DATA

ABOUT THE BRAND

Everlane sell a range of women’s and men’s classic basics, via its online store. The brand has no physical retail outlets, and its business model is based on providing contemporary yet timeless styles at a direct to consumer price point. The brand calls its transparency around pricing ‘Radical Transparency’.

HIGHLIGHTS

THE PROS:

🔎 Everlane shares stories and photographs of their first tier and some of their second tier suppliers.

🔎 Everlane shares a breakdown of the cost of each product with its customers in order to demonstrate what the brand terms radical transparency.

💪🏼 In a correspondence with the brand, Everlane states that its factories pay between 10% and and 93% above the minimum wage in each region. On average, it states this is 49% above the regional average.

THE CONS:

♻️ Everlane does not publicly share any information about specific environmental policies.

🔎 The brand cannot currently trace its entire supply chain.

♻️ Everlane states that as at March 2017, the brand had not conducted any audits on its raw material or textile processing facilities.

💪🏼 The brand does not publicly share any policy against the use of cotton sourced from Uzbekistan in its products.

/ Everlane retails through its online store, and has a showroom in New York. Customers can visit the Everlane Lab showroom to try on and purchase garments, which will be shipped to them from the brands distribution centre.

/ The brand has 17 suppliers listed on its website. This number does not include raw material suppliers.

/ Everlane estimated in July 2015 that it has over 10,000 factory workers around the world.

/ The brand’s tee and sweatshirt factory in Los Angeles produces over 20,000 Everlane tees a month.

/ In December 2015, Bloomberg reported that Everlane’s sales in 2013 were $12 million and $24 million in 2014. PrivCo, a firm that tracks private companies, estimates Everlane’s revenue could be $35 million in 2015. Everlane no longer shares sales information publicly.

/ In October 2015, Racked reported that Everlane does not release collections by season, but rather introduces a few new items a year, one by one. Its products are designed to be timeless in look, that the clothing has a current point of view, but can also be worn in 10 years.

 

/ There is a public list of cities & countries of some of Everlane’s suppliers on its website. Everlane does not share a public list of suppliers’ names and addresses, and it is unclear how much of the brands supply chain this covers.

/ The brand shares stories and photographs of some of their first tier and second tier suppliers.

/ In 2016, Everlane started tracing its animal products and currently has traceability on one full yarn, it’s Luxe Wool. The brand hopes to conduct traceability on all of its animal products in the next 24 months. The brand reported via Instagram in November 2016 that all its wool is sourced from Australia, from The Woolmark Company.

/ Everlane does not report annually on sustainability practices and progress. The brand does not communicate the environmental impact of its supply chain.

The brand cannot trace its entire supply chain.

/ In October 2016, The Fashion Law reported on Everlane’s lack of transparency compared to brands such as H&M and Zara for its failure to name its suppliers or share audit reports publicly.

/ Everlane has a Vendor Code of Conduct that all vendors, suppliers and factories that the brand works with are required to comply with as a condition of doing business with the brand. The brand states that it also expects its suppliers to abide by all applicable local laws, rules and regulations, as well as promote continuous improvements to working conditions.

/ In a correspondence with the brand, Everlane states that its factories pay between 10% and 93% above the minimum wage in each region. On average, it states this is 49% above the regional average. In China, the brands factory workers are paid a base pay and given other incentives and bonus pay. In those factories, the brand states it pays 43% higher than the required regional minimum wage.

/ Everlane audits each of its 1st tier factories 4 times per year, and on top of this the production team visits 3x year. The brands audits look at 5 areas – health & wellbeing, management systems, labour, wages & hours, and environment. The brand has 3 levels of audit – fully announced, semi announced, and unannounced. For the annual audit, which is an in depth audit, the factories are given 2 weeks notice. The unannounced audit is a half day audit focused mostly on environment and labor issues.

/ The brands goal is to build a strong supplier base, and it aims for an audit score of 85% for each factory and stated to us in march 2017 that its average factory base score was currently 90.1%.

Everlane states that right now, it onlys audit at factory level. The brand has just started to audit sub-contractors, along with the stitching factory for its shoes in Italy, and aims to roll this out to other products this year and into 2018.

/ In December 2015, Bloomberg reported on a factory in Dongguan, China producing bags for the brand which had scored poorly on multiple audits. Everlane stated to us that, with its partner Intertek, it provided the factory with a CAP and 16 management hours to make improvements which has led to an improved score of 79%. The brand has subsequently sourced an additional bag factory to balance this out which scored over 90% on its first audit.

The brand states its focus is on natural materials and that as of March 2017, 82% of its products are made from natural materials (cashmere, cotton, wool, etc) and 18% are synthetic.

/ In 2016, Everlane started tracing its animal products and currently has traceability on one full yarn, it’s Lux Wool. The brand hopes to conduct traceability on all of its animal products in the next 24 months.

/ In a correspondence with the brand, Everlane states that any animal-sourced material is never harvested using methods that harm the animals involved. We don’t have any further information on any animal welfare policies.

The brand reports that it tests every style of product, through its partner Intertek, for regulatory/chemical (i.e. CA Prop 65), safety, and performance. Testing happens in 2 stages: 1) At the raw material stage (e.g. fabric and trims); 2) Final product stage (e.g. garments, bags, etc). Products are sent to a lab for testing before they get shipped. Everlane states that a product cannot ship unless it has passed all the applicable testing standards and requirements.

/ Everlane has a Vendor Code of Conduct that all vendors, suppliers and factories that the brand works with, must comply with as a condition of doing business with the brand. This includes an environmental provision stating: 

Everlane Vendors must have written environmental policies and standards in place and must conduct operations in a manner consistent with international environmental laws and regulations.

This clause is auditable at all levels, however up to March 2017, the brand had not conducted any audits on its raw material or textile processing facilities.

 

 

 

 

 

/ The brands goal is to build a strong supplier base, and it aims for an audit score of 85% for each factory and stated to us in march 2017 that its average factory base score was currently 90.1%.

In 2016, Everlane started tracing its animal products and currently has traceability on one full yarn, it’s Luxe Wool. The brand hopes to conduct traceability on all of its animal products in the next 24 months.

The brand does not publicly disclose that it is a part of any multi stakeholder initiatives to improve the social and environmental impact of its supply chain.

/ Everlane reported to us in March 2017 that it had recently hired a Raw Material Manager whose focus will be on sourcing environmentally conscious materials.

 

Everlane reports that each year its Black Friday Fund donates the profits from Black Friday sales to benefit one of its factories. In 2016, the brand reported raising $117,760 which went towards purchasing moped helmets for the workers at its Nobland Factory in Vietnam.

In January 2017, Everlane launched its 100% Human campaign, pledging $5 for every product sold in the range to ACLU. As of March 23, 2017, the brand has raised over USD$73,000 for the organisation.

In March 2017, for International Women’s Day, the brand released a range of pink 100% Human products pledging $5 from each product sold to Equality Now. As of March 23, 2017, the brand has raised over USD$28,000 for the organisation.

/ In 2014 the brand raised funds for the Rana Plaza Donors Trust Fund, matching every dollar donated by customers up to $10,000.

/ We do not have any information on how much the CEO was paid in the last financial year.

/ There have been no reported management issues.

/ Everlane shares a breakdown of the cost of each product with its customers in order to demonstrate what the brand terms radical transparency.

/ The brand shares stories and photographs of some of its first tier and second tier suppliers.

/ Everlane has not reported investing in any sustainability related innovations.

VOICES

CHAVIE LIEBE | RACKED

“Jeff Trexler, the associate director of Fordham’s Fashion Law Institute, notes brands like H&M and Forever 21 have touted more ethical initiatives as of late….. “All of this is in direct response to Everlane’s presence,” Trexler posits. “Everlane has photos of smiling employees and clean factories abroad, and they are putting pressure on brands to follow suit, because otherwise it looks like they are hiding something.””

“But for all its talk of transparency, Everlane is extremely tightlipped about internal goings-on. Preysman was the only Everlane employee offered up for this story, and no one from the design or creative teams was made available to be interviewed. Repeated requests to visit the brand’s New York office were declined.” – 10/8/2015


RYAN CALDBECK | FORBES

“Their website isn’t just about business—it’s about how they do business. You see their factories; you see their stories. You learn why they chose the factories they chose; you learn when they last visited the factories, and you learn who owns them.” – 4/24/2015

 

 

MICHAEL PREYSMAN, FOUNDER & CEO | BLOOMBERG

We have a level of loyalty, so working with the factory to improve is important. We can’t just say, ‘Hey, we don’t like what you’re doing. Peace. We’re out’.” – 12/02/2015

BRAND WEBSITE

“We constantly challenge the status quo. Nothing is worse than complacency, and as a brand our culture is to dissect every single decision we make at every level of the company.”