News on SA Clothing Sector

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Thursday, 13 May 2010

Bafana jersey price a rip-off: Sactwu

Bafana jersey price a rip-off: Sactwu
May 13, 2010 By SAP
Times LIVE
The R599 to R1,200 price tag on the official replica Bafana Bafana jersey is a rip-off: and that’s the word from the workers who make them.

“From a factory price of about R100, R150 and the final product in the retail stores being sold for R599, we think that’s a disservice to South Africans,” SA Clothing and Textile Workers’ Union (Sactwu) general secretary Andre Kriel said on Thursday.

He was addressing a media briefing in Cape Town following talks with Cup Local Organising Committee head Danny Jordaan.

Holding up a replica shirt, Kriel said it was made at a Sactwu-organised company in Ladysmith, KwaZulu-Natal.  The total cost of producing the garment would probably be between R100 and R150. That was the price at which it would be sold to sponsors Adidas: The factory was unable to sell directly to retailers because of licensing and branding agreements.

Adidas then sold the shirt into the retail market for R331 excluding VAT. “Then the retailers as you know if you’ve been into any retail shop, sell this for R599,” Kriel said. “From our point of view that’s ridiculous.
“There’s obviously reasons that the retailers give, and those reasons are that they’ve got to add promotions, advertising and all that.

“But any reasonable South African can see that there are margins of competitiveness we can achieve by taking less of a profit cut.” It would be an important stimulus to the clothing industry and local jobs if retailers were prepared to take less of a profit.

Chief executive of Cape Town clothing manufacturer Monviso, Ian Stein, told the briefing that his company made a range of official licensed World Cup garments, including a basic t-shirt that left the factory at under R70. That shirt was being sold at Pick n Pay at R99, and in Woolworths for R130, which was a “pretty fair” markup.  “All we know is that from our point of view we’ve done our job in bringing out an incredibly competitive product,” he said.

A journalist told him she had bought an identical t-shirt in a shop in Sea Point and been charged R230. In a joint statement, the union, Cosatu and Jordaan said soccer supporters could save South African jobs by ensuring that they bought locally made products. “We call jointly on South Africans to check for the made in SA label inside all World Cup clothing and other goods,” it said. “This includes paraphernalia like caps, bags, flags and other memorabilia.” Jordaan said if people were prepared to buy counterfeit goods, there would always be problems. “The argument always is, well, I can buy a fake Bafana shirt for R100, why must I pay R500 or R700? 

“The problem is, if we continue to buy the fake product, then even those who have the R100 will soon not have the R100 to buy that fake product. “And so we’ll have no money, all of us.” People had to decide whether they were prepared to make a short-term .

SA and India weave ties

India's apparel and textile industry is on an expansion drive, looking at new markets like South Africa, writes fashion commentator Renato Palmi

THE India Clothing and Textile Trade Show held at the Durban International Convention Centre recently highlighted the importance of South Africa to the developmental growth of India's clothing, textile and fashion sector.

Durban has the largest Indian Diaspora outside India and cementing closer links with the two countries through fashion can create a path of mutual sustainable economic benefits. The injection of large capital by Durban businesses into an expanding Indian market will create further competition within the South African apparel landscape.

However, instead of looking at the negative aspects alone, it is important to acknowledge that the South African clothing industry, and in particular the clothes and fashion sector in KwaZulu-Natal (due to the cultural and historical links here), can and need to explore mutually beneficial links.

Indian fashion sectors are already exploring these ties by experimenting with and developing cultural imagery that will appeal to the Indian population.

India's clothing and textile sector continues to grow, as is apparent by the existence of more than 20 000 members of its Clothing Manufacturers Association of India. The country has existing export councils ranging from textile to fashion councils, whose primary focus is to globally promote these industry sectors. It is estimated that the Indian textile sector will grow to nearly $90 billion (R672bn) by 2011.

The country is the second largest, after China, in worldwide textile development. In the last quarter of 2009, India's $5bn textile export sector had marginal drops due to the global recession and declining orders from the US and Europe. India's industry is not immune to global economic shifts, with its government allocating around $510m to assist domestic textile companies last year. The industry is on an expansion drive not just here but in Japan, South America and New Zealand as well.

With their range of textiles, efficient manufacturing systems and a strong institutional support system, India's dominance in the global market may grow to such an extent that they will be seen by China as a serious competitor. Many Indian designers are also beginning to influence trend development and fashion branding.

The South African industry can learn from the support structures the Indian government and their textile sectors have in place for promoting Indian style, as they have a collaborative focus, working as a collective for the betterment of the industry.

Published in the Mercury newspaper
Tuesday May 11 2010. South Africa.