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SIPPO Interviews 2018-05-25

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Market Intelligence Analysis - interviews

Full interviews conducted in the Market Intelligence Analysis made by HandelsConsulting AB

Table of content

Sweden ...................................................................................................................................... 3
Haglöfs AB ............................................................................................................................... 3
Gina Tricot AB.......................................................................................................................... 5
Craft of Scandinavia AB ........................................................................................................... 6
Oscar Jacobson AB ................................................................................................................... 9
Anonymous............................................................................................................................ 10
Lindex Sverige AB................................................................................................................... 11
Nudie Jeans Marketing AB ..................................................................................................... 13
Elvine Aktiebolag ................................................................................................................... 14
Gant Company AB.................................................................................................................. 17
Filippa K Group AB ................................................................................................................. 19
Björn Borg AB ........................................................................................................................ 19
Indiska Magasinet AB ............................................................................................................ 22
House of Dagmar AB.............................................................................................................. 23
Background .......................................................................................................................... 23
Cross Sportswear International AB ......................................................................................... 24
Jascha Stockholm AB ............................................................................................................. 25

Norway ..................................................................................................................................... 27
Active Brands AS .................................................................................................................... 27
Bergans Fritid AS ................................................................................................................... 28
BikBok AS............................................................................................................................... 29
Cubus AS................................................................................................................................ 31
Dressman A/S ........................................................................................................................ 33
Helly Hansen AS ..................................................................................................................... 36
Riccovero AS .......................................................................................................................... 38

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Denmark .................................................................................................................................. 41
CNS Group AS ........................................................................................................................ 41
DK Company A/S .................................................................................................................... 41
Sports Group Denmark A/S .................................................................................................... 44
Culture/Educe ........................................................................................................................ 46
Hummel A/S .......................................................................................................................... 48
Mos Mosh A/S ....................................................................................................................... 49
Munthe A/S ........................................................................................................................... 51
ICHI........................................................................................................................................ 51
Gestuz ................................................................................................................................... 53

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Sweden

Haglöfs AB
Background
Swedish brand with main focus on the outdoor-department and clothing that are suitable for outdoor
activity.

Interview with Katarina Stenman, development director and in charge of sourcing, as well as
product developer for clothes which are 70% of the brands collection. They have a team of
product developer whom handle the dialogue with the manufacturers, in the beginning of the
process as well as in the follow up.

The company has a design team that make the patterns, decides the style and the difference
between sizes. The team cooperates with a material-team whom they choose the
material with. Each year Haglöfs does two collections, autumn and spring.

The planning of the design starts one and a half year before the releasement. The company works
with complicated fabrics which can take up to three months to produce therefor they book the
fabrics very early on. They operate with two purchasing processes, the first is “stepwise purchasing”
and the second one is a “limited never out of stock” process.

Suppliers
The interviewee has been working at the company since 2013 and explains the decreased number
of suppliers. Back then, they had 32 suppliers and today they are down to 16. She explains that they
chose the best ones with the help of a scoreboard where they looked at quality, delivery insurance,
sustainability, payment and price. They developed a relationship with the chosen suppliers, which
resulted in bigger orders, better price, opportunity to book capacity. With fewer suppliers, Haglöfs are
also able to travel and visit them all each year.

Katarina and the designers are the ones choosing the suppliers and deciding if to stick with the
present ones or move on to the next. She says that they often rather stick with the ones that
they have, but also points out that if they have a design that needs a whole different technique then
they have to find a new supplier for that. The team is always curious on what others have to offer
them so they are open minded to new suppliers. She mentions that they always try to minimize the
quantity of suppliers and deepen the relationship with the present ones and build a partnership
with them.

Suppliers and outsourcing


When Katarina first started at the firm in 2013 they had 32 different suppliers, now (2018)
they have minimized that to 16. They picked out the best fabrics of those 32 and built a
relationship with them by ordering bigger quantities and getting better prices for those, as well
as being on point with the agreed lead times. In the choosing of the 16 factories they also
looked at sustainability matters, quality, pricing, payment agreements and delivery safety.
They have suppliers in China, Taiwan, Korea, Japan and Hong Kong. Some of these suppliers
they have worked with for over 25 years. She makes comments on that the price level is rising
in some of the countries such as China and Vietnam. Many companies are looking for the next

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low price country, though Haglöfs isn’t one of them due to the insecurity, she states.
In each factory they have different types of garments produced, one for outer-garments and
another for fleece, also one for trekking trousers.

The company has no production office, all the shipments are delivered to Avesta or
Switzerland. Expectations on lead time are different depending on the product, it can take up
to three months. When it comes to MOQ it also depends on the product, for fleece we order
60 000 pieces, for jackets 300. It can vary a lot! Lead time and MOQ can be a big aspect
when choosing suppliers.

When the process starts with the suppliers we first send them the design, then they test them
and we receive comments, the company appreciate when the suppliers can make
improvements on the design.

Expectations
They expect their suppliers to be honest about everything since a lot of unplanned scenarios
can happen and when they do, Haglöfs prefers honesty. They can then try and solve the
problem together.

Challenges
The prices rising at the manufactories, trying to get the right forecast volume from the
factories and communicating it to them. The difference in culture can also be a big issue since
it is hard to understand each other’s way of thinking and handling problems.

New suppliers
When evaluating suppliers who make contact with Haglöfs, they always begin to examine the
supplier’s current costumers. The right pricing is also important as well as sustainability questions.
Katarina participates in fairs for example in ISPO Germany in February and Outdoor in July.
Regarding Morocco she says they are not a technical production-country therefor they have
no interest in them. She claims that maybe if they get a good offer from them they would
consider them.

Advice to them is to be aware of what products each company they want to approach deals
with, this is an important matter.

CSR
Haglöfs believes that long-term supplier relationships are beneficial in the long run, even if short-
term margins may be improved if you change factories very frequently. They manufacture at factories
highly specialized in certain products or product segments; for example, taped
garments, advanced backpacks or waterproof leather footwear. They have been working with
most suppliers (62 %) for over 5 years and some supplier relationships are going strong since
over 25 years.

Haglöfs products are complex and in the premium segment, which requires both highly skilled
production personnel and an advanced manufacturing process. This also encompasses an
ethical responsibility; hence the manufacturers, production sites and production countries are
chosen carefully. The production sites are visited by start, usually once or twice a year, but
sometimes more often than that.
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The company also focuses a lot on sustainable fabrics for example recyclable polyester.

Gina Tricot AB
About
Gina Tricot is a Swedish fast fashion company for women and they are active in 30 countries. They
strive to be the first company in delivering items of certain trends and try to be as close to the
customer as possible while making fashion that is accessible and relatable to the majority of people.
They don’t have any collections or drops, but instead has over 10 000 styles each year.

The interviewee Emma Garrote is the Global Production and Sourcing Manager and has been on that
position the last four years. When she started working at the company she first worked for six years
with production and has after that lived in Bangladesh and China where she took part in establishing
production offices and cooperation with suppliers in the both countries.

Suppliers
They have many different suppliers and range at around 50 at this time, they used to have 150.
Each supplier is a specialist at producing a specific product. The person in charge of outsourcing is
our interviewee Emma Garrote. When it comes to sharing design and patterns with the supplier they
do it by email, phone and Skype.

A very important thing in the cooperation with suppliers is honesty. In the past, they have had many
problems regarding dishonesty where the suppliers promise to do something that they not fulfil.
Looking further ahead. suppliers and purchase managers will be partners according to Gina Tricot,
the relationships will be tighter. It is not only about what the consumer wants, it is about what the
company wants. Gina Tricot is of the opinion that they would rather solve problems with current
suppliers than abandon them. Of course, it depends on how serious the matter is. Turkey has proven
to be very problem-solving oriented and have the possibility to solve many of the problems they
encounter. Which is a big difference since the last 10 years. In China and India, it has been the same
during these past 10 years, which means in a few years more and more production will leave these
countries and focus more on the up-and coming countries like Turkey.

Production
40% of Gina Tricots production is held in Turkey, 25% China, 10-15% Pakistan, 15% Bangladesh, 5%
India. Their production offices in China and Bangladesh work with purchasing and CSR issues. They
also have one CSR office in Turkey. Regarding lead times Bangladesh has gone from 3-4 months to 2
months. They have a lot of their own garments, in the future Emma believes China won’t be a leader
in manufacturing. Gina Tricot has gone from 150 to 50 suppliers in the past years and are more
focused in maximising orders and building relationships with a few suppliers. There isn’t enough time
and resources to keep 150 suppliers for them.

CSR
Gina Tricots require their suppliers to follow the demands of REACH and know what chemicals to
avoid using. There has to be a source chain that keep control of social compliance, proper contracts
and that everything is done by the book. Also, all work has to be according to the law, with minimum
overtime. They also don not allow subcontracting since it is difficult to account for the production
process. CSR issues and following demands show to Gina Tricots consumers and workers what they
support and condone. ‘’Sustainability is not just a nice front, it is the core of the company, a way of
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life.’’ This is something suppliers need to respect if they want to work with companies in Scandinavia.
Emma concludes that CSR are top down approach business, not something that belongs on the side-
line.

Sourcing
Establishing production in a new country is made by going there in person. They don’t send agents to
scout the factories or find potential suppliers, they prefer to source everything themselves. They also
interview local people that they might would like to work with. Regarding potential suppliers going
into the Scandinavian business it is very important to know what the companies demand. Since Gina
Tricot has very few suppliers it is difficult to be a part of their supplier portfolio. If they need to find a
new one, it is mostly about timing. They receive emails all the time but only save the ones that seem
serious and well read. They are impressed with Morocco in regard to their denim production. It is a
very long process to move production between countries, so there has to be a big difference to even
consider changing.

Morocco
The general perception Emma has of Morocco as a production country is that many companies in
southern Europe purchase from suppliers there, because of the geographic advantage. Gina Tricot
has had a Moroccan delegation on a visit in 2016, with 20 suppliers presenting themselves.
However, many more are going towards Turkey and leaving other countries like Morocco. She also
mentioned that many of the materials used in Moroccan production comes from Turkey, which
makes it seem like it is better to have the materials and production in the same country to reduce
transportation. Points out that Morocco might be strong when it comes to denim and probably knits
and woven jersey. She highlights the importance of Scandinavians view on sustainability and
compliance. Showing of a certificate is not enough, you need to really live by the rules that comes
with it. Emma also points out the challenge for Morocco is how to compete against Turkey, since they
at the moment do not offer better products or better prices.

Craft of Scandinavia AB
About
Craft is a Swedish brand that is owned by ‘’New Wave’’-group. They are offering sportswear to men
and women. In the company they have two purposes, Swedish market and sales, as well as concept
development of the whole brand. Craft have majority of sales located in Sweden, Norway, Denmark,
Germany, Belgium, Luxembourg, Holland, Canada and USA, where they have 72% of sales. They
mostly sell through retailers but have a few outlets with own stores in Sweden, Norway and Germany.
They also have their own concept store in France. Shopping online is getting more and more crucial,
they have their own webpage that is selling very well. For Autumn and winter, they have one
collection, and another one for spring and summer. In between these two collections they have 4
drops.

Production
Craft have production offices in China, Vietnam and Bangladesh. They always source for new
suppliers since they have large qualities that needs to be allocated and always develop new styles.
Their HQ are responsible for the sourcing in Europe. They have their own QC in Asia that is runned by
New Wave Group. They purchase external QC in Europe, which is done either through independent
people or organisations. Other than this Craft also do their own controls and audits of the factories.

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They have very long lead times and begin designing the collections one year before it is released.
They spend 6 months before that with making decisions regarding materials, suppliers and
strategies- The selling process is much quicker when they order to their own stores, but since they
use retailers it takes more time and they have to produce and deliver on time to them.

Their design team often travels to different cities and countries to find new trends that could suit
Sweden. They also look for colours and styles that are trending right now. Production development
starts with a business plan that goes for 5 years ahead. It’s a document they always work with and
constantly improve. This document consists of everything from materials to financial goals and
marketing strategies. For Craft, there is more focus on materials and quality than what patterns and
colours that are going to be trendy next year.

Craft has their own in-house design team that makes the pattern for the products and send these to
the suppliers. They have PLM request which is made for product and textile development. This has
proven to be very bad for them and they are planning to change it to a newer PLM system. It is then
sent to the suppliers through a PDF. In the new systems communication and calculation can be
made in the same system, which is used together with the supplier. In the future there are systems
where you virtually and 3D base samples, which will bring down lead times and cost for samples.
However, you need to feel safe with using advanced programmes.

Suppliers
In total Craft has 44 suppliers, which is a number that has decreased over the past few years. If you
look back at the number they had in 2015, they had 60 suppliers. Few suppliers mean they each
have a large part of production. This means a big risk for each supplier, as well as Craft. If one
underperforms it could damage the entire company. Which is why they have been trying to risk
assess and allocate the production across all the suppliers.

Craft always has some flexibility when it comes to FOB and CIF. They always try and find a solution
that works with both parties. Craft mostly takes responsibility when the products leave the factories.
In the future Craft wants to have more central larger storages so the products will be easier to get to
in case they run out of stock.

A big part of relationship with the suppliers is partnership, a will to develop things together. It is also
technological knowledge since Craft makes very technical products. There also needs to be a
financial strength to be able to handle the lead times Craft has, as well as deliver in time and keep in
mind planning, supply chain and that the products are delivered in time. Suppliers also need to have
experience in export with knowledge regarding customs and extra work that comes with that.
Depending on what product is produced there needs to be different MOQ, and the suppliers has to
be able to handle the constant increase or decrease in MOQ. Since these requirements are quite
difficult to handle Craft mainly focuses on working with niched suppliers. Craft focuses on keeping
long-term relationships with their suppliers since it has to be a perfect match between the two
parties to be able to work together.

They also said that they receive many emails from suppliers that have no idea what Craft stands for
and probably have never actually seen what they sell. It is important for suppliers to study the brand
beforehand. So, in summary, meet a representative of the company in person and show that you are

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committed and will offer something they already does not have. It is not worth their time to give the
same product at a small lower price since the entire process of changing a supplier is very tedious.
The suppliers have to go through the audit process, certification and CSR demands.
One tip they gave suppliers is to meet with production managers without attempting to sell anything
and simply ask what the needs will be in the future, and go back and try and see if they can offer it.

At the moment they want to move the production more towards Turkey and Romania, but also some
in Bulgaria, Portugal and Poland. They would also like to have some in Sweden in the future since a
lot of the sales are located there. Since the production is becoming more expensive in China they are
attempting to move to other countries. Since the connection with trains are become cheaper and
better most of the shipping are by train these days.

Regarding how much Craft cooperates with the suppliers to make the collection, Daniel explains that
the suppliers do not have any responsibility for that today and also are not interested in taking more
responsibility for that, they only produce. However, the suppliers can cooperate by helping to
negotiating with subcontractors of materials if they want to get a product to be made with different
materials that have long lead times.

They work with sourcing 365 days a year, sometimes from HQ and sometimes from the production
office. They are constantly working on developing new styles.

Seamless production is something many suppliers use, which means they need to find one that fits
them perfectly. In the future they are looking at new techniques to improve the products, since
seamless can limit the amount of sizes available. If a supplier can offer other techniques, they will be
ahead of many other potential suppliers.

CSR
Craft has a sustainability plan that stretches to 2023 and nothing of it is done automatically, it has to
be worked on extremely hard. Which means a lot of time and money is invested into it. All of their
suppliers need to fulfil the requirements of REACH and since Craft are members of BSCI there will be
audits performed. There is a long process to go through the entire Code of Conduct to be accepted
as a supplier so it is a big plus to be prepared.

Morocco
The spokesperson of Craft was asked regarding Morocco as a production country but she said she
was not very well read on that region of the world. They have however had a few Moroccan agents
visit them over the years and they have the impression that Morocco is further in advance than the
rest of Africa. The way they have acquired partnership with suppliers in the past is the suppliers send
email, and they meet at an event of some sort, such as Maroc in Mode, where the suppliers
introduce themselves. They then send samples that Craft can review.

Daniel said he would be willing to offer contacts to the production offices but was very clear that it is
pointless since they have not even researched Morocco, which means that potential cooperation is
very unlikely. He also said that if he was to receive an email from a Moroccan company he would not
open it. A tip for foreign suppliers was for them to contact local Textile Universities such as Boras and
make an event where they invite companies. This makes it possible for Moroccan companies to get

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to know Scandinavian companies needs and what they want, without offering anything. After that
they go back and see if there is anything they can offer that already does not exist.

Oscar Jacobson AB
About
Oscar Jacobson is operating in several markets such as Great Britain, France, Germany, Denmark,
Poland, Finland, Norway, Sweden, Turkey and Malaysia. They target well-dressed men and offers
high-quality items, such as suits and shirts.

Carl-Johan Frisk is our interviewee and describes Oscar Jacobson as a small company where there
are approximately 20 persons working at the headquarters. Carl-Johan works as a purchaser and
more specifically with outerwear and he also has responsibility for the golf and sports collection.

Collection
They drop four collections each year, two bigger ones and two complementary ones, he describes the
two later ones as pre-collections. Half a year is the time it takes from design to finished product. Carl-
Johan informs that it is not the production of the items that takes time, it is the continuous
development in new fabrics, to quality control them and at the same time keep their lead-time in
mind.

The sales organization take the sample collection for presentation to customers and after that you
type in the orders. They try as much as possible to ship by boat.

Production and Suppliers


Carl-Johan informs that they have more of a long-term relationship with European suppliers and are
more flexible when it comes to countries in the far east. Production of technical character is
something China is good at. Italy and Portugal are strong in lead-time and their history in cooperation
go way back since they develop products, not the cheapest, but in high quality. They are price
sensitive, but it is always a matter of a combination between, price, quality, MOQ. It is appreciated if
the supplier shows a strive to work on the sustainability matter and take own initiative.

Regarding MOQ, they can come down to as small as 60 pieces and you need to relate to the
suppliers’ requirements, and communicate through that matter, that is why long-term relationship is
so important.

CSR
Not a member of any organizations. They do take part in different project such as spin yarn and do
not want to produce items with too much water usage. They want their suppliers to be able to show a
certification proof.

New Suppliers
If a new collection requires something that the current suppliers cannot deliver, then they will search
for new ones. New suppliers need to deliver a high quality, good MOQ and of course a reasonable
price. Carl-Johan also points out their code of conduct, which all suppliers need to sign and that they
also look for suppliers with certification.

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Go to fairs, try to get contacts within the Scandinavian industry. If you are approaching by email, Carl-
Johan prefer simplicity, show that you are serious and make the text short and consistent. Invite or
pay the buyer a visit. Produce some good samples, take good pictures with high quality and, if
possible, have a nice showroom. Also make sure you are serious about CSR and sustainability
issues.

Morocco
No perception really, know that there are some textile industries there. Quite open towards it but the
need has not occurred. Carl-Johan informs about a successful event that a Swedish organization did
with suppliers from Mauritius. “It is a good thing, since both parties quickly can identify each other.

Anonymous
Background and system
The interviewee prefers to be anonymous and also exclude the company name. She is the buying
manager at the company. They have distributors in Norway and Denmark. They do four collections
each year, two big ones and two smaller ones. The planning starts three to four months before the
production, firstly they provide the suppliers with samples and technical specifications such as
materials, sketches, colours and details. Then they have a sell-meeting and afterwards they place
the order. During the whole process, they have daily communication with the suppliers.

She tells us that almost everyone at the company has some sort of communication with the
suppliers. They have internal meetings to discuss and evaluate their suppliers twice a year and also
discuss about what they need in the future regarding suppliers. They constantly get requests from
new suppliers to work with them, they consider the ones that send only short emails to be
unprofessional and appreciate if the suppliers include photos of the factory, capacity, possible audits
that is being done.

Some criteria they have on their suppliers is to have some sort of evaluation done
regarding CSR, to be used to follow ups by REACH. The relationships with suppliers usually
last long with the company, they don’t replace their suppliers continuously. She mentions that it is
important for the company that their suppliers don’t do just small orders, because these are
more expensive.

Suppliers
The company manufactures 50 % of their garments in China and 50 % in Europe (Turkey, Poland
and Lithuania). The fabric suppliers are always from Europe, in Portugal for shirts and Italy
for wool. The interviewee says that it is much easier to work with China because the communication
works more smoothly, they believe the Europeans are more difficult and have inferior resources,
though they are very good at producing the shirts and have a good price rage.

They usually avoid getting shipments by plane due to environmental issues, so it’s mostly
done by ship, which takes up to eight weeks to receive.

The company appreciate to be a part of developing their suppliers and building relationships with
them. Daily dialogue is important and having good working conditions for their workers. Regardless
if the communication between the two parts is good, the production always has to be great. If the

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production is fine then they can accept difficulties in communication. Regarding MOQ, the company
has many orders that are as low as 300 to 500 pieces, and some even on 200. Their suppliers then
look at the whole production quantity instead. Regarding lead time the interview describes that
China takes longer time now a days due to problems with environment, the air and contaminated
water. It is also a difficulty with the great power the Chinese government possesses, for example
forcing small dyeing houses to close down. That increases the pressure on the other companies and
therefore also increase the lead time, which is problematic.

New suppliers
The company are not looking to widen their portfolio of suppliers and bring more on board, rather
replace with someone better instead of increasing the amount. Important for a replacement to be
done is high quality of the products, a stable production and delivery accuracy.

The interviewee has no opinion about Moroccan since there has never been a discussion with them
or gotten an approach from them. She is guessing that they are quite good at denim.

CSR
The company is engaged in BCI and support cotton farms, since it’s easy to put up goals
concerning this. They are members of BSCI and work actively with follow ups by REACH. It
is appreciated for suppliers to work with REACH, it shows the company that they are serious
suppliers who takes the matter seriously. The company is also member of the Swedish organisation
The Chemical Group. Regarding sustainable materials such as recycled polyester, the company have
chosen not to use that kind of materials due to the not knowing what chemicals may exist in that.

The interviewee mention that suppliers can get a competitive advantage by making sure they are
being audited by an initiative, that is especially appreciated by small companies due to the costs that
comes for the company with making own audits. It also reviles that it is a reliable supplier who takes
this question seriously.

Advice to suppliers
To have a chance to begin a new cooperation, it’s very important to have certifications and audits.
When approaching companies, the supplier should have a clear profile that is comprehensive and,
favourably, conduct a professional presentation of themselves. A good way to do that is, according to
the interviewee, to travel to Scandinavia and together with a known organisation in the industry
organise an event with potential buyers. Important then would be to have a completely unconditional
meeting with the purpose to get to know the Scandinavian needs as well as introduce the companies
to Morocco as a country, what conditions and differences exist.

It is also important with CSR and sustainable staining. She underlines how important it is to try and
understand the Scandinavian market and really know the companies you are approaching, even
though it is really difficult to approach bigger companies now a days since everyone is reducing the
number of suppliers.

Lindex Sverige AB
Background
Interview with the person in charge of sustainability at the company and has history as
responsible for sustainability questions regarding sourcing. Now she sets long term goals for
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the company’s sustainability. Lindex does around 12 collections each year and constantly work with
their collections, they begin working with each collection at least one year a head of the production.
They really appreciate when the suppliers help with the design and proposes new designs, she says
that she would like to see more of that coming from their suppliers. At the moment
Bangladesh and China work very well with this. The company exports their items to Norway, Finland,
Denmark, the UK, Bosnia, the Baltic States, Dubai, Czech Republic, Slovenia, Russia and the Middle
East such as Saudi Arabia.

Suppliers and expectations


Lindex has a production office in Hong Kong. They have different suppliers for different
products, the factories lie in Asia (Vietnam, Bangladesh and China). About five to six years
ago the company had 650 different suppliers, now they only have 150, 45 of the suppliers
carry 80 % of the production. She points out that having so many suppliers leads to having
poorer relationships to them and focusing more on just the price, but she considers this to
maybe be a wrong way of thinking since closer relationships with the suppliers often lead to
better prices and offers.

Anna-Karin tells us that she appreciates when the suppliers are honest and transparent, she rather
sees that they are true about any faults than try to hide them. False documentary is unacceptable. If
the supplier makes a mistake they like to discuss it and try to solve it, the cooperation does not stop
but a supplier need to show improvement and that they continue live up to the demands.

It is important to have fast lead times, therefor they always pre-book the fabrics so that when they
place the orders for production it speeds up the process by 30 to 45 days. She mentions that Turkey
is quick on time with the lead time of three to six weeks. Anna-Karin comments on the MOQ-matter,
saying that the big suppliers often choose not to work with Lindex since they do not order big enough
quantities compared to the even bigger companies.

New suppliers
At the moment the door for new suppliers is closed at Lindex, as long as a current relationship
with a supplier do not fail. The outsourcing part is owned by the production office. They are the ones
that during negotiation deal with questions regarding supply chain management, such as, quality
and quantity. 2

CSR
Lindex has requirements that their manufacturers have to follow the Code of Conduct, the ILO
conventions, to have a minimum wage, good working hours, no slavery or child labour. They
also have requirements regarding the nature, such as following the laws about water
cleansing, water and energy consumption as well as emissions. If the supplier doesn’t work
with sustainability the company looks for a replacement.
By the year of 2020 the goal is for 80 % of the garments to be produced by sustainable
fabrics.

Advice
When approaching Lindex the suppliers should first make contact with the production office
in Hong Kong. Be aware of sustainability issues and work with sustainable fibres, which is
something they will have to do in order to work with Lindex. Suppliers should follow the
debate and know what the company they want to work with expects and needs.
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Nudie Jeans Marketing AB


Background
Interview with Jenny Henriksson who is in charge of the purchase regarding upper-wears. The
company has a design team who sketches the design that delivers to the production managers, that
together with the suppliers develop a sample. Every item delivers to Boras. Some orders, mostly
jeans, are standards which means they order that particular style continuously. Otherwise they are
operating after the sales-cycle where you have a sales collection and then make the orders
depending on how many orders you get on specific items.

Nudie does four collections each year on the upper-wears. The suppliers are mostly engaged on the
fabrics rather than the design. For instance, they try to develop a production of denim based in
recycled material from their own production.

The interviewee has been in the business for 25 years and it is really just now when the industry
work with CSR and sustainability in a real and proper way. She describes Nudie as a company that
never had to adapt, it is based on the sustainable matter and the people working there have a
genuine commitment to environment.

They have distributors in many countries and a lot of their own shops, 17 countries are
retailers and their biggest markets are in Australia, Japan, South Korea, Germany and
England. London sells the most of their clothes. Nudie has a production office in Italy and an agent in
Portugal, which make the communication a lot easier. In Turkey, they work directly with the suppliers.
Jenny points out how important it is with openness and honesty so that problems can be solved
together.

Suppliers
A lot of suppliers are interested in Nudie due to its well-known brand from a sustainable point of view
and wants to use them as a “show off” to other brands that they are interested in working with.
When it comes to the jeans, everyone wants to work with Nudie, but the company doesn’t bring new
suppliers on board to that department.

Works with in total 15 suppliers. The upper-wears are made mostly in Portugal, Italy and Turkey, she
considers these countries to be good at these parts. She mentions that they would never work with
Bangladesh.

Production
When 10% of an order Is done, Nudie pays a visit to the factory. They also have what they call “open
box check” and they also check before shipping. Regarding lead time Jenny says that it depends on
the different garments, woven can take up to four months which is longer than the company would
want it to take. It takes planning and pre-ordering to get the process right. It also depends on the
factory, some take longer than others, for example in a big factory in India the making of a shirt can
take as little as two days. In general, it usually takes three to three and a half months from when the
order is placed to the delivery. A reasonable MOQ can vary, for shirts the minimum per colour is 200
and for woven fabrics 1000 meters per colour. Jenny notes that it is important with sustainable
material.

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CSR
Nudie works with only sustainable fabrics, the suppliers of the fabrics are very important as
well as the suppliers of the production. She claims that everything starts with the
sustainability and they don’t work with anything that doesn’t live up to this. They track the
cotton down to the cotton-farm and always want to know where the fabrics are from. It is a
requirement that the suppliers buy the fabrics from specific distributors. The company always
does inspections on the factories to see if they follow the CSR principles that they require.
They work with Fair Wear foundation and requests that the suppliers follow their principles.
Suppliers also have to think about chemicals and social needs.

New suppliers
Nudie is not really looking for new suppliers, they get requests all the time but don’t show a lot
of interest in them, unless it is something very interesting supplier with a good offer, then they might
take into consideration. Nudie choose to focus on long term relationships with the ones they have
rather than bringing in new suppliers, this mostly because of the huge process that comes with a
new supplier. They meet suppliers for fabrics at fairs such as Premium vision
(https://www.premierevision.com/en/), Pitti Inmagine Filati
(http://www.pittimmagine.com/en/corporate/fairs/filati.html), Denim by PV
(https://www.denimpremierevision.com).

Their main standard, when looking for a new supplier is capacity, social standards, chemicals, EU-
regulations as well as the demands of the Fair Way Foundation and also safety within the factory,
health emergency exits etc.

Morocco
Jenny has not much of a perception of Morocco. The only experience she has is from back in the
days, working with another company and tried to get a hold of suppliers but ended up at a call-centre
that did not speak English, only French. She knows that they are doing business with countries like
France and Spain due to the quick transportation and good communication.

Nudies advice to suppliers is to do their research on the company they want to approach and
not just send out general requests. Suppliers should have a different approach, a special
product, colouring or something extra.

When sending a company profile, they should send a professional looking one, where it says
where the company is registered, how many employees they have and their machines. They
should also show products that they have done. She claims that it is easy to work with suedes when
it comes to long-term relationships and keeping promises. But the standards in sustainability and
CSR are really high.

Elvine Aktiebolag
About
Jeanette Lundin is in charge of production and is also the buyer for all product groups. Elvine does
not have any own stores but sell through agents and distributors. They have agents in Sweden,
Norway and Denmark who each get their own selling collection to promote to buyers at resellers,
stores and online stores. The biggest development in terms of sales channels is the online stores.
The trend is to close physical stores and open new online based companies. One of their distributors

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is for example the big Swedish retail company Åhlens. The biggest markets for Elvine is Sweden,
Germany, Holland, Belgium and Luxembourg but they also sell in Japan. Elvine do two big collections
every year, spring and autumn, and sometimes with a pre-collection before the big drop. Planning for
each collection begins 1,5 years before it is finished. The design work for Autumn 2019 is being
done now and will be done in the end of May and at the same time samples are being made for the
Spring Collection 2019. That collection will be showed for the sellers in June and then the orders
have to be placed in August. Meaning that the portion if orders to suppliers are based on the orders
sellers receive when promoting the collection. After that the production of 90 days starts.

Production countries
Elvine hold the production in China, Portugal and Turkey. Jackets are produced in China, which also
is the product group that Elvine is the most known for and stands for 80% of the turnover. In China
they cooperate with an independent purchasing office who chooses the factories for the production
of the jackets in every season. A lot is happening in China which can affect the conditions for the
different factories, which causes the trades. They have cooperated with the purchasing office in
China since the company was founded in 2001. All of the factories worked with is specialised on
jacket. The number of factories in China is around seven. The general perception about China getting
more expensive is not something Jeanette believe will affect Elvine, they are price-sensitive but not
down to the last cent.

Jersey, tops and a big portion of the pants are produced in Portugal through an agent and with
factories that they both have worked with for 10 years. Some factories in Portugal have been forced
to be shut down due to economic circumstances in the country with a lot of unemployment. However,
Elvine believes it works better and is more stable now. Portugal have a long tradition with sewing and
garment production and also do a lot of the materials within the country. The number of suppliers in
Portugal varies between 3 to 4.

The rest of the pants is made in Turkey at only one factory which they have worked with for 11 years.
Common for all suppliers is that Elvine focus on long term relationship and a great focus on high
quality of the garments. Elvine do not have any direct contact with the factories in China and
Portugal, they solely communicate with the purchasing office and the agents. With the factory in
Europe on the other hand they communicate directly with. Quality control of the products are made
by the agents in Portugal who visit the factory and check a certain percentage of the products every
time an order is made. In China the QC is made by the purchasing office and in Turkey the factory
has its own quality control.

There is a trend in moving production from China due to increasing prices, and that is something that
Jeanette has experienced as well. She says it has to do with change in currency, increasing living
standards and salary and also an unwillingness to work in the factories. It is a natural development
but Elvine chooses to stay in China to maintain the long-term relationship. It also takes a lot of time
and energy to source new suppliers. They have chosen to focus on quality rather than the lowest
price, which means their costumer is not as price sensitive.

Suppliers
One big challenge for Elvine is that their small size and orders sometimes makes it difficult to
become a client of importance to the supplier. In Portugal they normally require 150 pieces per
colour, which sometime can be difficult for Elvine to reach. The way to get past that obstacle is good
relationship or paying an extra fee. A third alternative is to have a package deal where they promise
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the supplier with some orders on up to 800 pieces and some on 100, that they are then more willing
to accept.

The responsibility for handling the outsourcing and screening of new suppliers lies upon Jeanette but
is done in consultation with her team and the CEO.

Most importantly for the relationship with suppliers to be long lasting and fruitful, is that the quality
of the product is high. The suppliers must work and communicate in a structured and clear way. The
suppliers in Portugal, for example, is not so structured, and Elvine is more satisfied with how the
Chinese work in that matter. However, the workers in Portugal are more skilled in design, look at the
garment as a whole and not only just follow instructions but come with own suggestions of
improvement. They understand the product, they understand Elvine. They also define quality in the
same way, which is appreciated because that makes them understand when samples live up to the
wished level of quality and that makes the production more efficient. China on the other hand follow
the instructions given precisely which sometimes makes them not pay attention to obvious mistake
that has been made in those instructions.

Important for Elvine is that the supplier is reliable, so they can count with receiving samples and
prices within a reasonable time during the selling and sample process, when it is crucial that it is
there in time to planned sales meetings. So, delivery assurance is highly valued.

Regarding lead time their general expectation is 90 days for from the day they place the order. That
stands for both sell collections and the finished ones. Within Europe they accept a bit longer time for
production since the transportation does not take as long, only five or six days with truck compared
to five weeks shipping from China.

In the moment they are discussing alternatives for the suppliers in Portugal due to the low level of
structure in together with high prices. When looking for new suppliers they normally go through
recommendation and their own network. As every other fashion company, they receive tones of
emails and calls from suppliers that want to work with them, and Jeanette explains that it is too
difficult for Elvine to find “the needle in the haystack”, the good suppliers among all irrelevant for it
to be worth looking in to all of those emails.

Morocco
When we ask Jeanette about her general perception of Morocco she tells us that her only experience
of Morocco is from when they visited the country in the 90’s and she then received a quite bad
feeling about it. However, she says that it probably has changed a lot since then.

CSR and sustainability


Regarding CSR, Elvine focus on reducing chemicals and checking up on working conditions. They
have one employee who is working with these questions once a week and also a consultant who
helps her with that. The limited resources on CSR is explained by the size of their company. Elvine
have together with the independent purchasing office in China set up goals for the factories to live
up to the requirements on chemical exclusion. They are in that project following REACH. It is not so
difficult to convince that office of the importance to work with CSR and sustainability, it is rather the
workers on the factories and dyeing houses that are more resistant. Another reason for not trading
suppliers is the value of these systems, tests, perspective and goals already being established.

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Elvine have bigger difficulties with the agents in Portugal due to their belief that the issue is smaller
for them solely because they are positioned in Europe.

The purchasing office in China is a member of BSCI and makes audits out in factories. Portugal and
Turkey are low-risk countries, so no CSR audits are conducted in those factories.

Jeanette’s advice to overseas suppliers who wish to work with Scandinavian companies is to focus
on what you are really good at and become specialised at that. It is also important to be honest on
what lead times the factory have and what requirements regarding CSR the factory reach up to,
REACH or any certifications for example. Regarding how to make contact Jeanette believes that
sending an email is better than to make phone call, due to the need for a potential buyer to really
look in to the proposal and search a bit by themselves. A good way to present the supplier is to tell
what another costumer the supplier is working with. In Elvines case, they now the supplier is not right
for them if all of the other costumers are very big companies because that would mean their orders
become very small among the costumers. Jeanette explains that it is very important to know the
brand and the products of that brand that you are approaching, so that in an eventual visit in
Scandinavia, the supplier for sure will bring relevant samples that matches with the collections of
Elvine.

When we ask about fairs Jeanette tells us that they do not visit any fairs in other countries, but they
sometimes participate on fairs and show their garments on fairs where buyers of resellers and
fashion brands meets. She says though, that is not the right forum for suppliers to make contact
because it is often the wrong person for them from Elvine attending those fairs.

Looking forward, most important regarding suppliers for Elvine focus on will be to maintain the level
of quality of the product, focus on CSR issues and follow up on REACH.

Gant Company AB
About
Gant is a high-quality brand with clean cuts with a main focus on shirts that are offered to men and
women. The interviewee, Madeleine Englund, is the head of purchasing, which includes working with
strategy, operative work, social compliance, lead time and logistics. Gant has a strategic sourcing
team and an operative purchasing team. They do not have any purchasing offices.

Collections
Gants greatest market is Germany, which is overall the largest and most profitable market in Europe.
Their distribution system is through their own stores, which means they own some markets alone,
however in some markets they only sell through agents or retailers.

Gant has 4 collections per year, which requires them to be 18 months ahead of schedule at all times
in order to be prepared for each season. Which means they are now working on Fall/Winter of 2019.

Suppliers
They have agents in Turkey and use the suppliers they offer so they do not have suppliers of their
own. Most of their suppliers are located in India and China. In total Gant works with 70 suppliers,
which has increased by 10%. Around 39% of the production is located in China, 32% in Europe

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(Portugal, Italy, Turkey, Romania, Bulgaria), 19% in India and the last 10% in North Africa (Morocco
and Tunisia).

When choosing suppliers, they assess the risk in the country. Pakistan and Bangladesh are
considered unstable and high risk. At the moment Gant is looking at entering Vietnam, but they need
the suppliers to be BSCI certified and have at least a ‘’C’’ in social compliance. Other than this,
quality is of course very important, which is something that normally takes a few seasons before it’s
how they want it.

Production
Gant has not had any problems regarding MOQ since they work with so many different supplier, one
of them the world largest producer of shirts. Which makes Gant a small part of production for many
suppliers, but they are an important customer because of their sustainability work. The smallest
orders they make is for smaller and newer products, which can be as little as 50 pieces. When it
comes to Shirts it can be as many as 100 000 pieces.

When it comes to getting in contact with suppliers there are many different ways. Either through
garment fairs or production fairs, for example Premier vision in France. The rest is by word of mouth.
They have had bad experience with meeting suppliers that has sent emails, which is why sending
emails now is worthless.

The lead time is very different between products, for example a complex jacket normally takes much
more time than a t-shirt for example. Sometimes the production is in China, which means they have
to ship garments from their warehouse in Germany, other times to countries such as Portugal in
Europe.
The most important thing for us regarding selection of suppliers is how they work with
sustainability/CSR issues. This includes how they use water and energy in production, but also what
quality they produce. It’s a big plus to know the company before approaching, be well read and know
what the company need.

Morocco
The interviewees opinion regarding Morocco as a production country is that it is more stable than
Tunisia. The person also said that Morocco offers everything from small boutique suppliers to state
of the art modern suppliers. However, many of the suppliers in Portugal has gone further regarding
sustainability than Morocco. If they want smaller quantities they work with Portugal, when it comes to
larger quantities they choose Morocco. They are looking for more suppliers in Morocco at the
moment.

The interviewee Madeleine, said she had never heard of “Maroc in Mode” before. However, she is
very fond of the idea of meeting suppliers and other companies and having discussions regarding,
for example sustainability. To get companies to come, the supplier should make sure to invite other
companies as well.

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Filippa K Group AB
About
Filippa K is a Swedish brand with a focus on fashion with long lifecycles and high quality. The
interviewee Christina Muljadi is product manager for Filippa K soft sport and also their side
collections.

Materials and collections


Our interviewee explains that Filippa K only work with ecologic and recycled materials and underline
the importance of craftsmanship when it comes to their design. Suppliers need to have a genuine
interest in design and how to create the right fit. The planning of a new collection begins one year
before the collection drops. The main markets they operate on are Sweden, Belgium, Denmark,
Finland, France, Germany, Netherlands and Norway.

Suppliers
Cause of the importance of craftsmanship, they do not consider large suppliers to be suitable for
their type of production and expectations. Filippa K also want to have control over any
subcontractors that might be involved.

70% of Filippa K’s production is in Europe, they have been to China but do not consider them to
deliver the same quality. They also think that it takes to much resources to establish a good
relationship with suppliers in Asia but they do have some suppliers there that performs extremely
well.

Filippa K values suppliers that are aware of quality, have a good communication and can deliver on
time. They have a long-term relationship with suppliers and do not begin cooperating with new ones
very often. New suppliers need to be specialized and see to the potential customer’s needs. If they
find a new supplier it takes at least one year to ensure that the supplier can live up to their
standards.

CSR
CSR should, according to Filippa K, be the core of a business. You need to show responsibility for
social compliance, work with sustainable materials and Bluesign. They are members of Fairway
Foundation that also control the suppliers on these matters. Suppliers also need to aware of water
and energy usage since that is a huge challenge for the whole industry.

Suppliers and subcontractors are expected to operate in compliance with their code of conduct
which involves human rights, environment and anti-corruption. Our interviewee also explains the
importance of striving for less usage of water and energy. They play an important part of STWI.

Morocco
Our interviewee does not have an opinion about Morocco since she has no experience working with
them. The only thing she knows is that for example Ethiopia is establishing their own cotton which
make them compete since a supplier with a vertical production line is of great value. Good to know is
though that Filippa K do have a few suppliers in Morocco.

Björn Borg AB
About
Björn Borg AB is a sports brand which honours the tennis player Björn Borg, active during the 1970s
and one of the greatest in the history of the sport. Björn Borg and the clothing brands are not
interacted, though. It is founded in 1984 and design and sell sportswear to women, men and
children. They are especially known for their briefs which are made in wildly range of prints and
colours. The interviewee Johanna Dalhgren works as the sourcing manager and is together with two
other people responsible for the supplier relations and the sustainability development. She ensures
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and sources for the right suppliers, the right fabrics and handles the price negotiation with the
suppliers. There are 70 people working at Björn Borg and 20 of them work with product development
and production.

The products are sold in 22 countries with a focus on northern Europe. The biggest markets are
Sweden, the Netherlands, Norway, Belgium, Denmark and Finland. They distribute their collections
through 35 own stores, through e-commerce with own website and resellers like Zalando and Boozt
and through wholesale stores. Björn Borg do 4 collections a year; spring, high summer, autumn and
Christmas. They have a design team of six people creating all the collections. That is normally made
independent from the suppliers but it happens that they buy prints made by subcontractor’s due to
the amount of different styles they do for their briefs. The design team visit the factories twice a year
to discuss upcoming collections, and sometimes they cooperate in the product development at those
times.

Purchasing process
The purchasing process begins with the designers making sketches of the garments which is sent to
the suppliers. Instead of communicating back and forth, Björn Borg have chosen to always visit the
factories two week after sending the sketches to discuss the design, print, fit, select fabric, negotiate
about price, book capacity in the factory and decide deadlines for further steps in the production.
The following steps is to make prototypes as a first sample, when satisfied continue with sales
collection for the selling process where orders are gathered from wholesales and finally placed at the
suppliers.

Suppliers
Even though Björn Borg is a sports brand they are not in need of suppliers with an advanced set up
of machines and high level of technical sewing skills. They do not work with Goretex or such, they
only need the suppliers to be able to do flatlock seams for their briefs and sportswear to be as
comfortable as possible.

The production is held in China, Bangladesh and Turkey and they work with in total 12 suppliers.
Regarding the few suppliers, Johanna says “the most important thing for us is that we are a valuable
costumer for our suppliers rather than spreading out the production at several suppliers”. They have
reduced the number of suppliers with 5-6 during the last year. In Turkey they are very good with
different dyeing techniques, materials and also embroidery and there is a great advantage to have a
5-day delivery in compare to 5-week delivery from Asia. The suppliers in Bangladesh are good with
handling cotton and deliver organic cotton.

Björn Borg do not have any production offices placed in their production countries, but they work
with an agent for some of suppliers in China and the one supplier that they work with in Bangladesh.
The agent is Swedish and lives in Shanghai. All communication goes through that agent and Björn
Borg especially appreciate how that solution overcome the language barriers. Johanna tells us how
you cannot take the English language skills for granted in China and Bangladesh. In Turkey they can
expect good English skills and together with Turkey being closer they do not feel the need to work
through an agent. Quality control is conducted by that agent for the suppliers under his responsibility
and for the rest of the suppliers Björn Borg choose to purchase that survey from a third part in each
country.

Their general expectations on lead time is 3 months. Because it requires less time for
transportations from Turkey, Björn Borg place the orders later or receive the delivery sooner.

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Regarding minimum order quantity, Johanna do not want to say the specific number they purchase
but tells us how they sometimes have trouble with MOQ for the fabric rather than with the produced
quantity. That is because of their many different prints.

Relationship
Of most importance for Björn Borg is, as said, that they become a valuable costumer for the supplier.
They believe it makes the cooperation more beneficial for both parties, with a better position to
negotiate and more flexibility with a chance for more development. Björn Borg prefer to work with
suppliers who are innovative and creative with a high delivery assurance and who produces products
of high quality.

New suppliers
Björn Borg is currently not seeking for new suppliers due to the fact that they just recently started
working with two new suppliers in Turkey. They found those suppliers through a gathering that was
arranged by a Turkish organisation in Stockholm where 20 suppliers from Turkey was invited
together with a couple of Swedish sports and fashion brands. The whole day was planned with
booked speed dates with every suppliers who had brought a presentation of the factories and their
current suppliers as well as products to show their capabilities. Both suppliers and buyers where well
informed about what companies will attend the gathering and could then prepare themselves, the
suppliers could for instance select more carefully what products to bring. Six of the companies that
Johanna met where given sketches to make samples of and send price suggestions. They then
visited the factories to three of these companies and finally selected one new suppliers to begin
working with.

Johanna believes this was a great way to meet with new suppliers because it gave you the chance to
speak to the people from the company directly and examine the products. That is of great
importance to justify the continued work of evaluating a supplier. Johanna tells us how it is pointless
to send a presentation by email because there is simply to many approaching that way and so
difficult to stand out among the other. Traveling to Stockholm for a similar event that Johanna
attended also indicates another kind of effort than just sending an email. “I do not believe in sending
an email and hope to make contact that way. We simply get too much these days and it is so rare
that any of the request are appealing”, she says.

CSR
Björn Borg are members in BSCI and require their suppliers to be so as well. They also work with BCI
cotton and have a goal until 2020 that they will not use any conventional cotton, but solely work with
organic or BCI cotton. They also strive to have 70% of the products made of sustainable materials or
to be produced in a sustainable way. They will do so by increasing their usage of recycled polyester
and decrease their water consumption in the production. They are also looking at Avitera, a new
innovative technique for dyeing, and other sustainable materials such as hemp and bamboo.

Johanna says that CSR is a basic requirement nowadays, all suppliers have to be CSR compliant to
get any orders. It is highly appreciated that suppliers already are members in BSCI because that
ensures that audits are being made every year. Björn Borg do not conduct any own CSR audits but
visit the factories with the purpose of developing and communicating the design.

Morocco

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Johanna do not have any real perception of Morocco but think they are quite good at producing
jeans. She has never worked at a company with production in Morocco but she knows many Italian
producers placed some of their production there in the 90s. When we discuss the possibility to invite
Scandinavian companies to Maroc in Mode she strongly believes that the best way for the supplier is
to come to Scandinavia instead because it is too difficult to justify the trip when so many companies
are unfamiliar with Morocco.

Indiska Magasinet AB
About
The interviewee Mona Lindskog has worked 16 years at H&M with quality assurance and 3 years at
Åhlens with focus on sustainability and quality. At Indiska she has a similar role with great focus on
quality, demand specification, sustainable and durable materials, certification and reducing
chemical usage through test programs to make sure Indiska’s demands are met. The suppliers are
subjects to audits that make sure they follow the demand and regulations. Mona has the most
responsibility to make sure the audits follow through but doesn’t make them herself. She also
attempts to be proactive when it comes to laws and regulations since it normally takes a long time to
change production.

Production
Indiska has a very wide range of products, some suppliers are focused on fine knit, others woven
clothes and some focus on accessories and decoration. They are attempting to narrow production
down to different factories, so one factory focus on one kind of product. This is done to allocate the
risk between factories. They also try to give their suppliers a sign of loyalty and safety and treat them
more as a partner.

At the moment they are attempting to reduce the number of suppliers, since its quite a process to
audit and make sure every supplier follow the regulations needed. It also gives them time to focus on
building a relationship with each one. They have a production office in India, and also works with
agents in China, Turkey and Greece. When it comes to MOQ Indiska has had problems with quantity,
since they are normally buying smaller amounts. When choosing suppliers Mona says the purchasing
managers go to fairs but she focuses more closely and therefore attends seminars.

CSR
Changes in sustainability happen constantly, for example on EU-law that Sweden has focused on the
past few years is not to have any chemicals in clothes that could cause cancer or other diseases.
There has also been focus on less water usage, and Indiska is part of Swedish Textile Water
Initiative, together with Kappahl.

They have at least one collection each month that are quite small. It’s mostly to bring news to the
stores and show something different. When shipping they always prefer to use boats, and it should
at most take 6 weeks, they only use airplanes if a delay appears. Delayed materials, production
development could take too much time. However, it is something both suppliers and the company
purchasing can affect.
The most important thing for a good relationship is communication, both parties need to be very in
sync regarding the demands of the products. The communication from Indiska is what they want to
develop and what quality/quantity they want produced. It’s also important that the suppliers know

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their product and keep a discussion during the process.

Supplier and sourcing


When a supplier attempts to get in contact with Indiska they should go through an agent, this will
increase the possibility of getting noticed and it is easier to have a good communication this way.
Indiska is being contacted on a daily basis by suppliers, which is something the purchasing manager
handles, Mona focuses more on certifications.

The most important thing in finding new suppliers is following the regulations and demands that
Indiska has, which might be costly. If a supplier has underperformed or do not follow the Code of
Conduct, Indiska will try and help the company improve. The suppliers always send samples of the
products, the time between sample and the approved product is normally around 6 months.

During production, the supplier is responsible for the quality of the materials, however there is a third
part that has the risk during transport from suppliers to retailers.
The largest challenge in the future of the business is trying to be more sustainable regarding
recyclable materials. At the moment they are following projects and doing lab work to try and find a
way to improve the recycled materials in order to make it cheaper and more durable. The demand
from the consumers regarding sustainability is huge, which is why they are using ecological cotton
and other sustainable materials that has the least amount of effect on the planet.
The production is divided into groups depending on what the supplier has the possibility of
producing. The ambition is for every supplier to produce using ecological cotton, which many of them
has, but there have been difficulties regarding lead time and price. In the future regarding CSR the
usage of water is very important, they are constantly trying to reduce the amount needed to produce
their clothes.

Morocco
The countries of production are India, China, Bangladesh, Turkey, Greece and Sweden. They have
never worked with a Moroccan supplier but are very inspired by their work.

Advice for a supplier is to have a product that is right for the company, with a quality that you expect
from Indiska. They also need to be updated on the current laws present and the ones that will be in
the future. Also, social responsibility and animal care is important to them.

House of Dagmar AB
Background
Dagmar is what they describe as a “progressive and sensual” brand. They specialize in sustainable
knitwear that is created from inspiration that is drawn from architecture, art and culture. Fanny
Mattsson is the name of our interviewee. She is a production manager and works targeted towards
the knits department. She takes the sketch to finished product.

CSR
Three pillars when it comes to sustainability, design, ethics longevity. They follow the environmental
policies and ethical guidelines set by the EU. The sourcing therefor shall according to Dagmar move
towards modern and sustainable methods. You need to be up to date.

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Production and suppliers
Of course, price and quality still matter a lot but in combination with CSR that plays a huge part in
the selection of suppliers.

Today Dagmar is working with suppliers in Morocco, Mauritius, Turkey, China, Italy and Fanny is
describing the selection of suppliers confidently as “it is the ones that can perform in every category,
both in quality and in the CSR area that gets selected.”

Fanny does not describe Morocco as a production country, she describes her particular suppliers as
great at what they do and they deliver in the right time. She is lucky with the ones she works with and
informs us that she sources for new ones if she sees the need of it.

Cross Sportswear International AB


Background
Cross Sportswear sell golf sportswear of high quality that requires technical skills to produce. Target
group is foremost men but also women. Interview with the company’s CEO Niclas Valfridsson. They
sell mostly in Sweden, Finland, Denmark, Island, Switzerland, Austria, New Zeeland, Australia,
England, Holland and many more countries in Europe. The selling process goes through an agent or
a distributor. Niclas has worked at the company for five years, Cross then had 33 different suppliers.
Now they have only five and are a much bigger player and have more leverage at the few ones they
have than what they had at the 33 different ones.

Suppliers and outsourcing


Cross sportswear outsources their production to China, Bangladesh, Vietnam, Thailand and
Burma. No production in Europe. The CEO makes a comment that it is getting expensive to
produce in China, especially when it comes to producing cotton and woven. But the company
is always rather looking for quality than low prices.
The company has many different fabrics and take a different amount of time to produce, the
fabric for their jackets take 120 days to produce, but for Polos it take much less time. The
whole process usually takes six months from when the order is placed at the suppliers to the
point of selling. The season they sell on is short so they don’t need to produce extra garments,
the ones they order are the ones they sell. The suppliers aren’t involved in the making of the
design and development.
They have a productions office in Shanghai whom do the quality control, finds the fabric,
source and handle the agreements with the suppliers. All the sourcing goes through them.

Communication
The first thing that the CEO mentions in the relationship with suppliers is that it is very
important to trust each other. They have established this with ones they have now because
they have worked together for a long time. The suppliers should be honest about the mistakes
that are made and if there are made any, they should take responsibility for it. It should be a
good dialogue when it comes to volume of orders and also have a good lead time on them.
The lead time on the fabric for jackets is expected to be 120 days and 40 to 60 days for the
polos. The products are shipped by boat but if anything goes wrong they are allowed to fly
the orders, note that if the wrong is on the supplier’s side then they are responsible for the
extra shipment costs.

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Getting in touch with new suppliers can go in different ways, it can for example happen
through email, LinkedIn, on fairs such as ISPO, Orlando golf fair, the distributors also
participate on fairs in France.

New suppliers get the attention of Cross by being specialists in outer-garments and have a
reference case with the company’s competitions, in this way a first step in communication can
take place. The mistake is to say that they do everything, and not what is suitable for the
brand. Regarding Morocco he doesn’t have any comments since he isn’t well read on them, he
mentions though that the production may move to Africa. It mostly depends on the Shanghai
office.

CSR
Shanghai searches for sustainable fabrics, next year (2019) all the fabrics should be
recyclable.

Jascha Stockholm AB
Background
Jascha is a middle end brand for women that strives to become a high end brand. They first started
doing jackets and later developed the collection with other products. Interview with Jascha Trygg,
founder and designer at Jascha Stockholm. His goal for the company is to develop the products and
raise the “level” of the material by using clean silk, to go from “middle” to “high middle”. He expects
the company to grow by 20 % in the future. The company sells mostly in Sweden and Norway. They
have their own boutiques in Stockholm and have resellers in both Sweden and Norway. His ambition
is to do move collections each year, right now they do a really wide collection. They have one with
dresses and blouses and one with shoes and swimwear. The tradition is to do one collection each
season.

Suppliers
At one point they sourced their production in Asia but felt it was nothing for them, now they
only work with Italian and France top-producers. It gives them more leverage since the
manufacturers are smaller and the brand then becomes more important for them. They can
focus more on the quality and quantity rather than the price. The factories they work with also
have an insight on corporate responsibility.
Jascha focuses a lot on the material of the garments rather than the whole process, they want
the material to be sustainable for example organic cotton and fibers such as “viscose” (a mix
of nature fibres and chemical processes). A good fabric gives a good product, Jascha says.
The main fabrics they use are wool, silk, woven and some polyester. They work with the
principles of “Ecotex” and want their suppliers to have a certificate of this.
The fabrics are made in France and Italy but the sewing takes place in Lithuania. Most of the
suppliers they found through fashion fairs, specifically in “Premium vision”.

The process
Jascha goes to the factories and chooses the fabrics and does further developments. It is
appreciated when the suppliers come with new ideas of fabrics and solutions.
Relationships
The company expects the suppliers to be certified and have good work ethics including the
employees making enough money to survive. For the company it is more important to have a

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good relationship with the suppliers than to have cheap prices, they expect them to be honest
and open with them. The brands focus is rather quality than quantity.
“It’s fun to work close with the suppliers” Jascha says.
Expectations on lead time is one and a half year from the day that the design is sketched to
receiving the product.

CSR
As mentioned earlier, sustainable fabrics are a big part of the brand, for the moment their
focus is mostly on this but expect to develop their CSR strategy in the future.
Advice to new suppliers

The suppliers have to identify the company’s needs and be interested in technology or
elaborated material. If the suppliers can offer new development or something else that makes
them better than the rest, then this would make them interesting. They need to be “extra”, but
not act as if they can do everything in the business.
They need to show themselves in the right places, for example at “Premium vision”.

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Norway
Active Brands AS
AboutActive brands niche at active wear, sportswear, outdoor clothes, technical garments and skiing
equipment. They sell through their brands Kari Traa, Bula, Vossatassar, Johaug, Åsnes, Dæhlie
and Sweet Protection.

CSR
At Active Brands AS we promote decent working and environmental standards in our supply chains.
We cooperate closely with our suppliers and business partners in pursuit of this aim. Accordingly, we
have prepared a code of conduct to illustrate what we expect of our suppliers and business partners.
The code of conduct covers human rights, workers’ rights, the environment and corruption. Active
Brands AS is a member of the Ethical Trading Initiative Norway (IEH)(Same as Helly Hansen and
many other large companies). IEH is a membership organisation for private and public enterprises
and organisations and works as a resource centre and an advocate for ethical trade practices. Active
Brands AS reports annually to IEH. This report is made publicly available.

Collection and supplier


Active brands have the majority of their sales located outside of Norway, mainly focused on Sweden,
Finland and USA. Wool and Cotton are two materials that can greatly affect the environment
negatively, which is why Active Brands has a traceability system which enables them to critically view
the entire process from beginning to the end, in order to make sure the products are green and
ethical in regard to animals.

Active brands have 46 suppliers over the world, 39 of them are located in China, 1 in Myanmar,
Vietnam and Sri Lanka and 4 in Taiwan. It is very important for Active Brands to maintain a
relationship with their suppliers, many of them they have worked with for over 5 years.
Active Brands also has a purchasing process office with 47 full time employees in Shanghai as well
as a development and production office.

In regard to the quality control they have a Quality Assurance System and CSR team located in
Shanghai, the QC team consists of 9 employees. Active Brands are also members of BSCI and Etisk
Handel in Norway.

Regarding the designs they do everything in-house, seems as there is a cooperation between Active
Brands and the brand Kari Traa, which designs the production in Active Brands.

New suppliers
The expectations for suppliers are that they follow the regulations of their Code of Conduct, which
entails all the usual requirements, such as no forced labour, social responsibility, no bribery,
restricting environmental effects and so forth.

CSR
When selecting new suppliers, emphasis will be given to social and environmental standards. When
screening suppliers, they use a combination of own factory visits and BSCI third party audit reports to
highlight improvement areas. They ask for other certifications BlueSign, SA8000 etc. They also use
BSCI grading system for the areas in need of improvement. Depending on which area and the grade
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level, improvements need to be done within a certain time table. Suppliers who don't accept to
answer our questions regarding their current organization or do not agree on Active Brands visiting
their facilities will be deemed unfit. The most important change in 2017 for Active Brands was them
making the milestone of 100% wool traceability and 20% of total fabrics used in production was
bluesign certified.

In the event of a breach of the code of conduct, Active Brands AS and the supplier will jointly prepare
a plan for remedying the breach. Remediation must take place within a reasonable period of time.
The contract will only be terminated if the supplier remains unwilling to remedy the breach following
repeated enquiries.

Bergans Fritid AS
General information
Bergans is a very big company that has most of their sales in Norway, but their market focus consists
of Scandinavia, Germany, Belgium, Netherlands and Austria. It is a very environmentally conscious
company that prides itself in being sustainable, they always use BlueSign materials when possible in
order to keep the production process from damaging the environment, but also to increase the
durability and produce long lasting products. We interviewd Terjes, whos role is Product Manager and
he is in charge of the product developers and pattern makers.

Distribution system
Their distribution system consists of online stores, outlets, their own brand store, but most of the
sales go through retailers. The retailers are both free standing as well as larger sport chains such as
Intersport and XXL.

Collections/products
Bergans has 2 collections every year, one for the spring/summer season and one for fall/summer. In
between they have some smaller drops to fill the stores. Bergans sell mostly sports products, which
focuses on water resistant clothes and protection against the environment. This means they have no
focus on clothing such as jeans, which is one product they don’t produce at all.

Suppliers, outsourcing, expectations


Bergans has 44 suppliers over the world that has increased over the last few years, which is due to
their recent expansions. They attempt to purchase the materials required for production in the same
country as the supplier are located to reduce transport time and cost, as well as environmental
impact.

Number of suppliers and locations:


• China-24
• Vietnam-6
• Nicaragua-1
• Cambodia-1
• Myanmar-4
• Turkey-1
• Norway-1
• Czech republic-1
• Indonesia -1

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• Sweden-1
• Poland-2
• Lithuania-1

When getting in touch with new suppliers Bergans normally receive requests directly from suppliers
or they meet them at different exhibitions or fairs. Bergans allow subcontracting of production, but
they are required to follow the same rules and regulations as the suppliers.

The production is very spread out since some of the suppliers are good at a specific product, which is
why they don’t sort production in country regions, instead they focus on sorting production according
to the supplier factory skills and potential.

Outsourcing operations/product department/QC


Bergans has a supply chain management that is responsible for their outsourcing operation,
however they also include the product department and CSR department. Which means most of the
company is present when choosing a new supplier.

They also have a production office in Hong Kong that are mainly focused on quality control and
sourcing.

Design
Normally Bergans makes all the design work in-house, however at times, due to high capacity, they
hire external designers from Europe. The IT tools they use is the ‘’Gerber IT-system’’, which is where
their patternmakers produce patterns, and then they transform it digitally to the suppliers.

Purchasing process
The typical steps of Bergans purchasing process is that when the design work is finished, the
purchasing process can begin. Then the samples are approved by their designers for bulk
production. Afterwards they place orders according to different dates, what product need to go to
what store and so forth. Their customers have their own web ordering portal they use. They also have
set dates for the different seasons, some products need more time to produce than the others, for
example winter wear.

Suppliers samples/shipping/payment
Bergans always request different samples from their suppliers to test, adjust the sizing correctly, and
give out samples to the stores for purchasing, and then they make a last one for bulk production
approval. The agreement regarding responsibility of shipping orders is normally FOB. They also use
open Remburs regarding payment terms when outsourcing garments.

BikBok AS
About
BikBok turns to the young woman and strives to always deliver the latest trends. It is a very
successful brand that focuses most of their sales in Scandinavia. BikBok is a part of the Varner
concern and therefore has similarities to Dressmann and Cubus. However, they differ when it comes
to lead time, which is much shorter than its sister brands. BikBok does 8-10 collections a year. In the
interview we spoked to Unn Greijer, the product manager of nightwear, swimwear and accessory.

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Production
They have producers all over the world but the majority of them are located in Asia. Bangladesh,
India, Vietnam and Hong Kong-based companies with production in China. In Europe they have
suppliers in Turkey and Italy. They also have external brands in Europe which are located in Greece,
England and Sweden. In Poland they have experts in fitting of products without seams. European
suppliers have to be able to niche to produce better quality instead of cheap products. Niching has
come a long way in Europe with people that has education, money and knowledge. Asia has the
possibility of producing everything you could possibly need; they are inferior when it comes to fitting
and higher quality items. It means there is always more expensive to get what you want. Tailored
products are always from Europe since its easier for people in Europe to fit according to western
standards. BikBok works with the production office in Varner, however they are more independent
than many other companies. They can choose a supplier alone without Varner and sometimes they
work with companies closer to Europe in case they need products quickly to satisfy a trend.

They both have long term and shorter relationships with suppliers. The short-term suppliers are the
ones that can start production immediately, however they are more expensive. In case the margins
are too bad they have to use the long-term suppliers.

They have the same production in each country, they do not have one factory for jeans and another
one for t-shirts, it is very spread out.

New suppliers
To be a new supplier there are many aspects to consider. The first one is that there should not be
any competition for certain product types. A supplier that has worked with Cubus for a long time will
always get the order before others. The reason for this way of thinking is that they dont want to be
vulnerable when it comes to mistakes being made from the suppliers. How-ever they have seen the
flaws in this way of thinking the past few years and are starting to focus more on having a few
suppliers for each kind of product, since if one factory stops producing they will not have another to
pick up the production. They also need suppliers that are experts in one kind of product. Since
BikBok has very small orders, as small as 600 each order, there has been problems in keeping the
larger suppliers. It seems as if BikBok is constantly trying to find new collection suppliers that are
skilled at design and trends. They have found a few the past few years.

CSR
Just like Dressmann and Cubus BikBok has a lot of focus regarding CSR, and the demands that
follows their Code of Conduct. BikBok are always striving to improve regarding CSR. The
spokesperson Unn, says that the question regarding CSR has never been this important, and she
thinks it is extremely important for the company. A few things they are striving to improve is
decreasing the number of chemicals in their garments and reducing the usage of water. They will
always prioritise a supplier that focus on CSR before other things. A supplier has to be certified to
prove what they are saying, otherwise it is not worth anything.

New Suppliers
The way BikBok finds new suppliers is either through fares, depending on the country and market
they visit different events. Cooperation between large international corporations give information
regarding suppliers. Which means that many of the companies work together with CSR. Also going
through LinkedIn is very good for suppliers, since BikBok go through contacts all the time.

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Honesty and transparency are the two most important qualities for a supplier according to BikBok. If
a supplier is completely honest with a problem they solve it together, if they keep it to themselves
and BikBok finds out afterwards it shows a lack of trust. Being transparent regarding production is
very important for them as well. In some cultures, this has seemed to be a problem, in China for
example. There needs to be a straight dialogue from both parties so they each knows what is
expected of them and what problems come up. Another important thing for BikBok is that suppliers
are willing to try new ways of production and want to improve themselves. Communication is also
important, as well as learning from their mistakes. The same problem should not happen twice.

Normally BikBok do not look for new suppliers and focus on the ones they have right now, however
they have started to look for new ones. They are looking to produce the right products at the right
location. Which means that a supplier that has the proper requirements could definitely be a part of
BikBok if they are a good fit.

For a new supplier to work with Bikbok they have to be prepared about the brand and what they
demand of their suppliers. It is also good if they have been in the stores and seen what kind of
customers they have and what they expect from the brand. It might also be good if the supplier takes
a look at the products in store and gives suggestions to improve them. European agents in China
that works in production always works proactively with design, the latest in materials and trends.
They can offer more than just a product. A supplier also needs to be able to have short lead times
and keep materials in stock.

Morocco
Regarding Morocco, Unn has not worked with them before. But have done some work regarding the
textile industry in Egypt so she is familiar with the culture and religion. She has a positive attitude
towards collection far away but with less of a lead time.

Cubus AS
About
Cubus focuses on being a Scandinavian fashion brand where it should be possible to shop for the
entire family and find clothing that suits everybody, regardless of the size of your wallet. They offer a
good base-wardrobe of good quality that looks good. Scandinavia is their biggest market with the
majority of sales in Norway, Sweden and Finland. Cubus has 4 collections, one for each season, as
well as two extra in conjunction with Christmas and the summer. They also have a few smaller drops
in between. The collections are very dependent of the season since they are mostly working towards
the Scandinavian market.

Production
Cubus aim to do everything they can in their niche, for all wallets, with smart choices of materials,
better suppliers, avoiding chemicals and manual processes. The materials that are used mostly are
cotton, but also viscose and wool for the autumn collection. They are very unique in the sense that
they produce clothes that are market with the Swedish quality assurance mark The Nordic Ecolabel.
This mark is one of the toughest criteria to achieve in regard to sustainability, and Cubus is the
largest actor that has this mark. It also means that it takes a long time to get suppliers up to code
and approved. This makes it more difficult for them to find suppliers and persuade them to follow
their code. If the suppliers are up to code it’s much easier for them (the suppliers) to reach other
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demands for other companies. The largest part of their baby-collection is market with the swan, such
as cotton, jeans and t-shirts. To get a factory approved on the swan-criteria it can take up to 9-12
months. Which means that any cooperation is a large investment in time and money, which is why
Cubus focuses on their relationship with the suppliers.

When it comes to purchase of materials the majority is bought from the same country as
productions, to minimise long transports. The land of production is chosen depends on what product
they want produced, and the purchase managers of Cubus choose who can deliver the best product
at the best price.

Cubus works foremost with producers in Turkey, India, Bangladesh, China and Italy. Jeans are
bought in Bangladesh, Pakistan and Turkey. Jeans are based on Cotton, Lycra, Polyester and modal,
and finding sustainable materials are a challenge. By using ‘’Repreve’’ in the jeans, polyester which
is made from recyclable pet-bottles.

The designs for the clothes are made in illustrator, Cubus does not do any of their own patterns but
do it together with the factories.

Suppliers
To have a good relationship with their suppliers it is very important for them to share values. A new
cooperation nearly always starts with a cultural clash and its important you get through the first
difficult part and communicate well in the end. Which is why Cubus focus on working with their
suppliers for a long time, which means they trust their suppliers very much.

MOQ: White basic t-shirts are always produced after need. The chosen quantity varies a lot since it
depends on the product and the purpose of the product. If it is a niche product which means to
satisfy a small trend there will always be produced a smaller amount.

The greatest difficulty in establishing good cooperation with suppliers is the communication, you
need to communicate on the same level. A piece of clothing is more than materials, its a feeling, and
understanding and you can’t simply discuss it in quantity and measures. There needs to be an
understanding between the two parties, supplier and retailer, in order to see what they want the item
to represent.

In regard to the question about cultural clashes Jonas says it definitely happens sometimes. People
who works in Bangladesh for example live a different way than us Scandinavians. He also mentions
that they receive input and inspiration all the time, what is trending right now and how the clothes
should be designed.

New suppliers
Jonas tells us it is very difficult to be a new supplier for Varner. They constantly make unannounced
visits to their suppliers and makes sure they follow the very strict demands the Varner-concern has.
The procedure to acquire a new supplier can either be that a purchasing manager has met with a
supplier which seems good, or suppliers contact their production office in Asia. They always start
with the CSR process first since it takes up to a year sometimes. Varner also make internal
assessment and makes a third party do the assessment.

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Cubus works with a mix of large and small factories, it all depends on what products is produced
where. They make both announced and unannounced visits to the factories and afterwards comes
with suggestions to improve. All the products Cubus sells are tested by a third party in regard to
chemicals and durability. Quality Controls are made from their offices in each country.
The creation of Cubus designs are made mostly inhouse, what they order from the suppliers own
designs are made with prints.

Jonas advice to foreign suppliers who wants to work with Scandinavian companies is for the
foundation to be ready. Most of the large companies these days have high demands in regard to
CSR. However, as a supplier you need to investigate the company you wish to produce for since they
all have different priorities. For example, what can i as a supplier offer that already doesn't
exist? Cubus always seek suppliers that can make their products even better, however you need to
be able to show that you are a serious supplier with many of the requirements already set.

CSR
In regard to CSR and durability Cubus and Varner see to the social, economic and ecological
perspectives. They work constantly with suppliers to improve them and make them better. There is
always a hunger to improve the products for the customers and in the same way the CSR
department want to make the suppliers better.

Dressman A/S
About
Dressmann is a Scandinavian company that focus on making classic menswear. The majority of
sales come from Norway and Sweden. Dressmann has had a recurring habit of opening more stores
every year for the past few years but lately has started to focus more on the existing ones to try and
improve them rather than expanding more. There are also much focus on cooperation between
online-sales and stores, where a consumer can purchase online and pickup in stores. They don’t see
themselves as a fast fashion company.

Collection and Materials


One of the goals Dressmann has had for the past few years is to ensure that all cotton should be
sustainable according to BCI (Better Cotton Initiative), their time frame for completion is 2025.
They have also started to focus on Fairtrade (same as Cubus), and that they now are working with
recyclable polyester. The most used materials for their lines are Cotton because of its very positive
aspects regarding durability, price and simplicity to work with.
Their main jeans designers are very focused on sustainability and makes sure no sandblasting
occurs, or any similar unhumanitarian or dangerous processes when producing.

Dressmann has two main collections per year where they change the colours and materials
according to trend rapports, in between the collections they have a few smaller ones to make a few
changes so the stores doesn’t look the same between the larger collections.

The functions that are separate from the Varner Concern are few, but nonetheless important.
Purchase of product for stores and designs for new collections are made within Dressmann, as well
as which and when collections should be released. Since Varner is privately owned, they can operate
in a much more agile way. And that they (the owners) are deeply involved in the daily management
and product development.
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Production
A normal day at work for a Purchasing Manager: Working on multiple seasons simultaneously, while
following up on orders for stores and monitoring how the sales are going. They also evaluate how the
past has been and try to predict how the future will be. A big difference from Dressmann compared
to Cubus is that the products consumers liked this year, they will like the next year since they keep a
recurring theme. Two times every six months they receive feedback from Managers of all their stores
regarding the preferences and dislikes of the consumers to try and establish a pattern and analyse
future possibilities. The workers at the main office in Billingstad work at local stores up to 10 times a
year to get a clearer picture of the day-to-day work, and to get a good picture of their segment group.
Example of what is produced where:

Italy- Leather and accessories.


Sweden-Leather belts and smaller items.
Norway- Partly cotton, but mostly in India, China and Bangladesh

Dressmann has their own design team of 6 people who does everything in-house and buys nothing
from their producers. According to the interviewee they see trends and turn to the suppliers to see if
it seems to coincide with what they want. Dressmann has a great deal of trust with their suppliers
since they have worked with many of them for a long time, some for up to 20 years.

The Quality Control is monitored and controlled by the offices in Asia who regularly visits the factories
to make sure they follow the beforehand agreed-upon regulations and rules according to
Dressmann’s Code of Conduct. A few times a year Dressmann also sends their own Managers from
the head office to see for themselves.

Suppliers
A good supplier according to Dressmann is loyal, hard working and has good communication. They
have had many of their suppliers for a long period of time, some for 20+ years. When they decide to
find a new supplier it’s a very time-consuming process since it normally takes a few months,
sometimes up to a year, to make sure they are up to code on all the laws, codes and regulations. It
also regularly takes 1-3 collections for the supplier to get used to what type of production is
necessary for what time of the year. The process for choosing a new supplier is simplified since
Varner has a supplier-portfolio where they keep an updated record of suppliers the group is working
with. It’s also important for them that the supplier is a big company with between 10-15 000
workers.

For a supplier to get into the supplier-portfolio they have to go through Varners productions office, in
China, Bangladesh, India or Turkey, where they narrow down the applicants into the most attractive
options. If the Headquarters think they need a supplier that isn't on the list they send out a request
to the foreign offices in Asia to scout for a match. According to the interviewee, before this system
with the production office they received requests on Linkedin and has now abandoned that way to
find suppliers. Emails are also all transferred to the offices in Asia. The complete list of the suppliers
Varner works with (2017): http://varner.com/globalassets/sustainability/people/public-factory-list-
april-2017.pdf

Regarding lead time, they do not have high demands, seems to be quite flexible. A reasonable MOQ
would differ very much from year to year and it’s difficult to get a specific number. Dressmann’s
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purchasing process is that they buy in bulk and they distribute to their 500 stores. The party
responsible for the distribution is their supply chain.

Dressmann mostly focuses on building long lasting relationships with their suppliers and to improve
them over time. Their process with a supplier is normally that they produce a number of products
with them and test the results, give feedback so they can try it again, if it’s good they increase the
cooperation. They have had the same supplier of shirts for 12 years who knows exactly how they
want their products, which is a huge timesaver. China seems to be the best country to produce, they
have very modern and good factories, however the communication seems to be difficult at times,
with language barriers. However, Dressmann seem to know what they will get from China in regards
of quality and quantity, which is good. When deciding on a new supplier its very good for them to
have worked with other big brands with similar Codes of Conduct, so having worked for Tommy
Hilfiger, Nike or H&M is great. No form of unauthorized out-sourcing from the suppliers is allowed
according to Dressmann’s Code of Conduct.

Cooperation inside of the Varner Concern is very good but they strive to improve it all the time,
BikBok for example has their own suppliers. Otherwise they all have the same import system,
economics department and production office.

CSR and sustainability


Dressmann is very strict when it comes to sustainability and ensures that all their suppliers, and the
outsourcing by the suppliers, all have workers that are not forced to work, that the workers are of age
and not debt-induced. It’s also important that they use Fairtrade cotton and work with BCI (Better
Cotton Initiative). However, these are all important aspects that has been in the spotlight for years,
the most important thing for Dressmann right now when it comes to CSR issues is to keep improving
the materials used in their products to keep them reusable.

General expectations regarding CSR and suppliers is that they follow Dressmann’s Code of Conduct
and the regulations of EU, if there are any inconsistencies with local laws and EU’s, the stricter one
applies. Varner Code of Conduct: http://varner.com/globalassets/sustainability/people/2016---
responsible-manufacturing-varner.pdf

Following certifications and regulations are to be followed.

• ILO Conventions No 29 and No 105


• ILO Conventions No 100 and No 111 and the UN Convention on Discrimination against
Women
• UN Convention on the Rights of the Child, ILO Conventions No 138, No 182 and No79 and
ILO Recommendation No 146
• ILO Conventions No 87, No 98, No 135 and No 154
• ILO Convention No 131
• ILO Conventions No 1 and No 14
• ILO Convention No 155 and ILO Recommendation No 164
• Chemical handling according to CLP regulation 1272/2008.
• The European European Union’s CLP Regulation (EC No 1272/2008) concerns the the
classification,
• All manufacturing processes shall be controlled by clear regulations and internal systems to
ensure the environmental impact is limited as much as possible. Always strive to follow Best
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Available Technology (BAT) and Best Environmental Technology (BET) according to the EU’s
guidelines (BREFs):http://eippcb.jrc.ec.europa.eu/reference/BREF/txt_bref_0703.pdf
• There are many more in their Code of Conduct
(http://varner.com/globalassets/sustainability/people/2016---responsible-manufacturing-
varner.pdf)

Their CSR team work closely with the Purchasing office in Asia. There are very high demands to be
approved, some are to use proper materials according to Code Of Conduct, proper living conditions,
clean drinking water and good salaries. Since consumers are being more aware now of how the
production affects the world and the workers, CSR demands are increasing, especially for Swedish
people which is Dressmann’s main market. One product that is soon to be released on Dressmann is
a jacket completely manufactured with recycled fishing net called Econyl.

There is an increased cost with fairtrade and ecologically produced materials, but it is getting more
and more attention and it will be more common in the future to adapt to the general demands of the
consumers. As time goes on more companies will realise it’s an investment to take care of earth's
resources. Since it's a big initial cost to start producing more environmentally friendly, which will be
more efficient and cheaper in the future, it’s good to keep long-lasting relationships with the
suppliers.

Since the culture is very different in Europe where they sell the products and Asia where the majority
of production happens, there can be some cultural clashes. In Bangladesh for example they have
experienced some transparency issues with the suppliers, as well as some problems regarding
Managers in factories that refuses to interact or shake hands with female representatives of Varner.
There can also be some language barriers between countries since some in management in for
example Turkey doesn’t have the proper education. In China and India it’s different since the
majority has had education in international universities.

New suppliers
For a potential supplier, it is very important to be prepared to meet them and also to know what they
might expect in form of materials and production capacity, as well as what demands are necessary in
regards of the Code of Conduct. One example that was shared with us was that a potential supplier
had done research in Dressmann’s stores and seen what materials they used as well as what
colours were most important. The supplier also brought a few examples of what they could produce
for Dressmann to display quality. They were very impressed with the preparation needed and the
good presentation. When applying to be a supplier for Dressmann the contact goes through for
example the head office in India where they present different qualifications in certifications, number
of employees, the possible capacity and the factories numerical expectations. If one is not prepared
for this it takes a long time to review themselves and ask the questions.

Helly Hansen AS
About
Helly Hansen is a company that is completely devoted to supplying and producing the best active
wear on the market with very little impact on the environment due to their continuous work with
economic, ecological and social sustainability. The interviewee Eli, her role at Helly Hansen is that

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she is involved with the mapping of plans, vision of the company and an overall view of the
operations. She works continuously with many parts of the organisation, for example the sourcing
department which is responsible for mapping distributors and producers.

Collection and Materials


HH sells the most in USA, Canada, Sweden and Norway and keeps two main collections, one for
spring and summer and one for fall and winter. They are very big at the active wear market, with a
big market share at sailing and winter sports. Which is what makes HH unique as a company,
supplying high quality products both during the summer and the winter.

Most of the materials such as yarn wool is produced in Norway and shipped to the producing
companies. HH has started to work a lot to improve the biodegradable materials for the products,
which is environmentally friendly. HH also doesn’t work with fur, prefers synthetic fur.

CSR
Helly Hansen has a long-standing partnership and commitment to the widely recognized and
independent Bluesign® system that acts as a global guiding tool for the entire textile industry’s
production chain. To ensure that products are environmentally friendly and pose no health hazards,
the bluesign® system helps design production processes that meet the increasing consumer
demand for ecologically safe apparel.

The most important part for HH is that the materials are high quality and has very little or no impact
to the environment.

Production
HH has not divided the producing countries into production groups, as in they don’t necessarily
produce shoes in Bangladesh and jackets in China, its spread out over their 40 suppliers. However,
the production and garment production is outsourced at times. The production is held in China,
Turkey, Ukraine, Vietnam, Portugal, Sri Lanka, Indonesia, Hungary, Lao, Bangladesh with the most in
China.

They don not buy designs from the producer, but the producers have their patterns and know the
kind of designs they normally use for collections, since they have worked with many of their suppliers
for of time.

HH has their own In-house designing team that design all of their collections, the only designs they
outsource is to an external company for footwear designs.

CSR
They have teams that travel around the producing countries to do unannounced visits in order to
make sure the quality of the fabrics is as agreed upon. They also do lab testing on the materials in
order to make sure it's good enough for their products. The visits are also to make sure the CSR
issues are being followed according to their Code of Conduct. According to their Code of Conduct HH
conducts announced and semi-announced visits most of the time, only unannounced to suppliers
who has repeated violations. HH wants to assist suppliers and partners to improve. In order to know
where in the supply chain HH’s help is needed the suppliers/partners submit a self-assessment
questionnaire. HH also conducts visual-observation forms during facilitation visits, they also perform
audits by internal resources. If a supplier does not agree with HH’s Code of Conduct, they are
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deemed unfit for cooperation. Code of Conduct: https://www.hellyhansen.com/wp-
content/uploads/2016/08/COC_6.1.pdf
IEH Report: https://www.hellyhansen.com/wp-content/uploads/2016/08/Report-2015-EN.pdf

Suppliers
A good supplier has to be efficient, no waiting times, produce good quality, be loyal and also work
with good communication.

The sourcing team gets in touch with suppliers, and the process they go through is very focused in
seeing what kind of resume a factory has. If the factory in question has worked with other big similar
companies, it makes the decision easier. It’s also good if another company recommends the factory
in person, which shows a sign of trust between different competitors.

According to their Code of Conduct all parts of the supply chain has to be traceable, HH needs to
know where the material originated from.

To become a supplier for HH you need to go through their sourcing department first, where they thin
out the least impressive producers first, and then make sure the producers comply with the
demands and regulations of HH’s Code of Conduct.

Ethical Trading Initiative Norway (IEH) is a multi-stakeholder initiative represented by NGOs, Trade
Unions, Businesses and the Enterprise Federation of Norway advocating for ethical trade practices.
Helly Hansen has been a member of IEH since 2003. IEH Member duties include tackling challenges
in the supply chain, reporting openly on the status and progress of efforts, and a commitment to
continuous improvement together with partners in the supply chain. Each year Helly Hansen reports
to IEH on the status and progress of CSR initiatives.

HH works with a sourcing department that thoroughly controls and check suppliers and factories as
well as map distributors and producers. It’s important that the producers keep the standards
regarding quality and time. Communication is also important and there cannot be any
miscommunication.

Riccovero AS
About
Founded in 1936 by Finn Einar Kvamme, the grandfather of our interviewee.
Started with women line in 2002 when Kjersti started. They focus on confection and try to keep high
quality on their products and they have high knowledge regarding the tailoring and such. They only
sell locally, they tried in Sweden and Denmark but it’s a different market, and the Norwegian market
is smaller than the rest of Scandinavia, which makes it difficult to enter other countries.

Kjersti is in charge of supervising the producers and making sure the products are high quality and
that the factories are living up to their standards and rules.

Collection and Materials


Riccovero works the most with wool and recycled polyester and do not work with denim at all. They
do in total 4 collections, the largest collections are spring and summer, and the smallest is high
summer and Christmas.

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They have bought designs from suppliers before but prefer to have their own designs, they have two
small design teams, one focus on men and other women. They have specific producers for specific
clothing. Shirts in Portugal for example and in china they produce the less difficult products.

Production
In Europe, they buy the materials and shipped them to China and made into clothing. The items are
then sent back to Norway. Kjersti said this is how it is done to ensure quality of the fabrics, but
prefers to focus the production in Europe to reduce environmental damages. In Europe, they do not
have to ship the items to China in order to make the products, and that is better for the environment.

New suppliers
Normally when they decide on a new supplier they make a product for the suppliers to remake in the
same material, the suppliers then send the material back to them and they make sure it’s good
enough for their brand. Then they use the product for a while to make sure its quality is good
enough, as well as the product is actually selling in their stores.

Like the text above, they get sent an example of the product from a potential supplier and they test it
and make sure it is good enough. They also visit the offices and the factories of corresponding
countries to verify the working/production conditions.

A good supplier for Riccovero has to be professional, offer high quality and be loyal. In China for
example they always say yes when they ask if they can produce X amounts of products, but as Kjersti
has noticed regardless of their ‘’yes’’ it is not always true. As a supplier you have to keep your word.
As Riccovero is a quite small company, they prefer to work with smaller producers, around 50-150
workers. Since it would reduce the risk of other larger brands coming in and taking over the
business, also some producers only work with larger MOQ.

CSR
The conditions/guidelines Riccovero follows are working conditions according to national rules and
laws as well as international conventions and that the factories are behaving according to production
regulations. Since the company is more focused on European production and are leaning towards
reducing production in China, they are following the European standard and all the following
regulations and rules. The environment and workers are very important to Riccovero.

No form of child labour or force labour. working conditions according to national rules and laws as
well as international conventions. No discrimination. Factories according to production
regulations. Not much else to add here, just that the suppliers keep the EU rules and laws.

They do not require their suppliers to be certified with ISO or SA8000 but they have similar
guidelines according to Kjersti Kvamme.

Kjersti said in the interview that she gets emails from suppliers every day from new potential
suppliers but that they go into her ‘’rainy day bin’’. She said that choosing a new supplier takes too
much time and that they will have to make sure the people responsible for the factories are
environmentally conscious and keep the quality they demand. It is very time consuming to change a
supplier. It also takes time to begin to trust a supplier, which seems to be very important to her, and
to make sure they are professional. The last few years they have been focusing on moving
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production to Europe, since it would make it easier for them to keep control of the production and
the conditions of the workers, as well as ensuring the quality.

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Denmark

CNS Group AS
Background
CNS Group CNS Group is a multibrand company that possess the brands Solid, Tailored Originals,
Desire and Peppercorn who is all working in different segments - Solid being fast fashion and
Tailored Originals more expensive. The company’s biggest market is Europe, Denmark and Norway,
they also export to Spain, France, Italy, Germany and England. They have a € 7 574 000 gross profit
and 75 employees.

We spoked to Michael Valter, product developer and buyer at CNS group. He makes sure the
brands Solid and Tailored have the right products, price, qualities and that deliveries are on time. He
also sources for new products, new fabrics, washings and colours. He describes Solid as a mass
production brand, more mainstream and for younger people. Tailored Originals is a more detailed
and more expensive looking brand. The brands do six collections every year which they design
themselves but sometimes they also choose from the supplier’s own designs.

Suppliers and outsourcing


CNS group manufacturer their garments in China, Bangladesh, Pakistan, Romania, Turkey and also
some in Europe. What products they manufacture at the different suppliers depends on what brand
they shall produce for where they look at design, quality, washing and price level. The low-price
brands have most of their production in Bangladesh, and the more expensive are allocated to
Turkey. How they meet their suppliers vary, it can be by from contact gained in previous workplaces,
meeting on a fashion fair or being contacted by email.

They expect their suppliers to have good prices, to communicate well and deliver as agreed.
Regarding MOQ there are not a lot of issues since it is all done by agreements and needs.

The company has a manual that they want the suppliers to follow when it comes to CSR matters.
CNS Group are members of BSCI and demands their suppliers to be certified. They also strive to
increase their use of sustainable materials, such as organic cotton.

Michael’s advice to the suppliers is to not be too pushy when trying to enter a new relationship with a
company and get to know the market well before doing so. Michael do not have any experience of
Moroccan garment production, so he cannot really say what is his perception of it. He believes they
should be good at denim and leather goods.

DK Company A/S
Background
DK Company is one of the biggest multibrand companies in Denmark with 20 different brands which
each have a unique target groups and niche. The brands are Blend, Soaked in Luxury, Denim Hunter,
b.young, Dranella, Fransa, BlendShe, Culture, Educe, PULZ Jeans, Casual Friday, Gestuz, ICHI,
InWear, Kaffe, Karen by Simonsen, Matíníque, Part Two, BonáParte and Cream. They believe it is
good with different brands since some brands work better at times than the others so you do not risk
everything in only one brand. The brands are sold on 46 markets in 247 own stores, through
wholesale and e-commerce. 14-15% of the total turnover are sold through external e-commerce and

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that portion have increased in the last few years. In 2017 they had a turnover of € 2 959 694 000
and they have 2 200 employees.

Interview with Anne Katrine Berthold Blirup, CSR manager of the company. She is responsible for all
the external communication on the company’s webpage about CSR which includes doing
CSR reports. She communicates with all the buyers in DK Company’s many brands and
advices them on how to choose their suppliers and encourages them to choose more
sustainable materials for their garments. They also have certain people in China, Bangladesh
and Turkey that are in charge of chemical restrictions. All new suppliers at the company go
through Anne Katrine before they are approved.

How many collections are released in a year depends on the brand, but 6-8 a year is standard with
express collection in between, so it is normally 12 in total. The smallest brand in the group normally
order 500 pieces and the biggest ones order around 50 000 pieces. The group therefore need to
work with a great number of suppliers in order to meet all different needs for MOQ. They work today
with in total 500 suppliers.

Suppliers
The company have manufactures in China, India, Pakistan, Portugal (shoes), some in Italy, Estonia
and they also work with one factory in Eastern Europe. Their biggest supplier is China with 40% of
the production, Bangladesh produces 25% and the rest is divided between the other countries. Anne
claims that there will always be many suppliers since there are so many different types of garments.
Since there are so many involved there are also a lot of different cultures meeting, this can usually
lead to problems with the communication.

Orders are being placed and sent to the suppliers by email. They are working to incorporate a
supplier platform but are not using it yet. Today they only have internal system which are not linked
with the suppliers, so all correspondence is by email.

Of greatest importance to have a good relationship with the suppliers is to have a fair pricing of the
products and transparency in the production. The relationship must be mutual rewarding for both
parties. The suppliers must have a certain steadiness for DK Company to completely trust their
capacity to produce when orders are being placed. DK Company expect the supplier to show that
they appreciate the cooperation, and so does the company, it’s a give and take relationship. That
makes it easier to communicate back and forth about the products and having a good dialogue. They
have meetings with their suppliers every three months and discuss what can be
improved for example regarding CSR matters.

New suppliers
It takes a lot of time to build up a new relationship and cooperation, and before doing so they always
question themselves if it is worth putting in the time and effort needed to get a product that is just
slightly better or cheaper. New suppliers should also be prepared that onboarding process takes a lot
of time, often up to a year. They get constant request from suppliers with promises of delivering the
“best products to the bets quality”.

CSR
DK Company require their suppliers to focus on health and safety, especially when it comes to fire
safety. They require 2 fire exits on each floor, and want their suppliers to be well aware of where
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those exits are aw well have the technical tools to communicate to the employees where they should
flee if a fire gets started. The workers should not try to put out the fire rather run from it, she points
out. There is also a concern regarding electrical safety for example overheated machines. The factory
should do thorough cleaning of the factory to not let dust float around since this can cause fires or
other safety issues. The workers have to wear gloves and other protection when handling cutting
machines. Child labour, discrimination and harassment is not accepted. DK Company also review the
management system and see how well they organize and make changes to solve critical areas that
DK Company have pointed out during an audit.

Regarding which countries have come further with CSR Anne Katrine tells us that Bangladesh have
made huge investments with improving their safety a lot the last few years, installing sprinklers in all
rooms and ensuring fire doors and they now have very good factories there. In India the government
have made a big effort to reduce the environmental damages. This have all made it easier for DK
Company because they can develop their suppliers from a higher level. So, it is appreciated that the
production country have a great engagement and work a lot with CSR. DK Company look a lot on the
current costumers when evaluating a new supplier to review the quality of the CSR compliance. If the
suppliers work with companies in for example Russia, they know that other costumer also have
requirements on the supplier.

Every time a buyer place and order they receive a valuation of the supplier’s environmental state
with green, orange and red marks. They have made a huge decrease of suppliers to do difficulties to
improve some suppliers from a red to an orange valuation. DK Company are very positive towards
developing critical CSR areas together with their suppliers but expect a mutual engagement. One
example is that they helped a supplier find a new building for the factory because the old one would
never be accepted.

DK Company’s material guide and CSR strategy is only a year old so this focus is quite new but
increasing. Since it is such a big company it takes a lot of time to implement the strategy with all
suppliers. This also means they are changing their business model from making the cheapest
clothes as fast as possible to having fewer collections. Anne Katrine assumes that the main priority
to work with further ahead will be sustainable material. She says that conventional cotton will be
gone in five to ten years. Besides that, also the traceability on all products as well as tracing the
manufacturers supply chain. In the future she expects that suppliers won’t constantly be working
with CSR, it will simply be something that is already there, she calls it a “norm”.

Advice
The suppliers should have a mapped supply chain and have the right prices. A challenge that
they will meet is that the suppliers and the buyers often have a split view on CSR.

Morocco
“Unfortunately, I have very little experience with Morocco as a souring country. But I would say that
you could probably find both good and bad factories there. Not sure about their labor laws etc.”

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Sports Group Denmark A/S
Background
Sports Group designs and produce sportswear and leisurewear for men, women and children in 15
different brands. The company is founded in 2012, have a gross profit of € 5 473 000 and 40
employees. They sell in both own stores and trough large sports chains.

Interview with Aga Gadkowska who is a product developer and works with design and
product coordination for the kid’s brand at the company. She has worked there since
November 2017 and she describes the company with the words “It’s all about sports, there is
no room for anything else. It’s not a fashion, it’s just functional sports garments”.
The company does four collections a year, one for every season. They mostly sell in the
Scandinavian market, specifically in Denmark and Norway, but also a lot in Germany which
she considered a very big market for the brand. They export to Europe as well and very little
to the rest of the world. The company’s biggest market is therefore Denmark, Norway and
Germany.

Suppliers and outsourcing


Sports group manufacture their garments mostly in China and partly in Bangladesh. They do
not manufacture all their different types of garments at the same manufacturers since the
different suppliers are better for some garments and others for other garments, for example
some are better at knit and some better as woven (she did not mention which country is better
for the different fabrics). The company outsource the production of the clothes but sometimes also
select among the designs made by the suppliers. Gadkowska says “The production takes place at
the suppliers, sometimes we work with their designs and develop them in order to fit us better, we
receive pieces from the garments and I work with them to make them as good as possible. All the
products take place at different suppliers, some are better for knit some for woven and so on, so we
don’t use the same supplier for all our products.”

Purchasing process
Regarding the purchasing process, Aga says “We send them a design that we want to develop, or as
mentioned earlier they could send us an example of a design and we would work with it and then
send it back to them. They send samples of the fabric as well and if we approve it we go on with the
design and the production.” She also tells us that they use Lectra system for making patterns and
communicating with the suppliers. She says that “everybody is using Lectra today”. Regarding the
quality control, the company has their own team who works with this specific manner.

Expectations on suppliers
Gadkowska tells us that is very important for her that the manufacturers speak fluent English or at
least understandable such, she says that it can be a very big problem with some of the suppliers and
it has happened many times that there has been a lack of communication because of the lack of
knowledge in the English language. A good supplier is also someone who can inspire and
contribute to the development. These points were also her advice to new suppliers entering the
market “speak good English and contribute to the development”. She is not clear about her
expectations on lead time in days but she mentions that the process can take months but when
china, specifically, sends their product it can take just a couple of days. With this, sports
group shows that they are fine with the process taking months but they appreciate fast
delivery once the product is finished. They often face difficulties regarding MOQ and a

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reasonable MOQ for the company would be 1500 to 2000. The company also shows an interest
in bringing in new suppliers over the next few years.

CSR
The company has high expectations regarding corporate social responsibility, the most
important aspect is how the workers at the facility are treated. Gadkowska refers to their
website for the information. These are the process and sustainability requirements that the
company has on the suppliers:

PROCESS REQUIREMENTS
SPORTS GROUP DENMARK expects all suppliers to develop and implement the following:
1. ADOPT POLICY STATEMENT:
Which must:
Be approved by the most senior level of the supplier.
Be informed by experts on human rights including labour rights, environmental, and anti-
corruption principles.
Stipulate the supplier’s expectations of employees and business relations on human rights,
including labour rights, environment, and anti-corruption.
Be publicly available and communicated both internally and externally.
Be reflected in other operational policies and procedures necessary to embed the policy
statement throughout the supplier’s operations.
2. CARRY THROUGH DUE DILIGENCE:
That – as a minimum – includes the following elements:
Identification: On a regular basis, the supplier must identify potential and actual adverse
impacts on human rights including labour rights, environmental, and anti-corruption
principles.
Prevention and mitigation: When potential or actual adverse impacts are identified, suppliers
must take action to prevent or mitigate such adverse impacts.
Accounting: Actions to prevent or mitigate identified adverse impacts, must be closely tracked
to ensure effectiveness. Suppliers are expected to communicate their findings, actions, and
tracking to relevant stakeholders including SPORTS GROUP DENMARK.
3. PROVIDE FOR ACCESS TO REMEDY:

Where the supplier identifies that it causes or contributes to actual adverse impacts on human
rights including labour rights, environmental, and anti-corruption principles, the supplier must
enable access to remedy for those affected and/or inform relevant authorities.
The supplier must provide access to remedy through legitimate processes (grievance
mechanisms) to victims of actual adverse human rights impacts that the supplier causes or
contributes to.
If the supplier is merely linked to actual adverse impacts, the supplier must use its leverage to
make the causing or contributing entity address the impacts.

SUSTAINABILITY REQUIREMENTS
Through the establishment of the processes outlined above, the principles that SPORTS GROUP
DENMARK expects suppliers to manage adverse impacts upon are described in the four following
subsections:
1. HUMAN RIGHTS, INCLUDING LABOUR RIGHTS
Suppliers should – as a minimum – manage their adverse impacts on the human rights stated in the
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International Bill of Human Rights that includes the core labour rights from the International Labour
Organisation’s Declaration on Fundamental Principles and Rights at Work.
2. ENVIRONMENTAL PRINCIPLES
Suppliers should manage all significant potential and actual impacts on the external environment in
relation to the areas of impacts addressed by the principles in the Rio Declaration on Environment
and
Development.
3. ANTI-CORRUPTION PRINCIPLES
Suppliers should establish adequate processes to counter corrupt practices. Such processes should
address the scope outlined by the United Nations Convention against Corruption.
4. ANIMAL WELFARE
Suppliers should manage all significant potential and actual adverse impacts on animal welfare.

Culture/Educe
About
Culture and Educe are two of the 20 brands of DK Company. Culture is founded in 2003 and Educe
is an upcoming brand founded in 2014 that focuses on fashion, and do not have any specific
collections. The selling is made through online wholesales and own e-commerce, some through
Zalando and Boozt. 20% of the sales is online sales.

Collections Educe
In total Educe has 25 styles and 8 ‘’collections’’, they work with a commercial fast-moving style.
Instead of having a few small orders Educe places many smaller ones, which makes it possible for
them to change the inventory of their stores much more quickly. Normally one small order is between
200-500 pieces.

Collections Culture
Culture normally do 6 collections with 80-200 styles each. They also have 4 more express collections
that are much smaller with around 25 styles each. They use 15-20 different suppliers for all their
collections, and 2 of them are the same as Educe. Between 2005-2007 Culture had 40 suppliers,
but since then they started rebuilding the company to reduce the number of suppliers and focus
more on building close relationships. This relationship gives them the possibility to receive fast
deliveries and order smaller quantities. With to many supplier they do not have any buying power.

Suppliers
When choosing between the suppliers they gave the suppliers ‘’points’’ for performance regarding
quality, lead time, claim rate, on time and product development. Reducing the number of suppliers
also made it possible for Culture to focus on the suppliers that are geographically closer, which
makes it easier to visit them, which they do 3-4 times a year. This has resulted in claim rate to go
down from 6% to 0.5%.

The garments are purchased mainly in China with 70% of the production, 25% in India and the rest
in Turkey and UK.

The entire DK Company has over 500 suppliers, which are all constantly evaluated and give one of
three colours; red, orange or green. If a supplier do not follow the rules and regulations DK Company
has set they will be let go.
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The suppliers will be audited by the CSR department, which entails thorough inspections of the
printing houses, dyeing factories and everything else that is connected to the supplier. They have
production offices in China, Istanbul and Bangladesh that is overlooking existing and new suppliers.

Sometimes the suppliers choose fabrics and style ideas, but Culture do not want to have the same
style as the competitors, which is why they prefer to buy prints from people who develop them from
scratch. Buying market prints is a big risk, since you might choose the same print as other brands.
One time, DK Company noticed a smaller competitor sold the same fabric they had in their stores, so
they contacted them, and the company said the supplier had given them the materials to use. Which,
as it turned out, was left over fabric from a DK Company order.

When transporting garment, they mostly use ships, however they have started testing by train since it
has a smaller environmental effect. This usually takes a few more days, which is why they still
transport by ships.

The QC is organized through receiving approval samples, which they test in-house. They also make
inspections at the ports and check random boxes of productions to make sure they are cut and
made properly. This is very good since the suppliers never know when a shipment is going to be
inspected, which forces them to keep the quality very high.

In regard to keeping a long lasting and good relationship Lars mentions he prefers when the
suppliers are tough in negotiating, since that shows the supplier fights for his products. He also likes
when the suppliers are responsible when finishing both samples and collections on time. They need
to be able to trust the suppliers completely. Normally the Lead times differ between countries. In
Turkey its between 4-6 weeks, in China 10-12 weeks and India 8-10 weeks. Transportation time is
excluded. UK is much quicker at 3-4 weeks with only a few days transport time. They are planning for
the collections about 1 year ahead to be able to manage the product development, the selling
process and the production.

Normally the MOQ is much smaller for Culture than the rest of DK Company at only 900-2000
pieces. However, if one order consists of many different styles that require the same material, it is
possible to make bigger orders.

New suppliers
Finding new suppliers is not a big focus for Culture at the moment since they are focusing on having
even fewer suppliers in the future. This is because the CSR issues has increased over the past years
and become a big part of the business. However, the times they try and find a new supplier they go
to fairs twice a year, but this is a difficult way to find out if a supplier is good enough. Word of mouth
between companies and internally is one of the best ways of finding new suppliers. Important to
even begin evaluating a new supplier is them having specialized knowledge about the production to
be able to contribute. CSR will also be a bigger part of the sourcing.

CSR
Their CSR department work closely with the suppliers to improve them, by 2020 they want 20% of
the business to be done in a more sustainable way. For this to be done they keep doing audits at the
factories, to make sure the workers are being treated the right way and to make sure no fur or other
materials are taken from live animals. They also work with BCI, so even though their cotton is not
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organic, but it is grown in a more sustainable way. Lyocell is better for the environment according to
Lars. The future focus will be to increase use of recycled polyester and other sustainable materials.

Morocco
On the question regarding how they perceive Morocco as a production country he said they at
Culture has no experience at all, and do not know anyone in their group that works with Morocco. All
he knows is that H&M sometimes works with companies located there.

Hummel A/S
Background
Hummel’s main business focus is handball and soccer garments. They do one collection every year,
there the collection for volleyball, handball and football is included. They also do collections for
streetwear and stretching but Anders focuses more on the sports garment.
Interview with Anders Lind-Jensen, responsible for product development, from design to
finished products including purchase for the sports garments.

The company sell products through agents working with sport teams, they don’t sell in
shops usually. The costumers choose from a catalogue and the agents select orders. Those orders
are placed at the company and later at the supplier. The clothes are then delivered to the costumer
by the agent. These orders are usually big orders for about 500 people.

Suppliers and outsourcing


They manufacture in Asia and mostly in India, Vietnam, Cambodia, Bangladesh and Pakistan. They
have moved from the factories in China due to the high prices, though they used to be a big player
for the company. Hummel has always done their own design and have their own design department,
they would not be interested in taking designs from suppliers but if that should ever happen then it
would be a close cooperation with the design team.

The first step in the purchasing process is a proto-sample to the manufacturer after supplying the
sketches, and the sample gets comments from the suppliers to see if they understand it, then
Hummel asks for a prototype for the fitting and this is where the actual fitting begins for the
garments. Then they get a preproduction sample to see exactly how it looks and then the production
starts.

The design is communicated first by Lectra for the pattern and then they use Illustrator for
the whole design.

Regarding quality control, they have people that work at the factories with the issue but also
people from their main office in Denmark and Shanghai who travel to the factory to do QC.
For Hummel it is very important with having good relationships with suppliers, they base
their production on long term relationships. These relationships require honesty from the
suppliers, to not hide any issues that may have come up in the process because suppliers tend
to hide the problems instead of telling them about it. The most common problem with
suppliers is to meet the price targets together with communicating about the design and achieving
the desired outcome of the garments. Regarding lead time it depends on what product and what
manufacturer it is, they often keep garments in stock for them so they could just be shipped upon
the company’s need. The MOQ for the company usually is between 1000 to 6000 pieces.

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CSR and environmental issues


Hummel has a manual for all the guidelines that the suppliers should follow, but if they do not
live up to the expectations it doesn’t mean that Hummel won’t work with them. Hummel then
starts a cooperation with the suppliers instead, to help them develop the CSR and make them
suitable for the company’s guidelines. The most important guidelines are for the suppliers to
treat their co-workers well, not to work more than a specific amount of time, to not have child
labour and to wear protective clothes when working with chemicals. The company often do check-
ups at the factories to see if they really follow these guidelines. The Scandinavian market often
require that the suppliers have certificates before starting to work with them, but it’s
not the same with Hummel since they help them develop these together. Regarding
material, they are at the moment using mainly polyester and certified material and they try to
reuse the water used in the making.

Advice to overseas suppliers


They should contact the companies and suggest a cooperation, but they should already have a
lot of insight on CSR and be working with that on a daily basis. They should be prepared to
meet challenges with the Scandinavian market, for ex. the difference in culture and way of
handling issues, they have to be prepared to be very honest with the companies regarding
every single detail.

Over the next few years there will be a lot of new suppliers coming in to Hummel because of
the move from china and moving to more priceworthy companies, but this isn’t the most
important part of the relationship, as mentioned earlier, trust and communication is key.

Morocco
When we ask about the interviewees perception of Morocco he says: "I have not been working with
Morocco for quite many years. My impression is that we can find better sources for performance
sportswear from other countries. Morocco is more suitable for fashion production where the lead
time has to be short."

Mos Mosh A/S


Background
Interview with Mads Gyldendal Fogh who is a buyer at the company and in charge of
providing and sourcing. He describes the company brand as a “Detail oriented brand with a
lot of pallets. It’s a jeans brand mainly but we do other clothes as well as shirts, suits, blazers.
All in denim, woven knit and also cotton.”

Mos Mosh does four collections each year, one for every season, and they have a focus on
150 different styles. They sell their garments all over the world, recently they entered the
Canadian market and are looking forward to entering the American. The company sees the
brand as a unique one due to its detail-oriented design and their costumer segment is therefore
people who are looking for a more different and elegant look.

Suppliers, outsourcing and distribution


The company have 25 suppliers, 18 of them makes styles for their next collection. They manufacture
their clothes in Portugal and Turkey, they specifically don’t work with Bangladesh due to bad working

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conditions for their employees. They outsource the production as well as the quality control, they let
their suppliers do the quality check for them and trust their judgement because they have a really
strong relationship with their suppliers.

They expect to have a close relationship to their supplier and to work with smaller companies
because that would mean that they are a big and important costumer to the supplier
The company owner does the design himself, he then goes out to the suppliers and meets them
in person to go over the design and show them how it’s supposed to look. They like suppliers
that are creative and could sometimes help with the vision, they appreciate creativity but the
design from the beginning is made by the company itself. Though it is not always that they go
over to their suppliers in person to show them the design, they also communicate it with
digital tools (he is not in knowledge of what their IT system is called).

Their production journey starts out with getting samples to the suppliers of the design and
fabric, approving them together with the suppliers and then placing the order. Then they get a
sample back and afterwards the order is placed and the production starts.
They expect a lead time up to 13 weeks, which is a reason for supplying from Portugal and
Turkey since it take less time to get the products. A reasonable MOQ for Mos Mosh is 500 to
1000.

CSR and environmental issues


The company is very CSR oriented and will not work with manufactures that they visit and
see that they don’t follow the guidelines that they say they do. They only work with suppliers
who follow human rights and make a good workplace for their employees. In one case they
even bought new chairs to their suppliers because their workers weren’t happy with the ones
they had.

New suppliers
Mads says that they do not require any specific certification, he just want to see that they
work with CSR when they visit the workplace. The company uses organic cotton and try to
use material that is good for the environment and reuse of water. Advice to new suppliers entering
the Scandinavian market “Introduce yourselves to the companies you are interested in working with
and be yourselves, I choose my suppliers by gut feelings many often, so it is important to show that
you are somebody who would be fun to work with. It is also very important that you live up to the
expectations on lead time and on communication, always be honest with the companies you
work with!” Mads says.

“We are very loyal towards our recent suppliers, we don’t shop from supplier to supplier and directly
search for new suppliers.
Instead we are always open-minded and willing to invite suppliers in for a presentation – sometimes
you get surprised, sometimes you meet suppliers who are producing only for Supermarkets. We are
curious and open-minded, because we are aware of the fact that the quality bar can always be liftet
even higher.”

Morocco
The company would be interested in hearing from the Moroccan suppliers and seeing what
they have to offer, since they are looking to possibly move out of Turkey over the next few
years. They are also interested in hearing more about the “Maroc in mode”.
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Munthe A/S
About
Munthe is a niched brand that focus their sales towards women. They offer high end apparel with
their 4-7 collections per year. They have 15-20 producers over the world and the factories are
located in China, India Turkey and Portugal. They also do not have any production offices.

The quality controls are done by visiting the factories in each country, as well as through
communication with suppliers. They keep all the designing in house and use a system for sharing
patterns with overseas suppliers called ‘’Pad System’’. Munthe strongly believes in long lasting
relationships with their suppliers, which is important to them since they try and keep a lead time of
90 days.

They normally face difficulties regarding MOQ from their suppliers, they prefer to have orders around
500-1000 meters, which is difficult at times.

CSR
Regarding CSR and sustainability Munthe expects that their suppliers are compliance suppliers that
are fully updated on the market requirements. How-ever they don’t have any work with
environmentally friendly materials when producing their clothes. The only guidelines they follow
regarding CSR are internal.

Suppliers
The most important traits for a supplier is that they are good at communicating, they keep a stable
and trustworthy organization and has their deliveries on time. The quality also has to be compliant
with the EU regulations.

Morocco
The interviewee has had no experience with production located in Morocco, and said she could not
give any comments regarding it.

ICHI
About
ICHI turns to women and is described as creative, brave and feminine. They drop six collections per
year. They operate in 20 countries and are represented in 1500 shops. The brand falls under DK
Company. There are 50 employees working at ICHI. We spoked to Jette Bargum who is the buying
manager in one out of three buying departments, main clothing team, which is where the biggest
profit is. The other two departments are “express team” and “accessories team”.

Collection
There is no physical Ichi stores, instead multi-brand stores by items from the sales team. First of in
the process is that the design team creates the collection. Then buying managers travels to the far
east and go through design, quality and negotiate prices with three to four suppliers. When that is
done, they decide which supplier gets the opportunity to produce the items. The proto sample will go
through a quality check at the company’s technician. Some items are stock-ordered and some
produced based on how many orders from the multi-brand stores. They produce six collections, four
big with 250 styles and two smaller ones with 200 styles.
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1 year before collection-drop, they start working on the design and then 3 months for production + 1
month shipping. Regarding MOQ, Jette talks about the importance of relationships. Their minimum is
around 600 pieces but they add that in to order with much more quantity.

Suppliers and production


Try to use the same suppliers since they have a long relationship and been training the suppliers for
several years. They use approximately 42-50 suppliers, depending on what collections. Jette points
out they do not let the same supplier produce outerwear and then the summer collection. They need
to be specialized.

Production in Bangladesh, China, Pakistan and some in Turkey. They have reduced the number of
suppliers. They need to go deeper down in the supply chain and be more involved in CSR and
sustainability. Production office is located in Bangladesh, China and Turkey. They also use agents
but Jette is not very fund of using them since they have no control over the fabrics.

CSR
CSR and Sustainability, something that is becoming more and more important. Two years ago, Ichi
felt way behind and started to work on improvement. They educated themselves in a fashion school
in Denmark where they also set the goals for year 2020 and year 2025. The first goal is that 20%
shall be sustainable. For instance, they are converting viscose to a more sustainable kind. But it is a
balance for them in price since their costumer are not prepared to pay a cent more. Key is to make
suppliers feel the need to be a part of this transformation and make it the normal way of producing.

Ichi has a CSR department. Sometimes they are doing the audits and sometimes they use a third
part. They are part of BSCI, BCI and are also in the middle of becoming a member for a down
certification. Last collection they made sure every cotton used were BCI cotton.

New suppliers
Suppliers need to priorities CSR. Need to be able to send good samples so that the buyers feel
inspired. To be able to send good samples you need to understand the European market and that
customer. If you are recommended you are higher rated. It is good if you are able to show top three
of the buyers that you are currently working with, preferably European but it can also be from the
USA or Australia.

Morocco
Have not worked with them before. Know that they are pretty good, especially in woven and denim
area, but are under the interpretation that they have really high MOQ. Jette express that she is
extremely interested in Morocco and would like for us to set up a meeting. She welcome Moroccan
suppliers to their office. She suggests that they should do a slideshow, not one that tells about how
many machines and such, that is irrelevant.

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Gestuz
About
Gestuz is a modern brand that offers relaxed and chic items to women. Gestuz is one of the brands
under DK Company and therefore they do not publish their own gross profit or turnover. 20
employees are currently working at Gestuz. The interviewee is Kristina Fromm who is a buyer at
Gestuz.

Collections and suppliers


Gestuz has 6 collections each year with 2 smaller express collections in between to make sure some
new products fill the stores. It normally takes 9 months from the start of a collection until it’s in the
stores. That includes the start of sketching, sourcing, production all the way to the deliveries to
stores. The garments for the productions are normally purchased in, mainly China, but also Turkey,
India, Portugal and Bulgaria. The total number of suppliers they use at the moment is 30, which has
been the same number for the past few years since the prefer to develop their suppliers and improve
them. The only reason for them working with another supplier is if that supplier can offer something
the others do not have.

The buying department source by sending cuts to suppliers and by travelling to countries where their
suppliers are. In China, they have an office with their own Chinese merchandiser who follow the
sourcing operations in the area together with Gestuz.

The typical steps of the purchasing process are the following:

• Sourcing suppliers or markets


• sketches/ tech specification to suppliers
• Negotiating prices in proto stage
• Receiving proto samples, and making sure that prices is being kept or if price will increase
because of many changes (in a positive way)
• Receiving photo sample – this is for photo shoot
• Making sure all prices is in system for sales meetings
• Placing orders weeks after sale meetings
• Follow production aspect for example approve garments and colour for production
• Making sure that the best possible product is served for our end consumers.

The communications is normally done by email, phone calls and chatting online. They work through
Navision and Info-suit. Designs are done by using illustrator, InDesign, Photoshop and Bridge.

The important aspects regarding a long lasting and good relationship with a supplier is that they work
as a team. Most of Gestuz suppliers has been with them for a long time, which means they know
what they need and when. It means they don’t have to waste time explaining the process or what
needs to be done, it also makes it easier to travel and visit for the reviews. The suppliers are also
aware of the pricing, what qualities they need and the standards that are set.

Sometimes they face difficulties regarding MOQ from their suppliers. How-ever then they negotiate a
new price, or add more volume if they believe the products might sell. The MOQ differs greatly
between product, some products such as t-shirts might need more orders than a silk dress.

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New suppliers
When looking for new suppliers it normally depends on what they need. Since Gestuz is a part of DK
Company they could always contact other brands who are doing some similar styles they want.
Otherwise they get in touch with their contact person in China and see if that person knows a good
supplier, for a specific purpose. Her advice to suppliers to get recognised is for them to have a good
company profile, as well as make sure they work in a sustainable way and be ready to show their
certificates and initiatives. According to Kristina she receives emails and phone calls from suppliers
every day. The most important thing to impress and stand out, according to her, is that they show
what they do regarding sustainable initiatives.

CSR
The CSR guidelines they are committed to are according to the ones DK Company decide.
(http://www.dkcompany.dk/index.php?id=1440) Which entails being part of BCI, having an ethical
supply chain (knowing where the materials from animals come from), using sustainable materials
and being part of modern slavery statement. These guidelines are demands for all suppliers, which
means they need to follow the certifications regarding down, wool, organic cotton and recycled
polyester.

Morocco
When asked about her perception of Morocco as a production country Kristina said she never
thought about it. It might be since she has never had a meeting with a supplier from Morocco before,
or anyone else from Morocco who has contacted her. She is very satisfied with the suppliers they
have now and the countries they work in right now.

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