Orgdot: A Fashion and Social Enterprise in South Korea

Abstract

Orgdot is a South Korean social enterprise specializing inthe fashion business. A limited liability company established inMarch 2009, it was certified as a Seoul-style social enterprisein October 2010. At the end of 2011, Orgdot had 18 employeesworking in its head office and at the Seoul-based factory. Orgdot’s primary business objective is to improve the environmentand the level of labor contentment by promoting ethicalfashion. In terms of labor, Orgdot enhances the job satisfactionof sewing industry laborers by providing sustainable,decent jobs for designers and production experts through thedirect operation of its factory. By establishing a network betweenemerging designers and sewing factories, Orgdot has reinvigoratedthe sewing industry and helped creative, emergingdesigners establish their own businesses. This practice ensuresreliable incomes for the designers and the factories, enhancingthe job satisfaction of both the sewing factory laborers anddesigners. In addition, Orgdot plans to reduce environmentalpollution by using eco-friendly materials and increasing thepublic’s awareness of the importance of eco-friendliness. Through these activities, Orgdot aims to ultimately promote anethical fashion lifestyle. Orgdot’s business is largely divided into 3 divisions: B2B,B2C and the Platform divisions. The B2B division, whose purposeis to supply eco-friendly and ethically produced uniforms,supplies goods to enterprises through planning, design andproduction. Its primary products are T-shirts, hooded sweatshirts,jackets, bags, and cheering towels. It produces and suppliesuniforms for players in both private and governmentalKorean organizations. The B2B business enables customers tocontribute to social benefit by purchasing eco-friendly and ethicallymanufactured goods. Their business clients can improvetheir corporate images by highlighting their interests in socialresponsibility. Hence, the B2B business is a substantial revenuesource for Orgdot. The B2C division develops apparel products, promotes andmanufactures them in ethical and eco-friendly ways, and sellsthem to customers. It has developed and currently produceseco-friendly bags (8 types in 2 styles) and USB flash driveswith hardwood shells (2 types). The tote bag labeled “Once Iwas a plastic bottle” is made from recycled plastic bottles. These bags have vivid colors and are reversible, and 1,500 of them have been sold. In 2010, the B2C division of Orgdot expanded by 67% in comparison to 2009. Although the tradevolume of the B2C division is less than that of the B2B division,its primary objective is to enhance customers’ awarenessof the importance of ethical consumption through the developmentand sale of products with competitive designs. In particular,the Orgdot online shop connected to Orgdot’s blog providesa range of information on ethical and eco-friendly consumption,enabling more consumers to purchase ethically producedgoods. The Platform division focuses on local communities. Its primaryobjective is to create a healthy fashion ecosystem bysupporting young designers’ label-launching activities. Orgdot isconducting a Regional Innovative Specialization project supportedby the Ministry of Knowledge Economy in partnershipwith Hansung University, the Seoul Chamber of Commerce &Industry, and the Specialized Sewing Manufacturers’ Group(SSMG). This project’s objective is to construct a productionand distribution platform for designing and sewing, providesample rooms that are easily accessible by designers, encouragecompanies to purchase eco-friendly raw and subsidiary materials,and help them produce goods in small quantities. It alsoplans to supply regular work for sewing factories and to openonline and offline stores, supplying customers with goods atreasonable distribution charges. Moreover, it plans to adopttechniques such as “crowd sourcing”, which enables customersto choose designs for products that they want to produce, promotingthe stockless production of goods. Due to the rapid increase in sales over the past two years,Orgdot plans to expand its factory and recruit more employees. These new jobs will offer five-day work weeks and will providebasic national insurance coverage. Moreover, by developingmore products and materials, and through continuous expansionof the B2B and B2C divisions, Orgdot is determinedto maintain the current level of increasing sales. Orgdot aimsto produce at least 80% of its goods through ethical (i.e., fairlabor or eco-friendly) processes in accordance with the guidelinesfor ethical products and to develop various fabrics. Thiswill minimize its limitations in producing ethical/eco-friendlyproducts and will offer Orgdot an advantage over itscompetitors. To establish a platform for producing ethicalgoods, Orgdot is recruiting emerging designers for theRegional Innovative Specialization (RIS) project, which is supportedby the Korean government and is being run as a consortiumby Orgdot. This project is an incubator for emergingdesigners that allows them to display their creative skills, andit attempts to create a network that links emerging designerswith local garment factories. Moreover, it aims to establish a system that enables the production of samples and goods insmall quantities. Considering the relatively low public awareness in SouthKorea of the social and environmental issues in apparel manufacturing,the efforts of social enterprises such as Orgdot inthe fashion industry are encouraging. An enterprise in SouthKorea that makes a positive social impact, or at least demonstratesan increased awareness of social issues, is important inlight of the Korean fashion industry’s significant position inthe global economy. The Asian Big Five countries, which includeKorea, served as a base for apparel manufacturing untilthe 1990s. These countries are now recognized as examples ofsuccessful industrial upgrading that characterizes them as focusedon product development and design. The Korean fashionindustry has also been considered a model for many developingcountries seeking to upgrade their industry. The increasedawareness and emphasis on social issues in the Korean fashionindustry may have an impact beyond national boundaries andmay transmit changes to other developing countries.