Supplying chains isn’t the only way of doing business

Adrian Maree…We need a fresh approach.

Some of SA’s more successful footwear manufacturers do not supply any of the chains in the National Clothing Retail Federation of SA – a Masterplan signatory – or other JSE-listed retail chains.
One of those is Corrida Shoes.
Director Adrian Maree answered our questions below.

S&V: Some of SA’s more successful footwear manufacturers, including Corrida, do not supply any of the chains. Is that assumption correct?
A.M.: Yes, that is correct. As a business we have followed a branded strategy even if at times it has meant turning away orders. We knew it was our only way to survive. Most chain stores have pursued their own in-house brands so they can increase margin. This is totally understandable; the only problem is there is very little loyalty when it comes to the unbranded space. So how do you gear up or down as a production unit without certainty? As we all know you can’t increase or decrease production like turning a tap on or off.

S&V: How would you describe your SA retail customers?
A.M.: Our customers are mostly independently/family-owned chain stores/mini chain stores or independent retailers / boutiques. They are close to the ground and understand their market incredibly well. They believe in the power of brands, and we have built long lasting relationships with them.

S&V: What percentage of your production do you supply to them?
A.M: Would rather not disclose.

S&V: How much of your production do you supply to your own local outlets, or via your online portals?
A.M: Would rather not disclose.

S&V: How much of your production do you export?
A.M.: Our export is less than 10% of our business currently.

S&V: Can you foresee circumstances where you could supply local chain retailers?
A.M.: Absolutely. There are always opportunities to work together. As a business we do not do house brand / first cost business, so that is a challenge as we have chosen to focus on our Omega and Tsonga brands. I am always open to conversations and believe dialogue is important even if it doesn’t lead to business down the road.

S&V: Any other observations?
A.M.: My personal opinion is that the R-CTFL masterplan is incredibly difficult to implement. Listed companies have a duty to shareholders to provide a return and so they will always go the direction that makes them the best return. Our country and industry desperately need economic growth.

Temu and Shein need to be dealt with quickly as they have to play on an equal footing. The counterfeit and knock off culture have to be dealt with. We have always believed creativity and design drives orders. Maybe this is something we should be paying more attention to as an industry?

Recently our Omega brand had an opportunity to partner with Imprint ZA at SA Fashion Week. It is incredible to see the talent we have here. Look what the likes of Maxhosa is doing internationally. I personally feel we need a fresh approach. Imagine if as an industry we had Italian and Portuguese designers designing 50 open moulds every year? Would that not be money well spent? It would allow our industry to tap into constant newness and use their creativity which is what the large retailers need.