Private equity: Scheming, or blind?

There's a great two-part series of on truly green crafting at the Storque on Etsy, by Autumn Wiggins and based on her knockout presentation at Craft Con. She begins:

There is general consensus within the DIY community that what we do has a uniquely positive effect on the world. Our universal philosophy suggests that embracing methods to handmake your own belongings is fulfilling and thought provoking. Yet, quiet debate continues as to the long-term advantages of buying handmade.

(read the full articles here, and here).

She continues to critique the practices in place at your local Michaels or JoAnn's (or a store that apparently exists in the Midwest that I'd never heard of, Hobby Lobby!)

Our rapidly growing sub-culture is spending large chunks of cash at retail stores that barely cater to our interests, contribute little to our community projects, and carelessly market unsafe products.... For most of us, craft stores offer little to no innovation of their merchandise, and aren't held accountable for pollution.

There is often a perception that corporations and private equity firms know about eco-conscious products, but choose to withhold them because this is better for the bottom line. To be honest, I think this is more a result of ignorance, inertia and limited green product availability than any villainous agenda.

Let's take the Michaels deal as a case in point. Here's how a higher-up at Bain Capital, one of the private equity firms that bought Michaels, perceived the company:

"Our deep experience in the retail sector reinforces our conviction that Michaels has the best store locations, a broad assortment of products for crafters and a sustainable competitive advantage.

Business speak aside, look at what he loves about Michaels -- a broad assortment of products and a sustainable competitive advantage. What young people value is always important to retailers because our preferences will shape what gains market share going forward. Being the first national craft retailer to commit to expanding their line of truly green products could allow Michaels (or any store) to build their brand and sales to young people. That's just good business. So why don't they do it? Honestly, the powers that be probably don't have a passion for crafting and so don't understand the communities they sell to. Is there someone at Bain or Blackstone tracking Etsy, Craft magazine and all things Maker, etc? If they were, they'd probably get their keisters in gear targeting this demographic ASAP. The fact that they're not just suggests they're clueless, not evil.

But there are some logistical issues: Supply chains for major national stores depend on suppliers being able to deliver at a certain quantity, speed, consistency, and of course, price. I would wager that most of the awesome products at sites like Crafting a Green World are simply not available (yet) in ways that any major chain can reasonably purchase. With lack of mass production comes high prices. Is it possible to create a green product that's the same price or 20% more expensive, not 2 or 3 times more expensive?

All of this isn't a travesty -- at least in the long term. It's a business opportunity. And I guess that's the central point of this blog.