5th Global Footwear Sustainability Summit 2016 Event Report

Transcription

1 5th Global Footwear Sustainability Summit 2016 Event Report The 5th Global Footwear Sustainability Summit was held in Shanghai in August 2016, attended by more than 200 delegates from leading footwear brands, OEM, sourcing & retailing group, material suppliers and relevant government officials. The event invited eminent speakers from GFP, TATA International, Novi Footwear, Stella International, Bata, Crocs, Li & Fung, Caleres and Wanhua Chemical Group who shared insightful ideas from perspectives of global outlook and sourcing strategy for footwear, shoes supply chain, CSR and compliance of manufacturers, brand building as well as the blueprint of future footwear development, provided the different versions of understanding of the Sustainability. Attendee Breakdown Participant Industry Breakdown 29.2%Footwear Brands 28.1%Material Suppliers & Accessories 18.8%Testing 12.5% Footwear Manufactures 7.3% Traders & Retailers 4.2% Government & Association Participant Job Title Breakdown 39.9%Manager 22.8%Director&Head 15.3%President & VP 15.0%GM 7.0%Specialist & Consultant Annual GFSS is Your Premier & Must Attend Event

2 Presentation Topic: Outlook for China Shoe Production Su chao ying Chairman CLIA 1. Overview of China s Leather and Footwear Industries 2. Challenges and Opportunities 3. The major targets by the year 2020 set by the 13th Five-Year Plan for China s Leather Industry Challenges the industries have to face in the forthcoming future, the industries are ready to face the challenges, the positive factors in the industries are increasing. Many companies have already invested a lot or what they are preparing. It is believed that more active stimulus policies including further decreasing tax on enterprises and increasing consumer confidence will be taken by government gradually.

3 Presentation Topic: Opportunities/Challenges of Global Footwear Sourcing: TPP and Beyond Global Supply & Demand Big Picture, Global Sourcing Overview Athleisure Drives Women s Sales,Social Exercise Drives Fashion Slacks and Blue Jeans are Gone Footwear Export Opportunities/Challenges China-What's Next : Growth Slows,Policy Challenges,More Credit GDP Growth,More Debt Less Growth Footwear Overview--China Still Rules: China will not derail its in dominance anytime soon even osts and labor issues will continue to plague shoe production.no where else will draw the massive infrastructure investment needed to supplant China s un-paralleled inventory of shoe supply chain investment.china remains the irreplaceable source for many shoe categories women s fashion, low price, etc.sport shoes and outdoor items for export have accelerated their move out of China.Niche shoe production will strengthen in some emerging shoe markets Vietnam, Cambodia, Bangladesh, India, as will as in Ethiopia, Latin America. Peter Mangione Managing Director GFP

4 Presentation Topic: Global Operations of STELLA INTERNATIONAL, Vietnam Case Sharing Stella History & Current Profile & Footwear Overview Stella Vietnam Growth Profile Global Growth & Opportunity: Building a Leveraged Infrastructure Integration opportunities vary by function Moving Toward: A centrally managed and integrated enterprise Scott P. Gill Head of International Stella International Sustainability is a Company s ability to achieve it s business goals and increase long term shareholder value by integrating economic, environmental and social initiatives into it s business strategy.

5 Presentation Topic: Introduction of Vietnam Footwear Industry Global Footwear Industry and General figures of VN Footwear Industry SWOT Analysis: Strengths and Opportunities The FTA s with Vietnam; Vietnam with EV FTA / TPP EAEU FTA Strategy up to 2030:10 Key Factors of the Development Strategy Opportunity for investmen: 4 fields to invest in Vietnam 3 key regions New Policies Diep Thanh Kiet President TBS Group With government preferential policies and advantages on labor cost as well as good invest environment, Vietnam has become a hot place for shoes manufacturing.making great product is no longer enough, making great product sustainable is the new value proposition

6 Presentation Topic: The China Plus one strategy and the rise of Vietnam Joël Lecroq Sales & Marketing Director Thunder Star Group Time In Motion with Globalization & Glocalization Main Advantages of Vietnam Looking at the yong population, especially for a Labor Intensive Industry like shoe making Vietnam s Government favorable policies & free trade agreements accelerate Asian footwear Industry Time In Motion with Globalization & Glocalization. Your old version of value maybe obsolete in this new exciting world. By understanding this transitional,period, you may not only find yourself better prepared for the future manufacturing world but you may discover golden opportunities along the way!

7 Presentation Topic: Make in India Production and Marketing Opportunities Macro environment analysis of India & Leather Industry Make in India Initiative Opportunities in India Current Enablers & Detractors India s Footwear Vision With increased consumption & enhanced sharing of information, awareness about global brands is increasing Invest in the Indian manufacturing setup by establishing new facilities with large scale capacities and potential shoe market. N. Mohan Global Footwear Head Tata International Nike s huge success with Feng Tay unit in India Individual State Government are engineering packages to support foreign investors in setting up facilities in India, which strongly proves Make in India recognizes the economies of scope within the Leather industry. Presentation Topic: Update on Shoe Production in Ethiopia Ethiopia Natural Environment & Economic Environment Political & Religion and Their People Ethiopia Transportation Shoe Production & George Gloria Industrial park Glory Chen Chairman George Gloria Group One of the most politically-stable countries in Africa,Political home of African Union,Encouraging foreign capital investments and has zero duty incentives,government emphasis on investment single-window service,opportunities vs. Challenges George Shoe Ethiopia PLC (GSEP) has commenced production of 3 lines in year 2014 at Bole Lemi Industrial Zone, she will be commencing services and productions in year 2017

8 Presentation Topic: Moisture and its impact on your supply chain 1. Facts of US Footwear imports and EU Top 5 countries Footwear imports, mold a is risk factor in modern supply chains 2. Climate and materials that makes mold happen,we can do something to solve this from factory control points and shipping 3. How to avoid the risk of condensation inside a container? With a comprehensive range of products and services SUPER DRY takes care of your goods from production to destination. The introduction of the 5 steps approach Fred Birnbaum Executive VP & Chief Commercial Officer Superdry International Moisture can be in the full footwear supply chain and it cause huge damage and cost to factories, climate change and the materials of the shoes is the main reason that get mold, this is high risk we can t avoid at the shipping, the solutions provide by SUPER DRY can solve this.

9 Presentation Topic: Commitment to the Sustainable Development --- Comprehensive Solutions for the Footwear Industry Wanhua is continuously pursuing sustainable development. Wanhua's Raw materials of PU synthetic leather, sole and bonding adhesives for footwear industry Introduction of Trends for Footwear Materials, Great Growth Potential in the Domestic Market Wanhua s Comprehensive Solutions for the Footwear Industry Comprehensive Solutions for the Footwear Industry Mr. Carl Weiqi Hua SVP & CTO Wanhua Chemical Group Co., Ltd. As one of the largest listed chemical companies on SSE by Cap Value, Wanhua has a Revenue grows from $40m in 2000 to $4.5 billion in 2016(estimated). In the pursuit of low labor costs, footwear manufacturing has undergone and the Big Flight from China is Nearly Over. But with increasing attention to health, shoe consumption (especially for sports shoes) has shown great growth potential. Wanhua who holds a leading position in sustainability in world chemicals continuously pursuing sustainable development, providing Raw materials of PU synthetic leather, sole and bonding adhesives all over the world. We believe the best way to achieve environmental protection is to create seamless collaboration among suppliers, brands, governments and industry associations.

10 Presentation Topic: Water-Based PU 1. ZDHC MRSL program and stated 2020 goal for zero discharge of hazardous substances. 2. Analysis on Regular PU vs Water-Based PU 3. Environment Impact by Solvent and Water-based Used In 2014, Many brands & companies joined ZDHC's MRSL program and stated their 2020 goal for zero discharge of hazardous substances. Water-based Used has great performance in footwear and environment protection. Martin Ng VP Production Department CALERES, INC. Presentation Topic: Connecting Feet with Shoes Wisdom Zhang COO 3DOE 1. Match with Good Code,Full code,length,width,arch,rich Tuner 2. Current Changes, Industry 4.0,5G and IoT, Big Data, Marketing social media, Cloud computing 3. Innovationsfor Footwear, Digitization, Cloud, match, end to end, operator 4. 3DOE solutions

11 Presentation Topic: Materialise solutions for Footwear industry 1. Advantage of 3D Printing: shorten time-to-market, reduce costs, make small series profitable surpass design limitations 2. Materialise s Core Competences: 3D Printing, Software development, Engineering 3. Materialise 3-matic: Design for Additive Manufacturing Corporate with Adidas, The Ultimate 3D-Printed Personalized Shoe will come out soon. 3D printing contributes a lot in Measuring forces while running. Kim FFRANCOIS Head of China Materialise Presentation Topic: Cost Effective & Intelligent Manufacturing Solutions 1. Trends and Key Facts in the Footwear Market 2. Trends in Production Principles, Driver for future solutions,coming Technologies 3. History of Key Performance Indicators 4. DESMA Wrap Trainer Concept Shoes 5. Wrap Shoes Main Messages 6. Next Generation Footwear Production Armed with the greatest tech, Desma would like to support you on the way into the future: boost the performance on better quality, sustainability, efficiency and profitability for foootwear industry Christian Decker General Manager Desma

12 Presentation Topic: Footwear Sustainability Overview and Innovation 1. What do we know about the footwear industry 2. Where do we see opportunities for improvement and sustainability The overall environment has changed, and it's more challenging to do business nowadays. Business environment has changed, Chinese footwear factories are facing more challenges than ever. Improvement in compliance performance is visible, but more needs to be done.through innovations (e.g. audit + model & worker survey), we will be able to understand workers before, meeting their needs more & creating a sustainable workforce. Dingxiaozi DING Impact and Analytics Manager ELEVATE Presentation Topic: Shoe Business at the Base of the Pyramid A Responsible Company since 120 years 24 factories in 17 countries; 5,700 stores in 60 countries BATA Life Nicole Voillat Sustainability Director Bata Bata started by setting up manufacturing in developing countries and investing in local employees training and professional development. Not only did this involve having a local manufacturing presence, but Bata also employed local people, sourced local materials and purchased from local businesses providing much-needed jobs and livelihoods. Women make up nearly half of the population and represent huge untapped potential for socio-economic development of the country. Development and enrichment of women entrepreneurship promotes national competitiveness and sustainability. It is also impossible to achieve the target of a poverty-free society without incorporating women in the mainstream economy.

13 Presentation Topic: Crocs Eva Recycling Uses for Eva Scrap Recycling Machines Factors To Consider When Selecting a Machine Recycling Machine Choices Compound Powder Size Compound particle size impact Recycling Operational Overview Trent Zerr Asia Manufacturing Operations Crocs With Earth Day literally around the corner, we at Crocs are thinking of ways to add a little more planetary love to our everyday. Recycling is a great way to get in the Green game, and we love the idea from Real Simple to use those old Classic or Beach clogs as planters. TFT China GZ Office Manager LIN Szu-yin Presentation Topic: Sustainable Management of Global Leather Supply Chain The Environmental and Social Issues Surrounding Leather TFT Working Model Possible Solutions with TFT Leather & Shoe Group / Pulp and Paper Group Responsible shoes: from the raw material throughout the product s life and its eventual disposal Pull together all stages of leather production, so that the supply chain is transparent for all leather and footwear products and verified as environmentally and socially sustainable at each stage

14 Presentation Topic: SUSTAINABLE MATERIAL AND TRANSPARENCY ACROSS THE SUPPLY CHAIN Value chain approach to drive chagne & results H&M CHINA:commonly used sustainable materials Shoes made with waste based glue,certified leather and waste based materials Transparencey across the supply chain H&M sustainability programs for suppliers Commiment-Zero discharge of hazardous chemical 2020, on public disclosure Going forward- Roadmap for chemical management Apple Cao Embedded with the concept: "Fashion and quality at the best price in a sustainable way", H&M has a long Sustainability Supply Chain history of supplier assessment, transparency, and recently, sustainable materials. We are focused on Manager for Woven developing sustainable materials for clothes and shoes which includes water based certified organic leather, H&M and organic cotton, committed to transparency through traceability pilots, supplier self reporting, and public disclosure.. Presentation Topic: Overview of CPSC & California Prop.65 Alex Kwong Senior Key Account Manager CTT U.S. footwear recalls analysis California Prop.65 Brief California Prop.65 settlement analysis California Prop.65 update Product- FCM or Children product: Suggest testing BPA; Other consumer product: As client s requirement High Risk materials: PVC, polycarbonate, epoxy resin materials, thermal printing paper, coatings, PP, ABS Requirement: None detectable ( 0.1 ppm) or Warning

15 Presentation Topic: Chromium VI Regulation & Latest Techniques for Avoidance Toxicity of Chromium VI Use of Chromium in Leather Regulatory Background of Chromium VI in Leather RAPEX Notification of Chromium VI in Leather How to avoid Chromium VI? Leather Production Process that may lead to Chromium VI Formation Other Ways that can Prevent the Formation of Chromium VI Environmental Condition that may lead to Chromium VI Formation and Prevention Chromium VI in leather is currently an regulatory requirement in EU. Various potential causes of occurrence of chromium VI and the corresponding preventions have been discussed.in order to verify if any chromium VI is present in leather materials/products, it is suggested to carry out the test after sample aging in order to stand for the most stringent scenario Charles Ng Technical Director UL Presentation Topic: DMFa Elimination Status Report Background of N,N-Dimethyl Formamide (DMFa) Pressure from NGO & Waterborne PU Production Current Challenges Cooperation with Chemical Industry Covestro INSQIN Partner Manufactorer Program Matthias Chan Technical Consultation Director Bureau Veritas Consumer Products Services North China Due to high demand of environmental friendly product, water-based/ solvent free techniques for production of PU is available now by different chemical suppliers. However, it is still difficult to ensure the water-based/ solvent free PU is DMFa free. BVCPS developed a verification program, which would evaluate the production processes to ensure the water-based / solvent-free PU product is DMFa free.

16 Presentation Topic: RETURN to ZERO, DETOXing the Apparel/Footwear Supply Chain Rakesh Vazirani Director - Product Traceability & Environmental Information Management TUV Rheinland Global Origins & Textile and Footwear Backgroud DETOXing the Apparel/Footwear Supply Chain NGO Response: Greenpeace (2011 current) Complimentary Industry Initiatives Chemical Management of Inputs with MRSL Apparel/Footwear Sustainability Path : Impressions Presentation Topic: REACh and impact on shoes Have there been updates on chemical requirements that will have an impact on the shoe and textile industry? NPEO 4 Phthalates Lead CMR substances HBCDD in POP Sven Posselt Technical Expert Global Chemical Regulations TUV Rheinland

17 Presentation Topic: REACH and EU Nation State Chemical Regulations Andreas Burmeister Head of Sustainability Wortmann KG European Chemical Ordinance Regulation Substance of Very High Concern End-consumer present their problems and ask which chemical are used in the production. How we can follow the reach regulation Suggestion to reach updated reach regulation: Precondition transparent supply chain! Prepare a complete bill of material bomknow per each material the bill of substances -bosboth bom & bos theoretical will answer the question for some products the safety data sheet will help, if the safety data sheet are correct Presentation Topic: The Zero Discharge of Hazardous Chemicals Programme Updates Manufacturing Restricted Substances List (MRSL) MRSL & Conformity Guidance Research Wastewater Quality Audit Protocol The ZDHC Chemical Registry Data & Disclosure Focus / Cross Cutting Area Updates Lydia Lin Head of Asia ZDHC Widespreading implementation of sustainable chemistry and best practices in the textile and footwear industries to protect consumers, workers and the environment.our goal is to have the ZDHCMRSL and conformity process guidance adopted as the global textile and footwear industry standard. Participate or Sponsor 6th GFSS, be free to contact us: judyy@copexglobal.com

18 Presentation Topic: Commitment and actions toward ZDHC 2020 Amy Huang Head of Product Stewardship Division Everlight Chemical Industrial Corporation Everlight Chemical Vision 2020 Supplier Management System Hazardous Substance Managemnt Process Suggestion to supply chain partner 100% dyes and chemicals for apparel and footwear are compliance with ZDHC_MRSL before Dec Suggestions: Make your own chemical inventory Improve and invest Waste Water Treatment capability and resources Improve factory chemical management, environment and safety Hygiene Presentation Topic: Zero Discharge along the supply chain of the shoe industry Consumers expectation updates Sustainability in the supply chain REACh Public Consultation Next Steps REACh Public consultation Andreas Tepest Head of Quality Management Deichmann Today, consumers do not separate between the manufacturers of materials, such as Textile or coated PU, and the company processing the materials, i.e. the shoe manufacturer.the EU Commission will launch a second, shorter public consultation on the draft amendment of Annex XVII before the proposal is discussed in the REACH Committee, as foreseen in the Better Regulation Guidelines

19 Photo Gallary Dear Distinguished Guests: Thank you very much for your participation. With four years developments and excellent performance, there is no doubt that GFSS has become a big and beneficial business platform for global footwear industry. Every year numbers of top speakers in each area provide attendees with the very best perspective on the compelling challenges facing every shoe company. Your support and effort are highly apprecaited. Now our committee is working on the planning for 2017, aim to bring you a much bigger and valuable congress. Please be note that The 6th GFSS is primarily scheduled to be held on 1st-2nd of September Shall you have anything interesting to share, don't feel hesitate to let us know. Your suggestions & ideas are warmly welcomed. See You Next Year!