Esquel Group, the leading manufacturer of quality shirts, tried to negotiate long-term partnerships with farmers, often exploited in Xinjiang (western China) to provide a variety of high-quality cotton. Looking for a lot of specialty cotton in an ethical and socially responsible manner, Esquel undertook a major initiative in 2002 to negotiate the creation of value of contracts between it, local municipal governments in Xinjiang, and cotton producers. Aware that the execution of contracts in China can be difficult, Esquel offered to poor farmers often suspicious area attractive financing guaranteed minimum price spike, and other generous terms in return for an agreement to sell their harvest only to Esquel. The event concludes with the specialty crop is as good as cotton fiber demand of high quality cotton appears to be stronger than ever.
by
James K. Sebenius,
Cheng (Jason) Qian
Source: Harvard Business School
9 pages.
Date Posted: November 12, 2010. Prod #: 911031-PDF-ENG
Esquel Group: Towards a sustainable partnership with the producers of cotton in Xinjiang (A) Case Solution
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