Essay Pantagonia DON'T BUT THESE CLOTHES
jag1964
pantencourageB.pdf
Patagonia: Encouraging Customers to Buy Used Clothing (B)
case W92C31 March 16, 2012
Published by WDI Publishing, a division of the William Davidson Institute (WDI) at the University of Michigan.
©2012 William Davidson Institute. This case was written by graduate students Allyson Johnson, Courtney Lee, Steven Rippberger, and Morgane Treanton, under the supervision of Andrew Hoffman, Holcim (US) Professor of Sustainable Enterprise at the Ross School of Business at the University of Michigan, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
The greenest product is the one that already exists, because it doesn’t draw on new natural resources to produce. In partnering with Patagonia, we believe the Common Threads Initiative helps fulfill our promise to help you make greener, smarter decisions.1
—John Donahoe, CEO of eBay, speaking on the partnership
Chouinard agreed to partner with eBay and launch the revolutionary Common Threads Initiative, which promoted buying and selling secondhand Patagonia merchandise. Its purpose was to encourage customers to buy new products only if necessary. eBay created a “Common Threads” marketplace specifically for individuals to sell their used Patagonia gear. Additionally, Patagonia added a link on its Web site where customers could buy “Used Clothing and Gear.” The initiative encouraged sellers to become a Common Threads partner by “taking the pledge” and following the five Rs (see Exhibit 1). From these sales, Patagonia received zero commission.
When Casey Sheahan, Patagonia’s Chief Executive Officer and President, initially announced the partnership with eBay there was hesitation among Patagonia employees because they knew it would be a high-profile partnership. However, soon thereafter employees warmly received the initiative”.2 Over the course of a year, Patagonia’s e-media and eBay’s sustainability and business teams outlined the concept of posting Patagonia’s used products for sale on the Patagonia eBay Web site.
Externally the company had signed up about 21,000 pledges by December 2011, a significant amount considering the initiative was publicly announced in September 2011. Patagonia’s goal was to sign up 50,000 pledges in the first year. Patagonia sold about six thousand products through its Common Threads store on eBay thus far. More important, the initiative had sparked significant conversation regarding conscious consumerism, and Patagonia reported receiving inquiries from other companies interested in creating a similar Web site.
Looking forward, Patagonia and eBay were hoping to integrate a donations program into the Patagonia eBay Web site where a portion of the proceeds sold on eBay would go to nonprofit organizations. This new
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
initiative would be modeled after eBay’s existing donation program called “eBay Giving Works,” which has raised over $230 million for charity. Patagonia had also been working with the Sustainable Apparel Coalition and the Outdoor Industry Association to create a standard method of measuring the environmental impacts of its products with the intention of helping internal decision makers design more sustainable products. These were long-term collaborative projects that had the potential to influence competitors. Patagonia was also working with its vendors to encourage them to become Bluesign certified, ensuring that fabrics originate in energy- and water-efficient facilities and are manufactured without using harmful chemicals.
Never fully satisfied and under Chouinard’s lead, Patagonia was consistently identifying itself as the leader of sustainability efforts in the consumer apparel industry and carving the path for others to follow. What would Patagonia and eBay have to risk and gain from this partnership? Would other companies follow in Patagonia’s footsteps and adopt this latest strategic move? Or would Patagonia set a precedent for being a good steward of the environment that peer companies could not attain?
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
Exhibits
Exhibit 1 Take the Pledge
Source: eBay
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
Endnotes 1 eBay. “About Patagonia Common Threads Initiative + eBay.” eBay, 2011. Web. 30 Dec 2011. <campaigns.ebay.com/patagonia/
about>. 2 The majority of the information in this section comes from the following source: Loughman, E. 22 Dec 2011. E-mail interview.
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
Notes
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
Notes
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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Patagonia: Encouraging Customers to Buy Used Clothing (B) W92C31
Notes
For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
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For the exclusive use of J. Greene, 2019.
This document is authorized for use only by James Greene in Strategic Management-UG-1-1-1 taught by RICHARD DOYLE, University of Redlands from Oct 2019 to Apr 2020.
