Responsible Product Sourcing
Building a responsible supply chain ensures safety, high quality children’s products, which is our top sustainability priority. For over 70 years we have been a reliable partner for numerous generations of families.
Strategic Devevelopment Areas for Responsible Product Sourcing
- Responsibly processing the goods we purchase
- Purchasing environmentally friendly and safe children’s products
- Developing local production of children’s goods
Supplier Adherence to Sustainability Principles
Providing quality products to our customers means paying attention to the safety and social and environmental impact of our products and the materials that are used to manufacture them. Compliance with both the Company’s Supplier Code and local laws is a prerequisite for working with Detsky Mir.
In 2021, the Company launched an audit process to vet suppliers’ compliance with sustainability principles. Social, environmental, and ethics audits are primarily undertaken at the sites where the Company’s private labels are manufactured. By the end of 2021, the Company will establish a long-term target for the share of private label suppliers to undergo such an audit.
Product Safety and Quality
Detsky Mir monitors the quality and safety of goods at all stages of their life cycle: from the moment a supplier is selected to the point at which it is reviewed by our customers. The Company’s policies and systems comply with all Russian, Kazakh, and Belarusian regulatory requirements, and also take into account best international experience in the retail sector.
In partnership with the world’s largest manufacturers of children’s products, Detsky Mir also monitors the presence of a test report and ISO certificate, confirming that the products comply with the regulatory requirements of the manufacturer’s country, as well as the legislation of the countries of the Customs Union.
Detsky Mir manages the certification process for its private labels. Certificates of conformity for each Detsky Mir product can be checked on the website of the Russian Federal Service for Accreditation (RusAccreditation).
Responsible Use of Chemicals
Detsky Mir supports the responsible use of chemicals in the production of the goods it sells in accordance with the laws of Russia, Kazakhstan, and Belarus. In addition to regulatory compliance, the Company has developed a chemicals policy. In accordance with this policy, Company suppliers are obliged to adhere to the confirmed list of prohibited chemicals when manufacturing products purchased by the Company.
Detsky Mir became the first Russian contributor to ZHDC, an international initiative aimed to eliminate hazardous chemicals from the clothing industry’s production processes and ensure that wastewater is treated properly. The goal of the program is to implement ZDHC guidelines and tools across the supply chain.
Purchase of Goods Made from Environmentally Friendly or Recycled Materials
The use of organic cotton represents another opportunity to offer customers high-quality, sustainable products. At the end of 2020, the Company decided to focus on the procurement of goods in the Fashion category made from responsible materials, and specifically cotton.
This cotton typically includes organic and recycled cotton, as well as cotton from the Better Cotton Initiative. Organic cotton is grown without the use of chemicals, pesticides, or fertilizers; material obtained from this cotton is processed without using aggressive bleaches or dyes.
The Company uses recycled raw materials for the production of private label goods. Five models of running shoes made from recycled materials were launched in 2020, and all 14,200 pairs were sold during the year. Detsky Mir also released a trial batch of environmentally friendly hangers made of recycled plastic and straw. The share of hangers made of recycled plastic is planned to increase to 40% by the end of 2021.
Developing Local Manufacturing of Children’s Products
The Company continues its program to support local manufacturers of children’s products, i.e., goods produced in Russia, Kazakhstan, and Belarus. In 2020, children’s goods manufactured in countries where the Company operates as a share of total sales increased by 1 p.p. year-on-year to 26.7%.