Responsible Manufacturing Practical Report Vol. 1

Responsible Production
Report vol.1

HERALBONY's Declaration of Responsible Manufacturing is:
The announcement was made to coincide with the rebranding that will accompany the logo change in June 2024.

As HERALBONY continues to grow over the next 10 to 20 years,
We will not contribute to creating a negative environment in the manufacturing of our own products.
This declaration was born from that idea.

At HERALBONY, our products are:
It's not just a fashion item,
They are a force that delivers ideas and messages to society.
We do not want to impose a burden on manufacturers or the natural environment during the manufacturing process.
As much as possible, try not to make choices that could unknowingly step on someone else's toes.
That's how I feel.

This past year has been the starting point for us to take on the challenges of implementing the policies and goals set out in the Declaration on the ground.

In this report, we look back on the progress made over the past year.
Regarding our policy of "responsible manufacturing,"
How to take action
I'll let you know what I learned.

contents 01

FY25 Targets

1.

Providing quality products that will last a long time

Sewing precision, fabric quality, printing technology. As tools that accompany our daily lives, we are particular about quality and value creating products that are durable enough to last for a long time.
2.

Building relationships without excessive bias to produce the right amount

Rather than reducing costs through mass production, we produce the right amount to avoid wasting resources. The "right amount" is not just what is right for us, but also what is right for the manufacturer, and through discussion we build cooperative relationships that allow us to do business on an ongoing basis.
3.

More than 60% of the products have had at least one factory tour during the production process

Who makes our products, and in what kind of environment? We want to see, learn, and discover firsthand. We have set a goal of visiting more than 60% of manufacturers' factories, leading to more advanced collaboration with manufacturers.
4.

Aiming to ensure traceability of 80% of final manufacturing, 50% of processing, and 30% of raw materials

Specific targets are set for each stage of the production process to understand the production background. We aim to understand the production background as much as possible, aiming for 80% final manufacturing (the final manufacturing process such as sewing), 50% processing (the process of weaving and dyeing the fabric), and 30% raw materials (from farms where materials such as cotton and wool are produced to yarn).
5.

Materials with low environmental impact
Increase usage rate to 50% or more

In creating products using limited resources, we proactively choose farming methods and recycled materials that emit minimal greenhouse gases and pollute water and soil as much as possible.
contents
02

Review of mid-term goals due to changes in business division strategies

With the response to the brand exceeding expectations, we decided to update it and expand our product lineup.
As the brand expanded, the speed of product planning and development naturally increased. With a small number of staff and an unestablished production base and cycle, the time available for selecting materials and building a supply chain became shorter than ever. As the business grew, a gradual gap began to emerge between the "responsible manufacturing" goal set at the beginning of the fiscal year and reality.
The brand's overarching policy is to balance economic and social responsibility. The product team sincerely confronted the gap between this goal and reality, and to ensure that the "Declaration of Responsible Manufacturing" did not take on a life of its own, they reexamined what was possible and what was difficult to achieve through their efforts. Through repeated discussions, the team redefined what could be continued within the current structure and speed, and, having properly understood the current situation, set the maximum possible goal they could take on over the remaining six months.
contents
03

Re-set goals for FY25

  1. 1. 20% of the main materials in all products meet our in-house selection criteria.
  2. 2. Of all product manufacturers, three were visited in the second half of FY25 (one visit every two months)
  3. 3. Of all product manufacturing processes, traceability is guaranteed for 50% of the final process, 30% of the processing, and 20% of the fabric.
*Traceability is defined by HERALBONY as knowing the factory.
Understanding the fabric is defined as knowing the factory that carried out the process of weaving the raw material into the material.
We created a list to identify the main materials and traceability for each item so that we could continuously work towards our reset goals.
We created a framework for the team to periodically review the project, and also decided on a policy for selecting the main materials.

第1優先

Traceability is guaranteed, and we search for the optimal fabric that meets the budget, schedule, and quality requirements from materials that meet a standard list.

第2優先

If there is no match, we will select based on budget, schedule, and quality, and create a product that customers can pick up and use with affection.
contents
04

Quantitative results against goals

1.

20% of the main materials in all products meet our in-house selection criteria.

result Number of collateral items: 11
20% of the main materials in all products meet our in-house selection criteria.

16.18% / 100% (68 items in total)

Given the current state of our brand power and the lead times for planning and production, it is difficult to manufacture original materials in-house. Since we basically purchase materials from manufacturers' inventory, it is not easy to grasp the detailed flow from raw materials to fabric. For this reason, we have adopted a policy of using certification as a basis for selecting materials, and have set high standards that lead to satisfactory selections. This season, we have used organic cotton and recycled polyester materials, but in some cases they did not meet the certification standards.
At the same time, our relationships with manufacturers have deepened, and we are increasingly being introduced to fabrics that are scheduled to be certified in accordance with our company's plans, and we are increasingly being shared with information about fabric manufacturers.

In the future, we will create a system that will allow us to increase our options by ensuring sufficient lead time for planning and production and extending the time required for material selection and fabric production.
Additionally, we plan to develop a process to update our standard products to fabrics that meet our selection criteria.
2.

Visit three manufacturers of all products in the second half of the year (visit once every two months)

result Target visits achieved 4 out of 3
Visit three manufacturers of all products in the second half of the year (visit once every two months)
Due to the tight schedule of product planning and production, it has been difficult to secure opportunities to visit manufacturers, but this season we were able to visit L'Escalier in Gifu, who is in charge of the final production of the blouses, shirts, skirts, and dresses that were released in the second half of the year, and Kayama, who is in charge of the final production of handkerchiefs.We also visited a leather goods manufacturer to observe and photograph the actual process of expressing art, and Kyoya Dyeing Shop in Iwate, who produced our yukata.

Seeing the manufacturing site firsthand and learning about the people who make our products not only deepened my feelings about the products, but also gave me confidence when delivering them to customers.
Furthermore, building relationships of trust with factories also contributes to improving product quality.

From the beginning of the next fiscal year, we will establish a regular schedule of visits and, through continued re-visits, we hope to deepen our dialogue with the manufacturing site and foster close relationships.
3.

Of all product manufacturing processes, we guarantee traceability for 50% of final manufacturing, 30% of processing, and 20% of fabric.

Result: Fabric Number of collateral items: 14
Of all product manufacturing processes, we guarantee traceability for 50% of final manufacturing, 30% of processing, and 20% of fabric.

20.59% / 100% (68 items in total)

Due to the nature of the business, artistic expression is the main focus, so when the weaving itself is directly linked to artistic expression, such as in the case of jacquard weaving of ties, it is relatively easy to understand the manufacturing background.

On the other hand, when it comes to the fabric that serves as the "base" for expressing art through prints, it is difficult to produce original fabrics from a cost and time perspective, and manufacturers often use stock fabrics, so it is not easy to understand the background behind them.

Going forward, we will continue to deepen our cooperative relationships with manufacturers and engage in careful communication to make background information more visible. Currently, the production lot size per item is small, making it difficult to manufacture original fabrics on an item-by-item basis. However, we plan to build relationships with fabric manufacturers and create a system and environment that can better guarantee the background of the materials we use.
Result: Processing Number of collateral items: 43
Result: Processing

63.24% / 100% (68 items in total)

The main processing step is printing onto the fabric. Even as the number of items increases, we carefully select the factories that handle printing, and maintain a high level of assurance of the processing background. In addition, for some items, the supply chain is built primarily by in-house members, so we have a system in place that makes it easy to understand the background. As artistic expression is an important element for the brand, we will increase the transparency and reliability of our manufacturing process through continuous relationships with carefully selected factories.
Result: Final production Number of collateral items: 64
Result: Final production

94.12% / 100% (68 items in total)

We have also limited the number of final manufacturers, so the manufacturing background is highly reliable. Also, since the majority of manufacturing is done domestically, it is easy to understand the process.
With the brand's growth expected to increase five or even tenfold in the future, we plan to continue building final manufacturing locations that match both capacity and quality.

Qualitative review of this fiscal year

contents
05
contents
05
Proudly raising awareness of human rights in society as we grow
Stand out proudly after growing up
Raising awareness of human rights in society
I think we have made a step forward.
Explore the scope of what can be done,
Fulfilling our responsibility to continually create things.
This past year, we were painfully aware of the ambitions we set at the beginning of the fiscal year and the difficulty of actually achieving them. HERALBONY's mission is to bring the talents of exceptional artists to society and, through them, transform the perception of disability. Because art can be applied to anything, deliberately setting conditions for product planning increases the difficulty of manufacturing. Still, we refused to give up. Through repeated discussions within the product team, we reset our goals by returning to what we could do now, and continued to push forward through this past year, constantly trying and failing. Even though these steps may seem small, the fact that we have accumulated them represents a tangible achievement for us. True to HERALBONY's respect for people, we first carefully identified our manufacturing partners to the extent possible, visiting factories and meeting face-to-face. This process naturally strengthened our own passion for our products and strengthened our desire to deliver them with care, creating a virtuous cycle. While not perfect, this approach has taken root within the team, and we are gradually building a sustainable system.
From next season onwards, the brand plans to grow at an even faster pace. First of all, we will continue the initiatives we have established this season, and also plan to update the materials for items that will become standard items in the future, in line with our selection criteria.
Setting conditions on the supply chain, such as understanding the manufacturing background, takes time, money, and energy. We are fully aware that when those costs are reflected in the product price, even if customers understand the reasons, there will be times when they feel the price is high. For a brand aiming for 10-fold or 100-fold growth in a short period of time, the impact of price on sales is not small. Even so, we will continue to explore the scope of what can be put into practice in our own products, which are supported by many people, and will take on the challenge of fulfilling our responsibility as manufacturers, so that we can proudly say that we have taken a step forward in society's awareness of human rights once we have grown.
contents
06

Symbolic initiatives of this period

取り組み画像1
取り組み画像2
1.

Material updates for top-selling products

The brand's most popular handkerchief was switched to organic cotton, and the popular sub-bag was also switched to GRS-certified recycled polyester during the period.
2.

Product development based on traceability

We have developed and launched the "ISAI Shirt" and "ISAI Bag," which guarantee traceability throughout the entire supply chain from the raw materials stage.
3.

Material selection begins with a tour of the manufacturing site

We developed and launched scarves made from silk satin, building a supply chain based on on-site visits to silkworm farms where silk is grown.