An Exclusive FairJewelry.org interview with Greg Valerio
Greg Valerio has been one of the pioneers in the fair trade, ecologically responsible movement in the jewelry industry. He is the founding director of CRED Jewellery (www.credjewellery.com) and was one of the founding members of the Association of Responsible Mining (ARM). This development program, working, in coordination with the European based Fair Trade Labeling Organization, to bring “green gold” that is fair trade produced directly to the market. He is based in the UK, where he has a store that sells silver, gold, platinum and diamond jewellery that is marketed around socially and environmentally responsible values. They specialize in wedding jewellery.
Greg Valerio of CRED Jewellers
FJ: You have been involved with these issues for over ten years. What experiences motivated you to get involved with fair trade and eco precious metals?
Greg: Personally I don’t like the language of ‘eco’; it gives ammunition to the cynics who want to write us off as a load of Woodstock left-over’s and smacks of a hippy chic lacking style, sophistication and intelligent engagement. The motive is very simple. It is the just thing to do. Social and environmental justice are not optional extras that companies can opt out of in the name of maximizing profits. They are intrigal parts of our shared humanity and therefore should be central to all company policy. Customers are people, like our suppliers and they should all be treated with dignity and respect. “Do unto others as you would have them do unto you”, a friend of mine once said.
FJ: I see you have been involved in the development project (www.communitymining.org) using precious metal, which, though not actually certified fair trade, certainly upholds fair trade standards for projects in the developing world. Can you give a percentage of how much extra, over London spot, does this metal cost you?
Greg: Actually the gold is fair trade. It is just not certified by FLO yet (watch this space as that is soon to be a reality) The principles of Fair Trade are minimum standards, independent third party verification, the payment of a social premium and transparency within the supply chain. Our partners fulfill all that criteria and on that basis I am prepared to call it Fair Trade. But ARM and FLO are beginning to work together to deliver the Fair Trade Gold standards developed by ARM that will allow the Fairtrade mark and the ARM Fair Trade Gold mark to be put on the metals coming out of any small-scale certified mine. Fair Trade is for the poor, marginalized producer who has historically been left out of the economic development ladder and therefore is priority to us if we are fulfilling our mandate of social justice. As to the premium, currently it is set at 10% over invoice value.
FJ: Do you know any other projects outside of ARM that are bringing in eco gold?
Greg: There are a few ideas out there at the moment in diamonds and gold but currently they are not pursuing independent third party verification against a set of clear standards. As far as I am aware ARM is the only global body advocating and delivering on this idea and I commend the team that has worked tirelessly to get this far so the consumer can enjoy the thought of a responsible, clean purchase in gold. The miners have to have demonstrated a commitment above the call of duty to make this a reality and without them and their impeccable standards, we would not have product to sell and a set of standards that are a bench mark for the whole industry.
FJ: Can you tell me if there is much of a demand for eco gold at present? Is this metal available outside of the European market?
Greg: Currently volume is a problem, but through the ARM pilot projects in Peru, Bolivia and Colombia, we are looking at further certified mines which will increase the volume in the system over the next 18 months, so the future is looking good, but it is a process and journey and will take time for it to mature and develop a significant market share.
FJ: Assuming the demand for eco gold increases, will the price be fixed, based on spot or will it be based on demand?
Greg: The pricing of gold is a matter for the technical committee that oversees the gold standard. Needless to say it will ensure that miners are paid a fair price + premium for their time and production. One thing I can say is that the current system of pricing gold is non-transparent and unjust, geared to the big operators who do not represent the majority of people employed in our business, so the price fix could be seen as nothing short of a fix. An equitable distribution of the revenues in the gold supply chain does not exist and this is immoral.
FJ: As a retailer, please describe your store—its size, demographics, location and number of employees.
Greg: A small shop on Roman Foundations (AD 60), with a Tudor extension (1560) with Georgian frontage (1760) with English elm floorboards, around 333 sq feet. Set in the Cathedral City of Chichester, West Sussex nestled in the heart of the South Downs and 10 minutes from the sea. Currently we employ 7 people in our shop and workshop.
FJ: How much, by percentage, is does the Internet drive your business?
Greg: About 45 to 50%, but as a jewellery brand, our collections are sold through other jewellers in the UK and Ireland. But our customer base is international with commissions coming from Japan, Paris, USA, Canada, Germany, Holland, Ghana and more.
FJ: My company is about forty percent retail web based, and I find that many customers who have no jewelry stores that have our values seek us out and order from us. Last month we had the biggest sale in our company’s history because of our eco values. This makes me think that the web is a particularly suitable place to market these values given how unavailable eco jewelry is in just about all markets. What are your thoughts around these issues?
Greg: Yes, I agree the web offers an extra shop window for the world to visit at their convenience.
FJ: Do you see any change in momentum say, over the past year with your customer base interested in eco and socially responsible values? I am trying to see how strongly you are trending, one way or another.
Greg: Absolutely, we are seeing good growth, which creates its own set of problems, but they are healthy problems. The consumer in the UK and Ireland is not stupid and doesn’t appreciate being sprayed like cock roaches every 6 months with a million pounds of PR designed to reflect the person from the truth and providence of a product. These ideas are new to the customer who buys jewellery but we are finding once they know the truth and positive impact of our work they love it, recommend it and wear it with pride. I always say a pound of truth is worth a million pounds of PR.
FJ: In the US, my impression is that you can count the brick and mortars stores that feature environment and socially responsibility highly on one hand. Is this also the case in the UK?
Greg: Increasingly this is the case. Awareness of Fair Trade and ethical is running at about 55% of the population. In 2005/6, the consumer spent more on fair trade, organic and ethical product than they did on alcohol and tobacco products combined, which is amazing for the UK seeing as we are nation of big drinkers. These issues are going main-stream big time throughout department stores as well as corner shops which is great news all round. So it is the jewellery industry’s turn to get in step with what the customer wants.
FJ: When I look at your company website (www.credjewellery.com) I see that your socially responsible values are deeply integrated into your marketing. In fact, I would call it your highest profile, unique selling point. What percentage of your customers, in your estimation, buy from you because they simply like your designs, verses the percentage those who would actually buy from you because of your progressive values?
Greg: This is true, it is the very foundation of the business and if it was not there, we would not have a business. I have no interest in playing the corporate games of spiv’s in suits who work the best years of their lives to make a minority of share holders and pension fund mangers richer than they need to be. For us it is about driving value back to the poor and marginalized. We are a social business with a clear mandate to do just this. Our customers come from all walks of life, social backgrounds and economic spending, but they believe in basic human goodness and appreciate the chance to do the right thing with their money. We also work with our customers on educating them through the purchase, so when they walk out they know more about the providence on jewellery than when they walked in. By educating the consumer you will move the market in a positive direction.
FJ: Can you give me a “green” customer profile? I am trying to find out if they cut across social economic status. What are they concerned about?
Greg: Not really, as they don’t really exist, people are people from all walks of life. Our customer is the customer who cares. From rich to poor, the basic human values of decency and justice exist in them all.
FJ: How do you best attract that type of customer to your store? Print media? Web? Television?
Greg: Word of mouth. We do not spend money on advertising, as the story is good enough already, but yes we regularly talk to the press, television, radio etc about what we are doing. This can be a bit tricky when they are out to stitch you up, but there will always be cynics who want to suppress good news stories as impossible, but basically we have found the media very positive towards our cause.
FJ: Once these customers come into your store, how do you sell to them? What recommendations to do you have, if any, to those of us here in the US wanting to sell to this customer base?
Greg: Tell the truth, be honest, treat people with humility and avoid jargon.
FJ: What is your best estimate as to how much of a premium your customer will pay over competitive items in your category to be eco and socially responsible?
Greg: All I can say is it a mid price product, but with the dollar being so weak at the moment it would seem expensive from across the pond.
FJ: What is your best guess as to the size of the jewelry market in the UK for people with eco/socially responsible values?
Greg: Big and growing, as to percentage, I don’t know but 55% recognize the fairtrade mark which is good indicator of appetite for product.
FJ: Right now, based on my experience, there is very little interest in green and fair trade jewelry from our mainstream jewelry sector, except with a few individuals. What recommendations or advice do you have for us in the US around creating a market for these socially responsible products in the jewelry sector?
Greg: Design and desirability are number one. People should want to buy your products because they want them, the fact that you are also doing the right thing, reinforces that you are the right place to buy. However I do get the impression that it is a very competitive market, driving costs and profits down to make the sale at the cheapest price (eternal January sales) and therefore squeezes the little man who cannot compete with the big corporate’s who have the capital clout and liquidity to take a hit on profit by driving volume. I would look to Transfair USA as a member of FLO to advocate on these issues and educate consumers on the true price of a product. Corporate price squeezing is not just, and distorts the international market creating unemployment, poverty and exploitation, the very thing that no self respecting American would countenance if they knew it was going on.
FJ: Anything else that you would like to add?
Greg: Keep going. It’s a long road to justice, but I am committed to making it culturally unacceptable to buy a jewellery product that is not independently certified as socially and environmentally responsible. Let us work together to make this a reality so we can rewrite the jewellery story from being one of individualism rooted in narcissism and hedonism to one of beauty, freedom, peace and justice for everyone involved in making what is a great product.
Greg Valerio
Greg can be reached at: Greg.valerio@credjewellery.com
http://www.credjewellery.com
