Friday, August 29, 2014

Are you supporting substandard labor practices?

Earlier this summer, results of the fifth annual Survey of Footwear Factories in China were released by the Footwear Distributors and Retailers of America (FDRA) and supply chain firm ELEVATE.  The findings were taken from 110 factories across China, where it is now estimated that 80% of the U.S. Footwear Market is produced.  Data is from 2013.

What is good about this survey is that it gives brands of imported footwear a good general understanding of the issues these manufacturers are facing at the production level.  It also offers some transparency to the brands, retailers, and consumers on the labor practices -notorious in third world industrial centers- that are still evident, and continue to blemish the industry.  FDRA has released the survey report to its members and they have created a summary infographic to the public.

The survey reveals the current state of factories that produce footwear in China and how they are addressing challenges facing our industry.  Among them include

  • continued increase in raw materials
  • reduction in labor force
  • increase in wages

With these issues on the supply side along with the added competition among factories for the business, the pressure from the brands to manufacture a lower cost product puts the squeeze on factory owners.  Time and money are paramount.  To cope with these challenges factories turn to substandard labor practices including:
  • longer working hours
  • hiring of underage workers
  • hiring of workers past retirement age
  • paying below minimum wage
Recent factory disasters over the past few years have brought the poor working conditions in Asian factories to light.  Some consumers have used their purchasing power to express disdain for the working conditions of their imported products.  This is one factor in the increase in demand from consumers to purchase US made goods.  Typically, any backlash is forgotten quickly and the consumption of products made under questionable practices resumes until the next disaster is reported.  

Shortly after the results of this survey the FDRA announced the release of a Footwear Production Code of Conduct in an effort to define and uphold better working standards for industry players to apply to their manufacturing partners.  

The factory owners were optimistic in the survey that they would see more business in 2014.  Will that mean more long shifts, underage workers, and wages below scale to keep up?  Now that a major trade group in the Footwear Industry has essentially laid the gauntlet for social standards, will brands and manufacturers comply?  When you buy your next pair of shoes (or sandals), or anything made overseas, will you be promoting the use of 14 year old workers doing 11 hours of work making maybe a dollar a day?    

Thursday, August 21, 2014

Occasionally we get a chance to get out of the factory and meet with some of the great shops that are carrying our brand.  Surf and Adventure Company in the Sandbridge area of Virginia Beach has not only been a loud and proud reseller of Vere from the start, but part of the motivating factors that got us started.

We let co-founder John Eades out for a little east coast trip this summer where he had time to sit down for an interview for their highly aesthetic and addicting blog.  John elaborated on a key conversation long ago with S&A owner, Rob Lindauer which got the wheels turning and ultimately became part of the motivation behind the concept that eventually spawned Vere Sandals.

There is also a brief, but candid discussion of the struggles to start and maintain a manufacturing business in the United States as well as the rewards of creating a quality product and jobs for the local economy.  There is also a sneak peak of the byproduct of a collaboration we developed with S&A, a custom sandal that ratchets up our conservation efforts to another level.  Rather than throwing away old wetsuits, we've found a way to repurpose them to make uppers.  We like to call these limited beauties the Johnny and the June.

You can check out the Surf & Adventure interview here.

Wednesday, April 9, 2014

Long time...

Looking at our last entry. It is obvious we have neglected something we once considered to be a great tool that would provide insight to the creation and existence of the Vere Sandal Company and our factory here in Geneva New York.  Beyond our brand and factory, we see as a way to offer an insight on what interests us as harbingers of domestic manufacturing, a small and emerging brand in the surf and outdoor industry, and a couple of shleps trying to create a company that reflects our ideals and strives to be as responsible to our community, environment, investors and industry as we can make it.  

With that being said, I’ll take the time to briefly fill in the large set of blanks with a little timeline.  Later entries may elaborate on some of the more memorable and meaningful events in that past that have helped us get here today.  

- February:  We deliver to our first retailer:  Super Casuals in Geneva, NY. 
- March, April: Shipments for early spring orders roll out.
- May 21: A fire in a part of the factory causes damage to some finished goods, raw materials, shelving and machinery.  Cleanup and factory restoration promptly begins; production shortly thereafter.
- June 5: Shipments resume.
- October:  After a good debut season, Vere sees significant jump in prebook orders for Spring ‘13.
- Beginning next round of capital raise to cover materials and costs for next season. 

- March:  Unsuccessful financing round limits availability of styles and colors offered for Spring ‘12 season.  Prebook orders were adjusted to sell available product, shipped incomplete, or cancelled. 
- June - July: Make or break time for financing.  Sales at retailers, however, continue to be  strong.
- August:  Reflecting good sell-through, at once orders continued at retailers through the fall.
- Refreshed product lineup.
- September: Restructured long term debt and signed a manufacturing partnership with ARC of Yates.  These efforts combined to improve cash-flow to strengthen operations covering anticipated growth in the short and mid-terms. 
- In an effort to close the loop, Vere has decided to replace traditional petroleum-based materials (Rubber and EVA) for midsoles and outsoles with highly recyclable and equally comfortable and durable PLUSfoam.

-  January:  Surf Expo - Our presence marked a solid return to the market with full availability of our product line.

- April: ressurected