People come first. This philosophy is at the heart of Rags2Riches (R2R), an eco-ethical lifestyle company that empowers community artisans by bringing their work to the global market.
R2R, as a catalyst of inclusive development, aims to bring positive change to artisans by providing them livelihood opportunities, as well as access to design, market, and quality of life programs. Customers share in this effort when they buy beautiful handmade products from R2R.
“When R2R started, it was a small organization that wanted to do a lot for the country. We wanted a kind of business that supports and enriches the livelihood of artisans that is profitable and doesn’t rely on grants and donations. It was a very worthy cause but our success was an uphill climb as it was difficult to put together communities that would consistently create quality products that the market would love,” said Reese Fernandez-Ruiz, Rags 2 Riches’ president and co-founder.
With R2R’s adherence to high quality standards, demand for its products grew, prompting the enterprise to expand its product portfolio. Soon, customers from other parts of the world took notice of the artisans’ talent and the beautiful stories they wove into the pieces they handcrafted. But while interest for the products was strong, customers were unhappy with high shipping costs.
To ensure that the company can share the artisans’ stories and bring their products to the global market, R2R tapped FedEx for fast, reliable, and specialized solutions to support their shipping requirements.
“There were other shipping or logistics providers that we approached, however they would just give a one-time discount. It was FedEx that showed the initial trust even if we did not have a good track record at the time. FedEx provided a special shipping rate that helped us in giving reasonable pricing to our customers abroad,” said Fernandez-Ruiz.
With the support of FedEx, R2R’s online store saw an increase in customer purchases from US, Europe, Canada, Australia and the ASEAN region. FedEx offers a special SME rate to R2R for its shipping services. This enables R2R customers worldwide to choose shipping fees and transit times that match their needs – two to three days for International Priority and three to five days for International Economy.
With FedEx providing access to its trusted and efficient logistics service in over 220 countries, R2R gained access to the global market which, in turn, gave the artisans access to better lives. FedEx provides additional discount for bulk shipments.
R2R’s progress may also be attributed to the community artisan model – an end-to-end inclusive supply chain that involves artisans in every step of the process. Open dialogues are held with the artisans to make sure they are all in sync with regards to the company’s goals and the steps they need to reach them. The artisans’ involvement in every step of the process inspires ownership and pride in their work.
Beyond being the preferred logistics services provider of SMEs like R2R, FedEx shares the same people-first corporate philosophy with the social enterprise. FedEx Founder and CEO Frederick W. Smith believes, “When people are placed first, they will provide the highest possible service, and profits will follow.” The FedEx corporate philosophy is the result of this belief: People-Service-Profit.
Bound by a common people-centered philosophy, FedEx and Rags2Riches are bringing Filipino artisanal talent to the global stage.