S&V Weekly Newsletter Vol.4 No.4, January 29, 2018
This Newsletter is sponsored by SAFLIA
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Bata SA to exit traditional retail, grow product offering
Pinetown (SA) – Bata SA has begun a "structured exit" from its 60-odd remaining bricks-and-mortar retail stores. At the same time, it will expand multi-channel and online retail.
Bata SA country manager John Harman, appointed at the beginning of last year, is concentrating on playing to the company's strengths as a local manufacturer. To reduce its dependence on its Toughees school shoes and Tomy canvas footwear, Bata SA has increased its product offering with the reintroduction of Bata global brands Bubblegummers, Power, Weinbrenner and old favourite North Star, which he said had been "well received" by retailers.
He said he was "focused on expanding the synergies that exist between Bata SA and our retail partners".
"Bata realises that retrenchments will be an inevitable consequence of the revised strategy, and as such, staff remain a priority in our negotiations," he said.
Chic shareholders throw in the towel
Cape Town (SA) – Chic Shoes' shareholders decided last Monday to place the company in voluntary liquidation - the same day we reported that turnaround practitioner JJ Oosthuysen was seeking creditor buy-in for a strategy to trade out of its situation.
The company will close on Wednesday (January 31).
"The company had multiple challenges and at the end it proved to be too much," he said. "Business model design is key to the success of any business, especially in the footwear and textiles sector where they face severe competition from low cost imports.
"Planning for an event or a business strategy implies a certain set of assumptions to be adopted. These assumptions include aspects such as payments to be collected by a certain date, bank balances to be at a certain level, suppliers to release components on credit etc. Once the word is out on the streets that a company is in trouble, everybody pulls back to contain their exposure and risk. These include stakeholders such as customers (supplier failure risk), suppliers (credit risk) and staff (salary risk) etc. Once this happens, everything planned falls flat and alternative plans need to be generated.
"The reasons for failure relate to the company’s chosen business model that did not deliver the desired profitable business results, meaning, the finance structure and high gearing, the management and governance model, the sales and product distribution model, unprofitable customer base, high input costs (materials and labour), exposure to foreign currency exchange rates, efficiencies on the factory floor, waste management etc all contributed to the failure of the business."
He said he expected liquidators to be appointed within 2 or 3 weeks.
Valmell in talks to buy Fanci-Form
Pinetown (SA) – Heel maker Valmell Components is negotiating with Fernand Vandenheede to buy last maker Fanci-Form. Both sides said any further comment was premature.
CLE India Leather & Footwear Trade Expo, CTICC, Cape Town: Airfares on offer
Cape Town (SA) – The Council for Leather Exports (CLE) India will host its annual trade expo on 21 & 22 February in Cape Town, and it is offering a complimentary economy class return airfare to out-of-town buyers, subject to approval and on a first come first served basis. If you are interested, contact the local show organiser on Tel: 021 790 5849 or Email: nthomas@worldonline.co.za for the criteria. The event will connect leading manufacturers from India with Southern African chain store buyers, independent retailers, importers, manufacturers, agents, distributors and other important industry decision makers. Entry is FREE but pre-registration is necessary. Here is the exhibitor list as it stands currently –
8V Shoes, Mumbai, www.8vshoes.com, Products: Leather sandals
AKI India Ltd., Kanpur, www.groupaki.com, Products: Saddlery Harnesses & Footwear
Aala Gloves, Chennai, www.aalagloves.com, Products: Leather, Leather Gloves and products
Alignz Exports Pvt. Ltd, Noida, www.alignzexports.com, Products: Leather Garments and PU Garments
Council for Leather Exports (CLE), www.leatherindia.org, Sponsored by Ministry of Commerce & Industry, Govt of India
Chowdhary Overseas Limited, Unnao, www.chowdharyoverseas.in, Products: Gents & Ladies Slippers, School Shoes, Sports Shoes, Safety Shoes
Creemos International Limited, Kanpur, Products: Leather belts, bags and small leather goods
D’Lords Exports (India), Mumbai, www.dlordsexports.com, Products: Men's Footwear
Deepak Impex (Wasan Group), Agra, Products: Men’s and ladies leather footwear
Discovery Leathers Pvt. Ltd, New Delhi, www.discoveryleather.com, Products: Men's & Ladies Leather Garments & Goods
Flourish Shoes, Kanpur, www.flourish.co.in, Products: Men, ladies and kids leather footwear and accessories
Guru Shoes Tech Pvt. Ltd, Agra, www.valentino.in, Products: Leather & Non Leather Footwear and Accessories for Men & Women
Halcyon Footwears Pvt. Ltd., Chennai, Products: Shoes & Shoe Uppers
Hanna SCM, Chennai, www.hannascm.com, Products: Men's Leather Shoes and Sandals
Hurera Leather Company, Ambur, Products: Finished leather and shoes
I.A. Leather (India) Pvt. Ltd., Kanpur, www.ialeather.com, Products: Leather footwear (ladies, kids and men's sandals, shoes & boots)
Indo Skins Garments Private Ltd, Chennai, www.indoskins.com, Products: Leather Garments, Finished Leather and Leather Goods
J L Collections Pvt Ltd, Mumbai, www.jlcollections.com, Products: Leather Wallets, Gift Sets, Fashion Bags, Travel Bags, Executive Men's Bags and Leather Jackets
Jute Wonders Unlimited, New Delhi, www.jutewonders.com, Products: Leather Sandals
Kailash Forme Creations Pvt. Ltd., Agra, Products: Shoe Lasts & Soles
Kay Shoe Incorporation, Agra, Products: Leather and Non Leather (Synthetic) Footwear
Klodennex, Kanpur, www.klodennex.com, Products: Small leather goods - belts, bags, wallets, etc
Mega Leathers, Ranipet, Products: Finished Cow Leather
N J Exports, Kolkata, www.njexportsindia.com, Products: Finished Leathers
Naaz Leather Finishers, Kanpur, www.naazexports.com, Products: Sandals and Shoes
Osman Shariff, Kolkata, Products: Travel goods, hand bags for ladies, wallets and purses
Pioneer Leather Corporation, Kolkata, www.pilcorp.in, Products: Men's & Ladies Wallets, Ladies Bags, Passport Holders, Key Cases, Other Small Leather Goods
Saktthi Footwear, Chennai, Products: Leather Shoe Uppers & Leather Hand Bags
Siddharth Footwear Exports Pvt. Ltd, Noida, Products: Men's & Ladies Leather Shoes and Boots
Stallion Animal Products, Kanpur, Products: Finished Leather, Industrial Shoe Uppers and Shoes
Super Footwear, Kanpur, Products: Leather Slippers and Sandals
Super Shoes Limited, Kanpur, www.supershoes.co.in, Products: Leather Footwear
Super Tannery Limited, Kanpur, www.supertannery.com, Products: Leather Shoes
Tannex International, Kolkata, www.tannexinternational.com, Products: Leather products - ladies bags, wallets, portfolios, rucksacks, handbags, belts, accessories, etc.
Torero Corporation Private Limited, Kolkata, www.torerocorp.com, Products: Leather Bags, Leather Wallets, Leather Belts, Luggage, Back-packs, Leather Key Rings and Accessories
Trendsetter, New Delhi, Products: Leather garments, bags, wallets
Usmani Tanners, Kanpur, Products: Leather Belts
Wallets Plus, Kolkata, www.walletsplus.net, Products: Handbags & Wallets
To attend, visit www.urexpo.com and complete the online registration form. Colleagues and business associates are welcome to attend but please note, this is a business exhibition and no persons under 18 will be admitted.
Name change
Cape Town (SA) – Resource Fashion Trading, the private label sourcing division of the Ares Group, will change its name to Bash (Pty) Ltd from the end of February. Former GM Chantel Schultz has been appointed MD.
Exchange rates
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 11/12/2017 |
R15.82 |
R17.99 |
R13.40 |
R2.03 |
| 05/01/2018 |
R14.86 |
R16.69 |
R12.33 |
R1.90 |
| 13/01/2018 |
R15.14 |
R17.03 |
R12.41 |
R1.92 |
| 22/01/2018 |
R14.76 |
R16.75 |
R12.08 |
R1.88 |
| 26/01/2018 |
R14.74 |
R16.79 |
R11.86 |
R1.87 |
Birthdays this week
29/01/1973: Nelesh Gulab, Shawney’s Shoes/Walk Tall, Johannesburg.
29/01/1983: Zubairr Sadak, Shoe Talk, Durban.
31/01/1961: Andy Williams, Agent, Cape Town.
31/01/1971: Ashley Benjamin, NULAW, Durban.
01/02/1934: Con Barnard, Stanhope Boot & Shoe, Pinetown.
01/02/19??: Elaine Smith, the DTI, Pretoria.
01/02/1969: Noeline Kemp, Knots, Bloemfontein.
02/02/1931: Gordon Singh, retired, formerly Monique Shoes, Pietermaritzburg.
02/02/1941: George Geyser, Dancewell, Durban.
02/02/1946: Chris Schroeder, retired, formerly PMC Group, Pinetown.
02/02/1965: Rod Oliveira, Rodrigo Shoes, Durban.
03/02/1963: Vusumzi Mabuto, NULAW, Port Elizabeth.
03/02/1965: Grant Daniel, Mendelson Frost, Johannesburg.
04/02/1947: David Buckingham, retired, formerly Royal Adhesives, Pinetown.
In Memoriam this week
29/01/1998: Peter Buglass, NPI, Durban.
31/01/2016: Rudi Geyser (b. 11/03/1937), EVA Industries, Durban.
03/02/1977: Ismail Adam Moosajee (b. 28/08/1927), Seltex, 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 14/12: Hides & skins prices
The average hide price over the past week was R11.53/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R35.50, and for Merino skins was R91.86.
| Hide & skin price progression |
| Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
| 19/01 |
15.34 |
45.56 |
81.38 |
| 24/01 |
15.17 |
40.92 |
89.52 |
| 31/01 |
15.10 |
46.00 |
94.55 |
| 14/02 |
14.65 |
47.33 |
95.29 |
| 15/03 |
14.25 |
39.30 |
78.75 |
| 24/03 |
14.13 |
45.27 |
94.45 |
| 28/03 |
14.07 |
45.27 |
94.45 |
| 04/04 |
14.83 |
41.92 |
87.58 |
| 11/04 |
14.68 |
41.92 |
84.12 |
| 19/04 |
14.77 |
43.85 |
92.32 |
| 25/04 |
14.75 |
41.25 |
92.27 |
| 04/05 |
14.79 |
43.33 |
92.69 |
| 10/05 |
14.75 |
40.50 |
88.41 |
| 16/05 |
14.58 |
40.83 |
90.96 |
| 31/05 |
14.62 |
40.50 |
87.95 |
| 09/06 |
14.58 |
41.82 |
96.35 |
| 23/06 |
14.40 |
40.42 |
101.25 |
| 29/06 |
14.30 |
41.36 |
98.44 |
| 07/07 |
14.33 |
43.33 |
100.94 |
| 13/07 |
14.37 |
44.44 |
114.58 |
| 28/07 |
14.14 |
43.64 |
97.50 |
| 04/08 |
14.16 |
43.69 |
99.64 |
| 14/08 |
14.08 |
38.99 |
92.75 |
| 18/08 |
13.70 |
43.18 |
98.96 |
| 25/08 |
13.93 |
43.75 |
100.96 |
| 01/09 |
13.14 |
44.09 |
101.25 |
| 08/09 |
12.88 |
41.82 |
100.83 |
| 21/09 |
12.64 |
|
|
| 03/10 |
12.50 |
|
|
| 11/10 |
12.52 |
|
|
| 20/10 |
12.23 |
39.30 |
110.23 |
| 27/10 |
12.12 |
37.30 |
94.32 |
| 02/11 |
12.19 |
|
|
| 10/11 |
12.24 |
37.00 |
101.75 |
| 30/11 |
11.82 |
32.56 |
94.25 |
| 07/12 |
11.76 |
35.50 |
92.50 |
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
Agents needed for women's leather comfort range
N.R. Footwear is looking for well connected and reputable shoe agents to cover the Western Cape, Nambia, KZN, Lesotho and Swaziland.
We manufacture genuine leather soft calf footwear with comfort insoles.
Our production capacity at the moment is 100 pairs per day.
The agent needs to work with us in the development and styling of our footwear. In turn we offer a competitive agent's commission and discounts for customer.
Our brand name is Carlo Bettinii. We are also introducing a new range of shoes under a different brand name.
The factory has been established for some 20 years.
Please send relevant information to Berrick Salmond email address dr.raeshoes@global.co.za or dr.raeshoes@gmail.com.
Manufacturing expertise on offer
Paul Sirilli, formerly of Sirilli Shoes, is looking to get back into the footwear industry – in production, procurement or retail quality assurance, anywhere in KZN. He will accept a supervisory or management position. He has 34 years of hands-on manufacturing experience in men’s, ladies’ and kiddies’ footwear. Completely familiar with Moccasin, Brogue and Derby styles in shoes and fashion, outdoor and military styles in boots, mostly in leather. Also a working knowledge of stuck-on, lock-stitch and side-stitch techniques, soling compounds. - Contact 083 961 1759, sirillip@gmail.com.
Needed: A footwear mentor for a new brand owner
I am looking for a business mentor in the shoe industry. I have just started a shoe brand and I would like mentorship in any and all parts of the shoe business. I have used business mentors before, but I find if they do not know much about the shoe industry, and it can sometimes feel like a waste of time.
I am willing to pay for the mentorship, even if it's a Skype call or a meeting once a month. I am also willing to work for the mentorship if required.
Yiota Christoforou +27 (0)72 455 8600, pchristoforou1@gmail.com
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: February 5, 2018.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
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