Innovation of the Week is a subscriber-only series highlighting retail initiatives that have caught the eye of our team. Every week, we will bring you new ideas and case studies that link to the trends in our Retail Horizon 2024 reports – across consumer, technology, sustainability, and economy, policy and industry.
What is it?
Ethical French footwear brand Veja has begun selling a locally sourced and manufactured range of trainers to customers across Europe.
The Made in Europe range is listed separately, at a slightly higher price point, with sourcing and production taking place in Portugal, allowing Veja to take steps towards a more sustainable and responsible future in Europe.
Why does it matter?
Veja’s Aegean Project provides a new way to offer increased sustainability to customers, with the benefits of supporting European workers and lowering carbon emissions.
Unlike its main range, which is manufactured in Brazil, the Made in Europe assortment is sourced and manufactured locally, giving customers the option of a product with greener credentials.
Since the project began last year, more than 100,000 pairs have been manufactured.
“In 2023, we secretly launched production in Europe, and we’ve already produced over 100 000 pairs in Portugal without communicating it to anybody. Veja partners with a factory in Portugal where employees work a standard 40-hour week. Monthly salaries average €1,300”
Source: Veja website
Strategic implications
Localised supply chains make a lot of sense from a business and sustainability perspective, particularly in light of geopolitical challenges such as Red Sea shipping disruption.
With this differentiated range, Veja will really test whether customers are willing to pay more for a product with higher sustainability credentials.
Winning strategies
- Supply chain localisation
- Informed decision-making for consumers
Retail Horizon 2024 is Retail Week’s exclusive strategic toolkit for subscribers.
Across four in-depth reports, Retail Week research director Lisa Byfield-Green and our team of analysts explore the most significant trends that will shape the sector in the year ahead across consumer, technology, sustainability, and industry, economy and policy.
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