Industry News
South African & East African Footwear and Leather Goods, Leather and PPE industry news.
Wage Negotiations Eddels: Reduced pairage, more optimism
Pietermaritzburg, KZN, SA – After 3 months under new ownership, Eddels has settled into a routine which will hopefully lead it into sustainable profitability, new GM Steven Jacobs said last week.
“This is a business in distress, and we’re not trying to hide it,” he said, “but as big as the challenges are, there are also opportunities.”
Production has been scaled back further. By the time of the takeover, production had dropped to 1 500 pairs/day of mixed leather and synthetic, formal and casual, men’s, women’s and children’s footwear. Now, it’s 450 pairs/day of men’s formal leather footwear. Staff numbers have dropped from around 300 to 108.
“We think that’s the right level at the moment,” he said. “The optimistic estimate is that we can turn this business around in 6 months. I would say 2 years would be closer to the mark.”
Eddels was bought by Johannesburg-based Caralli Footwear – itself part of a bigger group – and Caralli specialises in formal men’s leather footwear.
“We have experience in this industry,” Jacobs said, “and we have a lot of very talented people trying to make this business work to the point where it can run itself.
“We’re not going to try to double production this year. We can look at that, and at diversifying production, when it’s stable.”
He said reducing the staff had been a difficult decision, but that “if we’d kept everyone, the business would have failed – the intention is that as and when we grow, we’ll bring those people back. Where else would we find those skills?”
Management cuts were proportionately greater; Chris Paul has been promoted to production and planning manager, Richard Starmer is now design and technical manager. Among his other inputs, Caralli MD and group shareholder Samet Karali oversees the original Eddels team of agents.
Jacobs, an actuarial science graduate who was working for the group in Germany, was brought back to run Eddels. “I’ve had footwear experience with the group, but mostly on the retail side,” he said.
“We’re selling to a mix of chains and independents, and that’s the way we want to keep it,” he said. “One thing we’ve noticed is that there has been a shift by retailers to source more leather footwear locally.”
Adidas launches its largest store in Africa at Gateway Shopping Centre
According to a report in Biz Community, Adidas South Africa has opened a new Home of Sport concept store in Durban, at Gateway Shopping Centre. It's the first of its kind on the African continent, and with a retail footprint of 1687 square meters, it's also the largest Adidas store in Africa.
The Home of Sport concept is rooted in sport culture, showcasing the best of the Adidas brand through powerful visual storytelling.
Customers will find a truly immersive retail experience, from cutting-edge technologies and a Run Lab that tests gait analysis, to a unique Made for You section where footwear and apparel can be personalised with embroidery, engraving, badges and heat press.
Changing rooms are spacious and include a bra measurement facility, as well as Radio Frequency Identification (RFID) mirrors that automatically detect product information, to provide consumers with real-time colour and style options.
The store has a wide selection of best-in-class products across its Running, Outdoor, Training, Women’s, Football, Sportswear and Originals categories, with a premium offering of Stella McCartney, Terrex and Y3, as well as an exclusive DBN t-shirt range.
The space is hyper-local, with Durban culture and credibility woven at every touchpoint. The store offers a modern retail space, with a dynamic layout that combines both functional and aesthetic elements.
- The furniture is designed by murrmurr, with the moon range inspired by the night sky. Different moon phases are incorporated in the design – from waxing, waning, crescent, full and new moon.
- Kylie Wentzel’s carpet design was inspired by the pace of life in the subtropical city of Durban. The warm and bold colours in the design, the palm trees, surfboard and sandcastle – are all suggestive of vibrant coastal living.
- The store installation was done by Arturo Tedeschi, who used the map of Durban as a generative element to add meaning and depth to his work. There is an interplay between layers within the sculpture that engages with the surrounding light and spatial store dimensions, in an immersive experience.
Wage Negotiations: Footwear sector settles
Gerald Naidoo (General Secretary/Principal Officer), National Bargaining Council of the Leather Industry of SA Durban, KZN, SA - The parties to the Footwear Sector have concluded the 2023 wage negotiations and have reached agreement as follows:
(1) Wages and Wage Rates
With effect from 1 July 2023, the basic wage on all prescribed operations shall be increased by 7%.
(2) Peripheral Issue
Payslips/salary advice for the annual leave allowance shall be issued to employees by no later than three days prior to the commencement of the Annual Leave period.
Former Joey & Sam team back with leather range
Johannesburg, Gauteng, SA – Muhammad Bulbulia, formerly with retailer Joey & Sam, which is now closed, said the family business began selling tea beverages during the covid19 period, but has come back into footwear with an all-leather product range imported from Brazil.
“Clave is the new winter collection we are currently sell on our online platform www.tranquildawn.co.za,” he wrote. He said the business, which is “a 75% ladies-run group”, will also wholesale.
What the Pride Backlash Can Teach Brands About Corporate Values
In South Africa, only Woolworths, so far as I’m aware, chose to mark ‘Pride Month’ with pro-LBGTQ marketing and merchandise, which generated a lot of heat. Whether it affected sales one way or the other we’ll have to wait to find out.rn In the US, it was a much bigger thing, and Footwear News ran an article last week. Below are excerpts:
Retailers and brands across the board are seeing a rise in backlash for their LGBTQ-themed collections for Pride month this year. In the last few weeks, consumers have taken to social media to criticize retailers like Kohl’s and Target for selling LGBTQIA+ Pride Month clothes and products, including for children, with some calling for consumers to boycott the store entirely.
While elements of pushback during Pride is not new, overall sentiment regarding these campaigns this year are on the whole more negative than they were in 2022, according to RILA Global Consulting, a consumer sentiment monitoring firm that tracks more than 100 million websites and social media pages per day.
“The national discourse, and the political discourse around diversity, equity and inclusion, is also fueling some of the responses that companies are having,” explained Juliette Mayers, founder and CEO of DEI consulting firm Inspiration Zone. “What’s different now, I think, is that everyone is feeling like they’re under a microscope, because the country is so polarized.”
The strong reaction comes on the heels of similar uproar at other brands that have recently showcased campaigns featuring LGBTQ+ models and talent. In April, Bud Light’s and Nike women’s partnerships with transgender influencer Dylan Mulvaney ignited boycotts and a slew of transphobic comments directed at those brands as well, with right-wing critics taking issue with the brand’s promotion of Mulvaney, a transgender woman. This upset has persisted into through June. Just this week, Bud Light lost its top spot in the U.S. beer market, according to a Reuters report that cited data from consulting firm Bump Williams. Anheuser-Busch, which owns Bud Light, said in a statement that “Bud Light remains the #1 brand in the US nationally in volume and dollar sales” for the year. FN reached out to Nike for a comment.
Whereas most of the Pride negativity in 2022 centered around brands being seen as performative or inauthentic, the backlash this year is coming from people accusing brands of being overly woke and sexualizing kids, RILA found. As of June 5, there were more than 15,000 social media posts from consumers threatening to boycott brands, compared to about 400 similar posts in May and June of 2022, RILA found.