Spring Break
The SweatX Story:
Christopher Mackin Speaks at HBS
Carole Winkler (RA), Associate Editor, News and Campus Affairs
Issue date: 3/22/04 Section: News
Still, that leaves the majority of the costs in the marketing and distribution of the product, an area in which the company is still a little unsure and navigating carefully. "It's treacherous - you may cut someone [over] here and find out that's the big dog you just pissed off," said Mackin.
One student asked if he was against redistributing wealth overseas.
Mackin claims TeamX not a nationalist model - in fact, he would like to see SweatX in all countries, but because globalization is a very divisive issue they would probably select another brand name overseas.
Another astute attendee perceived a conflict in Mackin's strategy; if other companies follow their example and create their own socially responsible clothing brands, TeamX could lose sales. "God bless'm," said Mackin. "If Nike launches their 'Justice' label that pays identical wages to us...that's a problem I'd love to have." However, Mackin took care to note that some garment producers are claiming to be socially responsible simply because they submit to inspections by the U.S. Department of Labor. He encourages consumers to dig a little beyond the label to find out if the workers are unionized and are owners in the company, and to compare the wages and benefits the workers receive with those provided to SweatX's workers.
In their enthusiasm, TeamX made just one error thus far. They were featured on a national television show which resulted in a tremendous response from consumers, who called from all over the country to order shirts. The company was so flattered that it accepted many single orders which are expensive and inefficient to process. They are still trying to extricate themselves by filling the last of those orders and focusing their attention on the wholesale market. The next step, according to Mackin, is to further research and quantify the various wholesale markets so that the opportunities can be prioritized.
One student asked if he was against redistributing wealth overseas.
Mackin claims TeamX not a nationalist model - in fact, he would like to see SweatX in all countries, but because globalization is a very divisive issue they would probably select another brand name overseas.
Another astute attendee perceived a conflict in Mackin's strategy; if other companies follow their example and create their own socially responsible clothing brands, TeamX could lose sales. "God bless'm," said Mackin. "If Nike launches their 'Justice' label that pays identical wages to us...that's a problem I'd love to have." However, Mackin took care to note that some garment producers are claiming to be socially responsible simply because they submit to inspections by the U.S. Department of Labor. He encourages consumers to dig a little beyond the label to find out if the workers are unionized and are owners in the company, and to compare the wages and benefits the workers receive with those provided to SweatX's workers.
In their enthusiasm, TeamX made just one error thus far. They were featured on a national television show which resulted in a tremendous response from consumers, who called from all over the country to order shirts. The company was so flattered that it accepted many single orders which are expensive and inefficient to process. They are still trying to extricate themselves by filling the last of those orders and focusing their attention on the wholesale market. The next step, according to Mackin, is to further research and quantify the various wholesale markets so that the opportunities can be prioritized.
