S&V Footwear & Leather Goods Magazine Vol83 No11 November 2020
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IN THIS ISSUE:
03 Forecast for 2021
- SAFLIA: Employers and unions need to create an environment that is fair to all, but also allows the industry to be competitive against imports, says Jirka Vymetal.
- NCRF: We need to cut input costs, says Michael Lawrence.
- Components Cluster: On hold for now, says Mark Gibbings.
- Inno Textiles: We'll make cheaper only where we can, says Tanya van Tonder.
- A. Greenaways (Natal): Chinese suppliers report steep price rises for synthetic materials, says Garth Ribbink.
- Fusion Leather: Better-than-expected bookings for some, says Denzil Spolander.
- Neucoat: Locally-made synthetic for school shoes to be launched in January, says Hans Beier.
- Azula Collective: Looking forward to a great year, says Colleen Chappé de Leonval.
- Bolton Footwear: Great support from chains, costing challenges, says Dewald Visagie.
- E. Baronos Leather: Customers will be price sensitive, says Elias Baronos.
- Equator Accessories: Unpredictable is the only predictable, says Leon Buhr.
- Dangee Carken: Grit and support have kept us going, says Robby Stoller.
- Saddler Belt: More chains need to commit to the Masterplan, says Andrew Fenwick.
- Tri-Africa: How to get your business back on its feet, by Richard Dixon.
- Dick Whittington: Expecting a further decline in tender work, so fashion must grow, says Arveen Boodhoo.
13 Business
- Ailing Clarks awaits approval for takeover by Hong Kong investor.
- Proudly South African and SAFLEC join forces to put local school shoes on learners' feet.
- Kim G. Leather Sandals: New factory in Kimberley starts small.
16 The US Market
- Sneakernomics: U.S. athletic footwear & apparel Q3 results, by NPD's Matt Powell.
17 Trade Fairs & Events
- Allfashion Sourcing: Covid has forced us to be resourceful, says Priyanka Lutchman.
- Lagos Leather Fair: Digital edition 'was a blast', says Tinuola Joseph.
19 Notice Board
- Another tribute for Peter Berry, by Chrystal Erasmus.
20 S&V turns 85
- Well 86, actually, admits Tony Dickson.
Advertisers in this Issue
Creative Leathergoods (5), Footwear & Leather Industries Cluster (8), Freestyle (4), Palm Footwear/Trustees (OFC), SA Footwear & Leather Export Council (2), Skin, Hide & Leather Council (11), Southern African Footwear & Leather Industries Association (7), Softer School Shoes (6).
In The Next Issue:
- Previewing 2021.
Out on January 13
We've revamped our trade fair calendar. Visit https://www.svmag.co.za/events
- 2021 Forecast - NCRF: We need to cut input costs
Cape Town, W. Cape, SA - National Clothing Retail Federation of SA (NCRF) executive director Michael Lawrence said most of his time since October had been spent on the implementation of the Master Plan."You should be seeing more local product in those chain retailers which have signed up for the plan," he said."The NC ...more2021 Forecast - Fusion: Better-than-expected bookings for some
Cape Town, W. Cape, SA - There is an air of cautious optimism, with many of our customers starting off 2021 with stronger than anticipated order books. Retailers seem to be talking to local manufacturers as international logistics remains unreliable and unpredictable.Hide prices are on the rise. Interestingly the customers who reminded ta ...more2021 Forecast - Bolton: Great support from chains, costing challenges
Cape Town, W. Cape, SA - We on-boarded Woolworths just before lockdown and successfully delivered their first shipment under their own label in July this year. Since then the relationship has grown and we are currently working on another repeat delivery for January 2021.There are more styles in the pipeline for the first half of 2021 and ...more2021 Forecast - Baronos: Customers will be price sensitive
Johannesburg, Gauteng, SA - Really tough year ahead, corporates and individuals will be watching the pennies very carefully, hoping that they will look after the pounds. There will be small rays of sunshine, but I believe these will be short-lived. At the moment survival and cost cutting are the orders for the day and we have to hang in t ...more2021 Forecast - Equator: Unpredictable is the only predictable
New Germany, KZN, SA - The only thing we can bank on is that the market will remain unpredictable. What we have seen is that SA retail is more stable (to date) than developed markets like US/UK and Australia. The Netherlands is experiencing the biggest drop in Bricks ‘n Mortar sales from what we see, where they predict (once Governm ...more2021 Forecast - Saddler: More chains need to commit to Masterplan
Durban, KZN, SA - To forecast 2021 is extremely difficult! It will depend on how many people have lost their jobs this year and how the economy does. These negative factors work against the positive factors of #BuySouthAfrican (R-CTFL Masterplan 2030) and the #PayIn30 initiative, where big business endeavours to pay SMMEs in 30 days ...more2021 Forecast - Dangee Carken: Grit and support have kept us going
Johannesburg, Gauteng, SA - It’s been an incredibly challenging year. The nervousness and uncertainty has been very unsettling. Disappointingly the financial institutions haven’t been much help either. Due to sheer grit and unbelievable support from our suppliers and service providers and our vast experience in forward plannin ...more2021 Forecast - How to get your business back on its feet
What can businesses in SA expect in 2021? I'm going to get straight to the point to provoke some thinking that hopefully will prompt readers into attempting a business reset. Given where we may all find ourselves right now in the “survival stage”, and still in the midst of a COVID 19 crisis, is it n ...moreAiling Clarks awaits approval for takeover by Hong Kong investor
Press releaseLionRock Capital to acquire majority stake in Clarks. Clark family to remain a key shareholder in the business. Partnership will secure a sustainable future for the 195-year-old world-renowned British shoe brand. The investment from LionRock Capital is conditional on shareholder approval and on a Company Voluntary A ...moreProudly South African and SAFLEC join forces to put local school shoes on learners’ feet
Johannesburg, Gauteng, SA - In a country where many learners walk long distances to and from school, shoes are an essential item. Proudly South African, the country’s buy local advocacy campaign, together with members of the South African Footwear & Leather Export Council are promoting the purchase of locally manufactured school ...moreNorthern Cape sandal factory open
Kimberley, N. Cape, SA - Former EVA Industries staff member Gerry du Toit, who moved to Kimberley in August, has got his small factory up and running, trading as Kim G. Leather Sandals.He writes: "At the moment it's only me, manufacturing sandals and supplying a few customers. Small production. Have to build up a customer base, littl ...moreLLF Digital: What a blast!
Lagos, Nigeria - The just concluded LLF Digital was an absolute blast! LLF was this year’s edition of the Lagos Leather Fair. The event took place from 19th-22nd November 2020, it was a 100% virtual and was nothing short of amazing. The 4-days were enlightening, filled with insightful conversations, and impactful masterclasses. LLF ...morePeter Berry: Valuable lessons for many
Cape Town, W. Cape, SA - I’m so sorry to read about Peter’s passing. I knew that he was not well from our last conversation in September and was so hoping that I would be able to see him as soon as he was up for a visit. The photo attached was taken of us in 2017 when we met for lunch and as always we had such a wonderful time ...moreS&V Publishers: Looking back, planning ahead
S&V has been a window onto the soul of the leather, footwear and leather goods industries for decades, and like them, has reinvented itself many times This is an anniversary year for S&V. An 85th anniversary. I very much doubt many other industries in South Africa have a trade publication which has published continuously for ...more2021 Forecast - SAFLIA - Footwear manufacturing, imports and exports dropped by over 30 percent in first half of 2020Durban, KZN, SA - Footwear production during the first 2 quarters of 2020 fell by 34.84% by comparison with the same period in 2019, according to the SAFLIA Digest for January to June, released last month.Pairage dropped from 24.4 million pairs to 15.9 million.The value of ex-factory sales dropped by 31.2%, from R2.7 billion to close to R ...more2021 Forecast - Components Cluster: On hold for nowPinetown, KZN, SA - The Components Cluster, the newest cluster in the leather value chain, was proposed as a means of resurrecting South Africa's components manufacturing capacity, decimated during the long years of imported footwear domination.Cluster chairman and Apeco MD Mark Gibbings said trying to get it up and running had been " ...more2021 Forecast - Greenaways: Steep rise in ex-China synthetic pricesDurban, KZN, SA - The cost of synthetic upper materials, which are currently all imported, mostly from China, has risen steeply this year, according to Garth Ribbink, member of A. Greenaways (Natal) (Pty) Ltd, one of the leading importers.He forwarded correspondence from suppliers in China.One wrote: "During [the past] one month, th ...more2021 Forecast - Inno Textiles: Cheaper if we can, but...Hammarsdale, KZN, SA - In terms of shoe products, I can see a trend with my customers wanting to us to re-develop current products to make them more “affordable” However, we are not too keen on this as we do not believe in “messing” with our quality just to enter a price war. Where we can re-engineer something for ...more2021 Forecast - Neucoat: Locally made synthetic for school shoes to launch in JanuaryPinetown, KZN, SA - In correspondence with Hans Beier, Chairman Emeritus of the Beier Group (Pty) Ltd over plans to resurrect local manufacturing of synthetic upper materials for footwear, he wrote: "Yes, we have developed a 1.8mm PU school shoe upper material which is presently undergoing field trials and laboratory approvals agains ...more2021 Forecast - Azula Collective: Looking forward to a great yearDurban, KZN, SA - Next year is going to be amazing. Our wholesale clients have doubled and we have successfully launched our e-commerce store and our well received in-house range. We have a growing database of customers for the brand, Nēo, and number of repeat orders. There are boutiques country wide interested in s ...more2021 Forecast - Dick Whittington: Expecting a decline in tender work, so fashion must growPietermaritzburg, KZN, SA - Dicks has two distinct revenue streams, the first being through our commercial business generated through sales from its several brands. The bulk of these sales are usually focussed in the second half of the year. Although men’s formal footwear is predicted to decline as more consumers work from home, we ...moreSneakernomics - U.S. athletic footwear & apparel Q3 resultsSports retail under COVID-19 has been a roller coaster, and the Q3 (July-September 2020) results continue to show this bumpy trend. Athletic footwear sales in July were down in the high single-digits, then declined in the high teens in August (one of the market’s most important months of the year), and in September grew in the mid-t ...moreAllfashion Sourcing: 'Covid has forced us to be resourceful'Cape Town, W. Cape, SA - On behalf of the Messe Frankfurt South African team, we would like to thank our exhibitors, sponsors, partners and attendees for their participation at the virtual edition of allfashion sourcing, a digital business oriented marketplace for the textile and fashion industry. “C ...more2021 Forecast for the South African Footwear & Leather Goods IndustryAt the end of 2020 we asked various businesses operating within the footwear and leather goods industry for their 2021 forecast for the sector. ...moreFootwear Industry Articles
- Drip Footwear’s financial crisis - a cautionary tale
Rapid Expansion BackfiresDrip Footwear, a once-promising South African sneaker brand, is facing a severe financial crisis that has sparked intense scrutiny and debate. The company’s rapid expansion into shopping malls has backfired spectacularly, leaving it with a R20 million debt, a foreign exchange blunder, and the looming threat ...moreClarks’ Indian departure — what went wrong?
A report from Yahoo Finance on August 27, 2024, reveals that Clarks, the iconic British footwear brand, is closing its stores in India due to "differences over terms" with its local partner, Reliance Retail.This unexpected development underscores the critical importance of aligning with local partners and effectively m ...moreSkechers-Shein partnership: Dilution or strategic expansion?
Since 2023, Skechers’ decision to sell on Shein has raised eyebrows. Known for its comfortable, casual, and sometimes athletic shoes, Skechers occupies a market space perceived to offer higher quality compared to Shein’s fast-fashion, low-price model. This move has some analysts worried about a potential dilution of Skech ...more
Leather Industry Articles
- IULTCS announces the appointment of four new Commission Chairs
Each Chairperson was selected due to their dedication, leadership, and vision for the IULTCS organization, these attributes stood out during the election process, and the officers are confident that each one will excel in their new role.As Commission Chairs, they will play a crucial part in shaping the future initiatives, fostering collab ...moreOstrich: ‘Stable to positive’ – the good days continue
Mossel Bay, W. Cape, SA – We are now nearly 5 years down the line, since the KKI and Mosstrich/SCOT merger. The new name Cape Karoo International (CKI) is now well known among all international and local buyers of ostrich leather. Our clients across the globe also have switched now to “CKI” as the new brand, understandin ...moreLeather in an evolving automotive market…
Much has been written about the changes that our industry is dealing with, as it undergoes significant transformation to adapt to an evolving market shaped by consumer demand, technological innovation, environmental concerns, and regulation. ...more
PPE Industry Articles
- Pathogen identification — next-generation sequencing optimises diagnostics
Stuttgart, Germany (12 June 2024) – Invasive infections such as sepsis require immediate and targeted treatment. Experts from the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB and group partners have succeeded in establishing a reconceptualized detection principle that can make a crucial contribution to savi ...moreUnderstanding the issues using Artificial Intelligence (AI) in OHS
Artificial intelligence is an innovative and transformative technology that has been making waves across various industries & today is the big buzzword in business. But very few of us understand what AI is and means, including OHS practitioners who are starting to use AI in the OHS field.Firstly, the Occupation Health & Safety fie ...moreFrom lectures to life-saving skills - transforming safety training with Hazard Parks
Randburg, Gauteng, SA – Hazard Parks offer an innovative and practical solution for, companies seeking to prioritise employee safety and well-being in high-risk industries. The constant challenge for most organisations lies in ensuring that their employees are not only aware of safety protocols but are also equipped to handle real-l ...more
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