Chinese shops selling everything from t-shirts to shoes are not uncommon in the South African retail landscape, they offer you a pair of look-a-like Nike's at half the price and a fake Puma cap to go with your shoes at even less. The untrained eye wouldn't be able to spot the difference right away, but on closer inspection you would notice the spelling mistakes in the name (to avoid legal action) and the poor quality of workmanship.
It is true that we all love a bargain, there is nothing wrong with that, but when your bargain takes away from the local economy it becomes a problem. Smaller textile companies had to close down and it has left more than 60 000 people without jobs since 2005.
Ever since South Africa imposed restrictions on imports from the Chinese markets in 2006, not much has changed. Evidence even suggests that the crisis has deepened, this in part due to the general economic down turn.
A recent study done by Professor Mike Morris and Lyn Reed of the School of Economics at the University of Cape Town found that although the sanctions have caused a slight decrease in the Chinese imports, it also caused some industry players to import from countries that offer merchandise at even cheaper.
During 2007, Renato Palmi - a researcher and development specialist in the clothing, textile and fashion sector, undertook research for the Durban Fashion Council and stumbled upon some shocking rumours. These rumours cannot be confirmed as true but in interviews done with retailers in the Durban area they admitted that they know of other companies buying Chinese imports and rerouting them through India, were a 'made in India' label is added and a button or collar. However, these rumours are hard to prove as mentioned earlier.
Chinese imports are still flooding in from our neighbours as they do not have any trade agreements with China, customs is trying to stop these garments coming in through the borders, but to be really effective it has to be stopped at the source.
Two years have passed since the trade agreement was set in motion and it has run a substantial part of its lifetime without achieving any of its purported aims. How long will it take for the Department of Trade and Industry to acknowledge this and try and rectify it?
Written by Annali Smith
Published: ie Driven by Design
Dec 08 –Feb 09
It is true that we all love a bargain, there is nothing wrong with that, but when your bargain takes away from the local economy it becomes a problem. Smaller textile companies had to close down and it has left more than 60 000 people without jobs since 2005.
Ever since South Africa imposed restrictions on imports from the Chinese markets in 2006, not much has changed. Evidence even suggests that the crisis has deepened, this in part due to the general economic down turn.
A recent study done by Professor Mike Morris and Lyn Reed of the School of Economics at the University of Cape Town found that although the sanctions have caused a slight decrease in the Chinese imports, it also caused some industry players to import from countries that offer merchandise at even cheaper.
During 2007, Renato Palmi - a researcher and development specialist in the clothing, textile and fashion sector, undertook research for the Durban Fashion Council and stumbled upon some shocking rumours. These rumours cannot be confirmed as true but in interviews done with retailers in the Durban area they admitted that they know of other companies buying Chinese imports and rerouting them through India, were a 'made in India' label is added and a button or collar. However, these rumours are hard to prove as mentioned earlier.
Chinese imports are still flooding in from our neighbours as they do not have any trade agreements with China, customs is trying to stop these garments coming in through the borders, but to be really effective it has to be stopped at the source.
Two years have passed since the trade agreement was set in motion and it has run a substantial part of its lifetime without achieving any of its purported aims. How long will it take for the Department of Trade and Industry to acknowledge this and try and rectify it?
Written by Annali Smith
Published: ie Driven by Design
Dec 08 –Feb 09
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