SAFLIA: Imports climb, local production drops, but cost saving measures expected

Durban, KZN, SA - While local footwear manufacturing has dropped by 15% from January to August, footwear imports have risen by almost 35% in the same period, according to Jirka Vymĕtal, executive director, Southern African Footwear & Leather Industries Association.
“Imports this year to August were up, year on year, by 34.5% to 114 725 592 pairs, versus 85 312 624 pairs for the same period in 2023,” he said.

The FOB value of the imports rose 30% from R8 648 484 056 to R11 249 817 908, but the average price per pair of the imports dropped from R101.37 to R98.06 in the same period.

With the upswing in local production leading up to December, he expected total production to be 12.5% down on last year – which was itself down on 2022.

“Imports are getting cheaper and cheaper and cheaper,” he said. “When there’s a discussion ‘in principle’ about buying locally, the chains will say importing isn’t just about price; they’ll mention factors like quick response sampling, new trends, new colours, etc.

“But when I talk to manufacturers who’ve negotiated with most chains, they say the first reaction is that their prices are out. The only thing they really care about is price.

“Bearing that in mind, SAFLIA and the unions have jointly engaged to find a way forward on this pricing issue. It seems apparent that some consensus for special dispensation has been discussed and has almost reached finality.”