Ethical jeweller lops 20% off retail price to stimulate sales.
Sales of wedding rings have tripled at Cred after the ethical jeweller slashed its online prices by 20%.
The initiative was led by Cred chairman Alan Frampton, who joined the business 18 months ago after a career in the wholesale floristry industry.
Frampton said that previously Cred was selling 100 wedding rings in a year but by the end of 2012 he expects the business to have sold 300 ethically created wedding bands. He said that sales were previously hampered by prices that were too high, something that he identified on coming into the business.
Even with the 20% drop in prices described by Frampton during a talk at the CMJ’s UK Jewellery Conference Cred can still make a good margin on the rings – about 2.7 according to Frampton – and the reduction in price has been effective at stimulating sales.
Frampton said: “Cred saw themselves as a luxury jeweller. I didn’t see them as a luxury jeweller at all, and they were selling expensive wedding rings.”
He also revealed that 75% of Cred’s sales are now coming through its website. The company also has a showroom in London and a boutique in Chichester.
Talking about the growth potential of the ethical jewellery market, Frampton said he believes that sales will continue to go from strength to strength, not only in the UK but internationally, particularly in countries that consider the West aspirational.
He said: “If you think [ethics] are going to go away, you’re wrong. Ethics is a very Western thing. When you look at China, the reason they use the same diamonds as us is because [they look to the West].”