Mayerline N.V. social report Reporting period (Financial year: February, 2021 – January, 2022)
HTTPS://WWW.MAYERLINE .BE FAIR WEAR MEMBER SINCE 14-03-2010
Social Report Feb.2021-Jan.2022 – past financial year
Table of contents Organisational chart _________________________________ 3 Sourcing strategy ____________________________________ 4 Sourcing strategy & pricing ____________________________________________________ 4 Production cycle _____________________________________________________________ 5 factory relations _____________________________________________________________ 5 Integration of monitoring activities and sourcing decisions _________________________ 5
Coherent system for monitoring and remediation __ 6 Factory A/Country A __________________________________________________________ 6 European Union ___________________________________________________________ 6 China ______________________________________________________________________ 6 External production __________________________________________________________ 6
Complaints handling _________________________________ 6 Training and capacity building ______________________ 7 Activities to inform staff members ______________________________________________ 7 Activities to inform agents _____________________________________________________ 7 Activities to inform manufacturers and workers ___________________________________ 7
Information management ____________________________ 7 Transparency & communication ____________________ 7 Stakeholder engagement ____________________________ 8
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Social Report Feb.2021-Jan.2022 – past financial year
Corporate Social Responsibility _____________________ 8
Mayerline N.V. social report Organisational chart BOARD OF DIRECTORS
CEO
OFFICE COORDINATOR
MARKETING & BRAND
FINANCE & IT
CREATION & MERCHANDISING
WHOLESALE
SALES
HR
PRODUCTION MLI
RETAIL
Summary: FY2021 goals & achievements Mayerline is a Belgian fashion brand aimed at stylish women. The company was founded in 1957 by Joseph Meyer and his wife Jeanne Vrijdags. They developed from an atelier to a well known fashion brand. Today, Mayerline has about 45 boutiques of its own in Belgium and Luxemburg. The brand is also distributed in the Belgian Galeria Inno department stores and in a wide scope of multibrand independent boutiques in Belgium and the Netherlands. Customers can also buy Mayerline online. In 2016, Mayerline introduced a sister brand ‘Améline’, targeting the same elegant customer but with a more playful touch. Mayerline is part of Claes Retail Group (CRG), the Belgian holding above the Belgian fashion retailer and family company JBC. When it comes to Corporate Social Responsibility, both brands – Mayerline and JBC – are aware of and committed to a mutual learning process. Mayerline joined Fair Wear Foundation in 2010, JBC in 2015. Fair wear and sustainability in our supply chains are for both companies core values. As fashion brand Mayerline focuses on workmanship quality and fit of garments produced under proper labor conditions. Long term relation ship, communication and transparency with suppliers are key factors protecting our DNA. Every year we are at learning process how to perform better.
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Social Report Feb.2021-Jan.2022 – past financial year In order to be closer to our suppliers in Far East, in 2021 Mayerline has joined forces with CRG buying platform in China. Now we have our local team who visits, explains and helps our suppliers to excel. In 2021 we focused on procedure buying + CSR (transparency, long term partnerships, direct relations and communication) and monitoring (step by step improving supply chain issues at factory level, CSR Rating including in supplier evaluation, exit strategy in case of non compliance). CSR manager has implemented tools for achieving maximum transparency with our suppliers. Each new supplier is informed about Group CSR policy, sustainability strategy and Fair Wear. Every supplier must follow the common procedures of CRG if it wants to become a supplier of the group: acknowledge and signed the Code of Labor Practices, CRG Buying conditions, provide details on production places and processes, subcontractors, post a WIS in local language in the work place, when available, provide us with the external audit report and CAP. Mayerline supplier platform www.mli.lt serves producers to access the supplier manual, get updated info. All signed documents are uploaded in our ERP system, so each product manager can check the situation of the supplier. We also evaluate as much as possible the external audit reports provided by suppliers, make life visits in place, collect evidence & photos. We will continue close monitoring of production places during 2022.
Sourcing strategy SOURCING STRATEGY & PRICING Mayerline works closely together with MLI (Mayerline Lithuania), the sampling, pattern and buying department of Mayerline. We distinguish two product types: complete finished garments/products that are purchased from the suppliers, and products we produce from our ownbought materials (confection). Quality and fitting are essential and both are always the first priority. sourcing strategy remains constant over the years and across all products. For Mayerline collections, we worked in 2021 together with suppliers in China, European Union, Russia, Turkey, Tunisia. Mayerline has regular direct contact with all the suppliers with who we strive to develop cooperative long-standing business relations. With many suppliers, we work directly, in some cases we operate via their offices or agents. Also with the agents, we have open and cooperative long term business relations. Most important criteria for selecting a supplier are quality, workmanship and fair production. Of course we judge the price versus the quality achievements. The capability and technical knowledge of the supplier to produce products, the availability of the required technologies/machines, their willingness to comply with the FWF Code of Labor Practices, and the ability to fulfill timeline and deadlines are also important criteria. We always prefer to work in a long term relationship, as it takes time to reach optimal quality. We work together with our suppliers to achieve optimal quality for each product, it is a process of learning and improving together. Production geography: CN EU TN RU TR
Flatknit, OTW, accessories Wovens (confection), jersey, flatknit Denim OTW (confection) Jersey
51% 37% 7% 3% 2%
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Social Report Feb.2021-Jan.2022 – past financial year Each season we monitor the performance of the supplier on different aspects (quantitative and qualitative) to take decision on future collaboration. The results impact continuity of the supplier for the next season.
PRODUCTION CYCLE Mayerline produces two main collections annually: summer and winter. In both cases the season schedule is fixed and encompasses each stage in the process, from designing the collection up to its delivery to shops. Lead times for each process are planned carefully together with suppliers to ensure quality at each step. Designers make detailed stylesheets and technical files and involve product managers and suppliers in the collection creation process. Before production all samples are pre discussed with the suppliers. To guarantee grouped deliveries of all products per fashion theme to the points of sale, times and deadlines are planned individually with each supplier and genre. Supplier provides the lead times for raw materials, dyeing/printing, CMT, additional services, so that we can correctly plan the production schedule. Production quantities are communicated as prescribed by the season schedule. For suppliers where we have higher leverage >10% (mostly these are confection producers) we follow the monthly capacity of the factory to well plan our production timelines and avoid overtimes and delays.
FACTORY RELATIONS At least 60% of Mayerline suppliers in 2021 were partners since more than 5 years. They are all well aware of the Mayerline culture and focus on quality and fitting. They are familiar with Mayerline Corporate Social Responsibility policies and most of them have been audited more than once in the past. Continuous development and work with our long term partners forms a vital link in our sourcing strategy – together we are strong. Due to worldwide pandemic situation it was not possible for our Head of Product to visit factories on regular base. Luckily our teams in China and Lithuania could maintain life visits to 66% of our production. Most of our partners and sourcing countries remain the same as in recent years. During 2021 we have started collaboration with few new factories, f. e. new denim supplier in Tunisia, because the former supplier has stopped its activity (after losing clients due to Covid lockdowns). One of important CMT producers in Lithuania has changed its activity and we had to search for a new producer. The thorough check both of workmanship level and labor conditions helped us to select new partner with whom we intend to develop long term relations. As part of CRG we also took benefit from the pool of suppliers to select reliable producers in China that already work for other CRG companies.
INTEGRATION OF MONITORING ACTIVITIES AND SOURCING DECISIONS Understanding the strengths and capacities of our suppliers, we divide production per genre accordingly. Each season we make supplier performance evaluation. In second half of 2021 we started to implement CRG Tier level evaluation tool. Using same tool all CRG suppliers will be evaluated with same methodology. The evolution of score data of several seasons will be important factor for development or termination of business with the supplier.
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Social Report Feb.2021-Jan.2022 – past financial year
Coherent system for monitoring and remediation A coherent monitoring program includes among other factory audits, informing manufacturers and their employees about the Code of Labor Practices, questionnaires, a complaints procedure that involves workers in the monitoring of working conditions in the factory, and factory visits by Mayerline staff. The code and the contact details of the complaint handler are posted in the factory in the local language. This is monitored in the audits and during factory visits. Where necessary, corrective action plans are set up, but this has not been the case in 2021.
FACTORY A/COUNTRY European Union Mayerline is producing a large percentage of its garments in the European Union, with over 37% of total Mayerline production. In 2021, European production took place in Lithuania, Romania, declared as ‘low risk countries’. All production sites in Lithuania are located within 200 kilometers distance, which MLI’s technicians are visiting on monthly basis. 100% Lithuanian factories have been visited during 2021.
China More than 50% of our products are manufactured in China. More than half of Chinese suppliers have been visited by our China team in 2021. With other suppliers we maintained communication in remote.
EXTERNAL PRODUCTION We didn’t place any orders at external producers in 2021.
Complaints handling No complaints were received during 2021 by employees and workers at our suppliers.
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Social Report Feb.2021-Jan.2022 – past financial year
Training and capacity building ACTIVITIES TO INFORM STAFF MEMBERS With every new supplier the Mayerline Head of Product fills in a supplier questionnaire in which the FWF membership is an important item. During this personal meeting the Head of Product explains the FWF Code of Labor Practices. CRG CSR manger had regular meetings with Mayerline team on various CSR and FWF toppics. Mayerline representatives attended online seminar on FAIR PRICE calculation tool. FWF topics are discussed with the staff of Mayerline during the Tier Level Evaluations and production meetings.
ACTIVITIES TO INFORM AGENTS Mayerline Head of Product communicates with agents on our CSR policy, situation on suppliers they represent, discuss the needed steps to take, solve daily issues or explain policy questions.
ACTIVITIES TO INFORM MANUFACTURERS AND WORKERS Mayerline teams in Lithuania and China communicate with manufacturers on our CSR policy and company values, perform basic health and safety check and distribute & post the WIS in local languages. No trainings for manufacturers and workers were organized during 2021.
Information management Our CSR manager has implemented a checklist what’s needs to be done and what documents to be provided for each new supplier. By sending us signed documents, supplier provide us detailed info on it’s production processes, specifics and manufacturing places. As of production orders S2022 suppliers have to inform MLI on the exact factory that production will take place. The factory is registered on the production delivery flow file what helps us track in which factory which production order was produced. Depending on location, either MLI team or China team will supervise supplier, plan life visits in production places, provide needed support and consultations.
Transparency & communication We believe in an open and transparent communication with our suppliers. There are several ways through which the Code of Labor Practices is communicated to manufacturers and workers: distribution of questionnaire and lead letter to every new supplier, request for confirmation of our general cooperation rules to all suppliers, visits to suppliers to check not only the production and technical capacity but also the FWF Labor issues. In order to better inform our suppliers we have implemented a website www.mli.lt dedicated to our suppliers. All our registered suppliers (including raw materials suppliers) get a login code to look up general conditions, including the Code of Labor Practices, environmental requirements, etc.. The link towards supplier platform can also be accessed on www.mayerline.be.
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Social Report Feb.2021-Jan.2022 – past financial year
Stakeholder engagement In 2021 Mayerline didn’t engage any stakeholder groups.
Corporate Social Responsibility In 2021 we continued our projects on sustainability to reduce the textile waste: produced handbags from old vests (sold out online in a glimpse!) made cosmetic bags from the outdated leftovers. Upcycling projects by Mayerline will be continued in 2022.
Mayerline has many sustainable qualities in it’s collection like recycled polyester or viscose, these items are labeled with My Planet hangtag.
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Social Report Feb.2021-Jan.2022 – past financial year
List of Mayerline production factories 2021: Factory Name
Country
AIRITEKSAS UAB
LITHUANIA
AUGIMADA UAB
LITHUANIA
ODELIJA UAB
LITHUANIA
VILKAVISKIO SIUVIMO AB ŽEMKALNIJA
LITHUANIA
BVH UAB
LITHUANIA
PRESTO MODA UAB
LITHUANIA
SIHA ROMANIA SRL
ROMANIA
JSC "BALTIK LINE" WYVACON SRL
RUSSIAN FEDERATION TUNISIA
LIOLA TEXTIL, INC.
TURKEY
YOENTRI (SHANGHAI)
CHINA
DALIAN HUABO GARMENT CO., LTD
CHINA
RUGAO CITY FUEN GARMENTS CO. LTD
CHINA
NANYANG GRANDWIN GARMENT FACTORY
CHINA
DONGGUAN CASON KNITTING CO., LTD
CHINA
SHENGZHOU CHENGZHONG GARMENTS CO., LTD
CHINA
SHENZHOU FRAGRANCE KNITTING GARMENTS CO.,LTD
CHINA
KANG NING CLOTHING LIMITED OF DONGGUAN
CHINA
ZHEJIANG YINLI FASHION KNITTING CO.,LTD
CHINA
CHANGSHU HUAYEZHOU KNITTING GARMENT CO LTD
CHINA
SUZHOU FENGCHUANG TEXTILE CO.,LTD
CHINA
INNER MONGOLIA EDELWEISS CASHMERE PRODUCTS CO.,LTD. HUZHOU SHENGRONG DRESS CO., LTD.
CHINA CHINA
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