Industry News
South African & East African Footwear and Leather Goods, Leather and PPE industry news.
Importing: Exchange rate volatility the main problem
Cape Town, W. Cape, SA - Sales are “pretty much on a par with last year”, Elan-Polo SA MD Stuart Worrall said, “but they’re still down by comparison with pre-covid.”
Freight rates have decreased substantially compared to late 2022, and space was available, but the exchange rate depreciation is a huge factor as always. “The problem is the volatility,” he said. “A few days ago, I was buying forward cover at R17.70, now it’s R18.70, and who knows what it will be tomorrow.”
Elan-Polo SA focuses mainly on casual footwear supplying various SA retailers. “We’re not trying to be everything to everyone,” he said. “We’re known for casual footwear, and we’re not compromising on quality to get into a price point. We believe this is crucial to our longevity.”
Manufacturing: Bolton Footwear: Sales on par with last year
Cape Town, W. Cape, SA - In general, our sales are on par with last year for the same period (January to July). We are, however, in a much better position when it comes to stock availability to service our customers in full and on time.
It is very difficult to determine regional sales as chain stores count for more than 50% of our business and we deliver to their central distribution.
The retailers buy differently since Covid and focus more on commercial footwear than fashion. Grasshoppers is still our top performing brand with a growth on last year. Our Grasshoppers styles offer best quality and comfort to the service and school industry.
Currently we not focussing on export but rather ensuring we service the local market with quality leather footwear.
Retailing: Sole Base: Online has shown growth, but it’s not easy
Durban, KZN, SA – It’s a been a terrible 3 months, to be frank.
You can’t influence things like load shedding, so you have to look to yourself, to offer the right merchandise at a price consumers are willing to pay in a price-sensitive market.
We’ve been selling online now for 3 years. It’s a very tough market, and you must throw a lot of money at it. Most of the online customers are from outside Durban, and mostly outside KZN. We’ve been showing growth, but it’s been a heck of a few years.
Also, the range of merchandise hasn’t been exciting, and winter is never exciting. Can’t wait for summer, which is a long season for us. Hopefully summer will pick up.
Can’t day I’ve heard anyone say things are flying.
Global: Richemont buys top Italian shoe factory
Cape Town, W. Cape, SA – Richemont, the SIX Swiss Exchange- and Johannesburg Stock Exchange-listed luxury goods group, has bought a controlling stake in Milan-based men’s and women’s footwear manufacturer Gianvito Rossi, according to a release on Friday:
Gianvito Rossi, Founder, CEO and Creative Director of the eponymous brand, will retain a stake in the company and continue to nurture and develop the Maison in partnership with Richemont.
Philippe Fortunato, CEO of Richemont’s Fashion & Accessories Maisons, said:
“Gianvito Rossi is an exceptional Maison with unique savoir-faire in the world of shoemaking. Its core attributes of uncompromising quality, elegance and timelessness are perfectly aligned with Richemont’s values.”
The transaction has no material financial impact on Richemont’s consolidated net assets or operating result for the year ending 31 March 2024. The performance of Gianvito Rossi will be reported under the ‘Other’ business area, which is mostly composed of the Fashion & Accessories Maisons. Completion remains subject to certain customary conditions and regulatory approvals.
Export: SA manufacturers ‘have the wrong attitude’
Most would-be South African exporters are uncompetitive. So says an export facilitator who has specialised in taking advantage of AGOA in several African states.
He works across multiple industries, including fresh produce and clothing, and has been involved in footwear before.
He said Chinese- and Taiwanese-owned factories in Lesotho, Kenya and Madagascar were far more competitive and productive, “and they should be an example to SA factories”.
He said SA manufacturers too often had very short-term views, were “out to make a quick buck”, and expected profit margins that were much higher than competitors in the other African states.
“Generally, the Chinese-owned manufacturers are hungrier for business and creative in overcoming hurdles. Infrastructure problems? Outside the factories in Lesotho, there’s nothing. Inside, it’s like walking into a different world. Power problems? They have generators. Any other problems? They find a way.
“They have willing and productive labour forces operating under strict management disciplines to achieve standards set down.
“SA should be cleaning up with the exchange rate and not always blame the authorities, load shedding, etc. The labour force in SA is apathetic and looking for handouts. The Western Cape Government is trying to resurrect the CMT factories to make for foreign brands, but they’re uncompetitive and they haven’t invested to keep themselves up to date.”
He does highly rate one industry in the Western Cape: yacht building.
“To be an exporter, you need to hands-on, you need to micro-manage input costs, and you must aim to make the best.”