September 2015 Version 1.0

FOOTWEAR AND LEATHER DEFECT ANALYSIS

FOR THE FOOTWEAR & LEATHER INDUSTRY

GLOBAL SOFTLINES

Restriction on Use and Disclosure of Presentation InformationThis document is the proprietary and exclusive property of SGS Global Softlines Development Office except as otherwise indicated. No part of this document, contents, including, but not limited to, all graphics, images, and text contained therein, may be modified, reproduced, or used for other purposes without the prior consent of SGS Global Softlines Development Office.;; doing so is a violation of SGS Group’s copyrights and other proprietary rights.

The information contained in this document is subject to change without notice.

2FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

HAVE YOU CAME ACROSS THESE SCENARIOS?

3FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

WE NEED TO FIND THE ROOT CAUSE TO THE PROBLEM TO SOLVE THE PROBLEM AT SOURCE

4FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

§ Shoes showing differential wear characteristic after consumer use

n Shoes showing differential wear characteristics after consumer use

§ Identified as an issue with cutting components from the wrong part of the hide

§ Advice given to ensure that the correct components (e.g. vamps) are cut from the correct part of the hide (e.g. butt)

§ Recommendation to update footwear manual to specify which components can be cut from which parts of the hide

ROOT CAUSE

Parts of a Hide

Shoulder

BellyBelly

Axilla

Neck

Butt

Shoulder

BellyBelly

Lines of natural tightness

§ Leather stretches less in these directions

§ Major footwear components cut ‘heel to toe’

7FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

Hide / Skin Elasticity

Directions of tightness are similar along bovine, ovine, caprine and porcine

§ Butt area tends to the tightest and best used in the vamp area§ The belly area has the least level of tightness and therefore more elastic§ The tightness of the shoulder area falls in between the butt and belly

8FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

§ Shoes showing poor break even before consumer wear

n Shoes showing poor break even before consumer wear

§ Identified as a construction issue of incompatible flex properties of the upper and lining

§ Toe Puff Counter reinforcement not attached correctly

§ Can also be the result again of cutting.

§ Advice given to work with the product design and footwear factory to create compatible constructions

§ Recommendation to add product assessment including visual assessment by competent technologist

ROOT CAUSE

9FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

§ A leather case developing a white haze on the surface

n A leather case developing a white haze on the surface

§ Identified as a ‘blooming’ issue caused by temperature changes during storage and transport

§ Advice given to work with the tannery to ensurefatty acids are removed during beamhouse processing

§ Further practical advice given as to how current stock can be salvaged and the potential future dangers of the issue re-­appearing

ROOT CAUSE

10FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

n Sole Adhesion failure

§ Incomplete cross linking of the Adhesive§ Poorly prepared surfaces§ Contaminated surface

§ Suggested advice inspection of manufacturing process, roughing depth, priming of surface, age of adhesive, is the adhesive within shelf life, application of adhesive.

ROOT CAUSE

Showing out sole failure, will cause customer complaints and returns

11FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

n Break /Pipiness

§ Loose Leather

§ Hard Coatings

§ Thick substrates

§ Advice review with supplier the finishing and substrate materials the level and method of application

ROOT CAUSE

Poor break in leather surface often cause for customer returns or complaints

12FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

n Yellowing / Colour Change

§ Identified as Light damage can cause yellowing / colour change

§ Chemical Attack§ Migration of oils /Fats natural or synthetic

§ Check with the supplier the fat liquors used, how they have been fixed, the compatibility of the

§ Check colour stability to light

ROOT CAUSE

Yellowing / Colour Change

13FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

n Poor tear strength

§ Leather split to thin in manufacturing at Tannery.

§ Poor natural fibre structure or biological/Chemical damage or putrefied hide before tanning weakening the integrity of the finished article

§ Leather made to firm (Low tear strength as load is not distributed)

§ Advice given to work with the tannery to ensure fatty acids are removed during beamhouse processing

ROOT CAUSE

Poor tear strength,

14FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

Finish Loss

n Finish loss

§ Can be Identified as poor design using protruding surfaces

§ Finish Adhesion, Finish strength§ Ingress / egress

ROOT CAUSE

15FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

Finish Cracking

n Leather surface / Finish cracking

§ Identified as a incorrect finish type or finish application

§ If PU finish hydrolysis may have accured (crumbling)

§ A poorly prepared surface§ Storeage of the leather§ Product ageing§ Further practical advice given as to how current stock can be salvaged and the potential future dangers of the issue re-­appearing

ROOT CAUSE

16FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

Mould Growth, customer returns, high cost for shoes to be destroyed.

n Mould growth

§ Identified as no or insufficient anti bacterial treatment

§ Raw material supplies§ Harsh Warehouse conditions§ Production controls, clean environment

§ Harsh transportation

ROOT CAUSE

17FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

MOULD PREVENTION SOLUTION

Supply Chain for Footwear & Leather Goods

18FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

MOULD IN THE FOOTWEAR INDUSTRY

n Shoe parts which easily mildew

Easy to mold in Mesh fabric

Easy to mold in leather upper

19FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

WAREHOUSE CONDITION CONTROL

n Enhance Warehouse management§ FIFO-­ Follow up “First in-­First out” system

§ Improve warehouse-­in/out inspection Policy

§ Achieve Partition storage/ labelling Policy

§ Regular inspection Policy

20FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

WAREHOUSE CONDITION CONTROL

n Optimum Ambient Moisture Levels

MATERIAL MAX RELATIVE HUMIDITY %

Linen / Flax 77%Cotton 65%Nylon 65%Acetate 60%Leather 50%Silk 45%Viscose / Modal 45%Paper / Straw 45%Acrylic 40%Polyester 40%PU / PVC 30%Wool 25%

21FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

n Improvement for Warehouse § Separate at least 3 areas for material storage:

• In coming material area• Inspection area• Storage area.

§ The materials must not be placed directly on the floor, but use plastic pallets instead to avoid catching moisture from the floor

PROPER ARRANGEMENT USE OF PLASTIC PALLET

WAREHOUSE CONDITION CONTROL

22FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

WAREHOUSE CONDITION CONTROL

AIR BLOWER

Humidity& Thermometer AND LogbookDehumidifier

12cm FROM Floor1 METRE FROM WALL

23FOOTWEAR AND LEATHER DEFECT ANALYSIS SERVICE ¦ SGS Global Softlines ¦ June 2015© SGS Group Management SA – 2015 – All rights reserved – SGS is a registered trademark of SGS Group Management SAThis document is propriety and confidential information of SGS – Disclosure to third party subject to SGS prior approval

ROOT CAUSES

n All of these examples have root causes which can be established and corrected / eliminated

§ Identification of what the core issue(s) is / are

§ Advice as to what short term steps can be taken to correct current batches (if appropriate)

§ Understanding what is required to ensure this is eliminated from future deliveries

§ Practical recommendations for the supplier to improve product quality

SGS Global Softlines Footwear & Leather Team

Dr. Andrew Hudson:Andrew.Hudson@sgs.comMr. Paul Bridge: Paul.Bridge@sgs.com

Find us on www.sgs.com/softlines

Thank YouTo understand more about SGS Global Softlines,

Please contact us!

Restriction on Use and Disclosure of Presentation Information

This document is the proprietary and exclusive property of SGS Global Softlines Development Office except as otherwise indicated. No part of this document, contents, including, but not limited to, all graphics, images, and text contained therein, may be modified, reproduced, or used for other purposes without the prior consent of SGS Global Softlines Development Office.;; doing so is a violation of SGS Group’s copyrights and other proprietary rights.

The information contained in this document is subject to change without notice.