S&V Weekly Newsletter Vol.3 No.14, April 10, 2017

This Newsletter is sponsored by SAFLIA

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Teens peg Nike as favorite apparel brand, Under Armour loses relevance

U.S.A. trends
by Tara Donaldson Posted on April 11, 2017 in Retail, Retail Monitor
When teens do decide to use their money for clothing, there are only a few brands they’re really keen to spend with.
        Teens are already spending less money in general, and their parents are giving them less to spend too, according to Piper Jaffray’s 33rd semi-annual “Taking Stock With Teens” survey. When they do dish out some of those dollars, 24 percent goes to food, compared to 19 percent for clothing.
        “While the overall spending environment has been challenging, we are seeing teen spending continue to shift more toward experiences—eating out, video games and leisure,” Piper Jaffray senior research analyst Erinn Murphy said. “Share of fashion spending has moderated but we continue to see undisputed strength in athletic—Nike remains the No. 1 preferred brand and Adidas was the fast-growing brand in our survey.”
        Nike accounts for 31 percent of teens’ spending on footwear and apparel, up from 21 percent last year as the athletic trend shows no signs of slowing down—41 percent of teens picked an athletic brand as their preferred apparel brand, up from a much lower 26 percent last year.
        Teens’ top five favorite clothing brands are: Nike, American Eagle, Forever 21, Lululemon, and Adidas and H&M tied for fifth. Nike also topped the list of favored footwear brands, followed not at all closely by Vans, Adidas, Converse and Steve Madden. For top shopping websites, Amazon, Nike, American Eagle, Forever 21 and eBay ranked the highest. Amazon is by far teens’ favorite website, taking up 43 percent of their share of spend.
        Other brands, however, like Under Armour, Michael Kors, The North Face, Ralph Lauren and Vineyard Vines, are losing relevance with the youth.
Teen spending is down 2.4 percent year over year, and the parent contribution to that is down from an average 68 percent to 63 percent, according to the survey, which looked at 5,500 teens in 43 U.S. states with an average age of 16.
        When it comes to social media, which increasingly influences spending decisions, 39 percent of teens prefer Snapchat, followed by Instagram with 23 percent and Twitter and Facebook both with 11 percent. Pinterest is almost entirely irrelevant among teens, with just 1 percent noting it as their preferred platform. – [http://sourcingjournalonline.com/]

US chain Payless files for bankruptcy

St Louis, Missouri (USA) – Discount footwear chain Payless filed for Chapter 11 protection on April 7, according to reports, which said about 400 of its 4 000 stores would be closed in an effort to restructure and reduce its debt. Payless bought the rights to the Payless brand from local retailer Dened a number of years ago. It now trades as Shoeperama and Vogue.

Directory Update

Natal Saddlery – emails have changed to: accounts@natalsaddlery.co.za and any queries to Shongweni@natalsaddlery.co.za

Milestone

Paarl (SA) – Genuine Connection Promotions founder and CEO Lionel Gericke died on April 4, aged 47, of complications following surgery.

Appeal to tanneries and others in the leather industry

From Quintin Marais, president, SLTC Southern African Section         On behalf of the Southern Africa SLTC, we are pleased to invite your corporation to our yearly SLTC conference that will take place on the 26 to 28 May 2017.
        The conference is held yearly to present all aspects that influence the leather industry and offer a networking environment between tanneries and suppliers. This year we have secured papers from first-time speakers Prof Gerrie Swan of the Exotic Leather Cluster and David Ford of the SA Feedlot Association. We also have a paper by the president of the UK SLTC – and old friend of the Southern African leather industry - Steve Trantum, and we have papers by overseas speakers from chemical houses. We are also securing a speaker from a leading tannery machinery manufacturer.
        We would be delighted if you, or any of your management or technicians, can join us during this event.
        The event will be held at La Wiida Lodge, 183 Hennopsriver, R511, Hennopsriver Valley, Pretoria, 0026.
        Please contact our secretary, Nicky Phipps, for details. – [nphipps@telkomsa.net]

They Said It

"Please confirm if you all will be staying both nights and if your wives, girlfriend, lady of the week-end will be joining you and please can I have their names." - SLTC secretary Nicky Phipps to members ahead of the convention in May. It’s always a very pleasant event, but not as, um, lively as Nicky’s query suggests. What am I saying? We want more tanners to attend – so yes, it’s VERY lively.

Birthdays this week

10/04/1948: Gert Muller, Sonop, Bethlehem.
10/04/1958: Ismail Shah, Evoné, Pietermaritzburg.
11/04/1957: Isak Jacob Viljoen, Health Shoes & Accessories Centre, Nelspruit.
11/04/1966: Melanie Rothman, BBF Safety Group, Pinetown.
11/04/1976: Janine Govender, Nikkita Footwear, Durban.
12/04/1922: Harry Hoyte, retired, formerly Hoyte Shoes/agent, Durban.
13/04/1970: Jason Wilkins, agent/retailer, Johannesburg.
13/04/1976: Gareth Kemp, Apollo Brands, Cape Town.
14/04/1946: Pierre Lailvaux, formerly Service Agencies [closed], Durban.
15/04/1971: Jacques Ergas, Red Planet Shoes, Cape Town.

In Memoriam this week

13/04/2014: Theuns JK Viljoen (b. 25/12/1942), Divac, George.
14/04/2015: Neville Horwitz (b. 25/11/1932), agent, Johannesburg.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

ABSA Agri Trends 04/04: Hides & skins prices

The average bovine hide price over the past week was R14.83/kg green. Hide prices are determined by the average of RMAA and independent companies. “The recent strength of the currency and pressure from the demand side has been adding pressure on prices. There may also be stocks still sitting from December, which further add pressure on prices.”
        The average price for Dorper skins was R41.92/skin and Merino was R87.58/skin.

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

Classified Adverts

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: April 17, 2017.

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