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Daily Newsletter

09 August 2023

Daily Newsletter

09 August 2023

Schuh steps up supply chain ethics with Segura collaboration

UK footwear retailer Schuh takes a step forward with its sustainability strategy by joining forces with supply chain transparency platform Segura.

Isatou Ndure August 08 2023

Schuh's partnership with Segura aims to ensure its footwear supply chain suppliers are ethical, sustainable, efficient, and compliant.

Schuh's adoption of Segura's Software-as-a-Service (SaaS) solution is said to enable the company to extend its supply chain mapping, automate its collection of environmental, social, and governance (ESG) data, and maintain a vigilant watch over its suppliers' performance, as well as the materials and components used in its products.

Schuh's core objectives revolve around attaining comprehensive visibility into its supply chain operations and conducting in-depth assessments of its product's environmental impact.

Segura is described as being the only solution on the market to allow companies to continuously map and monitor a multi-tiered supply chain.

It hopes to help Schuh to deliver its targets as well as monitor the performance of its suppliers, materials and product components throughout its supply chain.

Segura aims to help companies navigate the complexities of today's global supply networks while upholding stringent ethical and environmental standards.

Schuh's assistant QC manager Davie Leggat explains: “Supply chains have become more dispersed and global, and in turn, so have data capture and reporting. Segura will provide us with access to real-time, accurate information. Segura’s ability to capture and enable us to monitor our emissions and ESG standards is vitally important to our business and goals.”

Central to Segura's service is its supply chain mapping and visualisation technology, which is said to be tailored towards retailers and brands. Its technology creates a chain of custody by order, systematically capturing compliance information and contributing to transparent practices across the entire supply chain.

Patrick Wall, CEO of Segura is keen to highlight the potential of the collaboration. He says: “Segura’s real-time and continuous due diligence throughout the up and downstream supply chain can help our customers to achieve specific ROIs. Our aim is to help brands positively impact people and the planet, interrogating supply chains gives us a real opportunity to help businesses achieve key sustainability and governance targets”.

Value apparel has gained appeal amid high inflation

Per latest GlobalData estimates, the global value apparel market was valued at $228.8bn in 2022, exceeding pre-pandemic levels and outperforming the other apparel price positions. This was partly due to consumers trading down to more affordable brands as they faced inflationary pressures, but also due to the rapid rise of fast fashion player Shein, which has leapt into the market leading position. Between 2022 and 2027, the global value apparel market is forecast to achieve a CAGR of 3.2%. Gen Z is a key target audience for value apparel players, due to their usually limited disposable incomes and high purchasing frequencies as a result of wanting to follow rapidly changing trends meaning they often prefer cheaper brands. As fashion is of high importance to this demographic, they are also less likely to cut back on spending on clothing and footwear amid inflationary pressures. However, value players are under pressure to reduce their environmental footprints amid changing consumer perceptions and evolving regulations regarding sustainable business practices. Supply chain disruptions and higher production costs continued to impact value brands in 2022 due in part to the outbreak of the war in Ukraine and lasting COVID-19 restrictions in China, which is highly detrimental to value players due to their already thin profit margins and their low price business models.

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