Table of Contents
01
FY25 Targets
02
Division Strategy Change:
Mid-Term Goal Reassessment
03
FY25 Reset Targets
04
Quantitative results relative to goals
05
Qualitative review for this period
06
Symbolic initiatives for this term
Responsible manufacturing Practical Report vol.1
Responsible Production
Report vol.1
Table of Contents
HERALBONY's Declaration of Responsible Manufacturing was announced during the rebranding in June 2024, coinciding with the logo change.
This declaration was born from the desire that Heralbony, in its growth over the next 10 or 20 years, will not contribute to creating negative environments in the manufacturing of its own products.
For Heralbony, products are not merely fashion items, but rather vehicles for delivering ideas and messages to society. We do not want to impose burdens on manufacturers or the natural environment during the manufacturing process. We want to avoid making choices that might unknowingly harm others as much as possible. These are our intentions.
This past year was the starting point for us to challenge ourselves on the ground with the policies and goals outlined in the declaration.
In this report, we will look back on the progress made over the past year and report on how we took action and what we learned regarding our stated policy of "responsible manufacturing."
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01
FY25 Targets
1.
Providing products with the quality to accompany you for a long time
Sewing precision, fabric quality, and printing technology. We are committed to creating products that are robust enough to accompany you for a long time, meticulously crafted with quality as a daily tool.
2.
Achieving optimal production through balanced relationships
Instead of lowering costs through mass production, we will produce an appropriate amount that does not waste resources. We will understand what constitutes an "appropriate amount" not only for ourselves but also for the manufacturers, and build a cooperative relationship through discussion that allows for continuous business transactions.
3.
At least 60% of all products have undergone a factory tour during one or more stages of the production process.
To see, learn, and understand firsthand the people and environments involved in producing our products, we aim to visit over 60% of our manufacturing partners' factories, fostering advanced collaboration.
4.
We aim to ensure traceability of 80% for final manufacturing, 50% for processing, and 30% for raw materials.
We set specific goals for each stage of the production process to understand the production background. Our aim is to trace the production background as much as possible, with targets of 80% for final manufacturing (final stages of creation like sewing), 50% for processing (stages like weaving and dyeing fabrics), and 30% for raw materials (from farms producing cotton and wool to the creation of yarn).
5.
Use of materials with low environmental impact
Use of materials with low environmental impact
exceeding 50%
In manufacturing with limited resources, we actively select agricultural methods that minimize greenhouse gas emissions and pollution of water and soil, as well as recycled materials.
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02
Mid-Year Goal Review Due to Business Unit Strategy Change
As the brand's reception exceeded expectations, we decided to update our approach and steer towards expanding our product lineup. As the brand grew, the speed of product planning and development naturally increased. With a small team and production foundations and cycles not yet established, the time available for material selection and supply chain construction became shorter than before. Amidst this business growth and expansion, a gap gradually emerged between the "responsible manufacturing" goal we set at the beginning of the fiscal year and the reality of our situation.
Our brand's grand policy is to achieve both economic and social viability. The product team has seriously confronted the gap between this goal and reality, re-examining the "what we can do" and "what is difficult" that became apparent through practice, to ensure that our "Declaration of Responsible Manufacturing" does not become mere idealism. Through repeated team discussions, we have re-established what we can continuously work on within our current structure and pace, and after accurately grasping the current situation, we have re-set the maximum goals that the entire team can challenge over the next six months.
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03
FY25 Recalibrated Targets
- 1. 20% of the main materials for all products are on the in-house selection criteria list.
- 2. Of all product manufacturers, we will visit three (one visit every two months) in the second half of FY25.
- 3. We will ensure traceability for 50% of finished products, 30% of processed materials, and 20% of raw fabrics across the manufacturing process of all products.
*Traceability means knowing the factory, according to Heralbony's definition.
Knowing the fabric means knowing the factory that carried out processes such as weaving to turn raw materials into fabric.
Knowing the fabric means knowing the factory that carried out processes such as weaving to turn raw materials into fabric.
We created a list to track the main materials and traceability of each item, enabling us to continuously work towards our redefined goals. We also established a framework for the team to regularly review this list and defined our policy for selecting main materials.
第1優先
We search for the optimal fabric that meets the budget, schedule, and quality requirements from materials with guaranteed traceability and compliance with the standard list.
第2優先
If there isn't a perfect match, we will select based on budget, schedule, and quality to create products that people will pick up and use with affection.
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04
Quantitative results
against targets
1.
20% of the main materials for all products meet our in-house selection criteria list.
Results
Number of collateral items: 11
16.18% / 100% (68 items total)
Given our current brand power and lead time for planning and production, it's challenging to manufacture our own original materials. We primarily source materials from manufacturers' existing stock, making it difficult to fully grasp the entire process from raw material to finished fabric. Therefore, when selecting materials, we've adopted a policy of using certifications as a benchmark, setting high standards to ensure well-reasoned choices. Although we used organic cotton and recycled polyester this term, there were instances where the materials didn't meet our certification standards.
On the other hand, our relationships with manufacturers have deepened. We are increasingly being introduced to fabrics that are scheduled to obtain certifications to meet our in-house plans, and manufacturers are sharing more information about their fabric production sites.
Moving forward, we will secure sufficient lead time for planning and production, expanding the time allocated for material selection and fabric production to increase our options. We also plan to implement a process for updating our standard products with fabrics that meet our selection criteria.
On the other hand, our relationships with manufacturers have deepened. We are increasingly being introduced to fabrics that are scheduled to obtain certifications to meet our in-house plans, and manufacturers are sharing more information about their fabric production sites.
Moving forward, we will secure sufficient lead time for planning and production, expanding the time allocated for material selection and fabric production to increase our options. We also plan to implement a process for updating our standard products with fabrics that meet our selection criteria.
2.
Among all product manufacturers, we will visit three in the second half of the fiscal year (once every two months).
Result
4 out of 3 target visits achieved
Due to tight product planning and manufacturing schedules, it was difficult to secure opportunities to visit our manufacturers. However, this fiscal year, we visited L'Escalier in Gifu, who handled the final production of our blouses, shirts, skirts, and dresses launched in the latter half of the year, and Kayama, who handled the final production of our handkerchiefs. We also visited a leather goods manufacturer to observe and photograph the art expression process, and Kyoya Senmoten in Iwate, who manufactured our yukata.
Seeing the manufacturing sites directly and learning about the people who create our products deepened our feelings toward the products and boosted our confidence when delivering them to our customers. Furthermore, building trust with the factories contributes to improving product quality.
Next fiscal year, we plan to establish and implement a regular visiting schedule from the beginning of the period. Through continuous repeat visits, we aim to deepen dialogue with the manufacturing sites and foster a strong relationship.
Seeing the manufacturing sites directly and learning about the people who create our products deepened our feelings toward the products and boosted our confidence when delivering them to our customers. Furthermore, building trust with the factories contributes to improving product quality.
Next fiscal year, we plan to establish and implement a regular visiting schedule from the beginning of the period. Through continuous repeat visits, we aim to deepen dialogue with the manufacturing sites and foster a strong relationship.
3.
We will ensure traceability for 50% of final manufacturing, 30% of processing, and 20% of fabric across all product manufacturing processes.
Result: Dough
Collateral Items: 14
20.59% / 100% (68 items total)
Given the nature of our business, where artistic expression is paramount, we can relatively easily grasp the manufacturing background when the weave itself directly embodies artistic expression, such as in jacquard neckties.
On the other hand, it's not easy to understand the background of the "base" fabrics used for printing artwork, as creating custom fabrics is often difficult due to cost and time constraints, leading us to frequently use stock fabrics from manufacturers.
Moving forward, we will continue to deepen our collaboration with manufacturers and engage in careful communication to visualize background information. Currently, due to small manufacturing lots per item, it is difficult to produce original fabrics for each item. However, we aim to build relationships with fabric manufacturers and create a system and environment that better ensures the traceability of the materials we use.
On the other hand, it's not easy to understand the background of the "base" fabrics used for printing artwork, as creating custom fabrics is often difficult due to cost and time constraints, leading us to frequently use stock fabrics from manufacturers.
Moving forward, we will continue to deepen our collaboration with manufacturers and engage in careful communication to visualize background information. Currently, due to small manufacturing lots per item, it is difficult to produce original fabrics for each item. However, we aim to build relationships with fabric manufacturers and create a system and environment that better ensures the traceability of the materials we use.
Results: Machining
Number of Collateral Items: 43
63.24% / 100% (68 total items)
The main processing step is printing on fabric. Even as the number of items increases, we carefully select the factories responsible for printing, ensuring a high level of transparency in our processing. For some items, our internal team takes the lead in building the supply chain, which also makes it easier to understand the background of the manufacturing process. Artistic expression is a crucial element for our brand, so we will continue to enhance manufacturing transparency and reliability through ongoing relationships with carefully selected factories.
Result: Final Manufacturing
Number of Collateral Items: 64
94.12% / 100% (68 items total)
Because we have also narrowed down the number of final manufacturers, our ability to guarantee the background of manufacturing is high. In addition, since most of our manufacturing is done domestically, we have a system in place that makes it easy to understand the processes. Moving forward, as we anticipate the brand growing rapidly by five or ten times, we plan to continue building relationships with final manufacturers that can meet both our capacity and quality requirements.
Qualitative
Review for this Period
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05
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to proudly uphold human rights in society as one matures.
Stand tall in your growth.
to raise awareness of human rights issues in society
So that we can say we've made progress,
I will explore the scope within which we can implement this,
We fulfill our responsibility to continuously create things.
This past year, I keenly felt the difficulty of achieving the aspirations we set at the beginning of the term. Heralbony's mission is to deliver the talents of unique artists to society, thereby transforming the perception of disability. Because art can be applied to anything, intentionally setting conditions for product planning makes manufacturing more challenging. Nevertheless, we did not give up. Our product team held numerous discussions, reset goals by returning to "what we can do now," and ran through the year, relentlessly trying new things. Even if they seem like small steps, the fact that we accumulated them is a concrete achievement for us. True to Heralbony's commitment to respecting people, we first carefully identified potential manufacturers within our reach, then visited their factories in person to meet them face-to-face. This process created a positive cycle where we ourselves developed a stronger passion for the products, naturally increasing our desire to deliver them with care. While not perfect, this attitude has taken root in our team, and a system that allows us to continue this approach is gradually developing.
The brand envisions an even more accelerated growth from next season onward. First, we will continue the initiatives established this season, and regarding materials for items that will become standard in the future, we plan to update them in accordance with our selection criteria. Setting conditions for the supply chain, such as understanding the manufacturing background, requires time, cost, and energy. We are fully aware that when these costs are reflected in product prices, there may be instances where the price feels "high" even if the reasons are understood. For a brand aiming for tenfold or hundredfold growth in a short period, the impact of price on sales is not insignificant. Nevertheless, we will continue to explore the extent to which we can implement these practices in our own products, with the cooperation of many people, so that we can proudly say that we have advanced social human rights awareness one step further once we achieve growth. We will challenge ourselves to fulfill our responsibility in manufacturing.
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06
Symbolic initiatives
for this term
1.
Material updates for top-selling products
The handkerchief, our best-selling item within the brand, has been switched to organic cotton. Additionally, our popular sub-bag will transition to GRS-certified recycled polyester during the current period.
2.
Product development based on traceability
We have developed and are rolling out "ISAI Shirts" and "ISAI BAGs," which guarantee traceability throughout the entire supply chain, starting from the raw material stage.
3.
Material selection that began with an inspection of the manufacturing site
We have developed and are selling silk satin scarves for which we built a supply chain, starting from visiting the silk farms where the raw silk material is produced.