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S&V Weekly Newsletter Vol.3 No.28, July 17, 2017

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

Women's footwear: What's been selling this winter

Jason Craft, director, Dangee Carken
Johannesburg (SA) – At Miss Black we found that this winter season, it was Fashion First. We had great success on any look delivered before the rest of the trade. On these looks we had loads of repeats with none or very little stock left over.
       When it came to the basic product we had fair sell offs. This could possibly be attributed to the consumer choosing to rather spend her hard earned money on a feel good purchase, as opposed to spending on another pair of basic boots which she probably has 3 or 4 pairs in her cupboard already. We at Miss Black certainly feel that she has done the former – a feel good, on-trend purchase to brighten up her days in these dark economic times.
       So despite all the negativity at the moment we are feeling quite optimistic for the Summer 2017 season. Miss Black, without a doubt, has the best range we have ever put together with the hottest looks and trends. We cannot wait for the stock to hit stores starting from July through to November. - [+27 (0)11 402 0312, jason@dangeecarken.co.za]

Ridwaan Moola, director, Dolce Vita division of Foot Focus:
Durban (SA) – Winter has been a tough season with Global weather patterns playing havoc on retail in terms of planning ,we have however seen a shift towards basic items this winter and our core focus will be in that direction going forward. - [+27 (0)31 564 1113, ridwaan@dolcevita.co.za]

Karen Lewis-Williams, brand manager, Plum division of Jumbo Footwear
Johannesburg (SA) – Plum boot sales were good for Winter 17... we had an excellent 1st quarter of the year with many repeats coming through. Plum has always been the leader in the market when it comes to ladies' fashion boots, in particular over-the-knee stretch boots being our most successful look which we were first into the market with.  A lot of the cheaper guys have cottoned onto this now, so this affected our sales slightly at retail compared to last year when we owned the look. 2nd quarter of the year, in particular June and July, have been tough at retail level with the market just falling flat and business overall being at its worst.
       Price point has always been key... in times like these ... MORE SO!! We found boots that went over the R999 retail point met with some resistance unless it was completely unique styling that the fashion customer out there really wanted and would spend a bit more to get the look.
       During these tough times we still had growth from last year due to our trendy styling and being on point which we are happy about.
       Still wishing for that crystal ball... life would be much easier! - [+27 (0)11 786 0990, karen@plumfootwear.co.za]

 

 

'Some progress' at SAFLIA-SARS import meeting

Cape Town (SA) – "Some progress" has been made in addressing undervaluation and other issues plaguing footwear imports, SAFLIA director Jirka Vymetal said following a meeting with SA Revenue Services on July 5.
       The meeting was called  by senior SARS official Helena Tripmaker in response to the discussions late last year with SAFLIA  about concerns off the effectiveness of the CTFL Industry Forum regarding footwear, a body chaired by SARS and intended to discuss issues around CTFL imports. It was also attended by Abisha Tembo, the DTI's CTFL chief director, and representatives of both unions.
       "One of the main issues raised was that thousands of pairs land without the mandatory country of origin label," Vymetal said. "SARS say that when they query these shipments with the relevant DTI department, they're told that the importer will apply those (once cleared). Clearly that's not acceptable, and the DTI has promised to investigate."
       Country of origin marking helps determine whether duty is payable on imports. "For instance, last year we imported 336000 pairs of shoes from Mauritius – which, because Mauritius is part of SADC – landed duty-free," he said. "Although that's a drop in the imported footwear ocean, it's suspicious because Mauritius' footwear manufacturing industry is, so far as we know, very small.
         "The other issue affecting imports is reference pricing – judging the likely real price of a shoe and comparing it with the declared value. This again effects duties payable and in the end selling prices.
        “In its current format, the CTFLIF is so swamped by clothing issues that nothing much was achieved for footwear. We made some progress at this meeting, but a lot more needs to be done, and I hope that in future, footwear will be given its own forum." – [+27 (0)800SAFLIA, info@saflia.co.za]

 

Wage negotiations: Tanners settle

Port Elizabeth (SA) – The Tanning Sector of the National Bargaining Council of the Leather Industry reached a 2-year settlement on July 13.
       Wages were increased by 7.75% retrospectively to July 1.
       On July 1 2018, wages will be increased by a further 7.75%, with the following provisos: If, in April 2018, the consumer price index (CPI) exceeds 8%, the unions may elect to renegotiate the increase. If the CPI drops below 3%, the employers may opt to renegotiate.
       The category 'General Worker Entry Level' also receives an additional 0.5% increase backdated to July 1. By June 30 2018, employers and unions will also negotiate "addressing the disparity in wage rates of a General Worker Entry Level (Band E) and General Worker (Band D)".
       The contribution by non-unionised workers to the unions increases to a maximum of R15.64 per week.
       Family responsibility leave, which entitled an employee to leave when his/her spouse was medically incapacitated, has been amended to "when the employee's child or spouse is sick".

 

 

Havaianas sold

The maker of Havaianas - perhaps the world's most famous brand of flip-flops - has been sold for $1.1bn ($850m).
       The Brazilian label has been highly successful at home and internationally, with about 200 million pairs of the footwear sold every year.
       Alpargatas, the firm behind the brand, was owned by the scandal-hit J&F group, which manages the fortune of the billionaire Batista family.
       It is being bought by three prominent Brazilian banking groups.
       The sale of Sao Paulo-based Alpargatas was widely expected, and is part of J&F's strategy to offload businesses after it was involved in a series of corruption scandals.
       It is understood proceeds from the sale - to Cambuhy Investimentos, Itaúsa Investimentos and the fund Brasil Warrant - will help repay debt and go towards fines of more than $3bn the company has been hit with.
       Havaianas is represented in SA by The Brazilian Sandal Company. - [www.bbc.com/news/business]

 

SAFLIA members donate footwear to Knysna fire victims

Durban (SA) – At least 6 SAFLIA members responded to a call to assist victims of the fires that ravaged the Knysna area in June.
       A group of residents created a website and a Facebook page explaining the causes and effects of the fire, and organised an appeal for people who had been severely affected. At least 300 people lost all their footwear, among other possessions, and the group provided a list of the people with their genders and sizes.
       Bolton Footwear Group, BBF Safety Group, Little Slipper, Novita Shoes, Palm Footwear and Strassberger Skoene have all delivered or pledged footwear which will more than cover the original list - which has continued to grow as more victims come forward. Separately, Neptun Boot donated footwear to Pienaar Brothers' Mossel Bay branch, which is running a similar campaign.
       "We felt it was a worthwhile cause, and one where our members could make a practical difference," SAFLIA executive director Jirka Vymetal said. "I'm very proud of all of those who donated. I'd like to make special mention of Strassberger - a small company, facing its own set of challenges, which specially put 50 pairs into production for this appeal."

 

 

NSPCA: 'Donkeys in crisis' over skin trade

From Senior Inspector Grace de Lange, Manager, Farm Animal Protection Unit, National Council of SPCAs (NSPCA)
Over the past months the National Council of SPCAs (NSPCA) has issued several reports on the illegal donkey skin trade and the cruelty involved in the horrific slaughter methods.  Donkeys are being stolen from rural families who rely on their working animals to transport water and firewood et al.
       Our donkeys are in crisis and their owners suffer.
       Yet unlike other African countries, including Botswana, Burkina Faso, Niger, Senegal, Mali, Ethiopia and Gambia, who have taken progressive steps to address the growing problem on the continent the South African government appears to be unperturbed by the plight of animals and communities, and leaves humane intervention to welfare organisations.
       After being alerted by concerned members of the SAPS, NSPCA Inspectors intercepted trucks which were legally transporting donkeys.  It was determined that these animals were destined for inhumane illegal slaughter for their skins.  After interacting with those concerned it was agreed that the donkeys be transported to be humanely slaughtered at a registered abattoir.  NSPCA Inspectors were present. This obviated the possible illegal and cruel deaths by untrained people at an unknown venue, which would have undoubtedly led to untold suffering.
         The NSPCA is concerned that the trade in donkey skins is escalating and more and more animals are falling victim to this crime.  Unfortunately there are a limited number of safe havens for rescued donkeys. Some of the rescued donkeys are currently in the care of an SPCA and are up for adoption to approved homes.
          However, more concerning is the fact that untold numbers of animals suffer in incidents of theft, movement and deaths on a daily basis.  They have no hope of survival without the positive and decisive intervention of government. The NSPCA has successful finalised prosecution cases as well as pending cases in court against perpetrators for the cruel transportation and slaughter of donkeys for their skins.
       The NSPCA therefore makes an urgent call on the Department of Agriculture, Forestry and Fisheries to intervene and stop the export of donkeys and donkey skins and products from South Africa.  We should be a forward thinking country, not following the rest of Africa, but leading.
       This horrendous trade must be brought to its knees. - [+27 (0)11 907 3590, 082 828 1144, farm@nspca.co.za]

 

 

Movements

Jonathan Hallowes and Ernest Heunis.

Pietermaritzburg (SA) – Jonathan Hallowes has been seconded by the Fast Track Footwear Cluster (aka the Eddels-Foschini Cluster) to the newly-formed Footwear & Leather Industry Cluster (FLIC) to assist GM Ernest Heunis setting it up.

Windhoek (Namibia) – Former commission agents Ina and René Schaal, who represented Popular Trading, have retired. - [ir.schaal@gmail.com]

 

 

Diary

August 2: SAFLIA AGM, Commodore Hotel, V&A Waterfront, Cape Town. 0800SAFLIA, info@saflia.co.za. SAFLIA reminds readers that official invites went out some time ago and RSVPs are due by the 19th. There is limited space available, and SAFLIA needs to confirm numbers for catering and accommodation. 
August 18-22: Podiatry Association of SA 11th Biennial Congress, The Maslow, Sandton. info@pasacongress.co.za.

 

Birthdays this week

17/07/1947: Hennie van der Merwe, chairman, KKI board, Oudtshoorn.
18/07/1950: Magda Erlank, Me Boutique, Newcastle.
18/07/1963: Peter Colombo, formerly Hippo Bag & Screen [closed], Cape Town.
18/07/1973: Sanjay Bhagwandas, Ginger Bhagwandas Exclusive, Durban.
18/07/1974: Zunaid Gathoo, Shoe Zone, Sasolburg.
19/07/1946: Mohamed Iqbal Ahmed, A.V. Mohamed & Sons, Louis Trichardt.
19/07/1967: Fatima Do Tanque, Super Save, Aliwal North.
19/07/1968: Hussein Feyssa, Hafde Tannery, Addis Ababa, Ethiopia.
19/07/1977: Shantell Sables, Elan Polo, Cape Town.
21/07/1965: Gavin Cooke, Rebel Safetygear, Johannesburg.
22/07/1948: Roy Nell, Roy Nell Agencies, Durban.
22/07/1960: Holger Stutz, Paul Moeller & Co, Johannesburg.
23/07/1940: Errol Schilder, retired, formerly Barker Footwear, Cape Town.
23/07/1954: Jerome Ingenhoes, Exotan, Port Elizabeth.
23/07/1956: Rob Peschel, emigrated, formerly Outeniqua Tanning [closed], George.

 

In Memoriam this week

20/07/????: Ivy Cunningham (b. 16/10/1919), In Step Shoes [closed], Pietermaritzburg.
22/07/1993: Chagan Ratanje, RK Footwear, Harare.
22/07/2008: Derek Brown (b. 13/01/1948), Derek Brown Agencies, Johannesburg.
22/07/1993: Paul Hoch, Edendale Tannery [closed], Pietermaritzburg.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

 

ABSA Agri Trends 13/07: Hides & skins prices

The average bovine hide price over the past week was R14.37/kg green. Hide prices are determined by the average of RMAA and independent companies. The average price for Dorper skins was R44.44/skin and Merino was R114.58/skin.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52
31/01 15.10 46.00 94.55
14/02 14.65 47.33 95.29
15/03 14.25 39.30 78.75
24/03 14.13 45.27 94.45
28/03 14.07 45.27 94.45
04/04 14.83 41.92 87.58
11/04 14.68 41.92 84.12
19/04 14.77 43.85 92.32
25/04 14.75 41.25 92.27
04/05 14.79 43.33 92.69
10/05 14.75 40.50 88.41
16/05 14.58 40.83 90.96
31/05 14.62 40.50 87.95
09/06 14.58 41.82 96.35
23/06 14.40 40.42 101.25
29/06 14.30 41.36 98.44
07/07 14.33 43.33 100.94

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

  


Classified Adverts

 

Manufacturing expertise on offer

Paul Sirilli, formerly of Sirilli Shoes, is looking to get back into the footwear industry – in production, procurement or retail quality assurance. He has 34 years of hands-on manufacturing experience in men’s, ladies’ and kiddies’ footwear. Completely familiar with Moccasin, Brogue and Derby styles in shoes and fashion, outdoor and military styles in boots, mostly in leather. Also a working knowledge of stuck-on, lock-stitch and side-stitch techniques, soling compounds. - Contact 083 961 1759, sirillip@gmail.com.

 




  

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: July 24, 2017.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

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