Cleaning up the Environment one bag at a time: An interview with Sharon Rowe.

The eighth installment in our on-going Leaders of Sustainability series of interviews with executives and entrepreneurs of sustainability-minded business is with Sharon Rowe, CEO and Founder of ECOBAGS, the pioneering firm that introduced reusable bags to U.S. consumers nearly 20 years . Today, ECOBAGS manufactures and distributes a complete line of reusable bags using natural and certified organic cotton, recycled cotton and hemp/cotton blends.

As always, our hope is that entrepreneurs and business leaders of sustainability-focused businesses will find this series helpful and instructive in growing their businesses and dealing with both the challenges and opportunities facing small business trying to make a profit at the same time reducing their impact on the environment.

I spoke to Sharon from her office located in Ossining, NY.

[Please note that I also had the opportunity to speak with Ellen Ornato, VP Strategic Marketing & Fun for ECOBAGS. My interview will Ellen will appear in my blog next month.]

Justin - Thank you Sharon for joining me today to talk about ECOBAGS, and to share with us some of your experiences on the leading edge of business, the environment and sustainability.

To begin, please tell our readers a little bit about yourself, and ECOBAGS.

Sharon - Thanks Justin. ECOBAGS started innocently enough in 1989 with the idea of cleaning up the planet one bag at a time. We literally came up with the company name and slogan around our kitchen table.  We were living in New York City at the time, and were tired of all the plastic bags; we knew there had to be a better way.

On a trip to Europe, we discovered this amazing cloth bag. We brought them back to the states with us and everyone we encountered thought they were just an amazing, absolutely necessary product.  And that was the extent of our market research. It’s funny to look back now; we didn’t have a business plan, just a very good idea and a great deal of passion in what we were doing.

Justin - I guess you conducted all of the market research you needed during the 1990 Earth Day event in New York City. Please tell us about that.

Sharon - Yes, exactly. I believe it was a major anniversary of the Earth Day celebrations. We decided to take a table. It was a real family affair; it was my mom and dad, husband and I with about 3,000 string bags. The string bag, an expandable net bag that has been used all over Europe for generations, was our first product. It took us about 4 hours to sell all 3,000 bags; at this point we had all of the market research we needed. We knew then that we had not only a good idea, but a really good business idea.

Justin - And now you are approaching your 20^th anniversary as a business. Tell us a little bit about the “road to success.”

Sharon - The best way to describe it is – it was like pushing a very large boulder up a very steep hill. Though we enjoyed great success on that day back in 1990, we were selling to the converted. People attending the Earth Day celebration liked our product, but more importantly, understood the concept. They recognized the need for a bag that could be used over and over again; a product made in an environmentally and socially sustainable way.  Our challenge over the past 20 years has been to reach out to the larger public and convince them; to take a commodity item and turn it into a movement, an environmental movement.

Justin - You mentioned earlier that your first product, the string bag, has been in use for generations in Europe. Do you think consumers outside of North America, particularly those in Europe, are more conscious of the environmental impact of their purchase decisions?

Sharon - I’m not convinced that people in Europe, or any other place in the world for that matter, are more naturally predisposed to consider the environment, or the social implications of their purchase decisions. I just think that people get used to the way things are, and that it’s difficult to get people to change their behavior, their attitude, and embrace something new.

It was not that long ago when the there were no plastic bags, just paper bags. And before paper bags, at least in other places in the world, people brought their own carrying devices for their purchases. What’s old is new again.

Things can change; people can change. It just takes time, and a lot of effort.

Justin - How big of a problem are plastic bags today?

Sharon - Anytime you use something just once before it becomes garbage, it’s a problem. Now, there are instances where a single use product makes sense, just not on the scale of plastic bags. And the problem with plastic bags is that they never fully decompose. I would say it’s only been over the past 3 years or so where we are seeing more and more consumers realizing that there is simply no place in our world for the number of single use products we use each and every day.

Justin - What has kept you motivated over the past 20 years, to keep pushing that proverbial rock up the hill?

Sharon - A couple of things.

We joined the Natural Products industry. It was one of the most welcoming, progressive, engaged groups you could ever be part of. It was a very supportive environment, and was instrumental in helping us sell our products early on into independent stores that believed in our products, and the concept we were trying to promote.

Also, we grew the business very slowly, patiently, one could say even “organically.” And I had small children at the time, so I was perfectly fine with not “burning the candle at both ends.” We decided early on that it was “ok” to take a more deliberate, thoughtful approach to the business, and not be driven to grow at any cost.

Justin - How it business today, and what are some the challenges confronting ECOBAGS?

Sharon - 2008 was a great year, one of our best. However, our 2009 results are being hurt by some significant challenges impacting the business.

The current recession for one has limited the amount on money available to support and grow the business. And the pullback by consumers has hurt our on-line business. Of course, these issues are not specific to our business, they are affecting most companies.

In addition, we are seeing much greater competition from a plethora of very cheap, reusable bags. It’s not unusual to see these bags available at your local supermarket for $0.99. Though they may be reusable for a period of time, these cheap, non-woven bags are not produced in a sustainable way and may not be much more environmentally friendly than a plastic bag.

Justin - That’s a good segue to my next question. Are you concerned with the issue of greenwashing, and the potential negative impact it could have on consumers wanting to make more environmentally, socially conscious purchase decisions?

Sharon - I think the challenge is that there is so much information out there, it’s difficult for the average consumer to sort through it all, and determine truly how committed a given company or product is to the environment, and to producing goods in a sustainable manner.

And certain terms do get “washed down” quite a bit. Take the natural foods industry for example. The term “natural” got overused to the point where no one really understood what it meant. The term organic used to mean a product that contained only organic ingredients, but it has be co-opted by products that are “of organic” or are made “with organic” ingredients.

It really comes down to establishing clear standards that the consumer can understand, and then having those standards applied consistently.

Justin - It’s clear the educating the consumer is an important element to marketing products that are environmentally and socially responsible. Can you tell us about the “Green-Greener, Greenest” initiative.

Sharon - That was brought to fruition by Aliana Marino, one our wonderful employees. It was established for people who are new to this conversation, this movement really. And really it is a conversation, an ongoing dialogue because we are always learning, and there are always new products and new approaches to living a more sustainable life.

The “Green-Greener, Greenest” initiative provides practical guidance for people to gradually become much more environmentally friendly and socially conscious in the choices they make every day. It really does an excellent job of helping people understand that there are multiple steps to going green, and outlines the different actions, commitments and tools to guide them up that ladder of sustainability.

Justin - Do you have any tips for an up-and-coming entrepreneur looking to start their own business?

Sharon - Just do it. Write a business plan or don’t write a business plan, but understand your goals and have a good roadmap to get there. Make sure you have enough capital and don’t get so caught up on your ideals that you don’t make some adjustments along the way. It may sound like a small thing, but in the beginning we really wanted to use recycled paper. Apart from the fact that we could not afford recycled paper, it was very difficult, if not impossible to find back then. You need to think carefully about what is really important to your business, and understand that there are some compromises you will need to make along the way if you want to reach your ultimate goal.

Justin - I’ve heard that you love to read, and always have a few books that you read at the same time. Do you have a favorite business book that you would recommend to a fellow entrepreneur?

Sharon - I have a few favorites. I really like Lovemarks: The Future Beyond Brands by Kevin Roberts and A. G. Lafley. It really speaks to changing people’s attitudes and behaviors, the importance of community and making connections with other human beings.

Justin - Thanks so much for your time Ellen; I have just one final question for you today. Is there a business, political or other figure that you consider an inspiration?

Sharon - I would say Barack Obama. I find he and Michelle, their entire family, really represent how we want America to be viewed. They are smart, focused and extraordinary capable and I am willing to put 100% of my trust in this new President. I have not been able to say that for some time.

Justin - Once again Sharon, thank you for taking the time to speak with us today. If people would like to learn more about your company, and its products, what should they do?

Sharon - Thanks Justin, I’ve really enjoyed speaking with you as well. The best thing for them to do is visit our website at www.ecobags.com.

ecobags, CEO & Founder Sharon Rowe

© 2009, Justin. All rights reserved.