Yesterday’s guest lecture held by a Globe Hope representative was very interesting. Moreover, there were three things that especially caught my attention: Globe Hope’s involvement in B2B, the lack of “ordinary” marketing, and the issues with product profitability.
I did not know beforehand that Globe Hope was involved in B2B markets as well. In addition for it being a good business idea as such to offer sustainable products to companies as well as for consumers, I think it also encompasses a sustainability aspect. When cooperating with the customer companies (turning waste material, such as old uniforms, offered by the customer into new products to be used as business gifts for instance), Globe Hope can also offer them a chance to be more sustainable, make them more conscious about the waste they create, and spread the idea of sustainability even further in terms that also the awareness of the gift receivers is likely to be increased in the process.
Also the lack of “ordinary” marketing caught my attention. One of the reasons why Globe Hope does not really market their products is lack of resources which is fairly understandable. What I, however, found more interesting was the other reason; Globe Hope does not want to create extra motivation for consumers to buy things. I think this is a very good indicator showing how sustainability oriented the whole company is.
During the lecture I also got the impression that Globe Hope’s products are not necessarily as profitable as I had previously thought. I believed that the cost structure of the products would be fairly low compared to their prices as I assumed that the company would receive most of the material free of charge or at least at a very low cost considering that most of the material is practically waste to its producers. Then again I suppose collecting suitable seatbelts, packing them, and sending them forward does require extra work from the car wrecker companies for example. In addition Globe Hope’s production seems to be very labor intensive which of course has a high impact on the costs as well.