Filipino retailers pave the way for socially-responsible business

MANILA, Philippines - Housewives and other women artisans who join bag-making company Rags2Riches get a good dose of business education through a mini-MBA program. Given in capsules that are easy to understand, the program touches on great customer service to effective accounting.

This is among innovations that Rags2Riches has put in place since they have trailblazed in doing business with social responsibility.

Reese Fernandez, president of Rags2Riches, says, “We’re about caring about anybody who’s affected by the business. As such, we want to educate the Nanays of our communities on how a business is run. They are our partners.”

Fernandez, 24, speaks on socially-oriented business at the Philippine Retailers Association’s (PRA) 19th National Retail Conference and Stores Asia Expo (19th NRCE) on August 11 to 12. Themed “The Roadmap to Retail Growth in the New Decade”, the conference will take place at the SMX Convention Center in the SM Mall of Asia Complex in Pasay City.

She joins a powerhouse roster of speakers covering retail topics such as retail innovation, social media, customer behavior and trends, sustainable retailing, wealth management and best practices in people management.

Rags2Riches recently launched the “RIIR by Rajo Laurel Tree Bag Project” with Anthill Fabric Gallery and San Carlos Development Board Inc. as partners. The project centers on eco-ethical fashion and benefits women in various communities. “The bags we make under this project are unique as the components come from different communities. We were able to connect with indigenous weavers in Bangued, Abra as well as wood craftsmen in Pardo, Cebu,” explains Fernandez.

Rags2Riches was founded in 2007 to help poor communities in Payatas, Quezon City who rely on garbage scavenging. Usually, people think that if you’re doing something good, it’s charitable. But social entrepreneurship isn’t like that, says Fernandez. It’s my hope that through NRCE fellow retailers will follow suit.

Industrious mothers started scavenging for scraps of cloth to make rags and foot rugs to sell. As reliance on middlemen to sell their rugs grew, their share in the profits dwindled. This unfair trade left the rug-weavers to earning a measly one peso for every rug they finished.  

“When we witnessed what was happening to the women, we were enraged,” states Fernandez. “We decided to come up with a business framework to give these women direct access to the market.”

Helping the women improve the style and quality of their rugs was the first step Rags2Riches took.

After its successful initial run in various bazaars, the Rags2Riches team decided to up the ante of their products.

Premier designer Rajo Laurel came on board to design a line of bags. Top designer Amina Aranáz soon joined the Rags2Riches design team. Having acclaimed designers as Rajo and Amina believe in the cause of Rags2Riches’ cause was such a boost.

The rest, as they say, is history. In less than half a year, the company enjoyed more than 400% in growth.

“When people see that your business is for a cause, they assume it’s not going to make money,” explains Fernandez. “But it’s not like that at all. We’re a profit-making business but our bottom lines are different.”

Fernandez says she’s glad to share the company’s experiences at the NRCE, a great venue to promote social entrepreneurship. “It’s about uplifting the poor and being mindful of the environment. It’s about refusing to tolerate unfair trade.”

19th NRCE platinum sponsors are PLDT Business Solutions, SM Shoemart, Banco de Oro and Penshoppe. Other major sponsors are Araneta Center, Ayala Malls, Robinsons Malls, Chronos, Hewlett Packard, Red Prairie, L TimeStudio, Eastwood Mall,  Vinculum, So Fab!, Wilcon Builders, PLDT SME, and Bench.

Stores Asia Expo sponsors are Q Creativs, DHL, Retail Software Associates, Big Pix,Star Cruises, Bluethumb,  Heritage Multi-Office, Focalcast, and Mindgate. Other NRCE sponsors are The Philippine Star, BusinessWorld, Europak, GMA 7, Microtel, Manila Broadcasting Company, 105.1 Crossover, Entrepreneur, Computerworld and Management Systems.

To register, call PRA @ 6874180 to 81; email: [email protected] or log on to www.nrceph.com.