AndyVon - I can't quote figures but the admin costs of Oxfam are pretty low these days. They also claim back tax paid by people donating books via Gift Aid.

Charity shops in general have changed over the years - once upon a time a bargain could be found but now the volunteers are usually able to sift out the goods that may be of extra value and either sell the item on-line or in the shop.
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My point exactly AndyV - I'm a bit out of date where Tescos is concerned, but all the less reason to go to a charity shop unless you're accustomed to it or feeling charitable.
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So are we saying that the charity shop has seen its day?
Probably. Kept alive by older people.

Although those collecting and delivering furniture are doing a little better. You can't buy a bed or a wardrobe in tescos -yet.

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